The Canada Pension Plan Investment Board (CPPIB) considers China a good investment option, even though there are concerns about human rights violations in the country.. Canada Pension Plan Investment Board logo .“We are exceedingly, exceedingly cautious,” said Michel Leduc, senior managing director with the CPPIB..“As a long-term investor, we actively engage and influence companies with human rights as a longstanding focus area,” said Leduc..“If that fails, we will exit or avoid making an investment in the first place. All these processes apply to our investments in China. We recognize any investment in China needs to be handled with care.”.Testifying at the Commons Special committee on Canada-China Relations, Leduc said Chinese companies paid attractive dividends..“Exposing the fund to Chinese markets gives us access to one of the world’s largest and fastest-growing economies,” said Leduc..“Yes, we do absolutely understand there are very significant risks, particularly in the face of important social issues and evolving geopolitical risks,” said Leduc..“We aim to always conduct ourselves as principled and prudent investors with a view to acting in the best interests of contributors and beneficiaries.”.According to Blacklock’s Reporter, the CPPIB has $539 billion under management. China accounts for 10% of investments..“We are invested in the United States about 35% and we’re invested in Canada about 14%,” said Leduc..“Human rights are increasingly an investment consideration,” said Leduc..“It is how we see the world. We strongly believe any business, any asset, any company that does not take human rights seriously will just not be around, so it is a destruction in value.”.Records show the CPPIB owns millions in shares in Chinese firms, including $4 million in Longi Green Energy Technology Company Limited, the world’s largest manufacturer of solar panels..US Customs in 2021 intercepted Longi shipments on suspicions subcontractors used Uyghur Muslim slave labour..Longi Green was also named in a 2021 research paper on slave labour by the UK’s Sheffield Hallam University..“Longi is a customer of many of the polysilicon companies that are engaged in labour transfers in the Uyghur region,” said the report In Broad Daylight: Uyghur Forced Labour and Global Solar Supply Chains..Liberal MP Rob Oliphant (Don Valley West, ON) described China investments as a fact of life..“I don’t think you are in the morals business,” said Oliphant..“I think you should be investing our money, clearly.”.CPPIB investments include $259 million in China Gas Holdings Ltd., a natural gas distributor, $75 million in the state-run China Construction Bank and $37 million in the Bank of China..“China often moves in ways uncorrelated to developed markets, thus adding balance to our portfolio,” said Leduc.
