AbstractThis article examines the evolving debate over takeover bids by foreign state-owned and influenced enterprises (SOEs) in the context of CNOOC's successful 2012 acquisition of Nexen Inc., historical debates over foreign investment in Canada and the ongoing adaptation of Canadian trade and investment policies to global shifts in economic activity and power. It views SOE-related policy changes as responses to four broad factors: Canada's adaptation to changing global investment patterns as a small, open economy, efforts to diversify Canada's trade and investment relations while balancing domestic regional and sectoral interests, the extension of trade-related principles of reciprocity to investment policies and competition among governmental and economic interests in the allocation of discretion in corporate governance and related regulatory policies.
