‘Funding the Communist Army’: Why This BC MLA Is Asking for BC Ferries’ Deal to Be Canceled With Chinese Shipyard

B.C. Conservative MLA and transportation critic Harman Bhangu is urging the province to cancel BC Ferries’ deal with a Chinese shipyard, citing national security concerns and the advancement of Beijing’s interests. He says the vessels could be built in Canada on a similar timeline while safeguarding the province’s sovereignty.

Bhangu says having a Chinese state-owned shipyard build four new vessels for BC Ferries involves security and moral issues, including possible data collection, potential use of forced labour, and Beijing’s record of interfering in Canada’s democracy. He says the province should seek to rescind the deal, and work with domestic firms to build the vessels in Canada.

“We are funding their state-owned shipyard that is directly related to the People’s Liberation Army–we are literally funding the communist army,” Bhangu told The Epoch Times in an interview.

“With a lot of the technology that will be on the vessels, the hard drives and everything, who gets to keep that data? That is a huge concern.”

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Members of the People's Liberation Army Band leave after the opening of the National People's Congress at the Great Hall of the People on in Beijing on March 5, 2024. Kevin Frayer/Getty Images

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MLA Bhangu says that through BC Ferries deal with the Chinese shipyard, Canada would be funding Beijing’s hostile activities, including foreign interference and its takeover of Taiwan.

“We need to really ask ourselves hard questions,” he said.

“Should we be sending money to a hostile government that looks to overtake countries and meddle in people’s democracy by intervening in their elections? Because they continuously try to undermine our democracy.”

China has been identified as “the most active perpetrator of foreign interference targeting Canada’s democratic institutions,” according to the Foreign Interference Commission’s final report published earlier this year.

Cheap Labour

Bhangu says BC Ferries’ deal also involves moral issues, including Beijing’s potential use of forced labour, which often affects ethnic minorities, dissidents, and political prisoners.

The China Merchants Group says it is committed to the elimination of child and forced labour and that it abides by international labour laws and practices. Meanwhile, the company “actively participates” in the Belt and Road Initiative, Beijing’s global infrastructure investment and lending program, which has been mired in controversy over its use of forced labour.

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A woman sits near a billboard advertising China's Belt and Road Initiative in Sihanoukville, Cambodia, on July 1, 2024. Valeria Mongelli/Getty Images

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“They use slave labour over there,” Bhangu said, referring to China. “We actually are against slave labour–we are for human rights, and we can really produce some good-paying jobs right here at home.”

Cheap labour and subsidized materials are among the advantages many Chinese state-owned companies leverage to gain economic dominance in certain industries, according to a 2024 U.S. government report on Beijing’s strategic investments in the U.S. maritime industry.

Bhangu says that BC Ferries’ choice of the Chinese shipyard based on factors such as affordability sends the message to British Columbian workers that “you are too expensive.” No Canadian company bid for the BC Ferries contract, with B.C. shipyard Seaspan citing the difficulty of competing with countries that have lower industry standards.

“If we are just going to outsource everything that is cheaper to do everywhere else, where does it stop?” Bhangu said.

“That is a huge concern of mine, and if we don’t have good-paying jobs right here in British Columbia, there will be no need for the youth to stick around ... they won’t be able to have a family and buy a home and build a life for themselves right here in British Columbia.”

Building the Vessels in Canada

Bhangu says that if BC Ferries’ deal is cancelled, there are ways to build those vessels in Canada.

He says Seaspan has told him it could start building vessels in late 2028 or 2029 once its schedule clears up, and that it could deliver them by around 2032. BC Ferries says it expects the new vessels built by the Chinese shipyard to be in service between 2029 and 2031.

“It would be delayed a little bit, but the thing is, we are keeping that money in British Columbia; we are providing good-paying jobs in British Columbia as well,” Bhangu said.

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Workers are seen on a lift beside the new Royal Canadian Navy Joint Support vessel before a launch and naming ceremony at Seaspan Shipyards in North Vancouver on Dec. 13, 2024. Darryl Dyck/The Canadian Press

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The Epoch Times asked Seaspan about its capacity to take on the project, but the company did not comment directly on when work could begin or provide estimated delivery timelines. It noted it is currently building ships for the Royal Canadian Navy and the Canadian Coast Guard, and that it hopes its ability for large, complex shipbuilding can be used for future BC Ferries vessels.

“We acknowledge the need for BC Ferries to get some of these replacement vessels very fast given their aging fleet,” Dave Hargreaves, Seaspan’s senior vice president for strategy, business development and communications, said in a statement.

He added the company hopes the B.C. government “will work with our BC industry team to develop a strategy” to build some of the vessels in the province in the future.

Bhangu suggests that if timelines become a concern, another option could be to start construction at another Canadian shipyard and transfer the work to Seaspan once it is ready.

Challenges to Domestic Industries

Bhangu says one reason no Canadian firm participated in the contract is the industrial carbon tax. He suggested the province could have improved competitiveness by offering grants to offset the tax or by incentivizing firms to expand their workforce.

“The big reason why a lot of shipyards didn’t bid on this is they know they are up against the industrial carbon tax when all their other competitors do not pay industrial carbon tax,” he said.

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A worker uses an angle grinder on a vessel under construction at a shipyard in North Vancouver on Oct. 10, 2024. Darryl Dyck/The Canadian Press

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While the federal government has removed the consumer carbon tax as of this year, it has maintained the industrial carbon tax, saying “big polluters” need to pay. In lockstep with the federal government, B.C. also removed its consumer carbon tax, but kept the industrial portion, saying “B.C will continue to ensure big industrial emitters pay their fair share through the output-based carbon pricing system.”

Conservative MP and transportation critic Dan Albas made a similar point as Bhangu, saying on June 10 that “there will be no industrial carbon tax on the Chinese steel used to construct these ferries.”

Bhangu says these regulations make it difficult to compete with countries with lower standards. He added he has heard similar concerns from shipyards elsewhere in Canada who wanted to bid for BC Ferries contracts but decided not to do so.

“The sentiment I’m hearing is, they didn’t want to entertain it because they didn’t feel there was any chance of them securing the contract,” he said.

The Liberals say the industry “has an obligation to decrease their emissions as rapidly and efficiently as possible.”

Partnering With US, Reducing China Ties

Bhangu says that if securing a deal with a Canadian shipyard is not feasible, BC Ferries could look for proponents south of the border.

He says that despite ongoing trade tensions with the United States, it would be preferable to do business with Canada’s “biggest and longest standing ally” than with a communist regime that looks to undermine Canada’s democracy.

The federal Liberals have also opposed the BC Ferries deal, with the parliamentary secretary for the transport minister, MP Mike Kelloway, saying that if the procurement decision had been in the federal government’s hands, it would have prioritized Canadian companies. He noted BC Ferries’ project fell under provincial procurement standards.

Transport Minister Chrystia Freeland has expressed “great consternation and disappointment” over the selection of the Chinese shipyard, pointing to tariff tensions, national security risks, and the need to prioritize Canadian firms.

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Chrystia Freeland speaks at a news conference on Oct. 8, 2024. The Canadian Press/Justin Tang

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She asked her B.C. counterpart in a June 16 letter to outline the steps BC Ferries will take to mitigate threats to national security, and to ensure that “no federal funding will be diverted to support the acquisition of these new ferries.”

Meanwhile, the Canada Infrastructure Bank announced late last month it is providing a $1 billion loan to BC Ferries for the purchase of the new vessels, a decision that intensified the debate around the deal, prompting a study into the funding by the federal transport committee earlier this week.

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The Conservatives have urged Ottawa to cancel the bank’s $1 billion loan, saying that Canadian dollars should support domestic industries rather than a foreign, state-owned enterprise.

B.C. Premier David Eby has said that while the choice of the Chinese shipyard was not his preferred outcome, he will not ask BC Ferries to reopen the procurement process, given the urgent need for new vessels and the time and costs involved. He said his government will  work to ensure the next round of vessels is built in Canada.

Conservative Leader Pierre Poilievre has said that if the vessels cannot be built in Canada, the country should partner with democratic allies who may be willing to return some of the economic benefits to British Columbians and Canadians.

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