Federal financing is helping pay for ferries being built in China while Ottawa presses steel companies to protect Canadian jobs, highlighting competing priorities in public purchasing and industrial policy.

The Canada Infrastructure Bank has committed up to $1 billion to BC Ferries’ fleet renewal and electrification project, including up to $690 million toward vessels ordered from a Chinese shipyard.

The financing predates the latest layoffs announced by Stelco. Prime Minister Mark Carney said Sept. 29 that Ottawa would use its powers to enforce employment commitments made by the steelmaker’s American owner, Cleveland-Cliffs, when it acquired the company.

BC Ferries, Marine Atlantic and British Columbia’s Pattullo Bridge replacement illustrate how Canadian public services and infrastructure have relied on Chinese shipbuilding or steel fabrication under different purchasing arrangements.

BC Ferries announced in June 2025 that China Merchants Industry Weihai Shipyards would build four major passenger and vehicle ferries, with deliveries scheduled between 2029 and 2031.

The Infrastructure Bank’s credit agreement was finalized March 28, 2025. Alongside the vessel financing, it provides up to $310 million for electrification infrastructure. Federal records show an initial $133 million was disbursed to BC Ferries on May 22, 2025.

The money is a loan to BC Ferries. The $1-billion figure covers vessels and infrastructure, rather than a stand-alone steel contract or a direct grant to China.

BC Ferries says no Canadian shipyards submitted bids. Federal briefing documents acknowledge Ottawa’s disappointment with the shipyard selection and state that procurement decisions were made independently by the ferry operator.

A separate federal connection involves Marine Atlantic, the Crown corporation providing ferry service between Newfoundland and Labrador and Nova Scotia.

Marine Atlantic took delivery of the Ala’suinu on Feb. 7, 2024. Its fleet records identify the builder as China Merchants Jinling Shipyard in Weihai, China.

The vessel was obtained through a five-year charter arrangement with Stena RoRo, with an option to purchase afterward. Marine Atlantic’s delivery announcement credited federal investment with making the addition possible. The arrangement brought a Chinese-built vessel into a federally supported service through a charter rather than a direct shipbuilding contract with the Chinese yard.

In British Columbia, the Pattullo Bridge replacement provides an example involving structural steel fabrication.

A Canadian Welding Bureau site report dated July 4, 2025, identifies China Railway Shanhaiguan Bridge Group Co. Ltd. in connection with prefabricated steel bridge segments. Fraser Crossing Constructors is listed as the general contractor.

The bridge replacement is a provincial project. Its Chinese fabrication work should therefore be distinguished from federal purchasing and the federally financed ferry arrangements.

Ottawa introduced stronger domestic purchasing requirements on Dec. 16, 2025. Its Canadian-materials policy requires Canadian steel in covered federal construction and defence procurements worth at least $25 million when the steel requirement reaches $250,000.

The policy permits minister-approved exceptions, including insufficient Canadian supply or an overall cost increase of at least 25 per cent from using Canadian materials.

It also excludes solicitations published and contracts awarded before the policy took effect, leaving earlier purchasing decisions outside those requirements.