The blocking of the BHP Billiton bid for Potash Corp. in November 2010 shocked the global investment community. The saga involved as much politics as it involved economics, this was further accentuated by the possible involvement of a Chinese state-owned enterprise. This raised questions about the challenges and potential impacts of Chinese state investments in Canada. As Canada continues to attract large investments from China, the need to better prepare for potentially controversial acquisitions by state-owned and other enterprises is rising. Several lessons can be drawn from the Potash saga, most critically, is the need to review and improve the foreign investment review process under the Investment Canada Act to avoid undue politicization and reduce uncertainty. It is crucial to maintain open channels of dialogue to ensure policy decisions are transparent, predictable and clearly communicated to Chinese companies looking to invest in Canada, as well as the Canadian public. Furthermore, by addressing state ownership, Canada can also contribute to the elaboration of standards of best practices for state-owned enterprises worldwide.