Entering the China Market

Le Québec face au géant ChinoisHEC Montréal

Robert Y. KwaukBlake, Cassels & Graydon LLP, Beijing Office

March 17, 2006, Montreal

Topics

A. The Blakes Story

B. Competition

C. Human Resources

D. Regulatory Environment

E. Corruption

F. Transparency

G. Mismatched Expectations

H. Outlook

The Blakes Story

1. Timing

2. Competition

3. Our Response

4. Eight Years Later

Competition

1. International

2. Home-grown

3. Cut throat?

Human Resources

• General

• Mobility

• Human Assets, IPR

• Motivation

• Our responses

Regulatory Environment

• Level playing field - Not

• Different regulations; different treatment

• Accept the reality & move on

Corruption

• Sensitivity• General & Specific• Our Response

Transparency

1. Culture

2. Regulatory

3. Perseverance & Stamina

Mismatched Expectations

• Beyond “same pillow-different dream”

• China’s expectations & welcome

• Foreign Investors’ expectations & promises

• The (Chinese) empire strikes back

Outlook

1. General

2. Learn to be a good road team

3. Evolving role of partners & intermediaries

4. Market & Regulatory Reform

5. Long term commitment

Thank youMerci

谢谢Robert Y. Kwauk

Blake, Cassels & Graydon LLP, Beijing OfficeBob.kwauk@blakes.com.cn

(86-10-6530-9001)