The Canada China Business Council Magazine 2010 | Summer ...€¦ · Brisbane, Australia +61 7 3834...

44
The Canada China Business Council Magazine 2010 | Summer Print Edition

Transcript of The Canada China Business Council Magazine 2010 | Summer ...€¦ · Brisbane, Australia +61 7 3834...

Page 1: The Canada China Business Council Magazine 2010 | Summer ...€¦ · Brisbane, Australia +61 7 3834 7777 Toronto, Canada +1 905 855 7600. ... Western Canada, Beijing, and Shanghai

T h e C a n a d a C h i n a B u s i n e s s C o u n c i l M a g a z i n e 2 0 1 0 | S u m m e r P r i n t E d i t i o n

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STRONG RELIABLE TRUSTWORTHY FORWARD-THINKING

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11826.CdaChinaBusiness.ad.5_Layout 1 08/06/10 3:27 PM Page 1

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Hatch is a leading global consulting engineering and project management company serving the mining, minerals, metallurgical, energy, power and infrastructure sectors.

Hatch and its 8,000 employees manage programs and projects that exceed $40 billion in capital value around the world.

In the PRC we have more than 20 years of project experience and have completed 250 assignments for clients in PRC.

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公司,服务于采矿、矿产、冶金、能源、电力和

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在中国,我们拥有20多年的项目经验,为中国客

户完成了250项任务。

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The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion4

Editorial BoardISSN 1205-9951Executive Editor Sarah KutulakosEditors Victor Hayes, Travis Joernadvertising Sales Tony Gostlingdesign and Production K9Design Company

ContriButorSRt. Hon. Jean ChretienRt. Hon. Paul MartinRt. Hon. Brian MulroneyPeter KruytV. Peter HarderSarah KutulakosPitman PotterGregory SheaJessica WilczakTravis Joern

Canada China BuSinESS Forum™The Canada China Business Forum is a trademark of the Canada China Business Council. It is produced through the collective efforts of staff of the Toronto, Western Canada, Beijing, and Shanghai offices. Reader sugges-tions and contributions are welcome. For more informa-tion, please contact the Editor. The print edition of the Canada China Business Forum is published once or twice a year.

diStriButionThe Canada China Business Forum is distributed to CCBC members and affiliates in Canada and China (CEOs and senior executives of the largest companies in Canada and China, as well as the growing ranks of small and medium-sized business entrepreneurs; Canadian govern-ment posts in China and agencies in Canada (high-rank officials and commercial officers); Chinese Embassy and Consulates in Canada (all departments); Chinese delegations visiting Canada (government and sectoral); major ministries and foreign trade enterprises in China (Leaders/officials/end-users); academic libraries (admin-istrators/faculty/students); CCBC non-members.

advErtiSingAdvertise in the Canada China Business Forum and reach key Canadians exporting to and doing business in China and Chinese investing in Canada.

As anyone active in the China market knows, competi-tion is strong and a solid relationship is essential. Your name has to be there, out in front and around every turn. What better way to secure your market share than to advertise in the Canada China Business Forum, the only Canadian publication for Canadians doing business in China. Features by CCBC experts and well-known commen-tators on doing business in China, and stories on policy, trade and investment appear regularly. Editorial content reinforces messages of Canadian commitment - by both government and industry - and technological leadership.

c o n t E n t S

4018

6 the canada china Business council

8 chair’s Message

10 President's Message

12 Executive Director’s Update

14 Letters of congratulations Learning from Canada’s most successful businesses in China

18 canada-china 2010 Celebrating 40 Years of Relationship

22 canada, china and trade The promise of partnership

30 the canada-china relationship 40 years of history and an unparalled promise for the future

34 canada china relations at 40 A time to build

36 negotiating in china Practical Approaches and Local Contexts

40 Indigenous Innovation: China's drive to be an 'innovation society'

42 canada centre in Shanghai

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“中国最佳新型投资银行”(2008和2009年投中集团评选排名)

l 总交易额60多亿加元并购(包括买方和卖方交易)、合资、私募融资

More than $6 billion in cross-border M&A, joint ventures and private placements since 2009

l 40多宗中国公司主板的IPO和增发交易、战略顾问

Strategic advisory for more than 40 IPOs and follow-on offerings for Chinese companies

l 通过管理的人民币和美元的私募股权投资基金进行直接投资

Direct Investment via USD and RMB private equity funds

l 行业专注: 自然资源、医疗健康、教育、媒体和技术、清洁技术、先进制造业,现代农业等

Sector focus: Natural Resources, Healthcare, Education, Media & Technology,

Cleantech, Global Industries, Agriculture

贝祥投资集团邮箱/Email: [email protected]

电话/Tel: (8610) 8451-5559

www.ballochgroup.com

“China’s #1 Boutique Investment Bank” (In 2008 and 2009, as ranked by ChinaVenture)

北京Beijing

纽约New York

上海Shanghai

武汉Wuhan

杭州Hangzhou

温哥华Vancouver

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The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion6

Ala AlizadehHoward BallochPhil CalvertMargaret CornishRonald DenomDavid FungWarren GilmanPeter HarderGeorge HaynalMarvin HoughCindy Jensen

Constantine Karayannopoulos

Murray King

Michael Kraft

Peter Kruyt

Sarah Kutulakos

Bob Kwauk

Michele Kwok

Michael Landry

Michel Leduc

Lei Li

Michael Ma

Connie MakPeter MendellZengXin MIPitman B. PotterDouglas RobertsonGreg SheaA. Neil TaitCyndee Todgham CherniakIan TooneChris Twigge-Molecey

toronto (hEad oFFiCE)Suite 1501, 330 Bay Street Toronto, Ontario, Canada M5H 2S8Telephone: +1 (416) 954-3800Fax: +1 (416) 954-3806E-mail: [email protected]

vanCouvErSuite 600, 890 West Pender Street Vancouver, BC, Canada V6C 1J9 Telephone: +1 (604) 681-8838Fax: +1 (604) 681-8831 E-mail: [email protected]

BEijingSuite 11A16, Tower A, Hanwei Plaza No.7 Guanghua Road, Chaoyang Distict Beijing, 100004, P.R.China Telephone: (86 10) 8526-1820/21/22 Fax: (86 10) 6512-6120/(86 10) 6512-6125 E-mail: [email protected]

ShanghaiUnit 10A43, 10FNo. 2299 Yan'an Road (West) Shanghai, 200336, P.R.ChinaTelephone: (86 21) 6236-6370/71/72 Fax: (86 21) 6236-6369 E-mail: [email protected]

ccBc offIcES

thE Canada China BuSinESS CounCil The Canada China Business Council (www.ccbc.com) is the voice of Sino-Canadian trade and investment in Canada and China. Founded in 1978 the Council, a private, not-for-profit organization, is a catalyst, facilitator and advocate for enhanced Canada-China trade and investment.

mandatE For 30 years CCBC has provided unparalleled insight into Sino/Canadian trade and investment issues and has developed connections that ensure its members business success. Founded to stimulate and support Canada/China trade in goods and services, invest-ment and technology transfer, CCBC ensures greater economic growth for Canada and better relationships between Canada and China. As well as providing focused and practical service, the Council is the voice of the Canadian business community on issues affecting Sino/Canadian trade and investment.

mEmBErShiP CCBC membership includes Canadian companies and organizations that are active or interested in the China market and a growing number of Chinese companies interested in trade with and investment in Canada. Members represent sectors ranging from agri-food, energy and manufacturing to business, legal and financial services, education and health care.

canaDa chIna BUSInESS coUncIL

BoarD of DIrEctorSChairman Emeritus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Desmarais Sr.honorary Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . André DesmaraisChairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Peter Kruytvice Chairmen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Howard Balloch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . David Fung . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Neil TaitPresident . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Peter HarderExecutive director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sarah Kutulakos

Atomic Energy of Canada LimitedBMO Bank of MontrealBarrick Gold CorporationBombardier IncorporatedChina International Trust and Investment Corporation

Export Development CanadaManulife FinancialNortel Networks CorporationPower Corporation of CanadaSun Life Financial

DIrEctorS:

foUnDIng SPonSorS

chaPtErSCanadaBritish ColumbiaMontrealToronto

ChinaBeijingShanghai

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The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion8

MESSagE fRoM The ChAIR

SUR le plan des liens entre le Canada et la Chine, l'année 2010 est à marquer d'une pierre blanche : en octobre, nous

célébrerons 40 ans de relations diplomatiques officielles. Le Canada a également l'honneur d'accueillir à nouveau le président chinois, Hu Jintao. Aux côtés des autres chefs de file mondiaux, M. Hu partici-pera en effet au sommet du G20, qui se tiendra fin juin à Toronto. Les sujets de discussion ne manqueront pas, puisque les leaders du G20 doivent composer avec la crise de la dette souveraine qui sévit en Europe et qui menace de compromettre la reprise économique mondiale. La Chine et le Canada peuvent grandement contribuer au débat, la première parce qu'elle a tiré la communauté internationale du marasme de 2007 et 2008, et le second parce que la robustesse et la stabilité de son système financier, de même que la prudence de ses responsables, en font un exemple pour les autres pays.

Les relations commerciales sino-canadiennes sont également exemplaires. Depuis octobre 1978, nos deux pays se développent dans le respect mutuel et en coopérant de manière bilatérale. Il y a maintenant plus de 30 ans que le Conseil commercial Canada-Chine fait office de courroie de transmission vitale. Plusieurs de nos anciens premiers ministres rappellent dans ces pages combien ils ont eu à cœur, pendant leurs mandats respectifs, d'entretenir d'étroites rela-tions bilatérales avec la Chine, et évoquent les contacts qu'ils ont eus avec elle à l'époque.

Au moment où les membres du CCCC s'apprêtent à rencontrer leurs homologues chinois dans le cadre du quatrième Forum des gens d'affaires Canada-Chine, gardons à l'esprit que ces deux pays s'estiment et cheminent côte à côte depuis longtemps. Nul doute que ces deux pays sauront mettre à profit les inépuisables possibilités qui s'offrent à eux afin de bâtir ensemble un avenir radieux.

Message du président du conseil d’administration

Peter Kruyt, Chair

ThiS is a remarkable year for the Canada-China relationship; we celebrate 40 years of formal diplomatic relations in

October. Canada also is honoured to once again welcome Chinese President Hu Jintao to Canada as he joins world leaders for the G20 Summit in Toronto at the end of June. There will be much to discuss as the G20 leaders grapple with a European sovereign debt crisis that threatens to derail the global economic recovery. China and Canada have much to offer in these discussions. China led the world out of the global downturn in 2007-2008. Canada has been an example for other nations in the strength, stability and pru-dence of its finance.

The Canada-China business relationship is exemplary as well. Since October, 1978, we have grown together in mutual respect and bilateral co-operation. For more than 30 years, the Canada China Business Council has been an essential ingredient in the Canada-China relationship as several of our former Prime Ministers remind us in these pages in their thoughtful reflections of their commitment to strong bilateral ties and on their connections to China during their years in the Prime Minister’s Office.

As CCBC members gather for the 4th Canada China Business Forum with our Chinese counterparts, we remain mindful that China and Canada have come far together through a legacy of mutual respect and that we have boundless complementary oppor-tunities to build great futures together.

Chair’s Message

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10.06.04 Advertising - China (full page).indd 1 6/4/2010 4:18:23 PM

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The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion10

Message du président pour 2010Cette année, le Canada sera le théâtre d'un événement de portée planétaire, le sommet du G20, qui se tiendra à Toronto les 26 et 27 juin. Qu'il s'agisse de l’évolution de l’économie mondiale ou du contexte politique international, cette rencontre fera date.

MESSagE fRoM The PResIdenT

Peter Harder, President

AS world leaders gather for the G20 meet-ing, being held concomitantly with

the G8 meetings June 25-26 at Huntsville, Ontario, it is fitting that Canada be at centre stage. Our country has been a significant participant in the G7, then G8, global leaders’ forums since Canada joined the Group of Six in 1976. In recent years Canada has been a strong voice for expanding membership to include at the negotiating table the developing nations among which Canada counts many friends and trade partners.

For example, Canada is proud to welcome China’s President Hu Jintao to Toronto for the G20 meetings. President Hu and China have become essential participants in managing a successful recovery from the world financial crisis of 2007-2008. China’s bold financial

stimulus action ensured that its economy weathered the storm and provided a vital measure of stability to the developed nations dependent on China’s participation in their economies as either a supplier or buyer.

This G20 meeting in Canada also is a signifi-cant step in China’s emergence to reclaim its place among the family of great global political powers. That is fitting too; Canada was among the first western nations to recognize the People’s Republic of China.

For CCBC members, President Hu’s visit is especially significant. In 2010, CCBC cele-brates 32 years as the key Canada-China trade and investment enabler. CCBC members are more active in China than ever before and, increasingly, we count among our members Chinese companies planning investments in

Canada. In 2005, President Hu was the Guest of Honour at a gala banquet, also held in Toronto. He brought with him more than 200 of China’s most senior business leaders and, with CCBC, held the first of what has become a series of Canada-China Business Forum meetings co-managed by CCBC and the China Council for the Promotion of International Trade. This year, the 4th CCBC/CCPIT Canada-China Business Forum will be held in conjunction with the G20 meetings.

CCBC and its members welcome the Chinese delegates to the Business Forum. We extend our warmest congratulations to China and the other nations of the G20 as we, collectively, witness the beginnings of a new global political and economic reordering that will benefit us all.

President’s Message 2010Canada is the host country for a transitional global event this year. The G20 meeting being held in Toronto June 26-27 represents a watershed moment in the evolution of the world economy and global political environment.

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The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion 11

MESSagE fRoM The PResIdenT

RAppelonS par ailleurs qu'un autre

rassemblement des chefs de file mondiaux, le sommet du G8, se tiendra presque en même temps à Huntsville, en Ontario, les 25 et 26 juin. Il n’est pas surprenant que le Canada se trouve ainsi sous les feux. En effet, depuis que notre pays s'est joint au Groupe des six, en 1976, il a constitué un membre influent du G7 puis du G8, ces cadres de discussion d'abord réservés aux grands de ce monde, mais dont le Canada, depuis quelques années, demande avec force l'élargissement aux pays en déve-loppement, parmi lesquels il compte nombre d'amis et de partenaires commerciaux.

C'est dire que le Canada est fier d'accueillir à Toronto le président chinois, Hu Jintao, dans le cadre du sommet du G20. La résolution de la crise financière qui a secoué la planète en 2007 et 2008 a fait apparaître M. Hu et la

Chine comme des partenaires clés. Les mesures audacieuses prises par le géant asiatique en vue de stimuler l’économie lui ont en effet permis de tenir bon et d'assurer la stabilité dont avaient besoin les pays en développement, dont l'éco-nomie ne saurait se passer de ce fournisseur et acheteur essentiel.

Pour la Chine, qui souhaite reprendre sa place dans le club des grandes puissances, le sommet du G20 dont le Canada est l'hôte représente également une étape décisive. C'est encore un signe des temps, car notre pays a été parmi les premiers pays occidentaux à reconnaître la République populaire de Chine.

Aux yeux des membres du Conseil commer-cial Canada-Chine, la visite du président Hu revêt une importance particulière : cela fait 32 ans que le CCCC joue le rôle de catalyseur clé en matière de commerce et d'investissement. Jamais le Conseil n'a déployé autant d'efforts

en Chine, et il compte de plus en plus parmi ses membres des entreprises chinoises projetant d'investir au Canada. En 2005, le président Hu était l'invité d'honneur du dîner de gala organisé par le CCCC à Toronto. Avec à ses côtés plus de 200 des principaux chefs d'entreprise chinois, il a tenu avec le Conseil le premier des Forums des gens d’affaires Canada-Chine qu'allaient organiser conjointement le CCCC et le Conseil chinois de promotion du commerce internatio-nal. Cette année, la quatrième de ces rencontres se déroulera parallèlement au sommet du G20.

Le CCCC et ses membres souhaitent la bien-venue aux délégués chinois qui vont participer au Forum des gens d’affaires Canada-Chine. Nos pensées les plus chaleureuses vont également à leur pays et aux autres membres du G20, en cette heure où se profilent les prémices d'un nouvel ordre politique et économique mondial dont nous tirerons tous avantage.

CCBC is grateful for the continuous support of its founding sponsors

Platinum Level:

Gold Level:

› Atomic Energy of Canada Ltd.› Barrick Gold Corporation› BMO Financial Group› Bombardier Incorporated

› China International Trust and Investment Corporation

› Export Development Canada› Manulife Financial

› Nortel Networks Corporation› Power Corporation of Canada› Sun Life Financial

The Canada China Business Council acknowledges its supporters for the 4th Canada China Business Forum presented June 24 in Ottawa by the CCBC and the China Council for the Promotion of International Trade (CCPIT)

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The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion12

MESSagE fRoM The exeCuTIve dIReCToR

EEExxxpppoorrrtttinnnnnggggggggggg tttttooooo aaaaaaaa ffffffooooreign countryiiissnnn’’ttt ssoooo hhhhhhhhhhhaaaaarrrrrddddd wwwwwwwwwwwwwwhhhhheeeen the foreigncccoooouuuunnnnttttrrrryyyy iiiiisssssnnnnnn’’’’ttttt ssssssssssoooo fffforeign.At Export Development Canada we can help.To find out more, visit us online at › www.edc.ca/globe

OGILVY DIVISION PUB: CCBC Cdn China Business Council AD #: EDC-1074Print Production Contact: FORMAT: Magazine FILE: 01-30623-EDC-1074-SWOP.pdf

Karen Farnocchi TRIM: 3.125” x 7.5” CLIENT: Export Development

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Sarah Kutulakos, Executive Director& Chief Operating Officer

AS this issue commemorates the 40th anni-versary of diplomatic relations, I will

use my column to highlight how such a stra-tegic subject intersects with operational real-ity for our members. In the three-plus years that I have been serving as CCBC’s Executive Director and COO, it has been very clear how strong an impact diplomatic relations have on business relations. In doing business with a culture where China’s business community looks to the top levels of the official commun-ity for cues, Canadian companies are keenly aware that while the onus is on them to do business well, multiple resources working in tandem can increase the likelihood of suc-cess. Visits of ministers, for example, can be extremely valuable. Members reported that following one ministerial visit last year, certain administrative approvals came more quickly. This June’s Invest in Canada Day in Shanghai, organized by DFAIT for a visit of the Minister

of International Trade, reportedly brought one Canadian cleantech firm a $10-million-dollar customer within just a few days of the event.

CCBC is one of those resources, and we work hard to bring our members opportun-ities that leverage the efforts of other organ-izations. Sometimes, as with the President’s Dinner in Toronto in May, we are able to bring value to members hosting Chinese delegations by helping them interact with other Canadian firms. We often partner with Chinese organ-izations, like CCPIT, to bring Chinese business leaders together with ours in both Canada and China. We try to leverage Canada’s strengths – resources and mining are in high demand – and our financial system’s success gives us a ready audience from executives and officials in China who want to hear more. Interestingly, we find that China’s interest in Canada’s finan-cial system is twofold – on one hand, China is proud of how it came through the economic

crisis and sees Canada as a “kindred spirit” whose prudence also helped it weather the storm. But China also wants to learn from Canada, and we see many groups coming to study governance, risk management, and other concepts that China wants to build as its own system matures.

Of course our efforts are not limited to these sectors, but represent our membership’s broad sectoral diversity. We will continue to watch the priorities of both countries at the official level – tracking progress on the Joint Statement made by our leaders during Prime Minister Harper’s visit to China in December 2009, and preparing for the new five-year plan that China will soon be creating. We laud the efforts of our officials to further strengthen the relationship between our countries. It is crucial to Canada’s future prosperity as our trade and investment diversify beyond traditional trading partners.

Executive Director’s Update

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The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion14

on the occasion of the 40th anniversary of diplomatic relations between China and

Canada, it is my great pleasure to extend our warm greetings and sincere gratitude to Canada China Business Council (CCBC) and its mem-bers who have been dedicated to enhancing mutual understanding and friendship between our two peoples and promoting Sino-Canadian economic and trade ties over the years.

In October, 1970, China and Canada estab-lished formal diplomatic ties, which opened a new chapter in our bilateral relationship. Thanks to the personal commitment of leaders of several generations and concerted efforts of people from various sectors of both countries, our exchanges and cooperation in all fields have been growing steadily and exchanges at the top and other levels have increased. Our business ties have expanded from single commodity trade to diversified cooperation with two-way investment increased. As a private organization that seeks to facilitate and promote trade and investment between Canada and China, CCBC has made important contributions in advancing bilateral economic and trade cooperation and has become an indispensable bridge between the two sides in the past 30 years.

China and Canada are two important coun-tries in Asia and Pacific region with highly complementary economies. Developing a sound economic and trade relationship based on mutual benefit and win-win results con-forms to the fundamental interests of our two countries and two peoples and will further enrich the Sino-Canadian strategic partner-ship. As we celebrate the 40th anniversary of our diplomatic ties, CCBC should be proud of what it has achieved. We would like to work with our Canadian friends for an even better future of China-Canada relationship. I hope that CCBC will continue to play a major and more significant role in promoting our bilateral economic and trade cooperation.

Lan LijunAmbassador Extraordinary and Plenipotentiaryof the People’s Republic of China to Canada

For 40 years, Canada and China have seen diplomatic ties flourish, thanks to an increasing partnership in all sectors of society, including the arts, education and business. I am very pleased to highlight this important milestone in the history of our countries.

One of the greatest aspects of our decades-long friendship is the close people-to-people ties that we share. Chinese-Canadians have contributed so much to this country, adding to our rich mosaic and allowing us the opportunity to break down language barriers and cultural differences.

As we look back, we can reflect on our successes and triumphs, as well as on the challenges we have faced and overcome. We can also look forward to the opportunities that await us in the years ahead and to new avenues of co-operation that will benefit both our peoples.

I wish everyone an enjoyable celebration.

Michaëlle Jean

February 2010

FoR 40 years, Canada and China have seen diplomatic ties flourish, thanks

to an increasing partnership in all sectors of society, including the arts, education and business. I am very pleased to highlight this important milestone in the history of our countries.

One of the greatest aspects of our decades-long friendship is the close people-to-people ties that we share. Chinese-Canadians have contributed so much to this country, adding to our rich mosaic and allowing us the oppor-tunity to break down language barriers and cultural differences.

As we look back, we can reflect on our suc-cesses and triumphs, as well as on the challenges we have faced and overcome. We can also look forward to the opportunities that await us in the years ahead and to new avenues of co-operation that will benefit both our peoples.

I wish everyone an enjoyable celebration.

Michaëlle JeanThe Governor General

LETTERS OF congratULatIonS

A Message from the Governor General

A Message from the Ambassador

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15The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion

on behalf of the Government of Ontario, I am delighted to extend warm greet-

ings to readers of The Canada China Business Forum, published by the Canada China Business Council (CCBC).

Through continued trade, tourism, and cultural and educational exchanges, China and Canada have developed a special bond. Since the establishment of diplomatic rela-tions between our two countries four decades ago, bilateral ties have grown in an ever-larger number of areas.

As Premier, I am proud to say that Ontario enjoys a mutually beneficial friendship with the People’s Republic of China — and our province’s trade missions to China have done much to further enhance that unique relation-ship. Ontario was very pleased to participate in the 2008 mission organized by the Council of the Federation and the CCBC, which pro-moted Ontario’s strengths in environmental technologies. Our government greatly appreci-ated the important role that the CCBC played in helping our province’s business community

gain exposure to the large and vibrant Chinese marketplace.

I commend the CCBC for fostering trade and investment opportunities between Canada and China. By providing crucial expertise and support to businesses and entrepreneurs in both countries, the CCBC is instrumental in building beneficial bridges between Canada and China.

In celebrating the 40th anniversary of Canada’s diplomatic relations with China, I would also like to take the opportunity to applaud the vital contributions that Chinese Canadians have made — and continue to make — to the social, cultural and economic life of our province, and our country.

Please accept my best wishes.

LETTERS OF congratULatIonS

A Message from the Premier of Ontario

Premier of Ontario - Premier ministre de l’Ontario

June 2010

A PERSONAL MESSAGE FROM THE PREMIER OF ONTARIO

On behalf of the Government of Ontario, I am delighted to extend warm greetings to readers of The Canada China Business Forum, published by the Canada China Business Council (CCBC).

Through continued trade, tourism, and cultural and educational exchanges, China and Canada have developed a special bond. Since the establishment of diplomatic relations between our two countries four decades ago, bilateral ties have grown in an ever-larger number of areas.

As Premier, I am proud to say that Ontario enjoys a mutually beneficial friendship with the People’s Republic of China — and our province’s trade missions to China have done much to further enhance that unique relationship. Ontario was very pleased to participate in the 2008 mission organized by the Council of the Federation and the CCBC, which promoted Ontario’s strengths in environmental technologies. Our government greatly appreciated the important role that the CCBC played in helping our province’s business community gain exposure to the large and vibrant Chinese marketplace.

I commend the CCBC for fostering trade and investment opportunities between Canada and China. By providing crucial expertise and support to businesses and entrepreneurs in both countries, the CCBC is instrumental in building beneficial bridges between Canada and China.

In celebrating the 40th anniversary of Canada’s diplomatic relations with China, I would also like to take the opportunity to applaud the vital contributions that Chinese Canadians have made — and continue to make — to the social, cultural and economic life of our province, and our country.

Please accept my best wishes.

Dalton McGuinty Premier of Ontario

Dalton McGuintyPremier of Ontario

A Message from the Mayoron behalf of Toronto City Council, it is my

great pleasure to extend congratulations on the 40th anniversary of Canada-China dip-lomatic relations. Through the work of Canada China Business Council (CCBC), the foresight shown by our leaders in 1970 is paying great dividends in both of our nations in 2010. China has quickly risen to one of the most important nations on the world stage, and its recent economic growth continues to amaze us all.

Canada, and Toronto in particular, has played a significant role in China over the years, from the work of Norman Bethune in the 1930s to our current assistance with Mayor Tower’s Renewal and green building programs in Chongqing. In fact, our 24-year sister city relationship with Chongqing is stronger than ever. And an important factor in the Toronto-Chongqing relationship is the supportive role

played by the CCBC in facilitating dialogue between our two cities.

The City of Toronto is proud to be a member of the CCBC. The CCBC plays an integral part in promoting business between Chinese and Canadian companies. Despite the fact that China is now Canada’s third-largest trading partner, we have a long way to go to enhance the magnitude and two-way trade nature of that trade. With the excellent work of the CCBC, we are on the right path.

Your truly,

Mayor David MillerMarch 2010

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The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion18

Canada and China reach a significant milestone this year as we celebrate four decades of deepening bilateral friendship

and business connection. On October 13, we mark the 40th anniversary of the signing of diplomatic relations between Canada and the People’s Republic of China. Forty years ago, China was shrouded in mystery to most Western observers: the world was divided by an Iron Curtain, and the People’s Republic was still in the throes of the Cultural Revolution. For the global business community, opportunities in Singapore, Hong Kong, and Taiwan shone far brighter. Few could have guessed that China was starting out on a long, unsteady march towards international openness that would astound the world. Back in the 1970s, it took the efforts of a few visionary Canadian businessmen to convince Canadian companies that venturing into China was both feasible and profitable.

In 1968, Prime Minister Pierre Trudeau initiated the discussions that would lead to the establishment of official relations with the People’s Republic of China in 1970. Canada was one of the first Western nations to do so.

Trudeau himself had a soft spot for China and had traveled through the country with his friend Jacques Hébert in 1960 during China’s Great Leap Forward. “It seemed to us impera-tive that the citizens of our democracy should know more about China,” he wrote of the

experience later. Making good on this impulse, in 1973 Trudeau became the first Canadian Prime Minister to pay an official visit to the People’s Republic of China. At a subsequent meeting with Canadian business leaders, the PM encouraged Paul Desmarais Sr., Chairman and CEO of Power Corporation, to lead a busi-ness delegation to China. This discussion would ultimately help inspire the creation of the Canada China Trade Council, the first iteration of today’s Canada China Business Council (CCBC).

The Council was formed as a private, not-for-profit organization that aimed to promote trade and investment between Canada and China. Business between the two nations was picking up quickly. After only three years of official relations, by 1973 Canadian exports to China had already doubled. This trade was to be further stimulated when the Canadian-Chinese Trade Agreement was signed the same year. Under the Agreement, the two countries mutually extended “most-favoured nation” sta-tus, and lowered import tariffs accordingly.

In those early years, wheat accounted for the bulk of Canada’s trade with China, and by 1978 wheat’s share of Canadian exports to China still stood at 69 per cent. But by the late 1970s, no one could deny that winds of change were blowing through China. After Mao’s death in 1976, Deng Xiaoping had risen to power in Beijing. He and his coterie of

reformers embarked on a program of economic liberalization known outside China as the open door policy. Land in rural collectives reverted to private management, many state-owned enterprises were sold or restructured, and some coastal cities were opened up to foreign trade and investment. The measures were, in effect, a series of gradual and often localized experi-ments that Deng famously described as “cross-ing the river by groping for stones.”

Canadian companies had clearly only scratched the surface of the opportunities that were emerging in China, a situation that Canada’s business leaders were eager to improve. The first meeting of the Organizing Committee for the Canada China Trade Council was held in Montreal on June 1, 1978. The list of attendees at that historic gathering reads like a “who’s who” list of the Canadian establishment. Maurice Strong, then Chairman of Petro-Canada, chaired the meeting. Paul Desmarais Sr. of Power Corporation was in attendance, as was C. Calvert Knudsen, President and CEO of MacMillan Bloedel. John Ralston Saul (subse-quently Canada’s favorite public intellectual but then Chairman of FilmFive Inc.) was also there, recording the minutes!

The organization took shape rapidly after that initial gathering: Desmarais led a senior business delegation to China in October 1978, hoping to generate awareness about

Canada-China 2O1O celebrating 40 years of relationship

2010年的加中两国:庆祝建交40周年

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The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion 19

Canada-China 2O1O celebrating 40 years of relationship By Jessica Wilczack

加拿大和中国今年实现一个重要的里程碑,因为两国迎来深化双边友谊和商业联系的第40个年头。10月13日,我们迎来加拿大和中华人民共和国建立外交关系40周年。40年前,中国对西方观察家而言,笼罩着一层神秘的面纱:世界被铁幕所隔开,中国仍处于文化大革命的阵痛之中。对全球商界而言,新加坡、香港和台湾等国家和地区的机遇则更为明朗一些。很少有人会猜到中国正在开始一次面向世界开放的长期、动荡的征程,而这一 征程又将会令世界为之瞠目。回望20世纪70年代,几位在当时看来不切实际的加拿大籍商人费劲九牛二虎之力,才令加拿大企业相信到中国进行风险投资既是可行、也是有利可图的。

1968年,加拿大总理Pierre Trudeau 启动的会谈,后来于1970年促成加拿大与中华人民共和国正式建交。加拿大是首批与中国建交的西方国家之一。

Pierre Trudeau本人对中国颇有好感,并在中国大跃进运动期间与其好友Jacques Hébert游遍中国。“对我们而言,民主国家的公民应对中国有更多了解,这一点看似势在必行,”他后来在记述其经历时这样写到。受此推动,1973年,Pierre Trudeau成为首个正式访问中华人民共和国的加拿大首相。在随后与加拿大商界领袖举行的会晤当中,这位首相鼓励加拿大鲍尔集团(Power Corporation)主席兼首席执行官Paul Desmarais Sr. 率领一个商业代表团前往中国访问。这次会谈最终帮助推动了加中贸易理

事会(Canada China Trade Council)的创立,即如今加中贸易理事会(Canada China Business Council,CCBC)的前身。

加中贸易理事会成立时是一个私人的非营利组织,旨在推动加拿大和中国之间的贸易和投资。两国之间的商业往来得以快速恢复。到正式建交仅三年后的1973年,加拿大对中国的出口额已翻了一番。同年,当加中贸易协议签署时,这一贸易额得到进一步促进。根据这项协议,两国相互给予“最惠国”待遇,并相应降低进口关税。

早年,小麦在加拿大对华贸易额中占到很大比例,而到1978年,小麦在加拿大对华出口额中所占的比重仍高到69%。但到20世纪70年代末,没人可以否认,变革的浪潮正在席卷中国大地。1976年毛泽东逝世后,邓小平重掌北京大权。他和他的改革派着手开始一场在中国境外被称作开放政策的经济自由化运动。农村集体所有的土地归还私人经营,许多国有企业或被出售,或被重组,一些沿海城市也向对外贸易和投资开放。这些举措实际上就是一系列逐步而频繁的本地化实验,亦即邓小平“摸着石头过河”的著名论断。

加拿大企业显然只摸到了中国汹涌的机遇浪潮中的皮毛,而这正是加拿大商界领袖渴望加以改善的局面。加中贸易理事会组委会第一次会议于1978年6月1日在蒙特利尔举行。出席此次历史性聚会的与会者名单读起来像是加拿大建国的“名人录”。时任加拿大石油公司主

2010年的加中两国:庆祝建交40周年 China among Canada’s business community. In the months that followed, Desmarais and Strong chaired a number of Board of Directors meetings for the nascent Canada China Trade Council, and recruited 57 founding members from Canada’s top companies. The Council was to be funded through membership fees, and the group decided to open offices in both Toronto and Beijing in order to better support Canadian businesses in China. The first Annual General Meeting of the CCTC was held on 22 January 1979, and the first CCTC conference was orga-nized in May of that year. The (still current!) theme of that first conference? China: “How you can compete?”

It was evident that the CCTC was meeting an urgent need for information about China. By 1980, the Council had grown to 118 members and was producing a bimonthly publication, The China Reporter, in addition to a number of business directories. Very quickly, however, the composition of the CCTC began to shift. By the mid eighties, small and medium sized enterprises (SMEs) began to replace large companies on the membership roster. To deal with the corresponding drop in membership revenues, the Council sought to develop closer ties with Ottawa. In 1985 the CCTC received a three-year grant from the federal government, and two years later began to undertake train-ing projects in China on behalf of the Canadian

作者:Jessica Wilczack

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International Development Agency (CIDA). The 1990s were a time of change, both for

China and the CCTC. After the Tiananmen incident of 1989, China went through a period of diplomatic and economic cooling. Jiang Zemin rose to prominence in Beijing as he replaced Party moderates who were seen as too conciliatory towards the protesters. But Jiang proved to be as keen a liberalizer as his prede-cessor, Deng Xiaoping. In 1993, Jiang assumed the title of President, with Li Peng acting as his Premier. The same year, he coined the term “socialist market economy” to describe China’s ever-deepening market reforms, and the Chinese economy continued to motor forward.

The CCTC was shaken by the events of 1989, although the Beijing office remained open. Membership in the Council continued to shift away from large companies: by 1991, 90 per cent of new members were SMEs. Decreased government support, combined with the economic recession of the early 1990s led to a period of great challenge and renewal for the organization. In 1992 Andre Desmarais was named Chair of the Canada China Trade Council. In 1993 the organization adopted a new mission statement and changed its name to the Canada China Business Council in order to reflect a broader, private-sector concern with “business” rather than “trade.” Mr. Desmarais still serves the Council as Honourary Chair.

New life animated Canada-China relations in 1994 with the first Team Canada mission to China. Prime Minister Jean Chrétien visited Beijing and Shanghai with two ministers, nine provincial premiers, two territorial leaders, and about 400 business executives. The trip was remarkably successful both in terms of pub-lic relations and the dollar value of contracts signed during the mission: at $2.6 billion in firm contracts, the final amount was over twice what had originally been predicted.

The CCBC, which had led business delega-tions to China throughout the 1980s, took on the task of organizing and promoting this pivotal expedition. To deal with these increased demands, in 1994 the organization began to expand its operations: in addition to the exist-ing offices in Toronto and Beijing, new offices were opened in Vancouver and Shanghai. In 1995, Premier Li Peng visited Canada to com-memorate the 25th anniversary of bilateral relations and attended the CCBC’s Annual General Meeting in Montreal. Fittingly, the two Canadian statesmen who had helped

push Canada-China relations forward-- Prime Minister Jean Chrétien and former Prime Minister Pierre Trudeau-- also took part in this momentous AGM.

The Team Canada missions generated an unprecedented level of warmth between Canadian and Chinese political and business leaders. At a banquet in Beijing during the 1998 expedition, Chinese Premier Zhu Rongji (who had recently replaced Li Peng in that position) was seated between Prime Minister Chrétien and Andre Desmarais. Inspired by the goodwill and toasting around the dinner table, the Premier reportedly abandoned his prepared remarks to exclaim, “加拿大是我们最好的朋友 (Canada is our best friend)!”

The last and largest Team Canada mission to China was in 2001, the same year that China joined the World Trade Organization. For the CCBC, 2001 also signaled the end of its role in organizing and supporting high profile events like the Team Canada trade missions. The organization felt it was spending too much time on event management, and that it needed to devote more resources to the SMEs that were turning to the organization for support. Moreover, with China’s star so clearly on the rise, there was no need to simply “raise aware-ness” about China among Canadian businesses. The CCBC struck out on a new direction-- one that was more tailored to helping members compete in China’s increasingly sophisticated business environment.

In 2002, Peter Kruyt, Vice President of Power Corporation, replaced Andre Desmarais as Chairman. Peter arrived just in time to guide the organization through another shift in Chinese leadership as President Hu Jintao and Premier Wen Jiabao took over at China’s helm. Hu and Wen sought to address the economic inequalities that had plagued China’s growth, and their ascension heralded a new focus on developing Western and rural China.

Canada’s leadership also shifted at this time, and the two countries entered a period of cooler diplomatic relations after Prime Minister Stephen Harper took office in 2006. The new Conservative government adopted more openly confrontational stances on human rights, Taiwan, and Tibet. However, in December, 2009, the Prime Minister paid his first offi-cial visit to China. In Shanghai, CCBC co-hosted a gala luncheon for the Prime Minister, along with Shanghai’s Canadian Chamber of Commerce, in observation of the 100th anni-versary of the opening of a Canadian Trade

Commissioner’s office in that city.This meeting was most welcome by CCBC

members. Although the era of high profile Canadian trade missions to China is in hiatus, face-to-face exchanges between the most senior political leaders are still crucial. Personal meet-ings bring Canada into public attention, and signal to Chinese businesspeople that there is political support for Canada-China trade and co-operation.

Indeed, as the CCBC has long advocated, solid ties with China are becoming increasingly vital to Canada’s own development. By 2003 China had already become Canada’s second-largest trading partner after the United States. In an even more telling sign of the times, by 2009, the CCBC was organizing meetings focused on attracting Chinese investment to Canada.

Among Canadian companies, the CCBC is also fostering a deeper and more nuanced understanding of competitive opportunities opening up in China’s new geographic frontiers and emerging industries. Today, China cannot be viewed simply as a low-cost manufacturer, but is home to an educated labour force, a growing fleet of internationally recognized brands, and a dynamic domestic market.The history of the Canada China Business Council is intimately tied to both China’s chang-ing geopolitical stature in the global economy, and to Canada’s evolving relations with the PRC. The Council has played a key role in that relationship, supporting not only the economic transactions, but also the daily discussions and personal con-nections-- from the highest ranks of government to the level of individual entrepreneurs-- that lie behind a blanket term like “international rela-tions.” Despite the vagaries of diplomatic inter-changes, Canadians in China have always enjoyed a certain cultural capital, the automatic goodwill extended to the compatriots of “白求恩大夫” (Dr. Norman Bethune). Moreover, a growing number of Chinese people are choosing to study or settle in Canada. These global citizens are laying a strong foundation for dialogue between Canada and China. And as the two countries look for-ward to the next forty years of friendly relations, the CCBC will be there on behalf of Canada’s business community to advocate for respectful, open exchanges with an evolving China.

Jessica Wilczak is a doctoral candidate in geography at the University of Toronto. She can be reached at [email protected]

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The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion 21

席Maurice Strong 担任会议主席。加拿大鲍尔集团Paul Desmarais Sr.列席会议,与会的还有MacMillan Bloedel总裁兼首席执行官C. Calvert Knudsen。John Ralston Saul(后来成为加拿大最受欢迎的公共知识分子,但当时担任FilmFive Inc.主席)亦到场见证这一时刻!

这个组织在初次集会后迅速成形:Desmarais1978年10月率领一个高级商务代表团前往中国,以期令加拿大商界对中国产生一定的认知。在之后的数月间,Desmarais和Strong主持了加中贸易理事会这个初生机构的多次董事会会议,并从加拿大顶尖企业招募了57位创始会员。加中贸易理事会通过会费来筹集资金的,并决定在多伦多和北京设立办事处,以便更好地给予加拿大在华企业以支持。CCTC首届年度会员大会于1979年1月22日举行,首届CCTC大会则于同年5月举行。首届CCTC大会(目前仍是!)主题是“中国:如何才能参与竞争?”

显而易见,CCTC当时满足了对有关中国信息的迫切需求。到1980年,加中贸易理事会已发展到118个会员,并制作一份双月刊《中国报道》以及大量企业名录。然而,CCTC的组成很快开

始发生转变。到20世纪80年代中期,中小企业(SME)开始在会员名册上取代大公司。为应对会费收入的下降,加中贸易理事会寻求与渥太华发展更为紧密的关系。1985年,CCTC获得联邦政府一笔三年期拨款,两年后开始代表加拿大国际开发署(CIDA)在中国承接培训项目。

90年代是一个变革的时代,对中国,对CCTC都是如此。1989年天安门事件之后,中国经历了一段外交和经济双重降温的时期。江泽民取代那些被视为对抗议者过于妥协的党内温和派,正式登上中国政治舞台。但是,江泽民被证明是其前任邓小平所期盼的自由派。1993年,江泽民任国家主席,李鹏任总理。同年,他用“社会主义市场经济”这个词语来描述中国不断深化的市场改

革,中国经济继续高速前行。

CCTC因1989年事件受到震荡,但北京办事处仍保持开业状态。加中贸易理事会会员继续偏离大企业:到1991年,90%的新会员都是中小企业(SME)。政府支持力度减小,加上90年代初期经济衰退,导致CCTC经历了一段应对巨大挑战和复兴的时期。1992年,Andre Desmarais 被任命为加中贸易理事会主席。1993年,理事会通过一项新的宗旨,并更名为加中贸易理事会(Canada China Business Council),以反映出私营企业更广泛的关注,即“商业”,而非“贸易”。Desmarais先生仍担任理事会的名誉主席。

1994年,首个加拿大赴华代表团令加中关系重新焕发活力。时任总理Jean Chrétien携两位部长、九位省长、两位地区领袖和大约400位企业高管访问北京和上海。此次行程不论从公共关系,还是从出使期间所签合约的价值来说,都取得了空前成功:确切合约26亿美元,最终合约金额则两倍于最初预计的金额。

鉴于CCBC在整个80年代都带领过商业代表团前往中国访问,CCBC还承担了组织和推进这项重要考察的任务。为满足这些增长的需求,组织于1994年开始扩大其营运规模:除设在多伦多和北京的现有办事处之外,还在温哥华和上海开设新办事处。1995年,李鹏总理访问加拿大,纪念双边关系建立25周年,并出席在蒙特利尔举行的CCBC年度会员大会。适逢其时,两位曾推动加中关系向前发展的加拿大政治家―总理Jean Chrétien和前总理Pierre Trudeau -- 也出席了这次重要的年度会员大会(AGM)。

加拿大赴华代表团在加拿大和中国政治与商业领袖之间营造出前所未有的热情氛围。1998年考察期间,在北京举行的一场宴会上,中国总理朱 基(刚接替李鹏担任总理之职)就座于Jean Chrétien和Andre Desmarais中间。受这一友好关系鼓舞,朱 基总理据说在宴会桌敬酒时,抛开事先准备好的讲稿,高声说道,“加拿大是我们最好的朋友!”

最近一次、规模最大的加拿大赴华代表团成行于2001年,中国于同年加入世界贸易组织。对于CCBC而言,2001年也象征着其在组织和协助高规格活动(如:加拿大贸易代表团)方面职责的终结。CCBC感觉自己花费太多时间在活动管理方面,因而需要将更多资源用于那些向组织寻求支持的中小企业身上。此外,随着中国这个明日之星明显正处于上升势头,已无必要仅仅提升加拿大企业对中国的认知。CCBC 开辟出一个崭新的方向 ― 这个方向更适合帮助会员在中国日渐复杂的商业环境中开展竞争。

2002年,加拿大鲍尔集团副总裁Peter Kruyt接替Andre Desmarais担任主席之职。Peter Kruyt接管CCBC之时,适逢胡锦涛主席和温家宝总理刚刚执掌中国政权。胡温政府努力解决困扰中国增长的经济不平等问题,此二人的上台,预示着新的重心将转移至发展中国西部和农村地区。

加拿大领导结构此时也在发生转变,在Stephen Harper总理2004年就职后,加中两国关系进入降温期。新的保守党政府在人权问题、台湾问题和西藏问题上对中国采取了更加公开对立的立场。然而,2009年12月,Stephen Harper总理首次正式访问中国。在上海,CCBC与上海加拿大商会一道共同为Stephen Harper总理举行欢迎午宴,以庆祝加拿大商务专员办事处在该市设立100周年。

此次会晤受到CCBC会员的热烈欢迎。尽管高规格加拿大赴华贸易代表团时断时续,但最高政治领导之间面对面的交流仍至关重要。亲自会晤使加拿大引起公众关注,并向中国商务人士传达出这样一个信号,即:加中贸易和合作可得到政治支持。

的确,正如CCBC长期以来所倡导的,对于加拿大自身的发展而言,与中国保持稳固关系正变得越来越重要。截至2003年,中国已成为仅次于美国的加拿大第二大贸易伙伴。用一个更具说服力的时代迹象来说,到2009年,CCBC仍在组织着重于吸引中国对加投资的会议。

在加拿大企业当中,CCBC也在加深对中国新的地域边缘和新兴行业中开放的竞争机遇的认识。如今,中国不能简单视作一个低成本制造国,而应视为坐拥有文化的劳动力大军、一系列成长中的国际公认品牌和一个活力十足的国内市场。

加中贸易理事会的历史,与中国在全球经济中所处的日新月异的地缘政治地位以及不断演化的加中关系密切相关。加中贸易理事会在这种关系中起到重要作用,同时不仅支持经济交易,而且也支持着日常探讨和个人联系 ― 从最高级别的政府关系到个体企业家级别的联系 ― 这些联系可用总括性词语“国际关系”一言以蔽之。尽管外交事务交替变幻莫测,但在华加拿大人始终享受着一种特定的文化资本,这是一种延伸至“白求恩大夫”同胞身上的不由自主的友好关系。而且,越来越多的中国人选择在加拿大求学或定居。由于加中两国期待着继续保持友好关系,CCBC将代表加拿大商界倡导与日新月异的中国发展互重、开放的交流关系。

Jessica Wilczak系多伦多大学地理学专业博士研究生。发送电子邮件至[email protected]可与之联系。

Canada is our best friend!

加拿大是我们最好的朋友

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Canada, China and trade: The promise of partnershipLe Canada, la Chine et le commerce : la promesse d’un partenariat

This is an eventful time in the relationship between Canada and China. The fourth G20 summit is taking place in Toronto on June 26 and 27, with Chinese President hu Jintao scheduled to attend. during the meetings, world leaders will work towards policies that continue the global economic recovery. Canada and China are helping lead the way on this, with both countries rebounding from the recent recession much quicker than others.

nous vivons une période féconde au chapitre des relations entre le Canada et la Chine. Le quatrième sommet du G20 aura lieu à Toronto les 26 et 27 juin prochains, et le président hu Jintao devrait y assister. durant les réunions, les leaders du monde entier travailleront à établir des politiques qui permettront à l’économie mondiale de poursuivre sa relance. Le Canada et la Chine aideront les autres pays à aller de l’avant à cet égard, étant donné qu’ils se sont remis de la récente récession beaucoup plus rapidement que les autres.

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Also, 2010 is the 40th anni-versary of Canada-China relations. Canada was one

of the first Western countries to establish diplomatic relations with the People’s Republic of China and the Canada China Business Council, established in 1978, has been an important facilitator for Canada-China trade for most of those four decades.

I had the privilege of several visits to the country while serv-ing as Prime Minister to further deepen and develop the rela-tionship. More recently, I was back last September as a private

citizen, leading a delegation from my law firm, Ogilvy Renault. Our purpose was to help stimulate stronger trade and investment flows between the two countries. The opportunities for trade are tremendous. Recent years have seen the Chinese economy become a global leader and this growing dominance should continue. In 2009, China overtook Germany as the world's top exporter and surpassed the United States as the biggest auto market. The Chinese economy is on track to soon replace Japan as the second-largest in the world.

l’année 2010 marque, en outre, le 40e anniversaire des relations entre le Canada et

la Chine. Le Canada a été l’un des premiers pays occidentaux à établir des relations diplomatiques avec la République populaire de Chine. J’ai d’ailleurs eu le privilège de me ren-dre dans ce pays à plusieurs repris-es à titre de premier ministre afin d’approfondir et de développer nos relations. J’y suis retourné récem-ment, en septembre dernier, à titre de simple citoyen dirigeant une délégation composée de membres de mon cabinet d’avocats, Ogilvy Renault. Cette mission visait à ren-forcer les échanges commerciaux et à stimuler les investissements entre les deux pays.

Les possibilités en matière d’échanges commerciaux sont énormes. Au cours des dernières années, nous avons vu l’écono-mie chinoise devenir un chef de file mondial, et cette domination devrait se maintenir. En 2009, la Chine a supplanté l’Allemagne à titre de plus grand pays expor-tateur au monde et a dépassé les États-Unis en devenant le plus grand marché automobile. L’économie chinoise devrait bien-tôt remplacer celle du Japon à titre de deuxième plus grande écono-mie au monde.

ÉChAnGEs COMMErCiAUx AvEC lE CAnADAJ’ai été fier, en tant que pre-mier ministre, de faire passer le Canada dans une nouvelle ère au chapitre du commerce inter-national grâce à la signature de l’Accord de libre-échange avec les États-Unis et de l’Accord de

libre-échange nord-américain (ALENA) avec les États-Unis et le Mexique. À l’époque, ces accords et d’autres changements s’impo-saient au Canada.

Pendant trop longtemps, le Canada avait reporté la prise de décisions difficiles et avait perdu de vue les facteurs économiques fondamentaux. Alors que le monde évoluait rapidement autour de nous, nous nous accrochions à un vieux modèle économique étriqué qui consistait à dépendre de nos vastes richesses naturelles tout en protégeant notre économie de la concurrence internationale. De fabuleux obstacles au commerce, une foule de barrières à l’investis-sement étranger opaques et restric-tives, une réglementation haute-ment contraignante, en particulier dans les secteurs de l’énergie et des transports, freinaient l’économie canadienne.

Parallèlement à l’Accord de libre-échange et à l’ALENA, nous avons converti une agence d’exa-men de l'investissement étranger en une agence de promotion de l’investissement étranger et avons déclaré que le « Canada était prêt à faire des affaires ». Des garanties liant les parties pour le traitement équitable de l’investis-sement étranger dans notre pays sont dorénavant incluses dans nos accords de libre-échange (comme l’ALENA) ou dans notre éventail grandissant d’accords sur la promotion et la protection des investissements étrangers (APIE).

Au pays, nous avons libéré l’économie grâce à la dérégle-mentation, à la privatisation de sociétés d’État et à une réforme

Canada, China and trade: The promise of partnershipLe Canada, la Chine et le commerce : la promesse d’un partenariat

By The Right Honourable Brian Mulroney

par les très honorable Brian Mulroney

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TrADE wiTh CAnADAI was proud to lead Canada into a new era of international trade as Prime Minister, finalizing the Free Trade Agreement (FTA) with the United States and the North American Free Trade Agreement (NAFTA) with the U.S. and Mexico. These and other changes were urgently needed in Canada at the time.

For too long, Canada had put off difficult decisions and had lost sight of the economic funda-mentals. As the world changed rapidly around us, we clung to an old and tired economic model of relying upon a vast endowment of natural resources while protecting our domestic economy from inter-national competition. Formidable protective trade barriers, a maze of opaque and restrictive foreign investment barriers, heavy handed regulation—especially in the ener-gy and transportation sectors—hobbled the Canadian economy.

Along with the FTA and NAFTA, we converted a foreign investment review agency into a foreign investment promotion agency and declared that “Canada was open for business.” We now offer binding guarantees for the fair treatment of foreign invest-ment in our country, embedded in our free trade agreements (as in NAFTA) or in our expanding range of foreign investment protection and promotion agree-ments (FIPAs).

Domestically, we moved to free the economy through deregulation, the privatization of government-owned companies and substantial tax reform. Getting the policy framework right is what govern-ments should do. That was our goal. It was tough medicine for Canadians and politically costly. Many complained that the cure

would be worse than the disease. But we persevered and the record of success speaks for itself.

But like other countries, Canada has been hit by the global recession. As a trading nation, we could not escape the impact of the rapidly contracting global econ-omy, particularly in the U.S. But our economy has fared better than any other in the G8.

And it is important to note that there was no financial crisis in Canada. Throughout the reces-sion, our banks remained strong. Far from needing bailouts, they are making acquisitions in the U.S. and other countries. Four Canadian banks ranked among the top 10 in North America in 2009. The World Economic Forum accorded first place to Canadian banks for their strength and stability. That is why we are understandably wary about global remedies recommended by some whose systems have buckled.

Canadian banks have often been criticized for their caution—and regulators for their excessive prudence. No doubt, caution and prudence can be overdone. But the stability of the Canadian financial system in the turbulent seas of the past year also showed that such criticism can be over-done. The challenge is finding the balance, and we have done that.

rECOvEry AnD nEw bEGinninGsThe theme of the Toronto G20 Summit is “Recovery and New Beginnings.” Canada has been recovering well economically, with real GDP advancing again in January 2010, its fifth straight monthly increase. This result started the year with a bang, as the economy expanded the most in three years with manufacturing,

fiscale d’envergure. Se doter d’un cadre stratégique adéquat est la tâche des gouvernements. C’était notre but. La pilule a été difficile à avaler et s’est avérée coûteuse du point de vue politique. Plusieurs se sont plaints du fait que le remède serait pire que le mal. Mais nous avons persévéré et nos réussites parlent d’elles-mêmes.

Mais comme d’autres pays, le Canada a été frappé par la réces-sion mondiale. En tant que nation commerçante, nous ne pouvions pas échapper aux conséquences de la contraction rapide de l’éco-nomie mondiale, en particulier aux États-Unis. Mais notre écono-mie s’en est beaucoup mieux tirée que celle de n’importe quel autre pays du G8.

Et il est important de noter que le Canada n’a pas eu à faire face à une crise financière. Pendant toute la récession, nos banques sont demeurées solides. Plutôt que de faire l’objet d’opé-rations de sauvetage, celles-ci ont procédé à des acquisitions aux États Unis et dans d’autres pays. Quatre banques canadiennes se sont classées parmi les dix meilleures en Amérique du Nord en 2009. Le Forum économique mondial a classé les banques canadiennes en première place en raison de leur solidité et de leur stabilité. C’est pourquoi nous demeurons circonspects à l’égard des remèdes mondiaux recom-mandés par certains, dont le pro-pre système a connu des ratés.

Les banques canadiennes ont souvent été critiquées pour leur prudence et les organismes de réglementation pour leur excès de prudence. Il ne fait aucun doute qu’on peut être trop prudent. Mais la stabilité du système financier canadien pendant la période de tourmente que nous avons vécue

au cours de la dernière année a également démontré que ces cri-tiques peuvent s’avérer exagérées. Le défi est d’atteindre l’équilibre, et c’est ce que nous avons fait.

rEPrisE ET rEnAis-sAnCELe thème du sommet du G20 de Toronto est « Reprise et renais-sance ». Le Canada a connu une bonne reprise économique, son PIB réel ayant à nouveau progressé en janvier 2010, cin-quième augmentation mensuelle consécutive. Ces résultats ont créé un élan au début de l’an-née, l’économie ayant enregistré la meilleure croissance depuis trois ans avec une accélération des activités dans les secteurs de la fabrication, des mines et de la construction. Les récents rapports économiques sur le Canada ont surpassé les attentes.

La Chine s’avère un leader mondial au chapitre de la reprise financière mondiale. La crois-sance économique est repartie à la hausse pour atteindre 10,7 pour cent au dernier trimestre de 2009, les banques chinoises disposent d’importantes liqui-dités et elles ont évité la crise du crédit hypothécaire qui a miné de nombreuses institu-tions financières américaines et européennes. Comme l’a déclaré le premier ministre Wen Jiabao plus tôt cette année, la Chine est la première économie impor-tante à émerger de la récession mondiale, faisant mentir presque toutes les prévisions en affichant une croissance de 8,7 pour cent pour 2009. Ce revirement a été tout simplement impressionnant.

Alors que le Canada, la Chine et le reste de la planète vivent une renaissance, c’est grâce à l’ouverture commerciale que

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mining and construction activity speeding up. Recent economic reports on Canada have been beating expectations.

China is proving to be a world leader in the global finan-cial revival. Economic growth bounced back to 10.7 per cent in the final quarter of 2009, China's banks have large amounts of cash and they avoided the mortgage crisis that crippled many U.S. and European financial institutions. As Premier Wen Jiabao stated earlier this year, China is the first major economy to emerge from the global recession, surpassing nearly all predictions by posting 8.7 per cent growth for 2009. This was an extremely impressive turnaround.

As Canada, China and the rest of the world move on to new beginnings, it is with open trade that countries will prosper again. The dangerous policies of protec-tionism will only stifle growth. The G-20 needs to reaffirm its pledge to free trade in Toronto, even though most members have already adopted some form of

protectionist measures in response to the recession. These range from bank rescue packages to economic stimulus measures including nefarious “buy national” provi-sions. These measures are false shelter and wherever they occur, new export and import restrictions hold back economic recovery.

It’s true that when the going gets tough, protectionism is politically popular. When exports are shrink-ing and unemployment is rising, throwing up barriers to imports can have an irresistible appeal to politicians and the public. But we must never forget that protection-ism was tried during the Great Depression. It failed miserably. We did not recover from its disastrous

impact for many generations. No country needs to learn that lesson the hard way again.

ThE ChAnGinG GlObAl ECOnOMyOver the past 25 years, the centre of gravity of the global economy has been steadily shifting east. When I became Prime Minister,

les pays pourront prospérer à nouveau. Les dangereuses poli-tiques protectionnistes ne feront qu’étouffer la croissance. Le G20 a besoin de réaffirmer son enga-gement envers le libre-échange à Toronto, même si la plupart des membres ont déjà adopté certai-nes formes de mesures protec-tionnistes en réaction à la réces-sion. Celles-ci vont des program-mes de sauvetage des banques à des mesures de stimulation économique, dont les infâmes politiques d’achat préférentiel de produits nationaux. Ces mesures constituent une fausse protection et peu importe l’endroit où elles sont appliquées, de nouvelles restrictions aux exportations et aux importations freinent la reprise économique.

Il est vrai que lorsque les temps sont durs, le protectionnisme est politiquement populaire. Lorsque le niveau des exportations dimi-nue et que le chômage est à la hausse, faire obstacle aux impor-tations peut s’avérer une mesure irrésistible pour les politiciens et la population. Mais n’oublions pas qu’on a eu recours au pro-tectionnisme pendant la Grande Crise. Et que cet essai a lamenta-blement échoué, ses effets désas-treux ayant été ressentis pendant plusieurs générations . Aucun pays n’a besoin d’apprendre cette leçon à la dure à nouveau. l’ÉCOnOMiE MOnDiAlE En MUTATiOnAu cours des 25 dernières années, le centre de gravité de l’économie mondiale n’a cessé de se déplacer vers l’Est. Lorsque j’ai été élu premier ministre, le Japon était la seule puissance écono-mique d’importance en Asie. La Chine n’était pas sur l’écran radar de l’économie mondiale et les qua-

tre tigres, Taïwan, Hong Kong, Singapour et la Corée, commen-çaient à peine à se tailler une place sur l’échiquier mondial. Depuis, la performance économique de la Chine est spectaculaire.

Aujourd’hui, la Chine et le Japon représentent ensemble quelque 20 pour cent de la pro-duction mondiale. Des réformes audacieuses ont fait de la Chine (et de l’Inde) des puissances éco-nomiques majeures. Malgré des prévisions économiques pessimis-tes, la Chine a fait preuve d’une capacité de résilience sans pareil. La demande intérieure a contre-balancé la baisse des exportations.

Par le passé, la reprise après des récessions était tributaire de la reprise de la croissance aux États-Unis et en Europe. Dorénavant, il est clair que la reprise mondiale dépend d’une solide croissance éco-nomique en Asie. Selon l’historien Niall Ferguson, « nous assistons peut-être à l’un des bouleverse-ments les plus étonnants qui soient au chapitre des pouvoirs financiers mondiaux ». Le type de croissance économique qu’enregistre la Chine donne raison à M. Ferguson.

Un autre facteur clé modifie de plus en plus le paysage écono-mique mondial, soit l’émergence de chaînes de valeur mondiales dans une gamme croissante d’ac-tivités économiques en tant que principal modèle de référence en matière de commerce et d’inves-tissement au niveau international.

L’époque où le commerce et l’investissement consistaient en des opérations entre deux pays seule-ment est révolue. Dans des secteurs d’activité aussi variés que l’agricul-ture et l’aérospatiale, la production, la technologie, la distribution, le commerce et l’investissement sont répartis dans des réseaux établis dans plusieurs pays.

We may be living through one of the most astonishing shifts of global financial power.

Nous assistons peut-être à l’un des bouleversements les plus étonnants qui soient au chapitre des pouvoirs financiers mondiaux

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Japan was the only major eco-nomic power in Asia. China was not on the global economic radar screen and the four tigers, Taiwan, Hong Kong, Singapore and Korea, were only beginning to make their mark. Since that time China’s economic performance has been nothing short of spectacular.

Today, China and Japan togeth-er account for some 20 percent of global output. Bold reforms have made China (and India) major economic powers. Despite fore-casts of gloom China’s economy has shown remarkable resilience. Domestic demand has offset the decline in exports.

In the past, recovery from recessions depended upon the resumption of growth in the U.S. and Europe. Now it is clear the global recovery depends upon strong economic growth in Asia. Historian Niall Ferguson suggests that “we may be living through one of the most astonishing shifts of global financial power.” The type of economic growth we have seen in China suggests that Ferguson is correct.

There’s another key factor that’s increasingly altering the shape of the global economy. That is the emergence of global value chains across a broadening range of eco-nomic activity as the dominant paradigm of international trade and investment.

The days are rapidly dis-appearing when trade and invest-ment are transactions between only two countries. In industries as diverse as agriculture and aero-space—the production, technology, distribution, trade and investment are spread across networks located in many countries.

A typical product may be designed in several countries, draw on critical inputs manu-

factured in other countries and financed by a consortium of inter-national banks before assembly into its final from for global distri-bution. A study by the Conference Board of Canada found that the Canadian economy is a full par-ticipant in this global transforma-tion of production.

The Canadian aircraft and rail manufacturer, Bombardier under-stands the effective use of a global value chain. The company has an extensive range of global partners in the development and manufac-ture of its products with a major presence in 35 countries.

China is a prime example:•Thecollaborationbetween

Bombardier and AVIC (China Aviation Industry Corporation) demonstrates how Canadian and Chinese companies can comple-ment one anther to give access to strategic assets and strengthen their competitiveness.

•Canada’sflightsimulationcom-pany CAE has a joint venture with China Southern in Zhuhai that started in 2002 with six simulators for pilot training and has almost tripled in size.

•Magnaisanotherwith20facili-ties and almost 5000 employees in China serving the value chain of Chinese and international auto manufacturers.

Impressive as these examples are, the list is short. The opportun-ities for more are substantial.

In a world where success in export and domestic markets increasingly depends upon par-ticipation in a global value chain, solid partnerships with Asian firms are becoming indispensable. Governments have a critical role to play ensuring that their firms can participate fully in global value chains. Governments compete in

Un produit peut être conçu dans divers pays, nécessiter des intrants importants fabriqués dans d’autres pays et être financé par un consortium de banques inter-nationales avant d’être assemblé dans sa forme finale aux fins de la distribution mondiale. Selon une étude du Conference Board du Canada, l’économie canadienne est un participant à part entière à la transformation mondiale de la production.

À titre d’exemple, Bombardier, constructeur canadien d’avions et de trains, sait comment utiliser efficacement une chaîne de valeur mondiale. La société compte sur une vaste gamme de partenaires mondiaux répartis dans 35 pays pour le développement et la fabri-cation de ses produits.

La Chine est un bon exemple :•Lacollaborationentre

Bombardier et AVIC (China Aviation Industry Corporation) démontre comment des sociétés canadiennes et chinoises peu-vent se compléter en se donnant mutuellement accès à leurs actifs stratégiques et en renfor-çant leur compétitivité.

•Lasociétécanadiennedesimu-lateurs de vol CAE a établi une coentreprise avec China Southern à Zhouhai qui, en 2002, comptait six simulateurs pour la formation des pilotes et dont la taille a presque triplé.

•Magnaenestunautreexemple,avec vingt installations et près de 5 000 employés en Chine qui servent la chaîne de valeur de constructeurs automobiles chinois et internationaux.

Aussi impressionnante soit-elle, la liste de ces exemples est courte, mais les possibilités de l’allonger sont énormes.

Dans un monde où la réussite

tant sur les marchés d’exportation que sur les marchés intérieurs dépend de plus en plus de la par-ticipation à une chaîne de valeur mondiale, des partenariats solides avec des entreprises asiatiques s’imposent. Les gouvernements ont un rôle critique à jouer pour s’assurer que leurs entreprises puissent participer entièrement aux chaînes de valeur mondia-les. Les gouvernements se font concurrence dans la promotion de paramètres politiques compatibles afin d’attirer les tranches de plus en plus mobiles de la produc-tion. Pour ce faire, ils doivent réduire les barrières nationales au commerce, à l’investissement et à l’innovation qui freinent leurs entreprises. Et c’est précisément ce que fait le Canada.

l’invEsTissEMEnT ET lE CAnADAAlors que les relations entre le Canada et la Chine entrent dans une nouvelle phase prometteuse, plusieurs façons nouvelles et plus efficaces se présentent pour que les investissements circulent et augmentent entre nos deux pays.

Le Canada est une destination d’investissement mondiale de pre-mier plan. Le pays :•estricheenressourcesnatu-

relles dans les domaines de l’agriculture, de l’énergie et des mines;

•disposedetechnologiesimpres-sionnantes dans les secteurs de l’aérospatial, de la santé, des sciences de l’environnement et de l’éducation;

•peutcomptersurdesressour-ces humaines constituées d’ef-fectifs talentueux, instruits et motivés.

Notre gouvernement est résolu à favoriser un climat propice à

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promoting congenial policy settings to attract increasingly mobile slices of production. To do this, they need to reduce domestic barriers to trade, investment and innova-tion which hold their firms back. And that is precisely what Canada is doing.

invEsTMEnT AnD CAnADAAs Canada and China begin a new and promising chapter in our relationship, there are new and bet-ter ways investment can flow and increase between our two countries.

Canada is a leading global invest-ment destination. The country:• Isnaturalresourcerichinagri-

culture, energy and minerals.•Hasimpressivetechnologiesin

aerospace, health, environmental

science and education.• Ishumanresourcerichwith

a talented, well-educated and motivated work force.

Our government is committed to an open climate for investment. Last year, there was a significant liberalization of Canadian invest-ment rules, including an increased threshold for investments made by a WTO investor. Corporate taxes are on track to be the low-est among the G-7 countries and on new business investments, the tax advantage for Canada over the U.S. will be 10 percent by 2012. The general federal corporate income tax rate has declined to 19 percent in 2009 and is sched-uled to be 15 percent by 2012.

l’investissement. L’an dernier, les règles canadiennes en matière d’investissement ont été considé-rablement libéralisées, et le seuil pour les investissements faits par des investisseurs en vertu de l’OMC a été accrû. Les impôts sur les sociétés sont parmi les plus bas au sein des pays du G7 et, en ce qui concerne les nouveaux investissements, l’avantage fiscal du Canada par rapport aux États-Unis sera de 10 pour cent d’ici 2012. Le taux d’imposition du revenu des sociétés fédéral général a reculé à 19 pour cent en 2009 et devrait être de 15 pour cent d’ici 2012. Dans la majeure partie des cas, les taux d’imposition provin-ciaux évoluent dans le même sens.

Le Canada est le pays au monde

où il est le plus facile de démarrer une nouvelle entreprise; il arrive d’ailleurs au premier rang parmi les pays du G7 selon le Forum économique mondial pour la facilité d’accès au marché, le peu de barrières non tarifaires et le volume d’importations exemptées de douane. Le dernier budget fédéral a pratiquement éliminé les tarifs sur une vaste gamme de produits importés, dont la machi-nerie et l’équipement, utilisés par les entreprises. Ce changement fera en sorte que le Canada sera le premier pays du G20 à devenir une zone libre de tarifs douaniers pour les manufacturiers. Il aidera en outre les sociétés canadiennes à être plus concurrentielles en les encourageant à investir dans de

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Provincial tax rates for the most part are following this trend.

Canada is the easiest country in the world to start a new business, placing first among the G-7 by the World Economic Forum for ease of market access, low non-tariff bar-riers and the volume of duty free imports. The most recent federal budget moved to virtually eliminate tariffs on a broad range of imported goods, including machinery and equipment, used by businesses. This will give Canada the status of being the first G20 country to become a tariff-free zone for manufacturers. It will also help make Canadian com-panies more competitive, by encour-aging them to invest in up-to-date equipment and boost productivity.

Canada and Canadian firms are also excellent investment partners. For most of our history, we have been a net importer of foreign investment, first from the United Kingdom, then from the U.S. and now from a diverse range of coun-tries including China. But in the last 10 years, a significant change has occurred. Canada has become a net exporter of foreign investment.

Canadian firms are follow-ing the path of firms in mature industrial economies in seeking out profitable investments around the world. As their global invest-ments show, Canadian firms have much to offer in manufacturing, technology, financial services and natural resource development. And they are fully supported by the Canadian government.

But investment levels between us are modest. Too modest in fact. There is scope for much more in a full range of sectors—oil and gas, mining, aerospace, biotechnology and education—just to name a few, key sectors of success to date.

To create more success, a Canada-China investment agree-ment would send an important

message to business and investors that foreign investment in both dir-ections is a vital part of developing the full potential of the relation-ship. There have been discussions about an agreement for more than 10 years. The time has come for bold action to get it done.

ThE PrOMisE Of PArTnErshiPCanada has done much to open itself to trade, investment and part-nership through forward-looking policies—and it is now time for businesses to reap the benefits of this. Working with China is an obvious fit and an essential one. It was China that led the world out of recession and that has not hap-pened before. China needs com-modities and energy and Canada has these in excess. China can play a key and complementary role in global value chain enhancement.

There is also a greater scope for political or diplomatic partner-ship between Canada and China. Where we share common object-ives, our countries should partner constructively. History will judge us not by today’s successes but on the future we leave for genera-tions to follow. In times of great opportunity like the one we live in today, I’m reminded of the words of Ralph Waldo Emerson when he advised, “Do not go where the path may lead—go instead where there is no path and leave it a trail.”

The Right Honourable M. Brian Mulroney PC, CC, LLD, became Canada’s 18th Prime Minister in 1984 and served as such until June, 1993. During his years as Prime Minister Canada entered the Canada-US Free Trade Agreement and, subsequently, the North American Free Trade Agreement (NAFTA). In 1993, Mr. Mulroney joined Ogilvy Renault as a Senior Partner.

l’équipement moderne et à stimu-ler la productivité.

Le Canada et les entreprises canadiennes sont en outre d’excel-lents partenaires d’investissement. Pendant la presque totalité de notre histoire, nous avons été un impor-tateur net d’investissements étran-gers, tout d’abord en provenance du Royaume-Uni, puis des États-Unis et maintenant de divers pays, dont la Chine. Mais au cours des dix dernières années, il s’est pro-duit un changement important. Le Canada est devenu un exportateur net d’investissements étrangers.

Les entreprises canadiennes sui-vent les traces d’entreprises issues d’économies industrielles avancées en recherchant des investisse-ments rentables partout dans le monde. Comme le démontrent leurs investissements à l’échelle mondiale, les entreprises cana-diennes ont beaucoup à offrir dans les secteurs de la fabrication, de la technologie, des services financiers et de la mise en valeur des ressources naturelles. Et elles sont entièrement soutenues par le gouvernement canadien.

Mais les niveaux d’investisse-ment sont modestes. En fait, ils le sont trop. Il est possible de les augmenter bien davantage dans un large éventail de secteurs – le pétrole et le gaz, l’exploitation minière, l’aérospatial, la biotech-nologie et l’éducation – pour ne nommer que certains des secteurs prospères clés jusqu’à maintenant.

Pour obtenir encore plus de suc-cès, un accord d’investissement entre le Canada et la Chine enverrait un message important aux entreprises et aux investisseurs en leur faisant savoir que l’investissement étranger dans les deux sens est crucial pour le développement du plein potentiel de cette relation. Des discussions concernant un accord ont lieu depuis plus de dix ans; maintenant,

il est temps de passer à l’action.

lA PrOMEssE D’Un PArTEnAriATLe Canada a fourni beaucoup d’ef-forts pour s’ouvrir au commerce, à l’investissement et au partenariat grâce à des politiques prospec-tives – et c’est maintenant aux entreprises d’en récolter les fruits. Collaborer avec la Chine va de soi et est essentiel. C’est la Chine qui a sorti le monde de la récession, phénomène qui ne s’était jamais produit auparavant. La Chine a besoin de matières premières et d’énergie, et le Canada en a en abondance. La Chine peut jouer un rôle clé et complémentaire dans l’amélioration de la chaîne de valeur mondiale.

En outre, le partenariat poli-tique et diplomatique entre le Canada et la Chine gagnerait à se développer. Dans les domaines où nous partageons des objectifs communs, nos pays devraient s’associer de manière constructive. L’histoire nous jugera non pas par les succès actuels, mais par les succès futurs qui profiteront aux prochaines générations. En pério-de de grandes possibilités, comme celle que nous vivons actuelle-ment, les mots suivants de Ralph Waldo Emerson me reviennent à l’esprit : « N’allez pas où le sentier peut vous mener – allez plutôt où il n’y en a pas et tracez-en un ».

Le très honorable Brian Mulroney, PC,CC, LLD, est devenu le 18e premier ministre du Canada en 1984, fonction qu’il a occupée jusqu’en juin 1993. Sous sa gou-verne, le Canada a conclu l’Accord de libre-échange entre le Canada et les États-Unis et, par la suite, l’Accord de libre-échange nord-américain (ALENA). En 1993, M. Mulroney a joint le cabinet Ogilvy Renault à titre d’associé principal.

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2010

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predictions of the rise of China, how its booming economy and its rapidly growing demographics would change the world as we know

it go back to the time of Napoleon Bonaparte. At the end of the first dec-ade of the new millennium, those predictions and more have come true.

For years, there have been Canadians in the Federal and Provincial governments, at our universities, think-tanks like the Asia Pacific Foundation of Canada and in the private sector led by the Canada China Business Council who worked to forge close economic, cultural and political ties to a China that held a promising future like no other before. Now in 2010 we must build on these ties. Every day, Canadian and Chinese business people, students and artists travel back and forth from one side of the Pacific Ocean to the other, to trade, to learn and to share.

The close bonds that tie the Sino-Canadian relationship are fundamen-tally driven by people. Chinese-Canadians form an important part of our population. Their story is one of bravery and sacrifice – of challenges and triumph. Today, nearly a million and a half Chinese-Canadians contribute to the vitality, diversity and prosperity of our country.

On the other side, of the 600,000 Canadians living in Asia, nearly a quarter of a million live and work in China contributing to its growth and success across a wide spectrum of endeavour.

My first encounter with China occurred nearly 40 years ago. In 1973, Sheila and I visited the mainland near the end of the Cultural Revolution. We have gone back on countless occasions, each time to witness the rapid transformation and progression of its economy and its people.

In fact, in little more than half a century, China has gone from being an economy of potential to where it is today – a major economy and a global power. Today, China’s influence is found from the industrial centres of the West to the farthest corners of the developing world.

This year marks the 40th anniversary of the beginning of the diplomatic relations between Canada and the People’s Republic of China. It was a

Dès l'époque de Napoléon Bonaparte, certains prédisaient qu'un jour la Chine s'éveillerait et que son essor économique et sa démog-

raphie galopante changeraient la face du monde. Alors que s'achève la première décennie du nouveau millénaire, cette prédiction se révèle exacte et la situation actuelle va même au delà de ce qu’on aurait pu prévoir.

Au sein du gouvernement fédéral et des gouvernements provinci-aux, dans nos universités, dans le cadre de cellules de réflexion (la Fondation Asie Pacifique du Canada, par exemple) ou encore dans le secteur privé (sous l'égide du Conseil commercial Canada-Chine), des Canadiens s'efforcent depuis des années de nouer des liens économ-iques, culturels et politiques la Chine, un pays dont l'avenir n'a jamais été aussi prometteur. À présent, en cette année 2010, il nous faut faire fructifier les liens établis. Tous les jours, des gens d'affaires, des étudi-ants et des artistes canadiens ou chinois vont et viennent d'une rive de l'océan Pacifique à l'autre, pour commercer, apprendre ou partager.

Les rapports étroits qui unissent la Chine au Canada sont essen-tiellement le fait d'hommes et de femmes. Les Canadiens d'origine chinoise constituent une part importante de notre population. Leur histoire est faite de courage et de sacrifices, d'heures difficiles et de triomphes. Aujourd'hui, près d'un million et demi de Sino-Canadiens contribuent à la vitalité, à la diversité et à la prospérité du Canada.

De l'autre côté de l'océan, parmi les 600 000 Canadiens qui ont élu domicile en Asie, on en compte près de 250 000 qui vivent et travaillent en Chine, où ils contribuent de multiples façons à la crois-sance et à la réussite de leur pays d'adoption.

Mon premier contact avec la Chine remonte à une quarantaine d'années. En 1973, Sheila et moi-même en avons visité les régions continentales alors que s'achevait la révolution culturelle. Nous y som-mes retournés très souvent. Chaque fois, nous avons pu constater la

The Canada-China relationship: 40 years of history and an unparalleled promise for the future

Quarante années de relations sino-canadiennes et un avenir plein de promesses

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different world back then, for during the Cold War tensions were high.Yet amidst those tensions, Canada played an important leadership role.

It is with fond memory and great pride that I remember my father’s pivotal efforts in the 1960’s as Canada’s Secretary of State for External Affairs to seat the People's Republic of China on the United Nations Security Council and in the General Assembly.

Despite the political differences and the pressures to simply ignore the question, my father had the wisdom and the courage to recognize that a country the size of China, both in landmass and population, must not be swept aside. He believed that the world’s safety and prosperity would be better served with an internationally recognized China.

This idea fueled the dialogue which led up to People’s Republic of China’s recognition as the legitimate representative of China at the United Nations in October 1971.

In an interesting twist of fate many years later, as Canada’s Minister of Finance it became clear to me, in the aftermath of the Asian crisis of the mid-90’s, that the Finance Ministers’ G7 no longer sufficed to protect the global economy’s stability. What was needed was to include China and other emerging economies in the dialogue seeking coordination. That is what gave birth to the G20. I became its first Chairman and worked closely with my Chinese counterparts in order to establish the credibility of this new Finance Ministers’ forum.

This close working relationship with China led to dinner with Premier Wen Jiabao in Ottawa the evening before I became Prime Minister in December 2003, to build on the “special partnership” of our two countries. My subse-quent visit to Beijing in January 2005 and President Hu Jintao’s visit to Canada later that year helped to build that partnership even further – an historic framework agreement for trade, and the recognition that Canada should be a preferred tourist destination for China’s burgeoning population.

Furthermore, from the meetings with the Chinese leaders in 2005, Canada

The Canada-China relationship: 40 years of history and an unparalleled promise for the future

Quarante années de relations sino-canadiennes et un avenir plein de promesses

by The Right Honourable Paul Martin

par le très honorable Paul Martin

transformation et l'évolution rapides de l'économie et du peuple chinois.En un peu plus d'un demi-siècle, la Chine est passée du statut

d'économie en devenir à ce qu'elle est aujourd'hui : un géant commercial et une puissance mondiale. Son influence s'exerce partout, des centres industriels occidentaux aux confins des pays en voie de développement.

L'année 2010 marque le 40e anniversaire de l'établissement des rela-tions diplomatiques entre le Canada et la République populaire de Chine. Le monde était alors bien différent. C'était l'époque de la guerre froide et de vives tensions internationales.

En ces heures sombres, le Canada a joué un important rôle de chef de file. C'est avec un souvenir ému et beaucoup de fierté que je me per-mets d'évoquer ici les efforts marquants déployés par mon père dans les années soixante, à titre de Secrétaire d'État aux Affaires extérieures, pour faire accéder la République populaire de Chine au Conseil de sécurité et à l'Assemblée générale des Nations Unies.

En dépit des différences politiques et des pressions visant à ignorer purement et simplement la question, mon père a eu la sagesse et le cour-age de voir qu'un pays aussi vaste et populeux que la Chine ne devait pas être mis à l'écart. Il avait la conviction que sa reconnaissance par le reste du monde était un gage de sécurité et de prospérité.

C'est autour de cette idée que s'est établi le dialogue qui allait conduire, en octobre 1971, à l'acceptation de la République populaire comme repré-sentante légitime de la Chine aux Nations Unies.

Bien des années plus tard, l'Histoire s'est en quelque sorte répétée; alors que j'occupais le poste de ministre des Finances du Canada, il m'est apparu clairement, à la suite de la crise asiatique survenue au milieu des années 90, que les réunions des ministres des Finances du G7 ne suffisaient plus à préserver la stabilité de l'économie mondiale. Il fallait inclure la Chine et d'autres économies en émergence dans les débats visant à coordonner les mesures à prendre. C’est ainsi qu’a été créé le G20, dont j'ai eu l'honneur d'être le premier président. C'est à ce titre que j'ai pu travailler en lien étroit avec mes homologues chinois afin de donner sa crédibilité à ce nouveau cadre de discussion entre ministres des Finances.

Ces relations de travail sont à l'origine du banquet tenu à Ottawa en décembre 2003, soit la veille de mon entrée en fonctions comme premier ministre, banquet auquel participait le chef du gouvernement chinois, M. Wen Jiabao, et qui soulignait le « partenariat spécial » établi entre nos deux pays. Le voyage que j’ai ensuite fait à Beijing en janvier 2005 et la visite que nous a rendu la même année le président Hu Jintao ont contribué à renforcer ce partenariat. Il en a découlé en effet un accord-cadre historique en matière de commerce, ainsi que la reconnaissance du Canada comme destination touristique de choix pour la population toujours plus nombreuse de la Chine.

Par ailleurs, à l'issue des rencontres tenues avec les dirigeants chinois en 2005, le Canada a cherché à s'assurer une position concurrentielle au sein des réseaux de transport et d'approvisionnement que nécessitent les mou-vements de marchandises à destination ou en provenance de l'Asie. Nous avons compris qu'en modernisant nos installations portuaires et nos infra-structures routières et ferroviaires, nous pourrions acheminer plus rapide-ment biens et matières premières sur les marchés nord-américains ou chinois, puisque les ports de Vancouver ou de Prince Rupert sont à deux ou trois jours de navigation de moins de l’Asie que les ports américains. De concert avec le gouvernement de la Colombie-Britannique et ceux des provinces de l'Ouest, nous avons annoncé en octobre 2005 un premier

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sought to place itself in a competitive position in the transportation and supply system which moved goods to and from Asia. We realized that if we upgraded our port capacities and our road and rail systems, we could move goods and materials in a shorter time frame to North American markets or to China, since Vancouver and Prince Rupert are two to three days shorter in sailing time from Asia than US ports. In consultation with the BC provincial government and those of the Western Provinces we announced in October 2005 an initial commitment of $590 million for infrastructure investment and undertook to negotiate further funding as development took place.

Today, China’s productive society is a shot of adrenaline for the global economy, and Canada has the opportunity to make the most out of this undeniable new dynamic. It is important that Canada’s schools open stu-dents’ eyes to the too-often-overlooked history of China and its culture and for our businesses to build on the strengths of our two countries as Canada carves its own special place in the new multipolar world.

This is not an option: it is a necessity. We are a Pacific nation. We possess a well-established Chinese-Canadian community, and we are in a strong position to capitalize on that which is required to extend Canada’s partner-ship with the new economic titan across the sea. Acting on that reality is the key to the prosperity of both countries. We also need a political community which grasps the reality that an important part of Canada's future economic success depends on our multi-level relationships with China and is prepared to act on that understanding.

The Right Honourable Paul E. P. Martin was Canada’s 21st Prime Minister, in that office from Dec., 2003 until Jan., 2006. Mr .Martin served as Canada’s Minister of Finance from 1993-2002.

engagement de 590 millions de dollars pour des investissements en infra-structures. Des négociations ont également été entamées afin d'accroître cette mise de fonds à mesure que les activités économiques prendraient de l'ampleur.

Aujourd'hui, la Chine industrieuse est un stimulant pour l'économie mondiale, et le Canada a la possibilité de tirer pleinement profit de cet indéniable nouvel équilibre des forces. Il est important que, dans les écoles canadiennes, on éveille la jeunesse à l'histoire et à la culture trop souvent oubliées de ce grand pays. Il importe aussi que nos entreprises tirent parti des atouts respectifs de la Chine et du Canada, à l'heure où ce dernier entend occuper une position privilégiée dans le monde multi-polaire qui est devenu le nôtre.

Simple option? Non. Impérieuse nécessité. L'une des façades de notre pays donne sur le Pacifique. Nous comptons une communauté sino-canadienne bien établie et sommes en d'excellente position pour en tirer parti, ce qui s'impose si nous voulons affermir le partenariat entre le Canada et ce nouveau géant économique d'au-delà des mers. La pros-périté de nos deux pays passe par la prise en compte de cette réalité. Il faut également que, d'une part, la classe politique saisisse que les futures performances économiques du Canada dépendent fortement des liens qu'il aura établis à de multiples niveaux avec la Chine et que, d'autre part, cette même classe politique soit prête à agir dans le sens voulu.

Le très honorable Paul E. P. Martin a été le 21e premier ministre du Canada, poste qu'il a occupé de décembre 2003 à janvier 2006. De 1993 à 2002, M. Martin a également exercé les fonctions de ministre des Finances du Canada.

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i am proud to have been a member of the government 40 years ago when Prime Minister Trudeau and my friend and mentor, Mitchell

Sharp, then Minister of External Affairs, established diplomatic relations between Canada and the People’s Republic of China. Relations between Canada and China did not begin in 1970. There is a long history of friendship and commerce and exchange of people between our two countries. One need only mention the special place Dr. Norman Bethune has in the hearts of the Chinese people. One of my predecessors as Prime Minister, John Diefenbaker, was responsible in the late 1950s for selling Canadian wheat to China when it was particularly needed and when some western countries were not trading with China.

I became Prime Minister at the end of 1993, 15 years after Chairman Deng began the opening and transformation of the Chinese economy. Fostering and growing Canada's friendship and commercial relations with China was a priority of my government for all of my 10 years in office. Throughout that time the Canada China Business Council played a key role in facilitating and promoting those relationships and the work of the Canadian government and the Canadian private sector.

In November, 1994, I led the first of several Team Canada missions to China. Team Canada was a very important innovation of my govern-ment. All or almost all of the Premiers of each province accompanied me as Prime Minister and hundreds of Canadian business people to China. We presented a united front to the Chinese government and private sec-tor and by our presence demonstrated the profound commitment of Canada to our relations with China. The result was a rapid and substantial increase in trade between the two countries.

The Team Canada mission of 1994 to China was followed by two additional full Team Canada trips to China, one in 2000, and one again in 2003. As well I returned twice on my own and met countless times with the Chinese President and with the Premier. In fact, I adjusted my retire-ment date based on the visit of the Premier in December 2003. I had told him that I was to host him in Canada. I kept my promise. The following day I retired from politics.

During the course of my official trips to China and visits by Chinese leaders to Canada, we had the opportunity to discuss far more than sim-ply commercial deals. Instead of lecturing the Chinese on how to run their country, Canada offered assistance to China in training of judges as the Chinese began to modernize their legal system. We developed

Je suis fier d’avoir fait partie du gouvernement il y a quarante ans lorsque le premier ministre Pierre Trudeau et mon ami et mentor, Mitchell

Sharp, alors ministre des Affaires extérieures, ont noué des relations diploma-tiques entre le Canada et la République populaire de Chine. Les relations entre le Canada et la Chine remontent à bien avant 1970. Il existe entre nos deux pays une longue histoire d’amitié, de commerce et d’échanges de personnes. Souvenons-nous, ne fût-ce que la place particulière qu’occupe le Dr Norman Bethune dans le cœur du peuple chinois. L’un de mes prédécesseurs en tant que premier ministre, John Diefenbaker, a pris l’initiative à la fin des années 1950 de vendre du blé canadien à la Chine lorsque celle-ci en avait tout particulièrement besoin et que certains pays occidentaux refusaient de commercer avec la Chine.

Je suis devenu premier ministre à la fin de l’année 1993, quinze ans après que le Président Deng a amorcé l’ouverture et la transformation de l’économie chinoise. Cultiver et renforcer l’amitié et les relations commer-ciales du Canada avec la Chine a été une priorité de mon gouvernement durant la totalité des dix années que j’ai passées comme premier ministre. Durant tout ce temps, le Conseil commercial Canada-Chine a joué un rôle clé afin de favoriser et promouvoir ces relations et les travaux du gouverne-ment canadien et du secteur privé canadien.

En novembre 1994, j’ai dirigé la première de plusieurs missions Équipe Canada en Chine. Équipe Canada a été une innovation très importante de mon gouvernement. La totalité ou presque des premiers ministres de chaque province ainsi que des centaines d’entrepreneurs canadiens m’accompagnaient en Chine alors que j’étais premier ministre. Nous avons montré un front uni au gou-vernement chinois et au secteur privé, et notre présence témoignait à elle seule de l’engagement profond du Canada dans ses relations avec la Chine. Il en résulté une croissance rapide et importante du commerce entre les deux pays.

La mission Équipe Canada de 1994 en Chine a été suivie de deux voyages supplémentaires de la délégation complète d’Équipe Canada en Chine, l’un en 2000 et l’autre de nouveau en 2003. En outre, je suis retourné deux fois tout seul, et j’ai rencontré à maintes reprises le président et le premier min-istre chinois. J’ai en réalité fixé la date de mon départ à la retraite en fonction de la visite du premier ministre chinois en décembre 2003. Je lui avais dit que je l’accueillerais au Canada. J’ai tenu promesse. Le jour suivant, j’ai pris congé de la vie politique.

Au cours de mes déplacements officiels en Chine et des visites de diri-geants chinois au Canada, nous avons eu l’occasion de discuter de sujets qui dépassent largement le cadre strict des accords commerciaux. Au lieu de faire la

Canada China relations at 40: a time to build

Célébrer 40 ans de relations entre le Canada et la Chine et construire l’avenir

By the Right Honourable Jean Chretien

par les très honorable Jean Chretien

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strong relations and exchanges between Canadian and Chinese universi-ties. Canada today each year welcomes thousands of Chinese students who study at Canadian universities, learn about Canada, teach Canadians about China, and then return to China as the best ambassadors Canada can send.

As relations grow over the years, I am confident that Canadian students who have studied in China and Chinese students who have studied in Canada will become leaders in their own public and private sectors and the relationships they have established as students will serve both countries very well as relations between our two countries grow closer and closer.

While we are now celebrating 40 years of diplomatic relationship between our two countries, this is not the time to look back nostalgically to what we have accomplished. Rather it is time to build on our relation-ship and on our common interests. The world in 2010 could not have been imagined in 1970 nor even in 1993 when I became Prime Minister of Canada. The economic centre of gravity has shifted to the Pacific Rim. The role of China was central to averting a global depression in the fall of 2008, and the dynamism of the Chinese economy has served to foster growth around the world.

It is now time to restructure international institutions that arose out of World War Two to take account of the new and central role of China and to

give China its full place with all the obligations and responsibilities that implies in those institutions. I believe there is a role for Canada to help bring this about just as the Canada served a crucial role behind the scenes in helping to bring about the accession of China to the World Trade Organization. I hope the government of Canada today will take up the challenge and play that role.

Canada is benefitting more and more from Chinese investment and China is benefitting from the activities of Canadian companies in China. It is with considerable pride that Canadian visitors to Beijing ride in ultra modern Bombardier subway cars. But we have just scratched the surface in terms of the potential of our economic, cultural and social relations.

China today has a free trade agreement with New Zealand; China and Australia are negotiating a similar agreement. Now is the time for Canada to take a bold step forward and propose a comprehensive 21st century economic agreement with China that goes beyond free trade and includes investment protection, educational exchanges, and environmental co-operation. A recent report by the Canadian International Council (Open Canada: A Global Positioning Strategy For a Networked Age) can serve as the basis for structuring such a negotiation.

We live in a time that future historians will record as transformational. Canada and China together can be in the forefront. It will take courage, political will, a dedicated business and educational community. The role of the Canada China Business Council will be crucial. The possibilities are exciting. Now is the time to start.

leçon aux Chinois sur la façon de diriger leur pays, le Canada a offert son aide à la Chine sur le plan de la formation des juges, alors que celle-ci amorçait la modernisation de son système judiciaire. De solides relations ont été nouées et de bons échanges ont eu lieu entre les universités canadiennes et chinoises. Aujourd’hui, le Canada accueille des milliers d’étudiants chinois qui viennent étudier dans les universités canadiennes, en apprendre davantage au sujet du Canada, informer les Canadiens au sujet de la Chine et retourner en Chine pour devenir les meilleurs ambassadeurs que le Canada puisse dépêcher.

Au fur et à mesure que les relations se renforcent au fil du temps, je suis persuadé que les étudiants canadiens qui ont étudié en Chine et les étudi-ants chinois qui ont étudié au Canada deviendront des dirigeants dans leur propre secteur public ou privé et que les liens qu’ils ont forgés en tant qu’étudiants serviront très bien les intérêts des deux pays au fur et à mesure que les relations entre ces pays se resserrent.

Alors que nous en sommes à fêter quarante ans de relations diplomatiques entre nos deux pays, il n’est pas utile de s’attarder avec nostalgie sur ce que nous avons accompli. Il est plutôt temps de miser sur les relations que nous avons nouées et nos intérêts communs. Le monde que nous connaissons en 2010 n’aurait pas pu être imaginé en 1970, ni même en 1993 lorsque je suis devenu premier ministre du Canada. Le centre de gravité économique s’est déplacé au littoral du Pacifique. Sans la Chine, il n’aurait pas été possible d’éviter

une dépression mondiale à l’automne de 2008, et le dynamisme de l’économie chinoise a servi à stimuler la croissance un peu partout dans le monde.

Il est maintenant temps de restructurer les institutions internationales qui sont issues de la Seconde Guerre mondiale afin de tenir compte du rôle, nouveau et essentiel, que joue la Chine aujourd’hui et de lui faire la place qui lui revient avec toutes les obligations et les responsabilités inhérentes à un tel rôle. Je suis convaincu que le Canada peut faciliter ce processus tout comme il a joué un rôle déterminant en coulisse pour aider la Chine à accéder à l’Organisation mondiale du

commerce. J’espère que l’actuel gouvernement du Canada relèvera le défi et jouera ce rôle.

Le Canada tire parti de plus en plus de l’investissement chinois et la Chine profite des activités des entreprises canadiennes en Chine. C’est avec une fierté extraordinaire que les touristes canadiens à Beijing prennent le métro ultra moderne construit par Bombardier. Mais nous n’en sommes qu’au début en ce qui concerne le potentiel des relations que nos deux pays peu-vent entretenir sur les plans économique, culturel et social.

La Chine est partie actuellement à un accord de libre-échange avec la Nouvelle-Zélande; la Chine et l’Australie négocient une entente analogue. Il est maintenant temps pour le Canada de franchir le pas et de proposer à la Chine une entente économique complète digne du 21e siècle qui dépasse le cadre strict du libre-échange et comprenne la protection des investisse-ments, les échanges en matière d’éducation et la coopération sur le plan de l’environnement. Un rapport récemment publié par le Conseil international du Canada (Un Canada ouvert : Stratégie de positionnement mondial à l'ère des réseaux) peut servir de base à l’organisation de négociations en ce sens.

Nous vivons une époque que les historiens du futur qualifieront de « transformationnelle ». Le Canada et la Chine peuvent figurer ensemble au premier plan. Il faudra du courage, de la volonté politique, une communauté d’affaires et un milieu de l’enseignement dévoués. Le rôle du Conseil com-mercial Canada-Chine sera à cet égard déterminant. Les perspectives sont intéressantes. Il est temps de se mettre au travail.

We live in a time that future historians will record as transformational.

Nous vivons une époque que les historiens du futur qualifieront de « transformationnelle ».

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Business negotiations in China are often quite similar to negotiations elsewhere. Issues of preparation, balance, and

prudence apply to negotiations generally. Preparation includes completing due diligence on negotiating counterparts, design and plan-ning for process and content of negotiations, and clarity in establishing end-goals and nego-tiable positions. Balance involves achieving an acceptable relationship between the goals of negotiators and counterparts. Prudence involves retaining sound business judgment and being aware of opportunity costs and alternatives. These general issues of negotiation apply to China as well, but the local context in China also raises particular challenges.

lOCAl COnTExTsNegotiating in China requires appreciation of local contexts—particularly the role of cul-ture in business behaviour and organization. Understanding local culture in China requires appreciation of the importance of relational

networks. Culture (including language) offers the key to understanding local markets and market behaviour. Culture of business communities in China can generally be distin-guished from the culture of individualism that often characterizes North American society. In China, relational networks are cultural vehicles for communication and risk management. Thus, businesses seeking partnerships or acquisition opportunities will tend to rely just as—or more—heavily on information obtained through relational networks than on the infor-mation presented in formal documentation such as profit and loss statements, annual reports, and the like.

Nonetheless, as elsewhere, culture in China is not uniform. There are distinct differences in social norms and behaviour based on social strata--elites/middle class; consumers/producers; government/society; family/nonfamily units, etc. As well cultural differences reflect regional dif-ferences—in China this is particularly the case between North and South China and even

between adjoining provinces. Occupational differences often lead to distinct perspectives and behaviours among different professionals e.g. accountants/lawyers; between bureaucrats and the subjects of their regulation; between intellectuals and society at large. As well, the centrality of family in China often means that values and loyalties within families transcend those driven by social, regional or occupa-tional factors.

Attempts to understand local cultural val-ues requires appreciation of how these are manifested—generally through expression and behaviour. Again, language is key. For example, the distinct use of the words “hetong” and “qiyue” to express the notion of contract also reflects value differences with regard to the community relationship expressed in con-tract or the formal legal documentary expres-sion. Behaviour is naturally important, as indicated by varying responses to the etiquette of Chinese banquets, the selective use of infor-mality, and body language. Certainly, culture

negotiating in China: Practical Approaches and Local Contexts

By Pitman B. Potter

negotiating business agreements and partnerships is an art form unto itself, and nowhere is this more true than

in China. CCBC members tell us that--while negotiating in China shares many similarities with talks elsewhere--

negotiating in China has its unique aspects. To examine these, Business Forum asked UBC asian research Chair

dr. Pitman Potter to offer insights gained from decades of experience in China.

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is not uniform, and the values and perspectives of an elite negotiator for a Chinese agency or company and those of the general society are often quite distinct. The theory of “Selective Adaptation” offers an approach to understand-ing the effect of cultural values on the imple-mentation of international trade and business standards. Selective Adaptation cautions those involved in business and diplomatic discus-sions in China to appreciate that commitment to a legal text (contracts or treaties for example) may still involve culturally driven distinctions in interpretation and application. Appreciation of this approach and its implications for legal compliance and business behaviour are essential to preparing for negotiations in China.

PrEPArATiOn Preparation for negotiations in China includes conventional aspects of identifying goals (immediate, medium, and long-term); iden-tifying goals and expectations of counterparts (requiring research and networking); and plan-ning processes of “trade-off’s,” “what-if’s,” and fall back positions etc. However China-specific preparation involves additional elements.

China-specific preparation involves first the completion of institutional and personal mapping of negotiating counterparts. This is

linked to identifying goals and expectations. For example, institutional mapping would reveal links between state-owned enterprises/central enterprises and relevant government departments, as well as determining relative bureaucratic authority by reference to staff allocations (bianzhi). Institutional mapping would also reveal the nature of provincial relationships locally and with the Centre. Rivalries among enterprises in particular sectors and among government departments (particu-larly those with overlapping jurisdiction) are essential to forecasting negotiating positions and behaviour. Institutional mapping also involves identifying the role of the Communist Party of China, including the role of the various “Leading Small Groups” and party members groups that often set policy and determine conduct of officials on particular issues.

Despite China’s accession to the WTO and the GATT, challenges continue around lack of transparency and obstacles to access to informa-tion. This means reliance on informal sources and completion of on-the-ground due diligence. Information obtained through English language media and internet sources should be compared with Chinese language sources. Informal sourc-es (interviews, internet chat rooms, blogs, etc.) should be distinguished from formal reporting

(e.g. annual reports, P & L statements etc.). The “conventional wisdom” on particular busi-ness actors or opportunities should be treated with caution.

Preparation also involves identification of rela-tional networks that may influence behaviour of counterparts. Recalling that networks are mechanisms for acquisition and management of information, it is useful to distinguish between formal institutions and personal and family networks. The latter are often more reliable and more comprehensive as a source of business and political information in China.

Often networks focus on obligations rather than rights, and can be invaluable in under-standing the goals and strategies of business and government negotiators. For example, interpretation of agreements -- contracts, trea-ties etc.-- involves differing interpretations on their significance. Whereas negotiators in the North American tradition often consider a formal agreement to be the conclusion of negotiations, in China the formal agreement is often the beginning of a relationship which involves ongoing adjustments. Agreements are also interpreted differently as regards their emphasis on rights versus obligations—the close interplay between contract provisions on rights and those on obligations (despite use

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The Canada Ch ina Bus iness Counc i l Magaz ine 2010 | Summer Pr int Edit ion38

of formal severability clauses) is key to under-standing goals and strategies of counterparts. These perspectives all have implications for negotiations and should be included in general preparatory efforts.

As well, once negotiating sessions have begun it is essential to identify and understand who is participating and who not, where is the power and authority behind the negotiating team. Key participants in a business relationship often do not participate in the negotiations. Often the power to decide outcomes of negotiations rests with individuals or groups whose existence is often undisclosed and who often do not participate in the negotiations. It is not uncom-mon for negotiators in business and diplomatic relations to have existing relationships and commitments to third parties that are either not disclosed or are otherwise veiled from the negotiating process. These are but a few examples of the items that must be included in preparation for negotiations.

PrUDEnCEBusiness and diplomatic negotiators often find the mystique and distinctive environment of China to be highly conducive to reaching agreeing on terms and conditions that would be unacceptable in other contexts. One of the first rules of prudence is do not sacrifice busi-ness and diplomatic judgment in negotiations. Banquet diplomacy is a key element of nego-tiations and is designed to build relationships among the parties. As such it is an invaluable part of the negotiation process. Foreign busi-nesses operating in China often are presented with opportunities that require significant market entry costs, identification of loss-leader products etc. in order to gain access to the market. Depending on the business strategy involved this may be acceptable but should be considered carefully. However negotiators should not sacrifice their business judgment despite the multiple friendly inducements to do so.

Another aspect of prudence is to assume for-eign negotiators are being observed at all times. Negotiator behaviour is noted carefully at the negotiating table and elsewhere—especially in the context of “informal” events. Prudence requires negotiators to plan activities, demeanour, and behaviour well in advance. Prudence also requires bringing staff transla-tors and assistants rather than relying on those provided helpfully by counterparts in China.

As well, negotiators are advised to be dis-ciplined. The spoken word—whether table talk, negotiating demeanour, or banquet discussion—carries significant meaning for negotiating counterparts and should be man-aged carefully. Behaviour inside and outside the negotiating room must be managed with great care—and particular attention paid to “informal” events. While a distinction should be made between social and business relation-ships and activities, negotiators should bear in mind that Chinese counterparts are looking at the whole person, the whole organization with whom they are negotiating and so the distinc-tions between social and business behaviour often fade.

bAlAnCEBalance involves a variety of cautionary per-spectives to avoid jumping to conclusions and accepting negotiating conditions based on inadequate information. It is essential to be aware of the complexity within Chinese culture. As discussed above, social, occupa-tional, regional and family differences have a significant role in values and behaviour. Assumptions about the uniformity of China and the behaviour of Chinese businesses and organizations should be discarded. Differences within a large city such as Shanghai, let alone regional differences between Shanghai and Beijing or between the coastal and interior areas of China are significant, and foreign negotiators should be cautious not to assume that perspectives and values expressed in one area apply universally.

As well, attitudes and behaviours in China are changing in response to a variety of local and global pressures. The increased availability of international entertainment and informa-tion through the internet has contributed to changing attitudes about individualistic and collectivist approaches to social and economic activity. The role of formal documentation is increasing, even as relational networks remain strong. Technical and professional knowledge among Chinese negotiators has increased at a staggering rate and is often closely compa-rable to that of North American counterparts. Assumptions about attitudes and abilities should be avoided.

Nonetheless, successful negotiations require anticipation of cultural perspective of negotiat-ing counterparts (with regard to issues of net-

working, community values, obligations etc.). Whether in business or diplomatic negotiation, culture will play a role. However, negotiators must be ready for contradictions and uncer-tainties. Changing cultural perspectives have effects on market behaviour whether in indi-vidual or community context. Cultural per-spectives on informal networking and formal documentation have a significant impact on management of information and risk manage-ment. For example, the issue of information disclosure for the purposes of securities trans-action often involves a combination of formal and informal processes. Certainly globaliza-tion and marketization are bringing change to Chinese cultural perspectives. However this does not mean that China’s changing cultural system will come to mirror European / North American market culture. Cultural differ-ences do affect contract practices—especially the question of whether a contract is the final expression or the beginning of a relationship. Appreciation of culture should complement but not displace attention to business goals and self interests. Understanding of cultural per-spectives helps us to understand how “inter-ests” are perceived and pursued in a course of business and diplomatic negotiations.

sUMMAryIn sum, negotiations in China require an appreciation of local context—particularly the role of changing cultural perspectives on nego-tiations and behaviour. Negotiators are advised to be prepared (through due diligence and institutional mapping); be prudent (through retaining firm grasp of goals and objectives); and be balanced (retain a nuanced perspec-tive on issues such as cultural perspectives and “conventional wisdom”). Attention to these factors will not guarantee negotiating success, but it will certainly help.

Pitman Potter is Professor of Law at UBC Law Faculty and Hong Kong Bank Chair in Asian Research at UBC’s Institute of Asian Research. Dr. Potter serves as a consultant to the Canadian national law firm of Borden Ladner Gervais LLP. He is a member of the Board of Directors of CCBC. This essay is based on a talk given by Dr. Potter to an audience of CCBC and CME members in Toronto, Feb. 25, 2010.

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China’s latest restrictions in its Government Purchasing Law (GPL)—in particular the

introduction of a draft Indigenous Innovation Policy—did not come as a complete surprise to Canadian companies in China; we have been aware since the GPL was introduced in 2002 that we faced an escalating series of restrictions on participation in government procurement. China, like most advanced economies, sees gov-ernment procurement as an essential internal economic development lever. China, particular-ly, sees government procurement as an import-ant element in its commitment to becoming “an innovation society” by 2020.

China has participated in lengthy discussion with the World Trade Organization (WTO) on accession to the WTO’s Government Procurement Agreement (GPA); however, this has not progressed much to date.

Since 2006, the formal launch of the “Indigenous Innovation Policy,” China has placed the highest priority on developing internal science and technology in its drive to become a global vendor of innovation rather than being an innovation buyer. While China’s Indigenous Innovation Policy is understandable from a domestic policy perspective, it raises

concerns that China may exclude Canadian and other foreign companies unfairly and, from a more practical perspective, that China may be barring the gate to offshore innovation that has great potential to contribute towards China’s desire to be an innovation society. In short, China’s best interest, as is the case for Canada and other global traders, is to avail itself of ‘best-in-class’ innovation, as opposed to only having access to ‘locally best avail-able’ innovation. The Canada China Business Council and many other international business associations active in China have made that case in representations to China’s Ministry of Commerce and other relevant agencies. In this regard, China’s ongoing innovation policy and planning should emphasize the building of global innovation capacity.

However, under the current iteration of the policy, the issue for Canadian companies is the restriction placed on who may bid for government contacts. The question is, “How ‘Chinese’ is your Chinese enterprise?”

whAT’s qUAlifiEs As ‘inDiGEnOUs’To qualify as “indigenous innovation,” a product has to be made by an entity that

owns the intellectual property for that innov-ation in China. The innovation trademark must be owned by a Chinese company and be registered in China. It must be certified by a governing body—the Chinese National Certification Commission.

The official innovation policy framework lays out three key layers of innovation: original innovation (yuanshi chuangxin), integrated innovation (jicheng chuangxin), and re-innov-ation (yinjin xiaohua xishou zaichuangxin), that addresses the importance of co-operating with international communities and partners when promoting innovation in China.

Preference in government procurement will be given to accredited products that are listed in a national catalogue that is currently under development. A Government circular (Circular no. 618, Nov. 15, 2009) applies the restrictive accreditation process to six categor-ies that Chinese society views as necessary to support— and essential in— developing the innovation society:

1. Computer and application devices2. Communication products3. Modernized office equipment

indigenous innovation: China’s drive to be an ‘innovation society’ By Gregory Shea

The introduction in november, 2009, of the latest draft versions of China’s Government Procurement Law--particularly an indigenous innovation Policy that formalizes substantive restrictions on bidding by non-Chinese firms for government contracts--is raising considerable concern with non-Chinese businesses including Canadian companies. We asked RiM’s Gregory Shea, a member of the CCBC Board of directors and a former President and Managing director of the US information Technology Office (USiTO) in Beijing, to have a look at the new policy for us.

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4. Software5. ‘New’ energy and equipment6. Energy-efficient products.

The innovation policy drive is comprehensive in nature and enduring in impact. However, it is important to note that it provides an oppor-tunity as well as new challenges. On the one hand, the new focus on moving up the value chain by promoting “indigenous innovation champions” opens up the possibility of new and more subtle forms of protectionism. On the other hand, this energetic drive to estab-lish an innovation society potentially can also lead to the adoption of some elements of the educational, financial and legal systems that have enabled developed countries to sustain their economies.

inDiGEnOUs vs. GlObAl innOvATiOn ‘Indigenous Innovation’ is an effort to reinvig-orate the domestic capacity to innovate that historically underpinned Chinese achieve-ment. Both inclination and history inform the Chinese Government’s approach to restricting its GPL. However today, the innovation that China seeks to foster actually occurs most profoundly at global intersections. It hap-pens at the meeting points between cultures, between schools of thought and scientific disciplines. Innovation is an intrinsically open process that does not naturally confine itself to national boundaries. Indeed, it moves around anachronistic mercantilist barriers that a nation may attempt to impose to provide

some imagined advantage to some domes-tic constituency (see “Innovation Laws of Physics” below).

Modern communications and transporta-tion have all but eliminated the friction at these ‘intersections,’ with the most profound advances in innovation occurring in “global innovation value chains” between (not within) economies.

The most effective approach is to boost innovation itself and avoid qualifications that confuse or can be used to discriminate against certain market participants. Measures intended to support “self reliant” or “indigen-ous” innovation which restrict full market participation risk impeding the development of innovation in society by redirecting tech-nology, human and financial capital flows to less encumbered localities.

MOvinG PAsT ‘inDiGEnOUs’To this end, a serious dialogue on innovation involving leaders from business, govern-ment and academe from China and abroad is needed to arrive at the best policy framework that will enable China to achieve its economic goals without impeding the valuable contri-butions of foreign entities. A winning policy framework will achieve this “global innovation capacity” by promoting the capacity of individ-uals and organizations based in an economy, irrespective of their nationality or ownership structure. This will enable them to add value to and derive appropriate benefits from the new global innovation chains that are the prime creators of wealth in that economy.

TrUE innOvATiOn’s “lAws Of PhysiCs”There are ‘laws’ of physics-worth remem-bering in the discourse on Indigenous Innovation. These lend themselves to con-structing the environment that truly drives innovation:

•Combination:Innovationinvolvesthe combination of two previously- existing things in a new way which creates value.

•Application:Oftenalargercommercialreward accrues to those who effectively exploit technology than to technology’s inventors.

•Convergence:Innovationoccursat intersection between industries (e.g. broadcasting and telecoms), disciplines (biology, chemistry, physics, material sciences), and cultures.

•Fluidity:Innovationdependsonwhereeconomic value can most effectively be created, not who or where the producer is. (Joy’s Law: Innovation will happen and it will happen some place else”).

•Comprehensiveness:Innovationin business processes and models (including service models) is as important as technology innovation.

•Marketdriven:Innovationisdrivenbymeeting the demands of consumers.

Gregory Shea is Managing Director, China, Research in Motion Ltd. You can contact him at [email protected].

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The Centre provides a venue on the ground in Shanghai, supported by a well-trained

staff to demonstrate and present products and services, and to meet and network with Chinese clients or counterparts. It is a foothold for companies looking to expand into China, and for companies already involved in China it offers a space tied in with a strong bilateral network of Canadian and Chinese companies, which is perfect for meetings or events.

• TheCentrewillprovideserviceandsupportto visiting companies from Canada during and after the 2010 Shanghai Expo, to assist in displaying their products or services and to provide business support and assistance.

• TheCentrewillbestaffedbyaCCBCbusi-ness development team experienced with presentations and strong in business com-

munication. They are fluently bilingual in English and Chinese, and familiar with both Canadian and Chinese business practices.

• TheCentrewillregularlyhostvariousthemed events throughout the year. These will include joint events with companies, sectoral groups, and government agencies or with Chinese counterparts and regional gov-ernments. The events will allow participants to demonstrate, meet, present and network with their business counterparts and their clients.

• Inadditiontonumerousdisplaysbothinsideand outside the space, an LED video screen is installed within the open showroom to continuously play images of Canadian scen-ery, culture, products, corporate information and business promotion materials.

Canada Centre in Shanghai by Travis Joern

The Canada China Business Council now has a Canada Centre in Shanghai, a

space for the showcase of Canadian heritage, culture, education, technolo-

gies, products, and services. The Centre is a resource not only for CCBC

members but for the greater Canadian business community. it serves as an

information platform for local Chinese people interested in learning about

Canada, and it allows companies, sectoral groups, educational institutions,

visiting officials, economic development agencies and other entities to use

this public space for meetings and business promotion.

• Productlaunches• Presentations• Servicepromotion• University

recruitment• Cocktailreceptions• Minitradeshows

• Smallseminarsorworkshops

• Businessmatch-making events

• PressConferences• Receptionsor

networking events

The Centre provides graphic, product and video display functions and meeting rooms to undertake various business promotion activities. These activities include anything from:

Within the space you have a unique oppor-tunity to create displays to promote your company, and to expose your organization to a variety of Chinese delegates, businessmen and other potential clients interested in working with Canada. The Canada Centre stands out from all other display opportunities in Shanghai in how it is dedicated to the ‘Canadian’ brand and is connected to one of the most respected bilateral trade organizations in China. The repu-tation that the CCBC enjoys in China reflects the decades of developing networks throughout all levels in China, and the Centre represents an opportunity to display your connection to those networks within China.

Centre staff provides display management, including graphic development, decoration and maintenance of display items. Staff will create outreach programs to attract audiences con-sistent with the goals of the organizations that purchase display packages. Don’t hesitate to contact us for pricing information or with any other questions regarding the space and how it could be of use to your organization.

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CANADA AND CHINA: LOOKING TO THE FUTUREFrom its beginnings more than 140 years ago,

Sun Life Financial has grown to become a

leading name in Canadian financial services.

Over the past eight years, we have expanded

our horizons into the vast and exciting market

of China.

Building on the strong relationships we have

established in China, we are deeply committed

to contributing to continued market growth in

insurance, pensions and asset management.

We honour the friendship between our two

nations as we exchange not only goods and

services, but also best practices, technologies

and culture.

Life’s brighter under the sun

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