Francis Dorsemaine Trade Commissioner - Beijing

Transcription

1 Francis Dorsemaine Trade Commissioner - Beijing

2 Entering a Significant New Era 2

3 Joint Statement with four areas of focus Trade & Investment Energy & Environment Joint Statement Health Governance 3

4 Four areas of focus Trade & Investment Expanding the Footprint Shenyang Beijing Qingdao Nanjing Wuhan Chengdu Chongqing Shanghai Guangzhou Shenzhen Hong Kong 4

5 Something significant is happening 1100 Indices of Real GDP (Year 0=100) China Japan Korea Source: IMF 5

6 Disaggregating the BRIC China in the BRIC GDP in Billions (Current USD) China Russia Brazil India Source: World Development Indicators: The World Bank Group 6

7 Something significant is happening Export Indices (2007=100) China US ROW Source: Statistics Canada 7

8 Something significant is happening Canada's Exports to China 2009 ($ million) 12,000 10,000 8,000 6,000 4,000 Iron ore Coal Canola Woodpulp Machinery Other 2, Source: Statistics Canada 8

9 Something significant is happening Chinese Consumption as a % of World Production 60% 50% 40% 30% 20% 10% 0% Iron Ore Coal Aluminium Zinc Copper Nickel Crude oil Source: IMF 9

10 China Investment Flows In 2009, Chinese overseas foreign direct investment (OFDI) was an estimated $56.53bn, an increase of 1.1% from % was Financial OFDI 84.5% non-financial i OFDI China s stock of FDI in Canada is $8.9 bn Up 69% from 2008 and 139% since 2004 Chinese investment concentrated in: Asia is the major recipient of Chinese investor money SOEs accounted for 64% of OFDI M&A a key tool for OFDI Source: Ministry of Commerce, World Bank Group 10

11 China s Reasons to Invest Strategic investment to access resources Access to customers, market expansion, expand sourcing supply and build product lines Acquisition to enhance growth Acquire key technologies to incorporate into current business 11

12 The State-Owned-Enterprise China National Petroleum Corporation (CNPC) Company Overview China s largest oil and gas producer and supplier Oil and gas product account for 57.7% and 78.3% of China's total output Major oilfield service provider In 1999, established PetroChina to pursue overseas opportunities Key Markets Oil and gas assets in 27 countries around the world including Canada Products sold in 69 countries and areas. CNPC has many international ti exploration and production projects with operations in Azerbaijan, Canada, Indonesia, Myanmar, Oman, Peru, Sudan, Thailand, Turkmenistan, and 12

13 The State-Owned-Enterprise CNPC Alberta Petroleum Centre (CAPC) Active collaboration with Alberta Government since 1989 Enhance partnerships between research institutes t and experts in Chinese and Canadian oil and gas industries Athabasca Oil Sands Corporation Acquisition in the MacKay River and Dover oils sands projects for $1.9billion North Twining Oilfield Interest in North Twining Oilfield and equity in natural gas processing plant Strategic investment gives access to resources. 13

14 The HK Conglomerate Cheung Kong Holdings (CKH) Company Overview & Business Diverse business interests include: port operations, retail, infrastructure, property development, life science, energy, finance and investment, telecom, etc. Key line companies are Hutchison Whampoa, CK Life Sciences, Cheung Kong Infrastructure, TOM group, Hong Kong Electric and Hutchison Telecom Key Markets Company operates in 57 countries and employs 260,000 staff worldwide Overseas Investments Overseas Investments in broad spectrum of markets from port operations to utilities to biotechnology to retail and more 14

15 The HK Conglomerate CKH: Product Portfolio Expansion Investment Adrien Gagnon CK Life Sciences acquired Quebec natural health products company in 2005 Acquisition gave Canadian company access to new marketing, sales and retail channels AG products launched in the Netherlands and HK in 2006 WexPharma Recently increased stake in WexPharma, company that develops, manufactures and commercializes drug products to treat pain Grows product lines to complement pre-existing business and extend presence into new markets. 15

16 Private Chinese Enterprise Huawei Company Overview & Business: Provider of next-generation telecom networks for telecom operators Employer of 87,503 employees worldwide with $30billion in sales for 2009 Key Markets Clients include 36 of the world s top 50 operators Overseas contracts accounted for 75% of company s total contract sales Traditional markets have been China and the developing world Already active in Western Europe and Australia and now focused on North America Overseas Investments R&D centres in Bangalore India, Silicon Valley, Dallas, Ireland, Jakarta, Stockholm, Moscow 16

17 Private Chinese Enterprise Huawei: Global Supply Chain Investment in Canada Size of 2009 Investment: $75 million over 5 years Objectives: Access and gain market share in the North American telecom market. Description: Sales and marketing office established in Markham, Ontario Newly-opened research centre in Kanata, Ontario Areas of focus for research include 4G and optical technologies Investment fulfils needs to access market and meet customer demands 17

18 Investment Promotion Activities Past Year: O & G Investment Seminar (Beijing), February 2010 (SK) Capital Investment & Equity Forum (Shanghai), March 2010 (BC, QC, ON) CCPIT Overseas Investment Forum (Beijing) April 2010 (BC, ON, QC) Investment Forum (Chengdu, Sichuan) July 2010 (BC, ON, QC) Invest in Canada Forum (Taiyuan, Shanxi), August 2010 (BC, NB) Coming Up: Shanghai Expo Investment Week, October 2010 Iron Ore Investment t mission i to Canada (Canada), October 2010 China Overseas Investment Fair (Beijing), November 2010 Mineral Investment Forum, (Hong Kong) November 2010 China Mining (Beijing), November

19 Issues for Attracting Investment Do you have a project list? Where do you want us to invest? Does the government support this investment? Is hiring Canadian service providers a necessity? Will my investment help get my child into a Canadian University? How do I get my workers to Canada? 19

20 Q&A Trade Commissioner Service in Greater China Embassy of Canada in Beijing Francis Dorsemaine, Trade Commissioner Consulate General of Canada in Guangzhou Consulate General of Canada in Shanghai Robert Gentles, Trade Commissioner Albert Lee, Trade Commissioner tl t ti l albert.lee@international.gc.ca l t ti l Consulate General of Canada in Hong Kong Shirley Ong, Trade Commissioner shirley.ong@international.gc.ca Consulate of Canada in Chongqing Aice Xiong, Trade Commissioner Aice.Xiong@international.gc.ca 20

21 Chinese OFDI approval process Taken from: China Law Reporter, Vol. 6, Iss. 2, March

22 Trading Company Dah Chong Hong (DCH) Holdings Company Overview & Business: Hong Kong trading company established in 1946 Main business lines are in motor dealerships, trading and distribution of food and consumer products and logistics business DCH operates 90 wholly-owned, associated and JV companies with 8,000 staff Key Markets DCH has branch offices in Tokyo, Singapore, Vancouver, Taiwan and in 20 cities in mainland China Mainland China is primary market for DCH products In mainland China DCH Holdings has developed an International Logistics Centre in Xinhui, to one-stop logistics service to its principals and third-party customers 22

23 Trading Company DCH: Expanding Sourcing Office in Vancouver Business focused on food trading business Imports food from mainland China and distributes to retailers in Canada; and also exports Canadian food to mainland China, Hong Kong, Japan, Singapore and Taiwan. Investment Lead: Hog Operations Expand sourcing supply of pork products for sale to customers in Asia DCH s strength is in the provision of marketing, distribution, etc. Seeking partner to operate hog operations to supply into their distribution network To expand and secure sourcing supply for sales to other markets 23

24 Business Etiquette Relationships Saving and Giving Face Dining Gift Giving Business Cards 24