Ministry of Small Business,Technology and Economic Development

Ministry of Small Business,Technology and Economic Development

2 BRITISH COLUMBIA S TRADE AND INVESTMENT STRATEGY FOR CHINA Why China is Important to British Columbia China is the world s fourth largest economy, fuelled by capital investment, innovation and steady expansion of its domestic market. Some analysts predict that China could become the world s largest economy by 2025. British Columbia must embrace China through proactive trade, investment and economic immigration strategies to ensure our small, open economy continues to prosper as global economic power shifts to Asia. TRADE China is B.C. s second largest trade partner, after the U.S., with bilateral trade levels of more than C$10B in 2007: > Imports 22 percent of B.C. s imports ($8.7 billion in goods) come from China, second only to the U.S. > Exports over 5.5 percent of B.C. s exports go to China, now B.C. s third largest and fastest growing export market, representing 20 percent of Canada s total exports to China. INVESTMENT Chinese companies are expanding their interests overseas (in 2005 over C$50B invested overseas) and represent a growing source of investment and strategic parternships for B.C. companies. IMMIGRATION B.C. continues to attract skilled workers, investors and family immigrants from China (33 percent of Chinese immigrants to Canada in 2006), strengthening the economic and social connections between B.C. and China (10 percent of British Columbians identified themselves as being of Chinese origin in 2001). Whole of Government Approach The B.C. / China Trade and Investment Strategy reflects the government s commitment to strategic alignment, coordination, and collaboration in B.C. s trade and investment activities in China, under the leadership of the Ministry of Small Business, Technology and Economic Development. The strategy positions B.C. to realize the goals of the Asia-Pacific Initiative the B.C. government s vision for strengthening B.C. s competitive position as the preferred economic and cultural gateway between North America and the Asia-Pacific region (available at www.gov.bc.ca/sted/).

3 Focus on Priorities B.C. s priority sectors in China have been chosen based on the Asia Pacific Trade Council s China / Hong Kong Market Advisory Group report (available at www. asiapacifictradecouncil.ca/chinahongkong. htm) and ongoing work on the B.C. International Marketing Strategy. Priority sectors for trade and investment: Future driven advanced energy, environmental technologies and services Communications information and communications technology including wireless; new media technology Services tourism; education and training; financial services Resources and traditional sectors forestry products; mining and minerals; agri-food; transportation and logistics Focus on Results B.C. s commitment to China is long term, and the B.C. / China Trade and Investment Strategy puts initiatives in place to build a strong and mutually beneficial relationship into the future. The B.C. / China Trade and Investment Strategy runs from 2008 to 2011. Its success will be measured in accordance with key performance indicators. A review of the strategy will be conducted in July 2009. The B.C. / China Trade and Investment Strategy must be adaptable and flexible, permitting the Province to respond to global economic developments, market changes and new opportunities. The B.C. / China Trade and Investment Strategy also positions B.C. as Canada s Pacific Gateway in China and implements priority Asia-Pacific Initiative programs that create the environment for stronger social and economic relations between B.C. and China.

4 BRITISH COLUMBIA S TRADE AND INVESTMENT STRATEGY FOR CHINA 1. Overall Objectives British Columbia s Trade and Investment Strategy for China TRADE AND INVESTMENT 1. Increase the value of B.C. exports to China 2. Increase the value of Chinese investment in B.C. in priority sectors 3. Strengthen innovation partnerships - including research and development, and science and technology collaboration GATEWAY 4. Market B.C. as Canada s Pacific Gateway, including promotion of B.C. s competitive advantages 5. Build B.C. s international platform and relationships in China

5 2. Priority Sectors Sector Export Investment Lead Ministry Advanced energy, environmental technologies and services Ministry of Small Business, Technology and Economic Development New media technology Ministry of Small Business, Technology and Economic Development Information and communications technology Ministry of Small Business, Technology and Economic Development Life sciences and biotechnology Ministry of Small Business, Technology and Economic Development Financial services Ministry of Small Business, Technology and Economic Development Education and training Ministry of Advanced Education and Labour Market Development Ministry of Education Forestry Innovation Investment / Ministry of Forests and Range Forestry products Mining and minerals Ministry of Energy, Mines and Petroleum Resources Tourism Tourism BC / Ministry of Tourism, Culture and the Arts Transportation and logistics Agri-food Ministry of Transportation and Infrastructure Ministry of Agriculture and Lands

6 3. B.C. s Geographic Focus B.C. will focus its resources and activities in Beijing, Shanghai and Guangzhou. Beijing centre of government; BC Canada Pavilion at Beijing 2008 Summer Olympic and Paralympic Games; location to service northeastern China. Shanghai China s commercial and financial engine; transportation gateway to China (i.e. Yangtze River) and Asia-Pacific supply chains; location to service eastern China. B.C. and Hong Kong enjoy strong and long standing trade, investment and people-to-people ties. B.C. will continue to cultivate relations and partnerships with this important regional hub and gateway to opportunities in China and Asia. Guangzhou social and cultural ties with B.C.; Pearl River Delta is a leading economic region in China; sister city (Vancouver / Guangzhou) and sister province relations (BC / Guangdong); location to service southern China. B.C. will continue to explore potential for strategic partnerships with other locations in China including Dalian, Wuhan and Chongqing based on economic opportunities, potential to expand exisiting relationships, and other factors.

7 4. Strategies Trade and investment OBJECTIVE SECTOR LOCATION Beijing Shanghai Guangzhou 1. Increase the value of B.C. exports to China 2. Increase the value of Chinese investment in B.C. in priority sectors (identified by * in the next column) 3. Strengthen innovation partnerships Advanced energy, environmental technologies and services * New media technology * Information and communications technology Bj Sh Gz Life sciences and X X biotechnology * Financial services X X STRATEGY X X X X Host incoming and outgoing trade missions and delegations Participate in trade shows Identify and target Chinese companies with capacity and interest to enter trade and investment partnerships with B.C. companies (target sectors identified by * in the sector column) X X Education and training X X X Work with B.C. government partners and private sector to implement sector Forestry products * X X strategies in China Identify and target Chinese companies with capacity and interest in making Mining and minerals * X X strategic investments in B.C. (target sectors identified by * in the sector Tourism X X X column) Transportation and X X X Promote opportunities for Chinese companies to tender for public-private logistics * partnership work and other Pacific Gateway infrastructure projects Agri-food * X X X All X X Create the environment for interaction between B.C. and Chinese companies including through leveraging the B.C. Canada Pavilion at Beijing 2008 and activities under bilateral trade and investment facilitation instruments Secure investment interest in B.C. from the China Investment Corporation (C$200B in assets) All X X X Help B.C. companies and institutions to enter strategic R&D, S&T and other relationships with Chinese partners to support innovation in B.C., particularly in B.C. s technology and knowledge-based sectors

8 OBJECTIVE SECTOR LOCATION Beijing Shanghai Guangzhou Bj Sh Gz STRATEGY Gateway 4. Market B.C. as Canada s Pacific Gateway and promote the province s competitive advantages 5. Build B.C. s international platform and relationships in China All X X X Promote B.C. s competitive advantages, welcoming business climate and credentials as Canada s Pacific Gateway at select trade shows, industry forums, seminars and other major events in China All X In conjunction with the Olympic and Paralympic Games Secretariat, promote B.C. as host of the 2010 Winter Olympic Games and target key corporate prospects to visit BC during the Games All X X X Expand the operations of B.C. s international network in China All X X X Implement the Asia-Pacific Engagement Calendar by supporting the visit program of the Premier, ministers and senior officials All X X X Support the establishment of economically robust twinning relations between B.C. and Chinese municipalities All X Build the B.C. Alumni Ambassadors Network / Asia-Pacific Leaders Network by engaging with alumni and influential friends of B.C. in government and corporate circles

9 7. Evaluation The B.C. / China Trade and Investment Strategy runs from 2008 to 2011. The success of B.C. s engagement with China under this strategy will be measured against the key performance indicators below. A review of the strategy will be conducted in July 2009. Asia-Pacific Initiative 2020 Economic Impact on B.C. Trade increase in annual trade of $77 billion Investment increase of $5.4 billion Jobs gain of 255,000 new jobs 1. Increase the value of B.C. exports to China 2. Increase the value of Chinese investment in B.C. in priority sectors 80 deals signed between B.C. and Chinese companies to increase B.C. goods and services exports to China 150 new B.C. companies or organizations enter the Chinese market with potential good or services exports Attract C$200M of Chinese investment to B.C. Major (>C$1M) Chinese investment secured in three of the following sectors: forestry products; mining and minerals; agri-food; transportation and logistics; advanced energy and environmental technologies and services; new media technology One major (>C$1M) Chinese investment secured in a B.C. public-private partnership project or Pacific Gateway infrastructure project Annual increase in conversion rate of contacts to trade and investment leads, leads to matching, and matching to deals 3. Strengthen innovation partnerships 10 major R&D and/or S&T collaboration agreements secured between B.C. and China in one or more priority sectors 4. Market B.C. as Canada s Pacific Gateway and promote the province s competitive advantages 5. Build B.C. s international platform and relationships in China Increased recognition of B.C. brand and messaging evidenced by increased number of media references, unprompted references by government and corporate stakeholders (including Chinese officials, company representatives, Canadian government officials, other provinces, business organizations), number and calibre of events where messaging delivered B.C. government, companies and institutions have access to high level government and corporate decision makers in China 15 trade and investment opportunities identified through the B.C. twinning and alumni ambassadors projects and communicated to B.C. sectors