CCBC news release from Beijing Forum and Gala January 10

Increased bilateral trade and investment vital Canada, China trade ministers tell CCBC Gala

Beijing (Jan. 10, 2008) -- Canada and China must increase bilateral trade and foreign direct investment (FDI) in one another's countries for the good of both nations the Canadian and Chinese international trade ministers told a Canada China Business Council (CCBC) Gala dinner in Beijing.

The Ministers and an array of senior officials from Canada and China attended the Gala January 10, reiterating the importance of CCBC as a bridge for Sino-Canadian trade and investment. The Chinese Commerce Minister, His Excellency CHEN Deming, chose the CCBC event to make his first public appearance and speech since being chosen Minister. The Gala was held to celebrate the Council's 30th anniversary in 2008.

"Let me be clear," Canadian International Trade Minister Hon. David Emerson told the Gala, "Canada welcomes Chinese investment. Canada remains open and welcomes foreign investment-- both private and state-owned."The Minister noted the Government is aware of concerns CCBC, other leading Canadian business groups, business leaders and individual investors have raised that Canada's trade policy, including the Investment Canada Act (ICA), be redesigned to enhance trade with China.

The government is currently reviewing its investment policy including the ICA. It has appointed a policy review panel which called for submissions on trade policy issues. CCBC's submission notes that while commerce with the U.S. remains the lion's share of Canada's trade at almost 80 per cent, the amount has been declining since 2002. China, well on its way to becoming a global economic superpower, will be a vital market for Canada's future. Yet Canadian export trade with China, already the world's fourth-largest economy, amounts to about five per cent of Canada's total.

The opportunities for Canadian trade and both inbound and outbound FDI with China are immense the CCBC submission says. Canadian trade policy must reflect the importance of China which, despite the relatively modest trade and investment numbers, is Canada's number-two export market today. "Canadian trade policy must be a catalyst for substantively greater trade and investment with China to ensure Canada's future prosperity," CCBC President, Hon. Sergio Marchi, former Canadian International Trade Minister and Canadian Ambassador to the World Trade Organization, told the Gala.

In his remarks the Chinese Commerce Minister noted that CCBC had played a pioneering role in developing, then strengthening the Canada-China relationship. The bonds between both countries are strong, CHEN said, and Canada and China needed to co-operate to enhance them over the coming 30 years -- for the increased benefit of both peoples.

The Gala followed two days of roundtables, meetings and working sessions at two CCBC Policy Forums at Shanghai Jan. 9 and Beijing Jan. 10. During the two days CCBC launched a new co-operative trade Forum with the Government of Shanghai, initiated six months ago in discussions between the CCBC President and His Excellency Shanghai Vice Mayor TENG Dengjie. Marchi and TENG participated in the inaugural Forum session Jan. 9. CCBC Executive Director Sarah Kutulakos said at the Forum, "This new co-operative approach will serve as a model for new ways to open opportunities for CCBC members and other Canadian businesses in the cities in which CCBC is engaged in China."

The Shanghai sessions included a workshop on product quality and safety in China that drew a strong assembly of Canadian and Chinese presenters and participants.

In Beijing, Jan. 10, a roundtable discussion on the evolution of Corporate Social Responsibility in China was very successful.

Chengdu Mayor His Excellence GE Honglin said in Beijing at a forum discussion on Canadian opportunities in Western China, that Chengdu, as the gateway city to China's emerging West, welcomed more Canadian trade and investment. GE noted he was particularly pleased with increasing transportation links between the two countries such as new direct flight service from Canada to Chengdu.

At the Gala the CCBC President said, "The importance of the Canada-China trade relationship can't be overstated. Every trading nation in the world is lined up at China's gates, ready to seize any chance to build business. Canada must not squander any opportunities that it enjoys as a result of our 30-year relationship. We must grow bilateral trade and investment. And I stress that it is a two-way street.

"Canada must work hard for greater FDI in China. At the same time, we must welcome investment from China, including FDI by the State-Owned Enterprises, and, under proper circumstances, investment in Canada's natural resources sector.

"Canada has much to offer China," Marchi said. "And we have much to gain. This is the legacy from CCBC's founders who led the first trade mission from Canada to China in 1978."

For more information, contact: Victor Hayes, (416) 994-0535 (mobile) victor@ccbc.com