Prime Minister Harper with Mayor Zhang Hongming and Governor of Zhejiang, Li Qiang, in front of the skyline of Hangzhou, China on Friday Nov. 7, 2014.

Prime Minister Harper with Mayor Zhang Hongming and Governor of Zhejiang, Li Qiang, in front of the skyline of Hangzhou, China on Friday Nov. 7, 2014.
Photo Credit: PC / Adrian Wyld

China-Canada trade under a new framework with FIPA ratified

Prime Minister Stephen Harper spent Friday promoting Canadian business in China with some major players. And with a new trade agreement, known as the Canada-China FIPA, it’s a new beginning.

In Hangzhou, China’s billionaire citizen, Jack Ma, the man behind e-commerce powerhouse Alibaba, told Prime Minister Harper he is considering opening an office in Vancouver.  Alibaba Group has about 600 million registered on-line buyers, and will handle about $270 billion in on-line transactions in 2014.

The Canadian delegation accompanying the Prime Minister is varied and eager to get a foothold in the massive market.

Guy Nelson, chief executive officer of Empire Industries Ltd. of Toronto, which builds theatres and roller coasters, (they built the Harry Potter ride for Universal Studios) told the Financial Post, “The government-to-government relationship is so important in China”  Speaking of the rising tensions between the two governments over the summer with Canada charging the Chinese with cyber espionage,  Nelson said,   “There have been some irritants between the two countries so it is important to have face-to-face meetings. Impediments are not good and need to be resolved.”

Professor Gus Van Harten of the Osgoode Hall Law School at York University, cautions Canadian businesses to be aware of the new rules.  He says it is not a level playing field, and Canadian business people can find themselves at a distinct disadvantage.

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But as Derek Butler, executive director of the Association of Seafood Producers, based in St. John’s, Newfoundland explained to the Financial Post, “We don’t have a choice but to be here because this market is going to grow a lot.”

Even the National Hockey League and the Toronto Maple Leafs are looking into the future in China. Representatives will join Harper in Beijing this weekend for meetings with Chinese officials.  The NHL has been invited to play a regular-season game somewhere in China, possibly as soon as next season according to TSN.

In the meantime, Canada is opening trade offices in Hangzhou, Xi’an, Xiamen and Tianjin, cities with a combined population of 42 million people.  Eventually the plan is to have 15 Canadian trade offices operating in China.

The blockbuster announcement, however, is to take place over the weekend when the Prime Minister announces a deal that will make Toronto a trading hub in the Chinese yuan.  It will be the first in North America and will save Canadian businesses tens of millions of dollars a year, as they will no longer have to convert currency through U.S. dollars first.

Stephen Harper will meet Chinese President Xi Jinping on Sunday then return to Canada on Monday for Remembrance Day ceremonies in Ottawa.

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