Canada-China trade diversifying beyond commodities

By Gordon Hamilton, Vancouver Sun November 14, 2011 3:20 PM

 

Trade between British Columbia and China is moving to a new level, outgoing Chinese Consul-general Liang Shugen said in an interview on the changes in relations that have taken place during his three-year tenure in Vancouver.

The emphasis is no longer on investing in China and importing Chinese-made goods, he said. Now, trade has broadened into two-way business relationships and Chinese companies are seeking stronger relationships with companies here. As more Chinese business investment comes into this province, it is opening up new opportunities for trade beyond the traditional commodities.

In a wide-ranging interview at the Granville Street consulate before returning home Nov. 10, Liang offered his thoughts on the changes he has witnessed and his opinions on everything from trade to local concerns over foreign investment in real estate.

On the trade front, he urged British Columbians to look west across the Pacific and forge stronger trade relations with Asia.

"It's not only minerals, it's not only coal and LNG [liquefied natural gas]," he said. "It's B.C.'s lumber, B.C.'s seafood, B.C.'s Okanagan wines. There are lots of opportunities.

"This is two-way trade and two-way investment."

On calls for restrictions on foreign investment in Vancouver's high-priced real estate, he said he would like to see the housing market remain open.

"This [real estate] is a commercial activity and I don't think people should link it to politics."

"It's a free market," he said. "But I also have sympathy for Vancouverites who say, 'I have saved my money and would like to buy a house or buy a flat.' "

Characteristics that attract Chinese immigrants, he said, are business opportunities, Vancouver's educational facilities and the beauty of the city.

Liang put some numbers on the size and growth of Chinese trade, saying that during the last 10 years, imports to China have totalled $8 trillion US. China expects to import that much again - $8 trillion US - within the next five years, he said. The growth will be in the variety of products imported as well as the volumes, he said.

"There will be at least $1 trillion US in imports every year. You cannot just import iron ore, you cannot just import oil. You have to import some of the seafood, salmon, crab, geoduck, lobsters."

An aid in stimulating the growth of the export and import of food and perishable products, he said, is the recently opened air cargo route between Vancouver and Shanghai by China Southern Airlines.

China Southern's route, which is flown four times a week, is the first dedicated cargo service from Canada to China.

Liang said BC-China trade now totals $12 billion a year, accounting for one third of all bilateral trade between Canada and China.

"You can see how close the relationship is between B.C. and China."

He singled out education, science and technology as future areas of trade growth. There are an estimated 30,000 students from China now studying in B.C., he said.

This is the second time Liang has been posted to Vancouver, arriving in 2008 for his threeyear tenure as consul-general. His first posting was in 1988 for four years, when Vancouver was just emerging on the world stage after Expo 86.

Much has changed since then, he said. Vancouver was not as focused on Asia, and China was still in the midst of economic reform. The consulate was much smaller. Now it is one of the largest, if not the largest, consulates in Vancouver with a staff of 27 at the modern brick, wood, and glass consulate that sits behind a high wall at 16th and Granville.

Despite the growth of trade in food and education, commodities, particularly natural gas, will remain in high demand in China, Liang said.

And the sooner Canadians build the liquid natural gas terminals planned for Kitimat, the sooner B.C. can participate in the Asian natural gas boom, he said.

The window is open now for Canadian natural gas, he said, but the longer it takes for B.C. to enter the market, the more competition it will face.

Already Australia is exporting LNG to southern China after signing a $20-billion deal several years ago. Further, China has built a gas pipeline from Western Asia to China and is planning one from Russia.

"Hurry up," he said. "Don't only look south of the border. Look across the Pacific. You are rich in natural resources and natural gas.

"I hope that this [Kitimat LNG] facility can be finished at an early date to export to China or other Asian countries as soon as possible for the benefit of Canada, for the benefit of China or the benefit of any country that would import from Canada."

Natural gas may be more expensive than coal for China to import, Liang said, "but the government is determined to reduce pollution and to help the country attain sustainable economic development."

ghamilton@vancouversun.com

© Copyright (c) The Vancouver Sun

Read more: http://www.vancouversun.com/business/Canada+China+trade+diversifying+beyond+commodities/5706079/story.html#ixzz1djjPqILj

Skilled workers

THE WINDSOR STAR NOVEMBER 14, 2011

 

 

With baby boomers aging and the birthrate dropping, Canada has no choice but to entice more immigrants to come to this country. It's the only way to fill the growing labour void and keep the economy stable.

But the government has to be judicious when it comes to accepting applicants, and that's why a plan to allow an additional 10,000 skilled workers into the country next year is a good one.

These are the people who already have the tools and training to get to work, which means they'll quickly fill the gap and start contributing to the economy, instead of requiring several years of schooling and public assistance.

"The government's No. 1 priority remains the economy," Immigration Minister Jason Kenney said when he made the announcement. "We recognize the importance of immigration to our labour market and we value the contributions of skilled immigrants who add to our international competitiveness.

"We are committed to facilitating the arrival of the best and brightest to our country."

Even those who grumble about Canada's immigration target - many people think it's too high - have to admit that the Federal Skilled Worker Program is a success. About 47,000 people have been accepted so far, and 95 per cent of employers asked for feedback said those workers were meeting or exceeding expectations.

This isn't the only change Kenney is making. While immigration levels are expected to range from 240,000 to 265,000 for the sixth straight year, doctoral students will now be able to seek permanent residency through the skilled worker program.

Surprisingly, the government says the live-in caregiver program, which allows immigrants to come to Canada to work as nannies or provide home care support for seniors, will not meet expectations this year. The number of applicants seeking to take on that kind of work is dropping, even though the demand is growing.

Given the need, Kenney should seriously consider offering incentives to encourage more live-in caregivers to move to to Canada.

The aging population means this type of employment could potentially triple in the next few years.

The day after the announcement, the Macdonald-Laurier Institute, an Ottawa-based think-tank, came out with its own take on what's needed to right the country and solve its economic woes.

One suggestion - to increase the fertility rate - is a non-starter. Canadians just aren't having large families anymore. In 1950, the average live crude birthrate in this country was 3.73 per 1,000 population. By 2000, it had dropped to 1.58. Last year it was at 1.5. With people living almost 10 years longer than they did 60 years ago - and with the "replacement" birthrate pegged at 2.1 - it doesn't take a skilled mathematician to figure out we're short on young, able-bodied individuals to keep the markets moving forward.

Canada's immigration system has been plagued by backlogs so severe it can take anywhere from seven to 10 years for some immigrants to get here. In 2008 the government capped the skilled workers quota and successfully whittled down the wait list.

Now it's time to open the doors again and bring in those immigrants who can become productive members of Canadian society.

© Copyright (c) The Windsor Star

Read more:http://www.windsorstar.com/business/Skilled+workers/5705578/story.html#ixzz1djikrwBi

Quebec to be awash in surplus electricity

MONTREAL — Quebec will have a bumper crop of surplus electricity over the next decade, according to a revised supply forecast by Hydro-Quebec.

In a report filed with Quebec’s energy board, the utility said that it anticipates accumulating about 20 terawatt hours of surplus electricity in its domestic market by 2020.

There has been a “significant decline” in the energy needs of most of the utility’s industrial clients since the utility filed its 2011-2020 forecast with the energy board in 2010, utility spokesperson Patrice Lavoie said Friday.

A terawatt is a unit of power equal to one trillion watts.

To put the surplus gap in perspective, Hydro-Quebec now estimates that its industrial clients will require 60 TWh of energy in 2015.

In its 2011-2020 planning document, it had forecast 64.5 TWh would be consumed by industry.

The surplus doesn’t surprise Pierre-Olivier Pineau, an energy specialist at the HEC Montreal business school.

“If there is an energy shortage everyone is really upset,” he noted.

“What could be criticized is the very aggressive development of wind power, small hydro and large hydro — all at the same time.”

Hydro-Quebec’s domestic supply forecast is only part of Quebec’s energy picture, a complex tableau that is often obscure and further complicated by the fact that Hydro-Quebec’s production and distribution divisions are under one roof.

To calculate domestic supply, Hydro-Quebec Distribution factors in electricity that will come online this decade via wind farms but not electricity that will come from new dam complexes such as Eastmain-1-A or the highly controversial Romaine Complex which is to add 8 TWh to the grid.

The wind farms “were forced on Hydro-Quebec” by the provincial government, which wanted to promote regional development and market sustainable development rather than meet energy needs, Pineau said.

Energy from new dam complexes will be valuable in the long term but in this economic downturn and with energy markets awash with low-cost natural gas, Hydro-Quebec faces some difficult years, he said.

Included in the domestic supply update by Hydro-Quebec are recently-announced energy deals with two of Quebec’s aluminum producers, Lavoie said.

Earlier this month, the provincial government announced that Aluminerie Alouette, which is planning a $2 billion expansion, will be provided a 500-megawatt block of low-cost power. Alcoa Inc. was promised a block of 325 MW.

And as a consequence of the anticipated energy surplus, Hydro-Quebec will extend the time that the Trans-Canada Energy natural-gas powered facility at Becancour will be mothballed.

Instead of coming online in 2015, it will be used during peak winter periods beginning in 2016, the report filed with the Regie de l’energie said.

lmoore@montrealgazette.com

Montreal Gazette

China's Wealthy Consider Immigrating To US, Canada

Kay Chinn | November 11, 2011
Staff Reporte


Nearly 60 percent of China’s wealthy reported they are considering immigration, according to a recent study by Bank of China and Hurun Research Institute.

The report classified Chinese citizens with more than 10 million yuan in investible assets, a little over 1.5 million USD, as “rich” to track the trend. Roughly one-third of those labeled as such have overseas investments amounting to 19 percent total assets.

The figure is low compared to findings of a recent survey by the Institute of Private Investors, which reported U.S. families holding $30 million or more in investible assets keep one third of their assets overseas.

But the two countries differ in their preferred asset products. Most American wealthy families buy stocks overseas while also buying into hedge funds and private equity with exposure abroad. According to analysis by the Wall Street Journal, the trending pursuit of higher profits in emerging economies is a result of globalization.

China’s rich, however, reportedly invested 51 percent of overseas assets into real estate and nearly 30 percent into foreign exchange deposits. Their investments were typically directed toward more developed countries like Canada and the U.S.

The report’s findings suggest profit is not necessarily a priority in the decision to invest overseas, taking a backseat to immigration and education for China’s wealthier families.

Among those who have foreign assets, about half reported investing overseas for the sake of their children’s education. Thirty-two percent said the decision was in preparation to immigrate.

Fourteen percent of them have already begun the immigration process, and another 46 percent said they are considering it, again eyeing the U.S. and Canada as destinations.

Attorney Jerry Zhang, partner of Zhang & Associates, said the firm’s core focus is in Chinese immigration cases. In recent years he’s seen a sharp increase in clients looking to invest.

“There are four main reasons for the Chinese who do the investment immigration: first, their children’s education and future development; second, safe and better lives in the U.S., such as clean environments, stable political and judicial systems, and protection of private property; third, transfer of their funds to the U.S.; and personal freedom and safety from government controls.”

Rocco Shen, an attorney at Li & Associates, said despite the increase in investor immigrant cases from China, the annual quota has not yet been met.

According to U.S. Citizenship and Immigration Services, China ranked first among all countries with 722 investor immigrant cases in 2010. It would seem their position at the top is fairly well protected; Korea came in second, with a mere 295 cases.

Reach staff reporter Kay Chinn here.

As China's rich grow in numbers, so do their mobile aspirations

By Jaime A. Florcruz, CNN

November 12, 2011 -- Updated 0807 GMT (1607 HKT

Editor's note: "Jaime's China" is a weekly column about Chinese society and politics. Jaime FlorCruz has lived and worked in China since 1971. He studied Chinese history at Peking University (1977-81) and served as TIME Magazine's Beijing correspondent and bureau chief (1982-2000).

(CNN) -- Despite the global financial crisis, China's rich are getting richer.

"As of April this year, China has 960,000 millionaires with personal assets of 10 million yuan (US$1.5 million)," says Rupert Hoogewerf, chairman of the Hurun Research Institute, which compiles China's rich list.

"It has 60,000 super-rich with 100 million yuan assets, and their numbers keep growing," he says.

The newly affluent are getting more outwardly mobile, too.

Nearly half of them are thinking of emigrating overseas, according to a Hurun Research Institute report. About 14 per cent of them have or are in the process of applying for emigration, it said.

"In Chinese, emigration refers also to getting a permanent residency, or a 'green card'," Hoogewerf explains. "We estimate this to make up 80% of the total who want to 'emigrate'."

Many businessmen are capitalizing on this trend. Among them is Larry Wang, founder and chairman of Well Trend United Inc, one of the leading immigration consulting companies in China.

Born and bred in Beijing, Wang went to Canada in 1985 for post-graduate studies. He stayed until 1995 when he decided to return to Beijing.

"China's economy then was changing rapidly," he recalled. "I asked myself, what does Canada have to offer China? Maple syrup and immigration. I couldn't sell syrup so I got into the immigration business."

His business has grown the past 17 years.

Well Trend now employs 500 people who work in 10 major cities across China, handling immigration and student visa applications. The company charges 12,000 yuan to 100,000 yuan to help clients secure student and immigrant visas.

"Over the years we've helped more than 10,000 applicants for immigration," Wang says, including many millionaires.

But why are China's newly affluent seeking to emigrate? Some do so for convenience, experts say.

"A foreign passport makes it a lot easier for them to travel around the world," Wang says. "They don't want to go through tedious visa applications all the time."

China's new rich -- a mixed group of Red capitalists, young tycoons and up-and-coming "fuerdai" (second-generation capitalist scions) -- are typically cosmopolitan and tech-savvy, frequent travelers who are willing to pay a premium for convenience.

They are also ready to spend on education for their children to give them a competitive edge in a new kind of rat race, in which millions of Chinese are striving for advancement.

Wang remembers the case of Liu Weijie, 44, an old client who emigrated to Canada over 10 years ago who refers to his move as "the best decision I've ever made in my life."

Liu's teenage son did not excel at school in China, but after entering the University of British Columbia he blossomed and is now doing well in Canada. Liu, a real estate mogul, is still doing a lucrative business in China.

Likewise, many Chinese millionaires who apply for U.S. "alien investor's visa" --applicants have to commit $500,000 to $1 million in capital investment -- seek permanent resident status there so their children will have easier access to U.S. education.

"In the long run, after their children complete their undergrad or graduate studies, they would have the opportunity to compete for jobs without having to find an employer willing to sponsor them for U.S. work visas," says Joyce Gomez, an immigration lawyer based in Washington.

A small percentage of the applicants, she adds, intend to operate their own businesses in the U.S. after they obtain permanent resident status.

Hoogewerf cites other reasons. He says some millionaires opt to leave to escape China's insufficient medical care, pollution and food safety. "There is also an element of insurance against economic, social and potential political unrest," he says.

Still, Wang does not see the spike in emigration as a mass exodus of millionaires. "It's very normal that people would want to leave and see the outside world after they've made a fortune," he says. "The same thing has happened in Hong Kong, Taiwan and South Korea."

Wang thinks it's a good thing. "It's globalization," he says. "It facilitates exchange of business ideas and helps bridge cultural gaps."

Even when they emigrate, experts say, most Chinese elite keep one foot planted in China. "They keep their businesses here," says Victor Lum, a former immigration specialist at the Canadian Embassy in Beijing, and now a top executive at Well Trend.

"These millionaires are familiar with China's unique culture," says Lum. "They have succeeded here, but success elsewhere is not guaranteed."

Hoogewerf agrees. "When weighed against the gains to be made in China today, not to mention the prevailing confusion in the European and U.S. markets, most Chinese prefer to keep significant part of their assets in China," he says. "This is also where they are 'at home' no matter their passport or residency."

Some 40% of the Chinese millionaires polled by the Hurun Research Institute prefer to set up their "second home" in the U.S., followed by Canada, Singapore and Europe.

"The U.S. requires shorter time of stay in the country to gain permanent resident status and their other procedures are less complicated," says Wang.

But the hurdles on the way into America are high, too, says Gomez.

"An alien investor applicant must be able to demonstrate that the funds invested were obtained from a legitimate source," she explains.

An applicant may also be rejected if they are unable to demonstrate that their capital investment in the enterprise will create or preserve at least 10 jobs for qualified American workers within the U.S.

Legal fees from immigration attorneys that prepare the applications are not cheap. "It can range from $15,000 to $25,000," says Gomez.

But for the Chinese millionaires, that's small change

More immigrants losing permanent residency

Nicholas KeungImmigration Reporter

Sergey Popkov immigrated to Canada from Russia in 2004 and had travelled between the two countries marketing for a Brampton trading company.

His permanent resident card expired in 2009 after five years, and Popkov, nominally a Toronto resident, lost his immigrant status when it was discovered he’d spent only 470 days in Canada in that time, short of the 730-day presence required to retain it.

It’s a hard lesson for the 55-year-old former commercial pilot, who has twice been denied a visitor’s visa to see his wife, two daughters and grandson — all citizens here. He may remain separated from his family for the foreseeable future.

The number of immigrants losing their permanent residency for not spending enough time in Canada has almost tripled over the past five years, from 1,653 in 2006 to 4,587 last year, according to Citizenship and Immigration Canada.

Officials say the rising revocations have nothing to do with the Conservative government’s hard-line approach to immigration and citizenship.

In 2003, Ottawa introduced the permanent resident card as a mandatory international travel document for immigrants who are not yet citizens. The so-called Maple Leaf card has also been used to track immigrants’ movements to see if they fulfill their residency obligation — two out of five years — in Canada.

All immigrants must meet that minimum to keep their status. If they spend 1,095 days or more over the five years here, they are eligible to become citizens.

Exemptions are given to those staying outside Canada who are accompanying a Canadian-citizen spouse or who are employed full-time by a Canadian business or government.

“The increase in the number of permanent residency revocations, (especially) in 2008, is likely related to the PR card becoming mandatory for international travel in 2003 and the surge of renewal applications that occurred following the initial five-year validity period,” said a department spokesperson.

“In the course of regular processing of applications, residency issues are identified. These may also be informed through ongoing investigations by enforcement partners.”

Popkov was in Moscow when his request to renew his permanent resident card was denied. The visa officer found he was not working full-time for the Brampton firm and did not count his days in Russia toward his residency obligation.

His daughter, Alina Popkova, said she recognizes her father has no legal grounds to keep his status, but is upset immigration officials use his family ties in Canada in their decision-making only when it suits them.

In stripping Popkov’s permanent resident status, an immigration tribunal concluded that “he does have family ties to Canada; however, he is only minimally established in Canada.”

But in rejecting his visitor’s visa, authorities said they weren’t satisfied he’s leave at the end of the temporary period if they granted a visa.

“We recognize my father didn’t meet the residency requirement, but you can’t keep the family apart by denying him a visa to visit us. It is just inhumane,” said Popkova, 32, a product manager who now plans to sponsor her father to Canada — with no assurance that he would be accepted.

Immigrant status revoked on failed residency requirement

In-CanadaOverseasTotal

2006 309 1,3441,653

20074031,4421,845

20085302,7933,323

20096253,5224,147

20109993,5884,587

Source: Citizenship and Immigration Canada

Canada earns No.1 country brand in the world… AGAIN!

VANCOUVER, Nov. 10, 2011 /CNW/ - For the second year in a row, Canada has been named the No.1 most powerful country brand in the world by FutureBrand, a leading international brand and design consultancy. Canada holds its ground against its competitors as it extends the global reach of its tourism brand.

Today, at the 32^nd annual World Travel Market (WTM) in London, England, FutureBrand announced that Canadakeeps the top spot in its 2011 Country Brand Index (CBI), the most comprehensive global study of how travellers perceive countries around the world. The rankings are based on a global sample of online interviews of savvy leisure and business travellers. FutureBrand's 2010 CBI assessed 110 countries through online interviews with 3,400 travellers from 13 countries, eight of which were markets where the Canadian Tourism Commission (CTC) invests.

According to the CBI, the most important factors that truly differentiate a nation's brand are its associations and attributes: the qualities that people think of when they hear a country's name, read or see images of a location, or plan a business or leisure trip.

Says the Honourable Maxime Bernier, Minister of State for Small Business and Tourism, "Canada's continued rating at the top of FutureBrand's Country Brand Index is a testament to our country's global appeal. We have a wealth of compelling experiences for travellers, and our government is committed to sustaining this momentum by promotingCanada in innovative ways on the international stage. Through our recently launched Federal Tourism Strategy, we are continuing to position Canada's tourism sector as an economic driver of jobs and growth."

Recognizing the significant influence that Canada's tourism brand has on perceptions of the country, the CTC includes Canada's CBI rank among its own performance measures.

As a nation's personal calling card, a country's brand is a measure of international reputation. FutureBrand notes that a properly managed brand can inspire confidence in difficult times and boost the value of a country's exports from people to product and entire corporations.

"While Canada's tourism brand has grown into a powerful cultural force and a marketing tool to inspire visitation, it also has largely untapped potential as a lever to drive trade and investment in ideas, education and business," saysMichele McKenzie, CTC President & CEO. "In this period of global economic turbulence, by showing the world thatCanada is a dynamic, modern and cosmopolitan society, we're not just inviting the world to visit us, we're capitalizing on our positive reputation to open new doors and create new opportunities."

After the CTC launched Canada's revitalized tourism brand "Canada. Keep Exploring" six years ago, the country leapfrogged on FutureBrand's CBI ranking from 12^th place in 2006 to 6^th place in 2007, and jumped again to the No.2 spot in 2008 and 2009, and finally clinched the top spot for the first time last year following the 2010 Winter Games.Canada keeps the coveted premier spot this year, being recognized as the most powerful, engaging and vibrant country brand in an intensely competitive international tourism marketplace.

Background information about FutureBrand's Country Brand Index (CBI):
The CBI, now in its seventh year, is a comprehensive study by FutureBrand, a leading international brand and design consultancy with 25 offices worldwide, of more than 3,000 international business and leisure travellers.

The CBI identifies emerging global trends in the world's fastest growing economic sector—travel & tourism—and examines how countries are branded and ranked in a variety of categories, such as best country to travel to, best country that showcases its historic assets, best place to extend a business trip to, most environmentally oriented and most friendly locals.

The CBI incorporates global quantitative research, expert opinions and relevant secondary sources for statistics that link brand equity to assets, growth and expansion. The result is a unique evaluation system that provides the basis of rankings and insights about the complexities and dynamics of country brands. The full report is available on the FutureBrand Web site at www.futurebrand.com

Additional Web links:

• Tourism Industry Factsheet to learn more about Canada's visitor economy.
• CTC Corporate Profile for key facts and figures about the CTC.
• FutureBrand's 2011 Country Brand Index

About the Canadian Tourism Commission:
The CTC is Canada's national tourism marketing organization. Our vision is inspiring the world to explore Canada. With our partners in the tourism industry and the governments of Canada, the provinces and the territories, we advertise and market Canada in 11 countries around the world, conduct industry research and studies, and promote product and industry development. For regular updates on CTC initiatives, subscribe to CTC News, available through RSS feeds and by e-mail. Become a fan on Facebook, follow us on Twitter, or subscribe to our YouTube channel. For more information visit: www.canada.travel/corporate

Video with caption: "Video: The Power of Tourism: the role tourism plays in Canada's economy". Video available at:http://www.youtube.com/watch?v=lyE2qNyXRHM

Image with caption: "A highlight of the new Federal Tourism Strategy is CTC's Signature Experiences Collection(R)- an innovative marketing program to take Canada's tourism brand even further. Credit: 20,000 years under the ice, SEC member Jardin des Glaciers, Baie-Comeau, QC. (CNW Group/Canadian Tourism Commission)". Image available at:http://photos.newswire.ca/images/download/20111110_C4340_PHOTO_EN_6429.jpg

Image with caption: "To grow tourism export revenues for Canada, CTC focuses on international markets where Canada's tourism brand leads and yields the highest return on investment. Credit: CTC campaign ad in Australia. (CNW Group/Canadian Tourism Commission)". Image available at:http://photos.newswire.ca/images/download/20111110_C4340_PHOTO_EN_6427.jpg

For further information:

Margaret Nevin
Senior Communications Advisor
Canadian Tourism Commission
Tel: 604.638.8406
E-mail: nevin.margaret@ctc-cct.ca