The Canadian Co-Chairs of the Canada-China
Legislative Association (CCLA), the Honourable Victor Oh, Senator, and Ms. Wai
Young, M.P. conducted the CCLA annual Co-Chairs visit to China from 30 August
to 6 September 2014. As part of their visit, the Co-Chairs travelled to Beijing,
Shanghai, Wuxi and Nanjing and met with Chinese members of the CCLA and other
high-level officials from the National People’s Congress, officials from the
Central Committee of the Communist Party of China as well as representatives from
the Jiangsu People’s Congress. The Co-Chairs also met with
representatives of the Canadian business community in China, particularly those
active in the forestry and oceans technology sectors. As part of the visit’s
focus on environmental technology, the Co-Chairs visited several sector-related
Chinese enterprises and met with government and industry representatives in
Wuxi and Nanjing. The Co-Chairs also discussed China’s financial reforms over
the course of their meetings. Overall, the Chinese officials warmly
welcomed the Co-Chairs and repeatedly called for continued Canada-China
relations at the legislative level as well as for stronger bilateral commercial
relations, particularly in terms of Canadian technology and technical expertise.
The Co-Chairs were accompanied by Ms. Natalie Mychajlyszyn, Analyst from
the Library of Parliament and Advisor to the Association.
Objectives
1)To continue the renewal and reinvigoration of
the CCLA relationship;
2)To promote friendship and the normalization
of regular opportunities for dialogue with Chinese counterparts;
3)To learn more about Chinese-Canadian business,
cultural and political links, and to promote enhanced cooperation at all these
levels (selected themes: green technology and financial reforms) ;
4)To apprise the Chinese of the political
situation in Canada; and;
5)To discuss the objectives and parameters for the
19th Bilateral meeting scheduled to take place in China in the first
half of 2015.
Beijing
1. Briefing with Canadian embassy officials
The Co-Chairs were briefed by the Chargé
d’affaires Sarah Taylor on China’s domestic priorities. She highlighted the
prominent role of President XI Jinping in directing the program of political,
economic and social reforms, such as the anti-corruption and anti-trust campaigns,
the pace of urbanization, tax reform, the challenges in their implementation,
and their impact on political power bases across China. With respect to the
emphasis on rule of law reform, Ms. Taylor noted that this was the main theme
for the Fourth Plenum of the Central Committee of the Communist Party of China
(CPC) scheduled for October 2014. She also noted potential changes being
discussed that would strengthen oversight mechanisms for China’s state budget,
including possibly a role for the National People’s Congress (NPC).
Ms. Ling Wang (Counsellor and Head of the Economic
and Finance Section) briefed the Co-Chairs on China’s current economic issues.
These include the slowing economy, efforts to sustain economic growth with
various stimulus policies, the dilemma of choosing between a lower, but
stabilizing target rate of growth of 5% and a higher but unstable target of
7.5%, and the challenge of introducing economic reforms at the same time. She
also highlighted various financial issues relating to China’s currency, the
banking sector, the growing middle class, and changes in the property market
including property registration and the possibility of property taxes, as well
as the search for foreign RMB (pronounced ”renminbi”, the official currency of
the People's Republic of China) hubs. Overall, Ms. Wang indicated that
the inter-related nature of the various reforms – political, economic, and
social – adds to the complexity of the situation in China.
The current state of Canada-China relations, notably
regarding trade in natural resources and energy, was also discussed. Other
embassy officials who participated in the briefing include Mark Selby (First
Secretary – Political), Jennie Chen (Counsellor and Head of the Political
Section), and Josiane Simon (Senior Trade Commissioner).
2. Meeting with Mr. CHI Wanchun, Vice Chair of the
NPC Foreign Affairs Committee and Chinese Chair of CCLA
The Co-Chairs met for nearly three hours with Mr.
Chi to discuss a variety of issues relating to Canada-China relations,
legislative exchanges, and opportunities for deepening ties by way of
cooperation in green development, energy and finance. The discussions also
included Mr. LI Lihui, member of the NPC Financial and Economic Affairs
Committee and member of CCLA; Mr. LU Jianping, member of the NPC Foreign
Affairs Committee and vice-chair of CCLA; and Mr. SUN Qin, member of the NPC
Environmental and Resources Protection Committee and member of CCLA.
Mr. Chi noted the positive momentum in
Canada-China relations in recent years and the role that CCLA is playing with
respect to building the mutual trust and understanding necessary for deepening
bilateral ties. He also highlighted the importance of CCLA exchanges in
presenting to Canadians and fellow Canadian parliamentarians a different
perspective on today’s China and the opportunities it presents. Mr. Chi in
particular pointed to the record of recent high-level visits to China by
Canadian officials, including the Governor General, the Prime Minister and
Cabinet Ministers, as evidence of the growth in Canada-China relations.
Mr. Li gave a presentation on current developments
in China’s economy and its banking industry. In particular, he noted that while
there has been an increase in economic and financial cooperation between Canada
and China in recent years, more cooperation– such as in developing transparent
market regulations and the role of the NPC’s legislative responsibilities in
this respect, improving the financial market system, and establishing a RMB hub
in Canada– would be mutually beneficial.
Mr. Sun gave an overview of China’s energy
landscape and the government’s priority in promoting green development. He
referred to several targets for reducing the proportion of coal in China’s
energy mix and increasing natural gas, nuclear, hydro, wind and solar power. He
emphasised the importance of partnering with other countries such as Canada in
order to achieve these targets. Another important part of China’s green
development is environmental protection and Mr. Sun indicated that cooperation
with Canada offered mutually beneficial opportunities in this respect.
Mr. Lu, also a former Vice-President of Xinhua
News Agency, emphasised the modernization of China’s culture as a result of its
economic growth and the opportunities in terms of presenting another facet for
deepening cooperation between China and Canada.
Senator Oh and Ms. Young emphasised the win-win
opportunities that open up as the longstanding friendship between both
countries deepens. They discussed Canada’s past and present cultural and
people-to-people connection with China and how they serve as additional
foundations on which to promote continued engagement. Greater exchanges between
museums and sharing of exhibits as well as promotion of the film industry were
opportunities discussed. The Co-Chairs noted the role that their visit and the
upcoming bilateral visit play in terms of strengthening understanding among
their parliamentary colleagues. They emphasised Canada’s leadership in green
technology and financial regulation and agreed that there were many
opportunities for cooperation in these two areas, particularly with respect to
sharing of knowledge and expertise. At the same time, they noted the mutual
benefit of improving understanding of China’s investment climate for Canadian
commercial enterprises.
3. Meeting with Mr. ZHANG Ping, Vice-Chair of the
Standing Committee of the NPC
Mr. Zhang noted his appreciation for CCLA’s
contribution to Canada-China relations and mutual understanding. He highlighted
the positive momentum in the bilateral relationship and referred to several
recent and upcoming high-level visits and meetings as evidence of this
momentum. He also emphasized the growth of cooperation and trade between the
two countries in education, health, science and technology, culture, energy,
natural resources, and justice issues. In this respect, he noted the commercial
complementarity between the two countries. He noted that even though the two
countries may not agree on all matters, a long-term strategic perspective would
serve to address problems that arise and allow the countries to ride out the
difficult times while not undermining the positive relationship. He concluded
that upcoming activities in the Canada-China relationship and the frequent CCLA
visits will engender a new momentum in the bilateral relationship and
strengthen its potential to achieve higher levels. He also encouraged CCLA to
consider visiting new places and more remote parts of China such as in the west
in order to obtain a more complete understanding of China’s priorities and
identify opportunities for cooperation. He looked forward to another
opportunity to visit Canada.
The Co-Chairs expressed their appreciation for Mr.
Zhang’s comments regarding the role that CCLA plays in deepening bilateral
relations and mutual understanding between Canada and China in general and
between legislative bodies in particular. They noted China’s trade priorities
and indicated their commitment to assist in this regard in order to promote
Canada-China commercial relations. They also noted the increase in
people-to-people ties and mutual understanding occurring, in part, as a result
of the growing number of Chinese tourists to Canada.
4. Meeting with Ms. WU Xiaoling, Vice-Chair of the
NPC Financial and Economic Affairs Committee
Ms. Wu primarily discussed China’s efforts in
establishing RMB hubs in foreign countries and the conditions conducive to such
a move. Such conditions include the level and quality of financial and economic
activities with the country in question, the presence of Chinese banks, a
stable political environment, the degree of trade and investment relations as
well as the quality of political relations. She summarized the advantages and
disadvantages of an RMB hub in eastern Asia, Europe, and North America. She
expressed her hope that the Foreign Investment Promotion and Protection
Agreement between Canada and China would be ratified and take effect soon. She
noted the role that parliamentary dialogue can play in navigating issues between
Canada and China. She also expressed her hope that a free trade agreement
could be negotiated between Canada and China, particularly in light of growing
protectionism globally and the stalled efforts of a global trade liberalization
agreement.
The Co-Chairs noted the current presence of
various Chinese banks in Canada and those likely to open in the future. They
also noted the potential for and advantages of increased Chinese investment in
Canada, especially given the focus on economic priorities in Canada, the
complementarities between the two countries, Canada’s strong banking sector,
and the increased number of free trade agreements between Canada and countries
around the world, including in the Asia-Pacific region. They expressed their
commitment to bring a parliamentary delegation to China to improve mutual
understanding between the two countries and to strengthen their appreciation of
the opportunities today’s China offers Canada. In this respect, they noted the
advantages of taking the parliamentary delegation to central and western parts
of China.
5. Meeting with Mr. ZHANG Junsai, Director General
of the Administrative Bureau of the Diaoyutai State Guesthouse and former
Chinese Ambassador to Canada
The Co-Chairs discussed with Mr. Zhang the state
of Canada-China relations, opportunities arising from the complementarities
between the two countries, recent developments in China’s foreign commercial
relations and the importance of parliamentary exchanges and dialogue in order
to strengthen mutual understanding, particularly among parliamentarians with
little knowledge and experience of today’s China. Their discussions also
emphasized the need to highlight to all stakeholders the mutual benefits of
deepening bilateral relations. They acknowledged that the two countries may
have different business cultures, but such differences have not precluded and
should not preclude commercial success. In this respect, many commercial
opportunities exist in terms of infrastructure and non-energy commodities, such
as timber, pork, beef, canola and wheat.
6. Meeting with Mr. ZHENG Xinli, Permanent
Vice-Chair of the China Center for International Economic Exchanges and former
Vice-Minister of the Policy Research Office of the CPC Central Committee
Mr. Zheng and the Co-Chairs began by referring to
his March 2014 visit to Canada during which agriculture featured prominently.
Their discussion emphasized the complementarities of the two economies, the
strong people-to-people ties, and the potential for
growth in trade. They also noted the importance of reciprocal openness to
investment. In this respect, as China’s investment in Canada grows across a
range of sectors, so will trade, not only in commodities but also in equipment,
technology and expertise. They acknowledged the importance of high-level visits
and meetings in deepening relations and promoting commercial ties. Mr. Zheng
and the Co-Chairs discussed the reforms being considered for China’s banking
sector. They also discussed the opportunities for financial cooperation
between the two countries, notably in light of Canada’s strong banking
principles, China’s interest in establishing foreign RMB hubs including in
Canada, and the potential consequences of such cooperation for increased
bilateral trade. In this respect, they exchanged views on the conditions for
establishing a foreign RMB hub. They also discussed opportunities for deepening
ties in the agriculture sector and the growing interest of Chinese students to
study in Canada because of the calibre of Canadian universities and colleges.
7. Meeting with Vice-Minister YU Hongjun of the
International Department of the Central Committee of the Communist Party of
China
Mr. Yu began by emphasizing that Canada and China,
being separated only by a body of water, were practically neighbours. He
highlighted the longstanding friendship between the two countries, which has
only deepened with the passage of time. He noted that the full potential of the
bilateral relationship remains to be fulfilled, but that the over forty
different kinds of mechanisms for exchanges and dialogue among various
stakeholders is moving relations in a positive direction. He also highlighted
the importance of people-to-people ties, including tourists and student
exchanges, in creating a base on which to expand cooperation and trade. Mr. Yu expressed
his satisfaction with the relationship in general and with the progress in
political ties in particular, as evident in the number of recent and regular
high-level visits and meetings between the two countries. He emphasised the
complementarity of the economies of the two countries, and the potential for
expanding trade to unprecedented levels. He acknowledged the contribution of
CCLA to the friendly relations between Canada and China. He also announced his
upcoming return visit to Canada as head of a delegation from the International
Department. He provided an overview of the main functions of the International
Department and its ties with political parties around the world. He reiterated
that Canada’s friendship with China was highly valued.
The Co-Chairs reiterated the importance of
people-to-people and cultural links as well as the economic complementarities
between the two countries. They highlighted the role that increased investment
can play in growing trade between the two countries. They expressed their
commitment to continue leading parliamentary delegations to China in order to
increase knowledge and awareness of today’s China. They also emphasized the
strength of Canada’s banking and health care systems as additional advantages
for increasing cooperation with China in those sectors. Other sectors promoted
include agriculture and energy. They looked forward to welcoming Mr. Yu in
Canada in October 2014.
8. Canada-China Business Council
The Co-Chairs attended a luncheon organized by the
Canada-China Business Council at which the Department of Natural Resources
Canada and China’s Tianjin Binhai New Area signed a Memorandum of Understanding
on the development and implementation of the Sino-Canadian Low-Carbon
Eco-District Demonstration Project. The Honourable Greg Rickford, Canada’s
Minister of Natural Resources, was the keynote speaker. The event was attended
by over one hundred representatives of various Canadian and Chinese enterprises.
The event provided the Co-Chairs with an opportunity to engage with these
representatives on topics relating to Canada-China commercial relations.
9. Canadian Embassy Wood Promotions Event
The Co-Chairs attended an event organized by the
Canadian Embassy and at which Canada’s wood industry was promoted. Minister
Greg Rickford was among the speakers at the event. Over fifty representatives
from various Chinese government, research and business communities
participated. These include the Ministry of Housing and Urban-Rural Development
and its Department of Building Energy Efficiency and Science & Technology,
the Beijing Science and Technology Construction (Group) Co., Ltd., the National
Building Materials Group, Chinese Society for Urban Studies, the Chinese
Academy of Building Standard Design, the North American-Sino Wood Industry
Investment Association, Beijing Aolin Shidai Homes LLC, Jiamu Wood Frame
Construction Company, China-Canada-Cano Construction Material Inc., and the
Research Center of Modern Green Development Co., Ltd. The event provided the
Co-Chairs with an opportunity to engage with these representatives on topics
relating to Canada’s wood industry and China’s priorities in this regard.
Shanghai
10. Oceanology International China
The Co-Chairs visited over twenty Canadian
exhibitors at the Oceanology International China trade event promoting marine
technology, ocean science, and strategies for managing the world’s oceans. This
was the second year Canadian companies participated in the three day event .
These companies were largely from Atlantic Canada and British Columbia, and
covered a range of expertise, including ocean observation, subsea robotic
system, oceanographic survey equipment, sonars, and sensors. Notably, Canada
organized its own pavilion and had the most prominent location in the exhibit
hall. There were approximately 300 companies with exhibits at the event.
Companies from China, France, the United Kingdom, Norway, the United States,
Germany and Japan among many others also had exhibits.
Wuxi, Yixing- Jiangsu Province:
11. Site visit: Lingtai Environmental Protection
Equipment Co. Ltd.
The Co-Chairs toured the facility of Lingtai
Environmental Protection Equipment Co. Ltd which specializes in water
treatment. Guided by its president, Mr. LING Qing Cheng, the tour included
demonstrations of the water treatment process, and an explanation of the
equipment and expertise necessary to carry out the process. One of the
highlights of the site visit was an overview of the partnership between the
Chinese company and Boydel Wastewater Technologies Inc. of British Columbia
which specializes in electrochemical wastewater treatment devices.
Specifically, Lingtai Environmental Protection Equipment Co. is serving as the
distributor of Boydel Wastewater throughout China.
12. Yixing Industrial Park for Environmental
Science and Technology, Administrative Committee
Mr. PAN Quanhua, Vice Director of Yixing
Industrial Park, and Mr. YANG Yong, Assistant Director, Investment Promotion
Bureau of Yixing Industrial Park (the Park), provided an overview of the Park’s
history and its evolution into a focal point for the province’s research for
environmental protection and its commercial application. The Park entails
several enterprises, such as Lingtai Environmental Protection Equipment, as
well as several colleges and universities. Notably, the Park’s activities and
its partnerships with foreign companies for new technology are covered by a
rigid application of intellectual property rights, and the policy includes for
the exposure of any companies that violate these rights. Approximately 70% of
the Park’s research and development focuses on water treatment. The Park’s
activities have contributed to Jiangsu province’s reputation as a leader in
environmental protection in China. In terms of a Canadian presence in the Park,
the Co-Chairs were informed that there was one company from British Columbia
that was interested in a partnership, but the terms of the arrangement were not
suitable. In general, Canadian investment in the area is not high. The Park’s
leadership noted that they remain very interested in Canadian technology.
Nanjing- Jiangsu Province:
13. Site visit: Jiangsu Delin Environmental
Protection Co. Ltd.
Guided by its president, Mr. HONG Linchen, the
Co-Chairs toured the facility of Jiangsu Delin Environmental Protection Co.
Ltd. The company specializes in the research and development of water quality
monitoring and in establishing water quality standards. It is partly funded by
the Chinese government. In his presentation, the president described various
award-winning projects the company has and is undertaking with partners at the
national and provincial level, including many universities. In this respect,
many university students receive invaluable research and development training
working with the company. Among the priorities of these projects are heavy
metal and e-coli detection, which have emerged as problems in many parts of
China. The company’s products are found across China and around the world. One
of the highlights of the site visit was an overview of the partnership between
the company and McMaster University that has led to many positive outcomes,
including the creation of a joint venture– known as Foresee– which focuses on
international technology transfer and the commercialization of their products.
In this respect, Mr. Hong noted the importance of such partnerships in raising
awareness of different business cultures. In proposing advice for other
companies interested in joint ventures with Canada, Mr. Hong offered that a
past relationship built on trust and honesty was particularly important for
success.
14. Meeting with Mr. HUA Fenglin, Director of the
International Cooperation Center, Jiangsu Province, Department of Environmental
Protection; Ms. HA Mingrong, Director, Foreign Trade Administration Department,
Nanjing Municipal Bureau of Commerce; Mr. HUANG Qian, Director, Foreign Affairs
Department, Nanjing Municipal Bureau of Commerce
Mr. Hua began by highlighting recent partnership activities
between Jiangsu province and Canada regarding environmental protection,
including Canadian participation at the 2013 Nanjing International
Environmental Protection Industry Expo and high level visits by Canadian
provincial officials. He emphasized Jiangsu province’s progress in reducing
environmental pollution and in the protection of the biosphere. He provided an
overview of innovations undertaken in this regard, including the establishment
of provincial regulations and legislation. Other measures include improving
standards for air, soil and water quality, setting low levels of acceptable
carbon emissions, promoting knowledge on clean production methods, and
punishing companies that do not meet these standards. He noted that the
province’s leaders have set significant targets for confirming Jiangsu as
China’s most environmentally friendly and aware province of China. The
province’s priorities in this regard include reducing air pollution and
promoting waste water management. Mr. Hua discussed the challenges that have
arisen, such as the continued dependence on coal-fired power plants and the
slow implementation of regulations and legislation.
Presenting on behalf of the Nanjing Municipal
Bureau of Commerce, Ms. Ha began with an overview of two-way trade between
Nanjing and Canada, which, at nearly US$1 billion in 2014, has increased 38%
from 2013. In terms of overall trends, she noted that Canada-Nanjing trade
represents only 2% of Nanjing’s total trade. She noted that Nanjing’s primary
exports to Canada include textiles, laptops and air purifying equipment, while
Canada’s primary exports to Nanjing include natural resources, coal, and
chemical products. She expressed an interest in seeing trade between Canada and
Nanjing increase, and suggested that Canada consider following the example of
other countries such as South Korea, Japan, Spain and the United States who
have a high level of participation and visibility in various trade promotion
activities in the province. She acknowledged the challenges of getting local
companies to accept and participate in provincial plans that are designed to
implement priorities set at the national level. As an example, Ms. Ha referred
to the priority of reducing car emissions, which could only be achieved if the
auto and fuel industries made the necessary changes.
The Co-Chairs expressed their commitment that an
environmental protection and sustainable technology mission from Jiangsu
province would be welcomed in Canada. In this respect, they noted the
complementarities between environmental protection as a priority in Jiangsu and
the availability of Canadian expertise to meet that need. One possible area for
an exchange of knowledge and expertise is soil regeneration and post-harvest
waste management methods that have minimal impact on the environment and that
can be efficiently converted into fuel. A planned November 2014 visit by
Canadian universities to Nanjing participating in a technology information
sharing fair on these topics was acknowledged to be an important first step.
The parties also discussed the consultation process of priority-setting at each
level of authority, and the opportunities available for redress if targets and
priorities are deemed to be unacceptable. In general, the Co-Chairs noted the
numerous opportunities for greater cooperation between Canada and Jiangsu
province in the environmental technology sector and the role that CCLA could
play in facilitating these opportunities.
15. Meeting with Mr. GONG Pixiang, Vice-Chairman
of the Standing Committee of the Jiangsu Provincial People’s Congress (JPPC);
Mr. KONG Xinning, Member of the Standing Committee of the JPPC and
Vice-Chairman of the Foreign Affairs Committee of the JPPC; Ms. GUO Minwen,
Member of the Foreign Affairs Committee of the JPPC
Mr. GONG began by commenting on Canada’s
importance in the Asia-Pacific region, and stressed that the Co-Chairs’ visit
was evidence of the progress in Canada-China relations. He emphasized the role
that exchanges between the NPC and the Canadian parliament play in
strengthening bilateral relations. He noted that there were over 2000
investment projects in Jiangsu involving Canadian companies, and cited the
partnership between Delin Environmental Protection Co. Ltd. and McMaster
University as a model to be followed. He expressed his strong interest in more
cooperation between Canada and Jiangsu province on environmental protection
initiatives. He commented that such initiatives will become especially
important to Jiangsu and China in order to realize their social and economic
development priorities.
The Co-Chairs highlighted the friendly relations
between Canada and China, and notably between Jiangsu and Ontario. They noted
the potential of CCLA in playing a more significant role in deepening ties and
mutual understanding between Canada and China because of the strong knowledge
and interest of China among its membership. They highlighted the strong and
ever-growing people-to-people ties between Canada and China, notably among
tourists and students. They also emphasized the growing trade relationship and
the number of regular high-level visits to China and to Nanjing as evidence of
deepening relations. Because of its growth and priorities, they noted the
commercial opportunities that Jiangsu province offers Canadian companies in a
variety of sectors, but especially in environmental technology and waste water
management.
Conclusion
The CCLA Co-Chairs’ visit to China achieved its
objectives to both renew and solidify the long-standing relationship with
Chinese counterparts in the National People’s Congress and provincial
congresses. A key outcome of this visit was the identification of opportunities
to mutually benefit from broadening business opportunities between the two respective
countries, and in particular in the environmental protection and banking industries.
The Co-Chairs visit, at a time of intensification of high level exchanges
between Canadian and Chinese leaders, further confirmed the value and need to
maintain dialogue and collaboration between the legislative branches and the
opportunities available to parliamentarians to discuss and further joint
interests including the growing trade relationship and the people-to-people
ties that bind Canada and China.
The level of engagement from the Chinese side
showed that the Canada-China relationship continues to be an active and
important inter-parliamentary exchange.
