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Investment promotion between China and Ontario

By Li Na in Toronto | China Daily | Updated: 2013-08-03 02:33

Although China and Canada are separated by vast oceans, and the two countries have differences in many aspects, still we would like to promote the complementary economic cooperation from all levels, says Ms. Wang Xu, Deputy Director General of Investment Promotion Agency of China Ministry of Commerce in the Ontario China Investment Forum, which was held on Friday, July 26 at the Ontario Investment and Trade Centre.

According to Wang, the investment cooperation between China and Canada has achieved fruitful results. As of the end of May, 2013, 12,585 Canadian investment enterprises established businesses in China. The actual use of foreign investment for China has reached US $8.9billion; On the other hand, the amount of investment from China to Canada has grown up to US$7.12billion. As the largest economy in Canada, Ontario is the major destination for Chinese investment. A number of Chinese leading enterprises such as Bank of China, PetroChina, Huawei Technology have set up their office in Ontario and built strong band with local community.

Investment promotion between China and Ontario

The speakers gather together at the Ontario China Investment Forum. People from left: Janet Lee, Partner at Norton Rose Fulbright; Jessica Wu, Investment Sales Specialist at Ontario Ministry of Economic Development, Trade and Employment/ Ministry of Research and Innovation(MEDTE/MRI); Su Chang, Project Manager of Bromont Development Group, the developer of Canada-China Business Park in Peterborough; Daryl Bennett, the Mayor of Peterborough; Wang Xu, Deputy Director General of Investment Promotion Agency of China Ministry of Commerce(CIPA); Wendy Tilford, Deputy Minister of MEDTE/MRI; Yu Jianwei, Commercial Counselor at the Consulate General of China in Toronto; Loretta Yuan, Director of China Practice at Deloitte.[Photo by Li Na/China Daily]

Wang indicates, as the professional organization to implement the policy of Chinese two-way investment, Investment Promotion Agency of China Ministry of Commerce will strive to promote the following three tasks to further expand and deepen the bilateral cooperation between China and Ontario: Innovating the cooperation mode of investment promotion; Optimizing the service function of investment promotion; Improving the industrial investment under the MOU.

The delegation of China Investment Promotion Agency (CIPA) consists of officials from central and provincial government agencies as well as business executives from five Chinese companies involving in sanitary ware manufacturing, logistics services, real estate development, activated carbon production, and electric power equipment manufacturing. The business delegates are focusing on the investment opportunities in the manufacturing and energy-related projects in Ontario.

One of the delegates, Foshan CRW Bathrooms Co., Ltd in south of China will sign contract with Canada Best Plumbing Co., Ltd. Another delegate, Datong Guanghua Activated Carbon Co., Ltd. which has sold its AC products to North America hopes to seek the opportunity to invest on activated carbon and energy environment, as well as look for partners.

Specialists from Ontario Ministry of Economic Development, Trade and Employment (MEDTE) and Ministry of Research and Innovation (MRI) make introduction on Ontario’s investment environment and sectoral opportunities to the delegation. They believe there is a strong, stable and diverse economy in Ontario. The top six industrial manufacturing in Ontario include transportation, equipment, metal products, food processing, chemical products, and electronic products.

A presentation on Canada-China Business Park (CCBP) in Peterborough by Bromont Development Group (Park developer) highlights that CCBP has four major strengths: 100% China focus, one stop industrial development services, full service business consulting, and government relations.

The supports from city of Peterborough include no industrial development charge, pricing the industrial land competitively, simplified and speedy permits and approval process. Meanwhile, the Eastern Ontario Development Fund will provide the government grants up to 15% of the project and up to $1,500,000. The Chinese businesses at CCBP are also eligible to apply Free Trade Zone.

The city promised to tailor-design the CCBP to ensure the success of Chinese businesses at the park. Daryl Bennett, the Mayor of Peterborough says I’m here to help open more doors for Chinese companies so they can meet potential Ontario partners. Since its inception in March 2013, CCBP has received over a dozen delegations from China. Within a short time frame, CCBP welcomed its first potential entrant to the business park in June.

Janet Lee, Partner at Norton Rose Fulbright suggests that creating and operating the business talents is significant to the business from China. The businesses should pay attention to the discrepancies in legal and cultural matters in local recruitment.

China has the second largest economy in the world, after the United States and is Ontario’s second largest trading partner. The economic complementarities between Ontario and China reflect in sectors such as agriculture, clean technology, machinery, natural resources and service etc. On the other hand, it believes that the ties with China will help even more Ontario businesses succeed and pursue opportunities in fast-growing region of China.

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