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With China becoming a key global player, no region offers greater potential for the future than the rapidly expanding markets of Asia, and Canada's political and business leaders need to intensely engage in Canada-China relations, according to former Canada International Trade Minister David Emerson.
"It's late in the game, and we are overdue for a broad based strategy of engagement," Mr Emerson said. "Hong Kong can play a vital role in such a strategy." He said that if Canada fails to capitalize on the massive and growing opportunities in China, "generations of Canadians will pay a painful price."
Mr Emerson pointed out that Hong Kong, being a gateway to China, has become "a vibrant conduit and staging location" for businesses trading with China and investing in China, offering Canadian businesses a more familiar business environment and opportunities for partnership for their success. Canadian direct investment now totals some CAD$6 billion in Hong Kong.
In a keynote address entitled "Canada's Economic Future – Why China Matters" at the Parliament Hill today (May 27, Ottawa time), Mr Emerson reminded a capacity crowd of about 100 political and business leaders in the Canadian capital that with the "uni polar world of US domination giving way to a multi polar world of more broadly distributed power and responsibility, no country is more on the ascendancy than China."
The former federal Minister made the remarks at a breakfast seminar organised by the Ottawa Section of the Hong Kong-Canada Business Association (HKCBA). "Few today seriously doubt that China will be a key global player for as far as we can see into the future. And few would doubt the importance of Canada increasing our engagement with China as part of our trade and foreign policy," he said.
As a veteran on Canada-Hong Kong-China trade, Emerson warned that Canada has "serious competition to be a senior, respected, middle power" in the emerging global order. He said that "Canada, more than ever, needs partners and allies to help support and advance our interests. China should be an important part of our approach to international relations -- diplomatically, politically and economically. And I believe Canada/China economic interests intersect in compelling ways."
The breakfast seminar was hosted by Senator Vivienne Poy, honorary patron of the HKCBA, and the Director of the Hong Kong Economic & Trade Office (HKETO) in Canada, Ms Maureen Siu.
While sharing his insights on the strategic role of Hong Kong in the development of the Canada-Hong Kong-China trilateral trade relations, Mr Emerson cited a few important factors as why Canadian businesses should involve Hong Kong as a key element while realising opportunities in China. These include Hong Kong's substantial Canadian presence – both in terms of people which share Canadian and Hong Kong roots, and in terms of business opportunities and potential partnerships. In addition, Hong Kong has an advanced and familiar common law system as a result of her historical background with the British.
"Hong Kong is ranked as the jurisdiction most open and easy to do business of any in the world," Mr Emerson said. "It is an entrepreneurial, dynamic and beautiful city where the English language is widely spoken and both Asians and westerners work and enjoy life together."
On Hong Kong as an international financial centre, Mr Emerson said: "With a vibrant stock exchange and financial services sector, combined with enhanced empowerment from Beijing, Hong Kong increasingly functions as a financial bridge between the Chinese and international economies."
Mr Emerson said that while Canada is a Gateway to North America, "Hong Kong is a gateway to China", and an evolving free trade agreement with the mainland – the Closer Economic Partnership Arrangement -- "ensures a relatively open border with China".
"And the transportation and logistical system rooted in Hong Kong ensures highly competitive connections between China and the global marketplace," he said.
Emerson encouraged Canadian businesses to take advantage of what Hong Kong offers, and to look for fresh approaches in international trade and new opportunities in emerging markets in the current global economic crisis.
HKETO Director Ms Maureen Siu also told the audience about Hong Kong's economic measures being taken to deal with the global economic crisis.
"Earlier in April, the World Bank predicted that China's economy would begin to recover in the second half of this year, as the massive stimulus packages by the government kicked in," Ms Siu said. "It predicted that this would also help to stabilise economies throughout Asia. For Hong Kong, as an important gateway to China for foreign companies looking to expand their markets, and also the gateway through which Mainland companies look for investment opportunities around the world, it will stand to gain and will recover together with the mainland."
Ends/Thursday, May 28, 2009
Issued at HKT 09:12
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