Aiming to create a lasting relationship
Celebrating the 400th anniversary of its first settlement in Quebec City this year and the 250th anniversary of the birth of parliamentary democracy, Canada is on a mission to intensify its unique ties with Hong Kong and the mainland.
The mainland has been singled out as the 'top priority' for trade and investment efforts, enforcing a remarkable 'human bridge' across the Pacific crossed by close to a million Canadian residents of Chinese descent.
Canada's consulate estimates the number of expatriates and Hong Kong-born Canadians to be as high as 220,000 - slightly more than 3 per cent of the population. A recent survey found that 16 per cent of the Hong Kong population had either close relations or family in Canada. With a membership of 1,200, the Canadian Chamber of Commerce in Hong Kong is also the country's largest overseas business organisation.
'It is a very dynamic and growing business community,' said Francois Rivest, Consul and Senior Trade Commissioner of the Canadian consulate in Hong Kong. More than 150 Canadian companies maintained branches or subsidiaries in Hong Kong, about a third with regional headquarters, he noted. These include Canada's biggest banks and such prominent insurance and wealth management institutions as Manulife, Sun Life and Crownlife.
Underlining Canada's developing information and communications technology industry, new generation phonemaker BlackBerry is among the newcomers to the fold. Even Canada's biggest international hit in the world of entertainment, Cirque du Soleil, is establishing a local presence, with the opening of its first permanent home outside of North America in Macau later this year.
According to the Hong Kong Trade Development Council, more than 6,000 Canadians a year join trade missions to Hong Kong. In the opposite direction, Hong Kong's investment in Canada is conservatively estimated at about US$6.5billion, with Cheung Kong (Holdings) and Hutchison Whampoa chairman Li Ka-shing probably the biggest spender of all through oil exploration giant Husky Energy and the recent acquisition of TransAlta Power.
Substantial Hong Kong property interests are being notably boosted by new Shangri-La hotels in Vancouver and Toronto. 'There will be a lot more investment in the near future,' Mr Rivest said.
The strength and stability of the Canadian economy - blessed with highly sought-after resources, including the world's second-biggest oil reserves, the world's largest uranium reserves and the recent discovery of diamonds in the far north - is a key attraction.
Also 'creating a lot of interest from Hong Kong' are new corporate tax breaks. Worth US$60 billion over the next five years, these will result in Canada having the lowest overall tax on new business investment of all the G7 countries, making it 'an increasingly competitive destination for global investment'. At the same time, Canada is keenly bolstering a 'lasting partnership' with the mainland, spearheaded by Canada's international trade minister David Emerson.
An increasingly frequent visitor to Beijing, Mr Emerson said during his latest visit: 'Let there be no misunderstanding. Canada is squarely committed to a deeper relationship with China. Our citizens of Chinese descent have made, and continue to make, a dramatic and lasting contribution to the fabric of Canadian life. Their presence and cosmopolitan imprint on cities, such as Vancouver and Toronto, has been profound. They form a permanent and critical 'human bridge' between China and Canada.'
Those ties have also encouraged a close political relationship. Canada was one of the first western countries to establish diplomatic relations with China, he noted - and being an 'early and active supporter' of China's accession to the World Trade Organisation. As partners in Pacific Rim affairs through the Asia-Pacific Economic Co-operation forum, and thousands of daily interactions between businesses and investors along with ongoing cross-cultural and athletic initiatives, Mr Emerson said: 'We have actively encouraged and supported China's strategy of liberalising the economy, introducing market reforms, expanding economic freedoms and opening to the outside world.
'A close look reveals two sovereign and friendly countries - two complementary economies, each on its own distinct path, both locked on upward trajectories. That's why Canada has made China a top priority for our trade and investment efforts. We are boosting our presence throughout China.'
Latest trade statistics underline the partnership drive.
The mainland became Canada's fourth-largest export market and second-largest trading partner in 2006, behind only the United States. Also last year, Canadian exports to the mainland broke all records, up by 29per cent in the first 10 months. 'That was the strongest growth among all our major export markets,' Mr Emerson said.
Mainland exports to Canada also grew at a double-digit pace, with US$33 billion in sales representing a 14 per cent rise. 'Clearly, the roots of a modern and diverse commercial relationship between our countries are taking hold,' Mr Emerson said. 'Our job is to continue building on this foundation.'
