China Market Review

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China Market Review
2004
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China
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China Profile

• Population
• China 1.3 billion Canada
  31 million
• GDP per capita
• China 1505.13 CAD Canada 38,438.67
• GDP growth rate
• China 8.5 Canada
  3.3

(1 CAD 6.2 RMB)
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Alberta Profile Part 1

• Albertas population (2004) 3.1 million
• Nearly 3/4 of Albertas population live in
  Edmonton or Calgary.
• The Chinese-Canadians are the Top Visible
  Minority Population in both Canada and Alberta
  (2001)
• Canada 1,029,395
• Calgary 51,855
• Edmonton 41,290
• Source Statistics Canada

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Alberta Profile - Part 2

• Alberta outperforms the rest of Canada in almost
  all income indicators
• Albertas Family Income 71,399 CAD
• Canadas Family Income 66,160 CAD
• Albertas Average income 31,350 CAD
• Canadas Average income 29,769 CAD

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China is Albertas 3rd largest export market!
(Likely 2 in future)
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Exports to China

• 1999 2000 2001 2002
  2003
• Alberta 560 779 897 760
  786
• Canada 2,663 3,697 4,264 4,129
  4,760
• (Value in Millions of Canadian Dollars 1 CAD
  6.2 RMB)
• Canada's overall export growth to China averaged
  9.7 annually between 1995 and 2002

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(No Transcript)
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Chinas Middle Class

• 110 million by now
• 200 million by 2005
• over 500 million make
  
• brand choices

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Did You Know?

• China has the worlds 2nd largest foreign
  currency reserves-approximately 458 billion.
  (1 is Japan)
• Chinese residents savings until 2002 is 1,652
  billion 17.8 growth from previous year
• China Gini coefficient
• 1978 0.15
• 1980s 0.28
• 1995 0.39
• 2001 0.40
• Source China International Business

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Alberta China OfficeKey Services

• Showcasing Alberta and Alberta advantage
• Gathering market intelligence
• Identifying business contacts and opportunities
• Facilitating government to government contacts
• Promote networking and cultural understanding
• Expand value-added opportunities

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Alberta China Office Key Sectors

• Aerospace
• Agriculture
• Architecture, Engineering and Construction
• Building products
• Chemicals and petrochemicals
• Education
• Environmental products and services
• Health care
• Industrial Manufacturing and equipment
• Information, Communication and Technology
• Tourism

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Aerospace

• Air transport is estimated to increase by 15 in
  2002
• China will need 1,746 new airplanes
• China will demand 200 helicopters by 2013 and
  10,000 by 2020
• There are only 143 civil airports in 700 cities
  of China
• Alberta companies active in this sector - Avmax,
  Pelorus

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WTO Agriculture

• The joining of WTO has resulted in the immediate
  reduction of some tariffs and a structure for
  further tariff and tariff rate quota reductions
  to 2004 or 2006
• See websites www.wto.org
• www.mofcom.gov.cn
• All GMO imports need a label since March 20, 2002
  
• MOA GM safety certificates from biotech companies
  has been extended to April, 2004.

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Potentials for Agriculture Sector

• Processed food and beverage
• Malting barley and malt
• Human and Feed Peas (VAT dropped to 13)
• Canola seed and oil
• Beef, pork, meat and offal, leather
• Forage seeds, seedling technology,
• environmental products
• Equipment used/new (seed cleaning)
• Biotechnologies (tissue culture,GMO screening)
• Dairy and Beef genetics and training

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Building and Wood Products

• Rising demand for residential housing
• Home Improvement /Interior Design
• 2008 Beijing Olympics
• Websites www.beijing-olympic.org.cn
• www.bjghw.gov.cn
• www.bjinvest.gov.cn
• AEC sector (Architecture, Engineering and
  Construction)
• Ministry of Construction is adopting CMHC
  Building Codes
• Incoming CMHC/AED missions to China for past 4
  years

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Petroleum Petrochemicals

• China is the 2nd largest consumer of petroleum
  products in the world behind the US only
• Total oil consumption grew and China became a net
  importer of oil since 1993
• Manufacture of crude oil reached 771 million
  barrels
• in 2002
• Gas consumption is expected to triple by year
  2010
• Opportunities exist for Canadian oil and gas
  equipment and service companies to provide
  advanced technologies to enhance oil and gas
  recovery and exploit new sources
• Downstream Infrastructure Development

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Petroleum Petrochemicals

• Industry is dominated by three large state owned
  enterprises
• CNPC (China National Petroleum
• Corporation) www.cnpc.com.cn
• PetroChina www.petrochina.com.cn
• Sinopec www.sinopec.com.cn
• CNOOC www.cnooc.com.cn
• This sector is the responsibility of CAPC
  (CNPC-Alberta Petroleum Centre), part of the
  Greater China Team of ACO, their website is
  www.capcbj.com

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Education

• More Chinese students are considering studying
  abroad and obtaining foreign credentials
• Canada is among the top destinations selected in
  2003, number of student visas exceed 8,000 (a 25
  decrease due to SARS)
• Short term training is very popular in areas such
  as ESL, Computer, WTO Regulations, Management
• Potential clients are government officials,
  multinational corporations, state-owned
  enterprises

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Environment

• Memorandum of Understanding between the
  government of Canada and China concerning the
  China Council for International Cooperation on
  Environment and Development phase III was signed
  in 2001
• Canada-Alberta Clean Development Mechanism
  Initiative Project initiated in 2001
• China earmarked 34.3 billion for pollution
  control and environmental protection projects
  starting in 2000
• Environmental protection is considered a priority
  under CIDAs program for China

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Information, Communication and Technology

• Added value of Chinese Information Industry
  accounted for 6 of GDP in 2003
• China is the largest mobile telecommunication
  market in the world with 206 million users in
  2003
• Nearly 80 million internet users in China in 2004
  
• (1.2 million in 1998)

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Health Care

• Health industry market valued at 67.1 billion
• Pharmaceutical market value stands at 15
  billion, and it is expected to surge to 60
  billion by 2010
• Imported medical device 212 million
• Chinas pharmaceutical market is 33.5 billion
  and by 2005 is expected to be among the top ten
  pharmaceutical market in the world

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Tourism

• Asian countries accounted for 12 percent of
  travel spending in Canada in 2002 down from 15
  percent prior to the Asian crisis
• Canada's travel spending in Asia has been very
  steady for the last 10 years
• Fourth largest industry in the province,
  employing approximately 100,000 Albertans
• 6 world-class ski resorts, 600 lakes, 245 rivers,
  275 golf courses
• In the last decade, sales have grown 62 from RMB
  14 billion to 22 billion

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Alberta-China CIDA Inc. Projects

• Basic Human Needs in Tibet Autonomous Region
• Canada-China Development of Coalbed Methane
  Technology Carbon Dixoxide Sequestration Project
• Canada-China Extension Training and Business
  Development Centre
• China Feed Industry Centre
• Lean Swine Production
• Management Education Environment, SOEs Reforms,
  Women Entrepreneurs
• Public Sector Reform Program
• Strengthening capacity in basic education in
  Western China

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• The CIDA Industrial Cooperation Program provides
  financial support and advice to Canadian
  businesses planning sustainable business
  activities in developing countries in a variety
  of sectors.
• CIDA Prairies Regional Offices
• Ruth Shapiro, Director
• 725 Canada Place, 9700 Jasper Avenue, Edmonton
  T5J 4C3
• Tel [phone]
• Fax [phone]
• E-mail ruth_shapiro_at_acdi-cida.gc.ca
• Calgary Office
• Suite 300,. 639 5th Ave. SW, Calgary T2P 0M9
• Tel ( 403) 297-3324
• Fax [phone]

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• Asian Development Bank Headquarters6 ADB
  Avenue, Mandaluyong City0401 Metro Manila,
  PhilippinesWebsite http//www.adb.orgEmail
  information_at_adb.org
• ADB Resident Mission in China
• 7th Floor, Block D
• Beijing Merchants International Financial Centre
• 156 Fuxingmennei Avenue, Beijing
• E-mail adbprcm_at_adb.org

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Alberta China Office (ACO)

• Mr. David Wong
• Managing Director
• 19 Dongzhimenwai Dajie
• Chaoyang District, Beijing
• China 100600
• Tel [phone] Ext. 3610
• Fax [phone]
• Email david.wong_at_international.gc.ca
• Website http//www.albertachina.com

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CAPC CNPC-Alberta Petroleum Centre

• Mr. Angelo Zia
• Alberta Co-Director
• 2nd Floor, Science Technology
  Bldg. No. 20 Xue Yuan Road
• Haidian District, Beijing
• China 100083
• Tel [phone]
• Fax [phone]
• Email info_at_capcbj.com.cn Webs
  ite www.capcbj.com

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Alberta Hong Kong Office

• Mr. Joseph So
• Managing Director
• Room 1004, Tower Two,
• Admiralty Centre, 18 Harcourt Road
• Hong Kong
• Tel [phone]
• Fax [phone]
• Email gov.ab_at_alberta.org.hk
• Website http//www.alberta.org.hk

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Alberta Trade Representative Office in Taipei

• Ms. Li-An Chen
• Representative
• 13th floor, 365 Fu Hsing North Road
• Taipei, 10483, Taiwan
• Tel [phone]
• Fax [phone]
• Email Lian.chen_at_international.gc.ca

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Thank You !
? ? !