Clear skies at the Beijing airport lets you see how impossibly far the airport structure curves off into the distance

Carla Kearns has been posting a series of observations made during her visit to both Hong Kong and the Hong Kong Forum. She continued her journey on to Beijing.

After arriving in Beijing on Saturday, I joined up with the Canada China Business Council (CCBC)’s high profile delegation to China on Monday at the gala launch.

Before I report on the events of that day, several minor items impressed me upon arrival at Beijing’s newly opened airport.  First, I was shocked by the clarity of the air.  I knew there were mountains surrounding Beijing, but I had never actually seen them.  Second, I was astounded by the vast scale of the airport; which was so immense that it was like gazing at an optical illusion.  In Hong Kong, one of the speakers noted that the world’s greatest cities achieved premier status, not because of their economic or political power, but because they are important transportation hubs.  The Chinese government seems to have spared no expense to position itself as one of the greatest modern cities. Later I learned that it is in fact the world’s largest roofed structure.

Back to business. After an adventurous Sunday at the Simatai section of the Great Wall (and an equally adventurous time finding a cabbie to take us there), I arrived at the Kerry Hotel first thing Monday morning to join the CCBC events of that day.  This day marked the gathering of some of the highest profile Canadian delegates to China in years, including: four provincial Premier delegations, an official delegation from Quebec, the Canadian Manufacturers & Exporters mission and many of Canada’s top industry leaders. All had convened in Beijing for this important trip.

In stark contrast to Hong Kong, the urgent concern for those in attendance was NOT the global economic crisis.  Although China will be affected along with the rest of the globe, the impact on GDP is expected to result in 8% growth, rather than the recent 10% it has seen for more than a decade.  Not too shabby.

Beijing's modern architecture – the slightly unnerving CCTV tower

The issue that trumped the economy by far: the state of Canada’s deteriorating relationship with China.  For the impressive cross-section of Canada’s business and government elite in attendance, the message was simple: “We are committed to positive engagement with China.  We want a better relationship.”

The challenge is that it doesn’t matter how many senior business leaders and government officials from across Canada visit China. These well-intentioned efforts are unfortunately negated by Stephen Harper’s policy on China.  I personally find it perplexing that with such an enormous population of Chinese in Canada and a huge trade volume with China that Harper has never even visited the country.  He snubbed China at the Beijing Olympics –- a perfect opportunity to do some outreach diplomacy –- stating that it was “not a political event,” although 80 other heads of state attended.  His style of communicating with China seems to be designed to cause China to lose face and make himself seem tragically uninformed.  There may be issues with China that he opposes, but his opposition apparently forms the basis for his series of ongoing snubs.  The question we should be asking is this: “Is Harper’s approach of alienating Canada from China effective in creating positive change?”

Beijing's traditional old neighbourhoods, called Hutongs

Actually, China is stimulating massive change itself.  People who don’t understand China have no idea of the rapid pace of significant social improvements that are happening right now.  Some of these are difficult to appreciate as they have caught up to where we in the West have been for decades.  As recently as 3 years ago when I was living in Shanghai, a massive carcinogenic spill in Northern China went unreported for days as the local government tried to cover up the issue. A cover-up such as this just wouldn’t happen these days. This week, the newspapers in China were full of updated reports of the melamine scandal.  The Chinese media is still certainly managed by the state, but I have witnessed an unprecedented level of openness and ownership.

The sad thing is that historically Canada and China have had a strong relationship, and it would not take much to reinstate it.  All Mainland Chinese regard Dr. Norman Bethune as a national hero and are still grateful to Canada for exporting wheat in the 1960s when most other countries were following a US-imposed embargo. Today, the most popular foreigner in China is Dashan, widely famous and beloved performer in China, but completely unknown as Mark Rosewell in his home country, Canada (Dashan is his Chinese stage name).  To our benefit, Canada does not carry the taint of British, Japanese or French invasions or occupations.  Until recently, Canadian businesses enjoyed a privileged status in China due to our past history.  But today we are hearing more often that Canadian businesses are suffering frustration  due to federal missteps in our bilateral relationships.

Lucky-red themed gala dinner of CCBC

The good news is that Mr. Harper has announced plans to visit China.  This visit should be applauded by the Canadian business community but this act alone will not suffice.  In China, cultural values dictate that it is not only important what you do or say, but how you do or say it.  My hope is that Mr. Harper will prepare to be effective in building bridges.   With China making astounding economic and social progress, Canadians would benefit greatly from stronger ties.  It’s up to Mr. Harper now.

As for me, Beijing it was a great opportunity to interact with our clients (there were no less than 6 in attendance) and add to existing relationships with new ones.  As Canada lessens its economic dependency on the US, the business community is starting to look more closely at China which is great for a business like mine.

zaijian Hong Kong, ni hao Beijing

October 31 was the second and last day of the Hong Kong Forum.  During these 2 days we heard from successful Canadian and other business leaders and entrepreneurs in the area about why they chose to either do business in Hong Kong or use Hong Kong to do business with China.

Hong Kong has a business structure that is familiar to North Americans, in its legal, financial and governance aspects.  Although these are critical factors that can shorten a business’ learning curve in Asia, the fact remains that developing relationships here is still very important.  At the Forum I met a potentially valuable contact from Hong Kong.  We sat and talked for 30 minutes about where his family is from and some of the business and personal experiences he has had.  As I could see my partner becoming visibly impatient, I reminded him that we were gaining invaluable information about who this man is, what his relationships are and the capacity of business that he has done in the past.

When you go to Asia on a one week business trip it is easy to feel a great sense of time pressure to get business completed.  However, trying to shortcut the process of getting to know who you are doing business with often results in doing business with someone that you wish you weren’t.  These trips and missions to China should always be regarded as a beginning point, not the end result.

In the end I developed several solid leads for my corporate training services and am exploring opportunities for partnership to recraft our training programs to Chinese students and executives who are coming to Canada.  Now it is up to me to ensure than I maintain the momentum.

A few random items of interest:

At the HK airport I saw this very interesting service advertised, one which could be enormously beneficial to Canadian companies: www.asiainspection.com.  I cannot personally recommend this as I have not used it myself but the concept is terrific and I will investigate it further.  The idea is that the company has a team of people to monitor factor conditions in China with its client’s suppliers – something that would be an invaluable factor in Quality Control.

It seems like every Asian airport has a rest lounge with lovely flat or almost-flat lounge chairs in a quiet, out of the way corner to enjoy a snooze in between long flights.  Why is it that North American chairs all seem to be designed for maximum discomfort?

Finally, a tip for booking hotel rooms at great value:  my hotel in Hong Kong was great and in Beijing it has been exquisite.  I was able to get a phenomenal rate of $170 at the Peninsula Hotel - a gorgeous 5-star hotel with personal service bordering on a manic attention to detail.  Breakfast included for 2.  Check out www.agoda.com the next time you travel for great rates — the rack rate for this room is $350+.

If you attended the Forum, or have visited Hong Kong for business or pleasure, please share and discuss your experiences in the comment section below.

This week Carla Kearns is posting a series of observations made during her visit to both Hong Kong and the Hong Kong Forum.

The last 48 hours have been a whirlwind.  We spent Wednesday in the incredible Central district on Hong Kong island, involved in some serious consumer research.  This district is home to both Hong Kong’s vast financial sector and charming historical district, accented by shopping that ranges from Louis Vuitton and Armani to tiny alley stalls selling ornate bird cages.

Some Hong Kong shopping observations

There is an awareness of the importance of recycling and conserving energy.  The major difference from when I enjoyed quite a few trips here in the 1990s is that the air pollution has drastically increased.  It is clear that what Hong Kong experiences is for the most part not generated in Hong Kong but is coming from the manufacturing cities of Guangdong (Canton) province right across the Chinese border.   Here in Hong Kong you see recycling containers at Starbucks and select escalators that are shut down at non-peak hours in the metro system (which itself is cheap, fast and clean).

We saw billboards for Blackberry and sharp retail fronts for a Fruits and Passion store. There was some unusual examples of Canadian branding including Toronto Sports (selling sporting attire), The Keg in Lan Kwai Fong (a pub in Hong Kong’s upscale bar district) and an ad for Canadian buckwheat pillows. The latter seemed to make a connection with Canadian branded products as being clean, healthy and natural – which is an obvious brand attribute of Canadian products in Hong Kong and China.  There are enormous opportunities in the Environmental sector in China — according to the Canada Hong Kong Chamber of Commerce, the Chinese government is about to come down with an enforcement hammer on the high pollution factories of Guangdong province.  Since these manufacturers are an integral part of the engine of Chinese growth, the government is actively seeking international partners to assist with the clean up.  In my role as co-chair of the Canada China Environmental Forum (along with Corey Diamond, President of the Summerhill Group) we have been working for the past 2 years to raise awareness of the immense environmental, social, economic and diplomatic benefits for Canadian environmental companies to become more proactive in collaborating with China in this sector. It seems to be working: this week, Corey is in China with Premier McGuinty on a high profile environmental sector mission.  I’ll be meeting up with them in Beijing this weekend.

Carla Kearns with Frank Montiero and Dorothy Jean Mar

Tuesday night we met up with the Hong Kong Canada Business Association (HKCBA) family for a special dinner for Canadian delegates.  A word that I would use to describe the HKCBA is “generous”.  Members who have been involved in the organization for years are so generous with strategic and practical advice as well as in facilitating connections.  We had the good fortune to be seated with several Canadians who are currently living in Hong Kong and were very grateful for how, after learning about our businesses and objectives, were quick to lend their assistance.

Wednesday was the first full day of events.  The common concern at the top of everyone’s mind is the global economic turmoil.  At lunch we were addressed by the Honourable John Tsang, the Financial Secretary for Hong Kong.  Among his many accomplishments he is most beloved these days for lifting the oppressive wine tariffs in Hong Kong.  He, like several other commentators, feels that Hong Kong will be impacted by the financial crisis but will weather the storm and emerge even stronger, as it has from other events such as the Asian financial crisis, the shocks of 9/11 and the SARS crisis.

Lunch address

The highlight of my day was listening to Canadian Janet DeSilva (CEO Retail China) and Viveca Chan (CEO WE Marketing) speak about the latest trends in retail distribution in China.  They commented that the emergence of the vast middle class in China will have an even greater impact on the world than China’s rise as a manufacturing giant.  Chinese consumers, in a few short decades, have become increasing sophisticated, and foreign retail brands need to have a deep understanding of how this market is unique in order to be successful.  It is imperative that brands develop a emotional connection with consumers in order to differentiate from the millions of other products on the market there.  On the flip side, brands that emotionally alienate Chinese consumers run the risk of their market share being destroyed. For instance, the French supermarket giant Carrefour was boycotted by millions of Chinese consumers after they perceived that the French insulted their national pride during the Chinese torch relay in the spring (even though Carrefour in China is actually Chinese owned).  One of the significant retail trends that Janet mentioned is the emergence of product related reality and lifestyle TV shows, such as a show produced by Fruits and Passion that shows its viewers how to create a home spa.  This kind of marketing is important because the traditional ad industry channels (TV & radio commercials and print ads) are high regulated and restricted by the government which requires savvy advertisers to be creative in non-traditional channels.

I’m looking forward to the gala dinner tonight.  One of the unexpected benefits to a trip like this is the bonding that can happen when a group of like minded individuals travel together.  After a day of business programming, some of the most important conversations can be over a glass of wine in the evening.

This week Carla Kearns is posting a series of observations made during her visit to both Hong Kong and the Hong Kong Forum.

Last night on the way into Hong Kong from the airport the impressive high-speed Airport Express passed an enormous port facility.  Perhaps my mind was addled from a lack of sleep, but it seemed to take a full 5 minutes to pass the docks packed with containers ready to ship.  If you recall the scene from the end of the original Raiders of the Lost Ark, where the ark is placed in a government facility stocked with a seemingly endless number of boxes, you’ll have an idea of the impression it made upon me: it is staggeringly large.  I also wonder what the future holds for this kind of export activity on a day when the financial markets are so much in turmoil – the Hong Kong stock exchange itself lost almost 13% of its value yesterday, and the Japanese stock exchange dropped the greatest amount that it has in 26 years.

I am pleasantly surprised by my hotel – The Eaton Hotel in the Jordon Valley area – small rooms but impeccably clean and updated.  An enormous change from my first trip here when, as a backpacker on my first solo trip abroad, I stayed at the notorious Chungking Mansions.  But in these days of global gentrification, it seems that even that dump has been cleaned up a little.

I spent the day doing typical tourist things – walking along Nathan Road, taking the amazing Star Ferry across the harbour (one of my favourite things in HK) and the double decker bus to Stanley Market on the beautiful southern side of the island.  Unfortunately, what I consider to be a thrilling ride — careening around blind corners and up and down the steep mountain ridge — made my extremely jet lagged travel companion nauseous.

Hong Kong is astoundingly international. Even in my hotel room, it seemed that every kind of electric converter in the world was pre-built into the wall.  However, I have not seen much of a Canadian presence yet, other than a Club Monaco prestigiously located in the Central District across from an enormous Gucci store (but also next to a McDonalds), and a Four Seasons Hotel.  However, I am committed to continuing my shopping quest and keep looking!

Photo by Chi King.

This week Carla Kearns will be posting a series of observations made during her visit to both Hong Kong and the Hong Kong Forum.

I’m writing to you from somewhere over the arctic on my first trip to Hong Kong in almost 3 years, and my first to participate in the Hong Kong Forum. A 3-year gap in visiting an Asia city is like a generation as they tend to change and grow extremely quickly.  I used to visit Hong Kong fairly frequently in the 1990s when I was working in Taiwan and it has always been one of my favourite cities: so incredibly dynamic, atmospheric, and breathtakingly beautiful.

I am looking forward to a few days to unwind, explore, and get caught up on jet lag before the Forum starts.  If you are doing business in Asia, you simply cannot be at your best if you fly in for a few meetings and then leave, especially when trying to establish business initially.   More than just getting over the jet lag, it makes a big difference to stay for a few extra days to get to know the place, the people, and the business game here.  Hong Kong can be disorienting on your first visit – China even more so – but when you take the time to catch your breath and observe the environment you are better prepared, no matter what sector you’re in.

Apart from reconnecting to this place I love, I do have some professional goals on this trip. At the Forum I am hoping to connect with global companies who are having breakdowns in both processes and success due to a lack of understanding in bridging cultural differences. My business, TLI-The Mandarin School, provides China business culture and intelligence training and consulting services.  Although we do a great deal of China business etiquette training, lately I have been working with internal teams who will never set foot in China but speak and correspond with clients there more and more and need to understand how to be effective communicators and how to modify their internal processes.  There are approximately 400 companies represented at the Forum from around the world and it should be a great opportunity to share and connect.  I’ve just brought in a French-speaking trainer (actually he is fluent in French, English and Mandarin) and it would be great to expand our market to French-speaking regions and countries.

Beyond those tangible business goals, I intend — in an existentialist sort of way — to just “be” in Hong Kong to get my finger on the pulse after a few years away.

For this blog I am looking forward to reporting back on what Canadian companies are doing in Hong Kong and China. What do Hong Kong consumers think of Canadian products?  Can we see them on the shelves?  What are Canadians known for?  What business opportunities in Hong Kong are hot? The general sentiment is that Canada is lagging behind other countries in doing business in Asia, so I intend to check out whether that is true, and if so, get a sense of why.  I do know, however, that Canada is the by far the best represented country at the Hong Kong Forum most years, so we’re doing a pretty fair job in that respect.

I encourage you to share your own stories in the comment section below, or ask specific question about what I’ve reported on. This is a discussion that sould be ongoing for Canadian companies.

Photo by dfbarrero.