Ventures Dialogue

Federal Finance Minister Jim Flaherty is on a high level mission to China with some of Canada’s heaviest finiancial hitters.  Not only have some of the key players in Canada’s banking industry joined him on the trade mission, but the head of the Bank of Canada, Mark Carney, is also on board.

For a country where the state plays a large role in business, this kind of high level mission is very important.  Canadian businesses have made successful inroads in China and have a very significant presence in Hong Kong, due in large part to a long and prosperous history between the two nations.  However, diplomatic efforts are necessary as well if we are to grow Canada-China trade.

This fact was made loud and clear by Dr. William Yip, a Hong Kong businessman with whom I met while in Hong Kong in January.  Dr. Yip chronicled a number of Canadian companies who have successfully leveraged connections to party officials into business success.  He explained that party opinions are very important.  What they think and what they know about your project carries a lot of weight.  Hence his statement that,

 ”in Western culture, all roads can lead to the room.  In China, there are lots of dead end roads – they tell you all roads lead to the room.”

Liberal International Trade Critic, Scott Brison, argues in today’s National Post that not enough has been done to strengthen diplomatic relations with China. 

Regardless of your thoughts on the past three years, a visit planned by Prime Minister Harper to China in November will be welcomed by the Canadian business community as a step in the right direction.