Ventures Dialogue

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.