B.C.'s exports to China last year jumped 50 per cent to $1.76 billion and the economic opportunities for B.C. companies are there for the taking, says a Chinese diplomat.

In a speech to the Canadian Exporters Showcase in Vancouver last week, Chinese consul Tian Chunyan said B.C. companies could increase their market share if they are willing to take the risks.

The Chinese economy is undergoing rapid expansion in its quest to become an industrial state and the demand for raw materials will continue to increase, she said.

This year, China's economy is expected to grow by 8.5 per cent, compared with 9.5 per cent last year.

George Froehlich, Business Edge
Yves Potvin of Garden Protein International plans to offer a meatless alternative to Asian customers wary of the avian flu.

She also said that more B.C. companies are investing in China and in return, Chinese companies are interested in investing in B.C.

China is now seen by the international community as an opportunity, she added, instead of a threat as in the past.

The showcase, which attracted 4,000 delegates, was designed to provide a link between Canadian exporters and buyers from China, India, Hong Kong and Taiwan. There were more than 65 exhibits and 16 Asian trade seminars by major industry experts.

B.C. Forests Minister Mike de Jong echoed Tian's remarks.

He noted China poses a great opportunity for B.C. companies, but said there is incredible competition to supply raw resources to that growing country. Chinese entrepreneurs, for example, are importing raw materials such as fibre from Russia.

"They effectively compete with B.C.-based businesses."

De Jong also said that American, European and Scandinavian businesspeople are doing better in China than B.C.'s business community. "These people are our major competitors, and we have to make sure we are offering quality products that are competitively priced," he told delegates.

De Jong also said developing the Chinese market is a great opportunity. "We have become vulnerable by relying too much on one market - the United States - and this is an opportunity to diversify and establish a major trading position with China."

One such initiative, he noted, is the Dream Home China project, a partnership between the B.C. forest industry and the province that aims to get the Chinese to use B.C. wood products for their housing.

The project recently opened in Shanghai, a city with a population of 20 million, and where there is huge demand for new housing to keep up with population growth. "It is an incredible marketplace and we have to take advantage of that."

Canadian companies attending the Exporters Showcase all agreed China is a major market, but how quickly they will seek to enter it, or how, was the question up for debate.

Kari Yuers, president of the Vancouver-based Kryton Group of Companies, said anyone wanting to establish a business toehold in China has to make sure that they can find partners that trust each other, and also deal with the the technology- transfer issue. Yuers added that China's economic growth is "unbelievable."

Her company produces water-repellent sealers and coatings, and has been operating in China since 1980. In 1999, it also established a joint-venture partnership there. The company went into China in the belief that it was a giant market and would develop into a major economy, as evident in the forecasted economic growth of 8.5 per cent for this year, she said.

Gerry Arnold, president of M-chem Industries Corp. of Delta, a producer of industrial cleaning supplies, also intends to set up a partnership with a Chinese company. "We will do that fairly quickly," he said. "We will be dealing with the Chinese consulate in Vancouver on it within the next couple of months, and as well we will set up a booth in the upcoming China trade show in China."

Arnold said the Chinese government's decision to allow more tourism into the country is a golden business opportunity. "That means one thing: the Chinese have to upgrade their sanitary standards and we can help them with that," he said in an interview with Business Edge.

The cleanliness of public washrooms in China has become an issue, according to international tourism officials, and the Chinese government is making a serious effort to improve the situation.

Yves Potvin, president of Garden Protein International of Richmond, also says the Chinese market intrigues him. "There is no doubt it's huge and will continue to grow in a major way," he said.

Garden Protein manufacturers meat alternatives made from vegetable sources. It is used in a variety of manufacturing and food-service applications.

But, he adds, "We have just started selling in Japan and in general, the whole Asian market has a lot of potential. Because of the avian flu, Singapore has no more chickens and they are looking for an alternative protein, which our product is."

The company uses proprietary technology for its products. "Of course, the Chinese would want a transfer of our technology and that is an iffy situation," he said. "We need to understand their market first. There is no doubt that there is a middle class in China that would be interested in our product. At this stage, I am here to investigate the Chinese market."

Potvin started his new venture 18 months ago after selling his company, Yves Veggie Cuisine, in 2002.

(George Froehlich can be reached at george@businessedge.ca)