NEWS RELEASES
CANADIAN COMPANIES SIGN $2.3 BILLION IN COMMERCIAL DEALS WITH CHINESE PARTNERS
November 27, 1997 No. 198
CANADIAN COMPANIES SIGN $2.3 BILLION
IN COMMERCIAL DEALS WITH CHINESE PARTNERS
International Trade Minister Sergio Marchi today announced 12 business deals worth
$2.3 billion between Canada and China, along with five other agreements, at a
special signing ceremony held during the annual Canada-China Business Council
(CCBC) meeting in Toronto.
The event involved Canadian companies and members of the Chinese business
delegation travelling with President Jiang Zemin of China, who is on an official
visit to Canada from November 26 to 29.
"These new business deals demonstrate the significant potential that the China
market holds for Canada," said Mr. Marchi. "Canadian firms have an impressive
record of success in China, marked by a 35-percent increase in two-way trade over
the past five years. The deals signed today reaffirm existing strengths and carve
out new areas of co-operation in line with China's future economic development
needs."
A wide range of Canadian industries was represented on this occasion, with their
Chinese partners from such sectors as manufacturing, financial services and
banking, telecommunications, construction and energy, among other areas.
These deals will create numerous new jobs, contributing to economic growth for
both Canada and China.
Under the terms of the deals, China will gain improved manufacturing and
telecommunications infrastructure, Canadian banking expertise and affordable
Canadian-made housing, as well as new investments in environmental technologies
and the transportation sector.
"The federal government has consistently sought to expand business relations
between Canada and China. These business deals reflect the supportive role of the
federal government, and the Canadian Embassy and consulates in China, in helping
our Canadian companies to do business in that country. This successful approach
supports economic growth and job creation here at home," said Mr. Marchi.
The breakdown for today's signings is as follows: memorandums of understanding,
letters of intent ($1.42 billion), contracts/agreements ($670.9 million), and
joint ventures ($168 million).
Details of the business deals signed today are in the attached backgrounder.
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For further information, media representatives may contact:
Leslie Swartman
Office of the Minister for International Trade
(613) 992-7332
Media Relations Office
Department of Foreign Affairs and International Trade
(613) 995-1874
This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca
Backgrounder
CONTRACT SIGNING AND ANNOUNCEMENT CEREMONY
WITH CHINA
Alcan Aluminium Limited, Montréal, Quebec
Alcan Aluminium Limited has signed a letter of intent with China National Non-Ferrous Metals (CNNC) regarding their decision to proceed with a detailed
feasibility study on a proposed aluminum smelter and power complex in Hejin City,
Shanxi Province, in China. The smelter would have a capacity of 240 000 tonnes.
The value of this project is approximately $1.42 billion.
Bank of Nova Scotia, Toronto, Ontario
The Bank of Nova Scotia was presented with a licence approval by the People's Bank
of China, Chongqing, to open a branch in Chongqing. Scotiabank, Chongqing Branch,
is the first foreign bank to be licensed to operate in this municipality and will
engage in a broad range of foreign currency-related banking activities.
Bombardier Inc., Montréal, Quebec
Power Corporation of Canada, Montréal, Quebec
A memorandum of understanding was signed for a joint venture in Qing Dao, Shandong
Province, to produce high-grade passenger railcars for the Chinese and export
markets. Partners include Sifang, a subsidiary of China National Railways
Locomotive and Rolling Stock Industry Corporation, Bombardier Inc. and Power
Corporation of Canada. The project will help modernize a major state-owned
enterprise under the Ministry of Railways, contributing to enhance the
competitiveness of China's rolling-stock industry.
Bull, Housser & Tupper, Vancouver, British Columbia
Bull, Housser & Tupper, a Vancouver-based law firm, has been granted a licence to
operate in Shanghai by the Minister of Justice of China, Xiao Yang. As one of
Canada's leading business law firms, Bull, Housser & Tupper was the first Canadian
law firm to establish an office in China, in 1985, and continues to maintain a
presence in Shanghai.
China Energy and Power Corporation, Toronto, Ontario
China Energy and Power Corporation (CEPCO) has signed a further agreement with
Guizhou Province in connection with its plan to develop one of the largest
remaining anthracite deposits in the world, a project valued at $375 million.
CEPCO intends to commence large-scale coal production to support the power
generation business and the region's steel, aluminum and cement industries and to
supply certain export markets. CEPCO will also establish an on-site coal-fired
power plant.
Easy Field Consultants (Canada) Ltd., Markham, Ontario
Easy Field Consultants (Canada) Ltd. has signed a joint venture agreement worth
$168 million with Shanghai Songnan Real Estate Co. Ltd. for the development of
new-generation Chinese affordable housing. Using the latest Canadian building
technology, new homes and facilities will be built for over 7000 families in the
Nanshi District of Shanghai.
Eco Waste Solutions Inc. (Yue Xiu (Canada) Inc.), Burlington, Ontario
Eco Waste Solutions Inc.'s agent in China, Yue Xiu (Canada) Inc., has signed an
agreement, worth $122 million over a three-year period, with Anshan Machinery of
Liaoning Province for the manufacture and sale of Eco Waste's environmentally
renowned waste incineration oxidizer. This incineration oxidizer has the
capability of disposing of 1-50 tonnes of waste per day.
Export Development Corporation, Ottawa, Ontario
The Export Development Corporation (EDC) has signed three memorandums of
understanding (MOUs) with Chinese financial institutions. The first, with the
State Development Bank of China (SDB), would allow for the establishment of
further credit facilities and support regular information exchange and
co-operation in training programs. This general co-operation agreement further
enhances the excellent relationship that EDC enjoys with SDB.
EDC also signed an MOU with the Export-Import Bank of China, which provides for
co-operation on joint financing of projects, enhanced information exchange and
training programs.
The agreement with the Industrial & Commercial Bank of China positions EDC to
support Canadian contracts with Chinese buyers through future credit facilities
and other forms of co-operation.
Harris Canada Inc. (Harris Communications Shenzhen), Montréal, Quebec
Harris Communications Shenzhen has signed two new contracts. The first involves
the sale of microwave radios to Beijing Unicom for the third phase of Beijing
Unicom's Global System for Mobile Communications (GSM) Network. This project is
valued at $2.9 million. The second contract, worth $6.3 million, will provide
microwave radios for Shandong Unicom's GSM Network.
Beijing Unicom and Shandong Unicom are part of China United Telecommunications
Corporation (China Unicom), a major telecommunications company operating in China.
Inter-Citic Envirotec Inc., Toronto, Ontario
Inter-Citic Envirotec Inc. signed a testing agreement with the Beijing General
Mining and Metallurgical Corporation (GEMCO) covering their continuing co-operation on the development and marketing of Inter-Citic's patented Centrifugal
Flotation Cell (CFC) in China. This agreement requires 50-percent Canadian content
on all installations.
The CFC was developed to make it economically feasible for the mining industry to
recover a variety of fine mineral particles from mineral-processing plants around
the world.
Newbridge Networks Corporation, Kanata, Ontario
Newbridge Networks Corporation has signed an agreement with the Guangdong Post and
Telecommunications Authority (GPTA) to supply approximately $43 million in
additional Newbridge Digital Data Network (DDN) equipment. Under the deal,
Newbridge Networks Corporation will assist the Guangdong Post Telecommunications
Authority in planning their multi-service networking using Newbridge's most
advanced Asychronous Transfer Mode (ATM) and Frame Relay (FR) technology.
Newbridge will continue to supply and provide support for its DDN equipment. The
GPTA has been using Newbridge DDN equipment since 1992.
Northern Telecom Limited, Calgary, Alberta
Nortel (Northern Telecom Limited) has signed a number of contracts with several
Chinese business partners, valued at approximately $135 million. Nortel signed
contracts with China United Telecommunications Corporation; Beijing
Telecommunications Administration; Henan Post and Telecommunications Authority
(PTA); Chongqing Telecommunications Administration; Yunnan PTA; Jianxi PTA; Hebei
PTA; and Guangdong PTA. The contracts call for the delivery of a wide variety of
network solutions that rely on Nortel's sophisticated switching, transmission,
fibre access, GSM (wireless) and ancillary equipment.
Royal Canadian Mint, Ottawa, Ontario
The Royal Canadian Mint has signed an agreement for a $7 million joint project
with the China Gold Coin Incorporation. In 1998, the Royal Canadian Mint and the
China Gold Coin Incorporation will launch a set of two silver coins commemorating
one of Canada's great humanitarians, Dr. Norman Bethune, acknowledging
Dr. Bethune's contribution to medicine in Canada, China and the world.
Xenexi Group Investment Ltd., Montréal, Quebec
Xenexi Group Investment Ltd. has signed a contract worth approximately
$24.7 million with Chongqing Economic & Technological Development Zone
Import/Export Corporation for the turnkey design and construction of 127 wood-frame villas in Chongqing. Since 1994, Xenexi has successfully completed more than
100 Canadian-style wood-frame villas and townhouses in Wuhan, Shanghai and other
regions of China.
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