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<title>MARCHI VISIT TO BEIJING REFLECTS CANADA'S EXPANDING PRESENCE IN CHINA </title>
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<p><font face="Courier"></font><font face="Univers" size="+2"></font><font face="Univers" size="+2">March 31, 1998 No. 76</font></p>
<p align="CENTER"><font face="Univers" size="+2">MARCHI VISIT TO BEIJING REFLECTS CANADA'S </font></p>
<p align="CENTER"><font face="Univers" size="+2">EXPANDING PRESENCE IN CHINA </font></p>
<p><font face="Univers" size="+2"></font><font face="Courier">Canada's International Trade Minister Sergio Marchi announced 13 new business
initiatives today in Beijing, on the occasion of his first official trade mission
to China. The Minister, who was accompanied by an 84-member business delegation,
also took part in the opening of a Canadian Education Office and the launch of a
silver coin to honour humanitarian Dr. Norman Bethune.</font></p>
<p><font face="Courier">"Every day our embassies and consulates are helping Canadian companies make
connections in China's developing markets. My mission supports this winning
formula which, as the signings today show, is clearly getting results. We are
seeing new, long-term investments, joint ventures and greater collaboration that
is creating dynamic business partnerships," said Mr. Marchi.</font></p>
<p><font face="Courier">The new business deals total in excess of $300 million (commercial contracts and
agreements), as well as $48 million in investments. They involve such sectors as
aerospace, construction, electric power, manufacturing, medical supplies, and
education.</font></p>
<p><font face="Courier">Four companies, SLM Software, W.J. Stelmaschuk and Associates Limited, and the
law firms of Remedios and Company, and Blake, Cassels & Graydon, also announced
plans to establish offices in Beijing. These firms join nearly 300 Canadian
companies that have established a permanent presence in China.</font></p>
<p><font face="Courier">"The very nature of Canada's trade relationship with China is changing and
maturing," said Mr. Marchi. "We are seeing a significant increase in value-added
Canadian exports and an </font></p>
<p><font face="Courier">expanding role for Canadian companies in China`s services sector. Many Canadian
companies are recognizing that by maintaining a permanent presence here, they can
do business more effectively and more often."</font></p>
<p><font face="Courier">Mr. Marchi also officially opened the new Canadian Education Office, located at
the Canadian Embassy in Beijing. This facility will market Canadian educational
services, such as high quality training, to Chinese companies and organizations.</font></p>
<p><font face="Courier">"Canada offers world-class, competitively-priced education and training services.
The new Canadian Education Office in Beijing is an impressive marketing and
information resource for academic institutions across Canada," added Minister
Marchi.</font></p>
<p><font face="Courier">There are currently 3 500 Chinese students in Canada, not including short-term
trainees. 1998 also marks the 25th anniversary of the Canada-China Scholars
Exchange Program, which has produced about 400 Canadian and Chinese graduates who
are now contributing their expertise to both countries in all fields.</font></p>
<p><font face="Courier">On March 30, Mr. Marchi took part in the launch of a new sterling silver coin
created by the Royal Canadian Mint to commemorate the 60th anniversary of Dr.
Norman Bethune's arrival in China and his invention of the mobile surgery unit.</font></p>
<p><font face="Courier">- 30 -</font></p>
<p><font face="Courier">A backgrounder on the deals announced today in Beijing is attached.</font></p>
<p><font face="Courier">For further information, media representatives may contact:</font></p>
<p><font face="Courier">Leslie Swartman</font></p>
<p><font face="Courier">Office of the Minister for International Trade</font></p>
<p><font face="Courier">(613) 992-7332</font></p>
<p><font face="Courier">Media Relations Office</font></p>
<p><font face="Courier">Department of Foreign Affairs and International Trade</font></p>
<p><font face="Courier">(613) 995-1874</font></p>
<p><font face="Courier">This document is also available on the Department's Internet site:
http://www.dfait-maeci.gc.ca</font></p>
<p align="CENTER"><font face="Courier"><strong></strong></font><font face="Arial" size="+1">NEW CANADIAN BUSINESS INITIATIVES IN CHINA</font><font face="Courier"></font></p>
<p><font face="Courier"><strong></strong></font><font face="Courier"><strong>CAE Electronics Ltd., Montréal, Quebec</strong></font></p>
<p><font face="Courier">CAE Electronics has signed a contract with the Henan Electric Power Corporation
(HEPC) for the supply of an automated hydro-electric dispatching system. This
new system is scheduled for completion in 1999 and will increase the safety,
efficiency and reliability of Henan province's rapidly developing power network.
The system will be the basis for additional applications as the electric power
industry in China's inner regions undergoes commercialization. </font></p>
<p><font face="Courier"><strong>Canada-China Power Inc., Montréal, Quebec</strong></font></p>
<p><font face="Courier">The Canadian International Development Agency is providing </font></p>
<p><font face="Courier">$200 000 in financial support to enable Canada-China Power Inc. (CCPI) and the
Ministry of Water Resources to commence a review of foreign direct investment
policies and regulations in China's hydro power sector. Recommendations resulting
from this exercise will be incorporated into a pilot hydro project. The new
policy framework emerging from this partnership is intended to accelerate the
development of small and medium-sized hydro projects, creating new opportunities
for private sector involvement.</font></p>
<p><font face="Courier"><strong>Canadian Aerospace Group, Burlington, Ontario</strong></font></p>
<p><font face="Courier">Canadian Aerospace Group and the Harbin Aircraft Manufacturing Corporation,
China, signed a contract to purchase the first two Y12 aircraft frames. The
contract is part of a Memorandum of Agreement to purchase a total of 50 Y12
aircraft airframes in three years, with an option for an additional 150. The 19-seat regional aircraft will be manufactured in Harbin, China and sent to Canada
for completion and sale by Panda Aircraft Corporation, a subsidiary of Canadian
Aerospace Group located in North Bay, Ontario. Under the terms of this agreement,
Canada will provide value-added manufacturing and equipment. Sikorsky Aircraft
and Pratt & Whitney will also be partners in this project. The total commercial
benefits derived from this deal for both Canada and China are expected to exceed
$800 million over the next ten years.</font></p>
<p><font face="Courier"><strong>Architects Crang & Boake Inc., Don Mills, Ontario</strong></font></p>
<p><font face="Courier">Architects Crang and Boake Inc. has signed today, with the Chongqing Fairy Ocean
Enterprise Co. Ltd., a $2.4 million contract for the architectural design of the
Chongqing Fairy Ocean Hotel. The Beijing Institute of Architectural Design and
Research will act as the sub-designer for this project. The Chongqing Fairy Ocean
Hotel project, valued at $140 million, will be the first five-star hotel in
Chongqing.</font></p>
<p><font face="Courier"><strong>Davey International Inc., Stoney Creek, Ontario</strong></font></p>
<p><font face="Courier">Davey International Inc. and Beijing Airport International Warehousing Co. Ltd.
have signed a $4.6 million contract to build the third phase of the Beijing
Airport International Warehouse. The construction of this two-storey 40 000
square metre air cargo handling facility will make use of Davey's proven
expertise in pre-engineered metal building systems. This project, located in the
Beijing Airport Industrial Zone, is the latest addition to the extensive number
of metal buildings Davey has constructed in China since 1992.</font></p>
<p><font face="Courier"><strong>Fulton Windows, Mississauga, Ontario</strong></font></p>
<p><font face="Courier">Fulton Windows has signed a $3.25 million contract with the Tiantai Group to
export FULWAL curtainwall, a type of glass exterior, for the Taxation Mansion, a
28-storey building located in Qingdao, Shandong Province. This site is the first
of three buildings under development by the Tiantai Group on the seaside site of
the Tiantai Plaza in Qingdao. Fulton Windows adds this contract to a long list of
projects undertaken in China, including the Hong Kong Convention Centre.</font></p>
<p><font face="Courier"><strong>Madawaska Doors Inc., Bolton, Ontario</strong></font></p>
<p><font face="Courier">Madawaska Doors Inc. has signed a letter of intent with the Tianhai Group Yada
Industry Co. of Tianjin to work towards establishing a joint venture
processing/manufacturing plant in Tianjin, China. The plant will make use of
Madawaska Doors Inc.'s technology and expertise to produce wood doors, frames and
mouldings using raw material imported from Canada. The initial investment is
expected to be in the range of $1 million. However, the long-term investment
could surpass $6 million.</font></p>
<p><font face="Courier"><strong>Mobb Medical Ltd., North York, Ontario</strong></font></p>
<p><font face="Courier">Mobb Medical Ltd. has signed a $2.1 million contract for the establishment of a
new 20 000-square foot manufacturing and storage facility in Beijing for the
Canada Angel Hospital Uniform (Beijing) Co. Ltd. The new plant will manufacture
hospital uniforms and shoes, as well as dental hygiene products. Affiliated with
Mobb Medical Ltd., Canada Angel Hospital Uniform (Beijing) Co. Ltd. was
established in 1994 to provide hospitals across China with uniforms, supplies and
equipment.</font></p>
<p><font face="Courier"><strong>Panda North American Ventures Ltd., Vancouver, British Colombia</strong></font></p>
<p><font face="Courier">Panda North American Ventures Ltd. has signed a Memorandum of Agreement with the
Daqing Municipal Government to build and operate a Canadian high school in
Daqing, a city in northeast China. This facility will be the first foreign school
in Daqing, with a capacity of 1 500 students. Under this agreement, the
government of Daqing will invest approximately $1.2 million for the construction
of a small hotel in Vancouver.</font></p>
<p><font face="Courier"><strong></strong></font><font face="Courier"><strong>SLM Software, Toronto, Ontario</strong></font></p>
<p><font face="Courier">SLM Software has announced the opening of their Beijing Office. SLM provides
software solutions to banking institutions, and is currently involved in a
contract with the Bank of China for the computerization of the financial
information system and for the establishment of bank and credit card software
infrastructure.</font></p>
<p><font face="Courier"><strong>Unitron Industries Ltd., Timberlea, Nova Scotia and AuDigital Hearing Care and
Technologies Co. Ltd., Chengdu, Sichuan, China</strong></font></p>
<p><font face="Courier">Unitron Industries Ltd., a leading hearing instrument manufacturer in Canada, and
AuDigital Hearing Care and Technologies Co. Ltd., a wholly owned Canadian
enterprise based in Chengdu, Sichuan province, China, have entered into a joint
venture agreement to manufacture high-tech hearing aids in China. Unitron will
provide technical support and expertise to AuDigital, which will produce all
styles of hearing aids for the Chinese market. This is the first large-scale
project involving a leading Canadian hearing aid company in China.</font></p>
<p><font face="Courier"><strong>W.J. Stelmaschuck and Associates Ltd., Pitt Meadows, British Columbia</strong></font></p>
<p><font face="Courier">W.J. Stelmaschuck and Associates Ltd. announced a construction project and plans
to establish a children's entertainment facility, valued at $40 million and $2.5
million respectively. W.J. Stelmaschuck and Associates Ltd. also announced the
establishment of reciprocal trade offices in Beijing, China, and Maple Ridge,
British Columbia. Operating under the auspices of the Government of the Dongcheng
District of Beijing, these offices will promote business deals between private
sector entities in China and North America.</font></p>
<p><font face="Courier"><strong>Yes Canada Education Services Inc., Penticton, British Columbia</strong></font></p>
<p><font face="Courier">Yes Canada Education Services Inc. has signed an agreement with Guangdong
Education Services of International Exchanges and Beijing Second Languages
University. The agreement offers Chinese students the possibility of pursuing MBA
and post-secondary technology studies in Ottawa. Two hundred students have been
admitted for the 1998-1999 school year. The value of this agreement is estimated
at $5.6 million in its first year.</font></p>
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