Business: The China Connection, Canada China Business Council--Founding Sponsors, the Networks, Connections & Other Information
There are three compilations today. I believe much of what follows is too important not to notice -- although I have other commitments. Note that our Prime Minister is off to China soon. We have serious security inadequacies, as well. NJC
Floundering Fisheries -- China's rise as a seafood power has caused a seismic shift in Canada's $5-billion fisheries industry and with Asian hourly wages as low as 15C, it's all but impossible to compete.
This article by Jason Kirby in the Financial Post, Jan. 3, 04, [not online late Dec. 3] concerns two Newfoundlanders, one a union rep facing likely unemployment who sees his fish processing plant dying, the other who travelled to Southeast Asia years ago, and became a successful businessman in a thriving seafood export business. There is a China connection; the article is full of details. For more information on the extent and the names of companies involved in fish processing in China, check this site: There are about 5362 companies involved in fish seafood processing industry, of which 732 are the State-owned [sic]
Our Prime Minister Martin and Industry Minister Peterson will be off to China this month, long with Canadian businessmen. It is of interest to look at the government agencies, businesses and others promoting business with China. One group is the Canada China Business Council.
The CCBC sounds so congenial -- bringing two cultures together -- maybe a government body intended to promote cross-cultural networks for business? -- or is it a group of businessmen, former politicians, financiers and their like networked with government who are about to make a lot of money? -- or both?
Note the connections among some of the key players, the fact that a Canadian Crown Corporation limits participation to big players -- more perqs for those who already have perqs. Check the cost of dinner with the big players in Beijing -- and who else may be there. Those who have, get; those who have little . . . . . don't get to join the party.
Who stand to benefit? Hardly the little guys who are losing their jobs to outsourcing or manufacturing in China. Not the businesses that are failing in Canada because some businesses import goods and much else--even of lesser quality--goods that can be sold for less than a Canadian company would have to charge. Imported items are comparatively inexpensive because Chinese workers are paid so little and receive the same in benefits. Canadians businesses have extra expenses and have to charge more.
Time constraints mean that I have not been able to research all but there is probably enough information below on several businesses and their big guns to give you a very good idea of the who, the why and the implications for Canada.
Canada China Business Council (CCBC) -- its mandate
The CCBC Founding Sponsors are a select group of companies, all active in bilateral trade with China, who have made a significant contribution to the Council to help ensure the long-term viability of the CCBC as a unique, private-sector, membership organization offering business services, market information and policy advice.
Companies and Organizations -- the Founding Sponsors -- with more information below this:
CCBC Founding Principals--Desmarais-Power Corp-CITIC-Financial Institutions-Bombardier, Crown Corp, 3 Former Ambassadors to China, Former Politicians, The Usual Well-Connected
Founding Chairman
The Hon. Paul Desmarais P.C., C.C.
Chairman of the Executive Committee
Power Corporation of Canada
Honourary Chairman
Mr. Andre Desmarais, O.C. [son of Paul Desmarais and son-in-law of ex Prime Minister Jean Chretien]
President/Co-CEO
Power Corporation of Canada/Power Financial Corporation
Chairman
Mr. Peter Kruyt [Vice-President, Power Corporation of Canada.]
Chairman
Power Pacific Corporation Limited [of Hong Kong, also a Power Corp company
Mr. Kruyt has been closely involved in activities of Power Corporation of Canada since 1981 working initially with its Chairman and subsequently with a number of subsidiaries. He is also President of Power Technology Investment Corporation and a member of the board of directors of a number of corporations including La Presse, Picchio Pharma Inc and Adaltis Inc. He is Chairman of the Board of Power Pacific Corporation Limited of Hong Kong, Vice-Chairman of the Canada China Business Council and a member of the Board of Governors of Concordia University in Montreal.
Mr. Charles Shiu
Vice Chairman
Power Pacific Corporation Limited [colleague of Mr. Kruyt, VP, Power Corp.]
Ms. Margaret Cornish
Executive Director
Canada China Business Council -- [Check whether she is a former employee of Power Corp or of one of Li Ka-shing's companies; I remember some such connection.]
Former Employees of or Connected to Government--if only through taxpayer funds:
Mr. Piers Cumberlege
Vice President, Global Partnerships
Bombardier Inc. [recipient of much taxpayer largesse over the years]
Mr. Maurice Strong Honourary Director
Mr. Strong has many network tentacles -- the UN--globalization, environment, world governance -- to PM Paul Martin, China, Power Corp, Desmarais family, et cetera.
A 1997 dossier (http://www.nationalcenter.org/DossierStrong.html) on Maurice Strong, prepared by the National Center for Public Policy Research, relates that Maurice Strong is a senior advisor to United Nations Secretary General Kofi Annan. "Annan has appointed Strong to lead U.N. reforms, positioning him to be the next U.N. Secretary General. . . . Strong has used his position to centralize power in the U.N. at the expense of national sovereignty."[1] (http://www.nationalcenter.org/DossierStrong.html)
[. . . . ] During the 1950s and 1960s, Strong was involved in the oil industry and utility industry and was quite successful. By the time he was 35 Strong was president of a major holding company, the Power Corporation of Canada. . . .
Strong now occupies a PMO (Prime Minister's Office) position as an evironmental advisor for Kyoto implementation in Paul Martin's PMO (the Current Prime Minister Of Canada). Prime Minister Martin appointed Strong to this position before he had won the party leadership race. Current Prime Minister Martin and Maurice Strong were employed by Paul Desmarais' PowerCor company where the two met.
Mr. David Mulroney
Assistant Deputy Minister,
Asia Pacific Department of Foreign Affairs and International Trade
Former Ontario Premier:
The Hon. Bob Rae Partner
Goodmans LLP [See below for the reference: It was Bob Rae's brother who was instrumental in seeing the Sidewinder investigative report spiked as . . . . . too -- controversial? -- revealing? -- upsetting to some people? -- I would guess.
CSIS management was given the job of determining that the tone of the report was too extreme and given to "scaremongering" and "conspiracy theory." New analysts were brought in and a new, politically correct spin was given to the analysis.
A revised report, dubbed "Echo," was finished in January 1999. To no one's great surprise, it fell far short of Sidewinder, according to Juneau and some of the RCMP officers who were part of the project. (Reference: Canada Targeted by China Agents -- By James D. Harder)
Operation Sidewinder, an American-Canadian operation set up to root out Chinese agents in Canada was shut down by former New Democratic Party Ontario Premier Bob Rae. Rae’s brother John was the campaign manager for Chretien and is a senior executive at Power Corp.
I find this very intriguing, given Mr. Chretien's connections, his trips to China and Russia, PM Paul Martin's forthcoming trip to China, the push for Canadian "big" business to get involved with China -- and more. Think about it.
Mr. Henri Souquieres
Vice President, International Markets
Export Development Canada
* Industrial Equipment
* Engineering and professional services
* Information Technology
* Manufacturing
* Communications
* Energy/Environmental
* Electronics
Businesss Excluded:
* No start-ups, seed or early stage companies
Note: This is for already established--successful, rich companies -- aided by high-level government influence and taxpayer dollars -- a form of corporate welfare.
Capt. Gordon Houston
President & CEO
Vancouver Port Authority [There have been noises about the Vancouver Port being inadequate. I predict future port construction designed to handle the super large ships coming out now for which no ports are adequate.]
Mr. Gordon Chu
Advisor to the President and CEO
TSI Terminal Systems Inc. -- BC Deltaport
* TSI Terminal Systems Inc. . . . . largest employer in the Port of Vancouver, with an annual payroll of $100 million.
* Through its two main container-handling terminals Deltaport in Delta and Vanterm in Vancouver harbour, TSI handles more than 80% of import and export containers that move through the Port.
* The company’s Cruise Ship Division. . .
* TSI's Information Systems Department is developing a java-based computer software system for container terminal operations that is one of the most advanced in the world.
. . . . Inaugural voyage of the COSCO Vancouver to Vanterm, Dec. 4-6th. She is 300 meters overall length, and handles containers 17 wide on deck, stacking up to 7 high. She loaded 2800teu's for export which is a record for any single vessel departing Vancouver. Vanterm's number three gantry crane was the only crane which could reach across the width of the ship as well as the 7-high on deck. The new crane Vanterm is receiving in early 2005 will be 20-wide and high enough to easily handle this size of ship.
Welcoming ceremonies included high-ranking officials from . . . .
At this point, it might be informative for the reader to do a search for "COSCO" and note the connections and past activities. You could start with this post.
[. . . . ] Jean Chretien and his son-in-law, Andre Demarais (See his connections to CITIC, below.) have been visiting Li Ka Shing who is connected with Hutchinson Whampoa, CITIC and COSCO (article extracts on these, below), and Li Ka Shing has connections to the Communist Chinese government
[. . . . ] In the highrise glass towers of Vancouver - Tricell (Canada) Inc. and Top Glory Enterprises Ltd., both incorporated in the late '80s work for the Communist government of China.
Among their jobs was to help facilitate the covert entry of secret police into Vancouver by hoodwinking the Canadian government. The agents were hunting for high profile fugitive businessman, Lai Changxing, who himself was recruited by the Chinese military to spy on Taiwan.
The visitor visas from the bogus business delegation was endorsed by Chinas Ministry of Trade and Economic Co-operation (MOFTEC) - one of the most powerful ministries in the Chinese government, responsible for such vital areas as negotiating China's entry into the World Trade Organization.
From the windows of both these firms, which constantly invite "Chinese business delegations" to Canada, company officials can see the arrival and departure of ships belonging to the maritime behemoth - COSCO.
The shipping line is intimately linked to the China International Trust and Investment Corp., a key fundraiser for the Chinese government and a technology-acquiring source for Chinas military.
Its vessels have been caught carrying thousands of weapons into California and Chinese missile-technology and biological-warfare components into North Korea, Pakistan, Iraq and Iran, according to U.S. intelligence reports.
Insisting there is no evidence to show COSCO is involved in any illegal activity - the Vancouver Port Authority has a "gateway to North America" deal with the shipping giant.
When Canada's Nortel Telecommunications based in Brampton, Ontario wanted to do business in China, they hired Katrina Leung's company - Merry Glory Ltd.
Little did they know that 49-year-old corporate matchmaker would be in the limelight several years later accused of having have slept her way into the good graces of two FBI agents while stealing secrets for the Chinese government.
Leung, who was paid $1. 2 million in 1995 and 1996 for negotiating the Nortel-China deal, has strong connections to Canada's Chinese business associations.
Around the same time, the modern day Matahari was greasing the way for Nortel, the Canadian spy agency - CSIS - was conducting an investigation in the offices of Ontario Hydro regarding the theft of information in the nuclear technology field by "an individual of Chinese origin".
There is much more in that post -- and in others.
Former Ambassadors of Canada to China -- from Canada's Diplomatic Corps to business--seamlessly
Vice Chairman
Prof. Earl Drake
Former Ambassador of Canada to China, Adjunct Professor Simon Fraser University
Mr. Fred Bild
Former Ambassador of Canada to China, Visiting Professor University of Montreal
President
Mr. Howard Balloch
Former Ambassador of Canada to China, President and CEO The Balloch Group
The firm is headquartered in Beijing, with offices or partner firms in Hong Kong, Shanghai, Toronto, and New York.
Howard Balloch was instrumental in establishing and managing a series of initiatives to improve Canada's profile in China. He currently serves as President of the Canada China Business Council.
Of course, undoubtedly, as our ambassador, he had no idea he would be in business promoting business with China so soon . . . but the networks one develops are so . . . useful.
"This is a very hungry dragon and its demand for copper and nickel and oil have long outpaced domestic supply," says Howard Balloch, a former Canadian ambassador to China and now a Beijing-based corporate investment consultant. "Domestic supply will never again satisfy its hydrocarbon or base metal needs."
[. . . . ] While it searches for its own supply sources, it still needs certain supplies of imports, and a country with more than $400-billion (U.S.) in foreign currency reserves can do something to ensure that flow. Thus, it has begun to make strategic acquisitions, including an investment in an energy project in Chad, which does not even recognize China, Mr. Balloch pointed out in a recent speech. The play for Noranda takes it to another league. There are other factors at work, say people who watch the Chinese phenomenon. China needs to develop technology to boost productivity, and some of that will be accomplished through acquisition. Mr. Balloch says the Chinese shift into international resource markets could take a number of forms. Chinese companies may nail down resources through long-term supply agreements or by engaging in joint ventures, perhaps in third countries. Or as with Minmetals, they may buy all or part of the foreign companies themselves.
I suppose "accomplished through acquisition" is a kinder way of putting it than . . . . "industrial espionage" or outright "theft" of others' ideas and designs. See also,
"Canada's not a country, it's a corporation". And I might add, its citizens aren't shareholders. Jackie Jura
Others including law firms:
Mr. Michael Cochrane
Honourary Director
Mr. Sidney Chan
Vice President, Finance, Greater China
Nortel Networks
Mr. Gerald Deyell, Q.C.
Partner
Blake Cassels & Graydon, LLP
Mr. David Fung
President and Managing Director
ACDEG International Inc.
Mr. Bing Ho
Partner
Baker & McKenzie
Dr. Pitman Potter
Professor of Law & Director of Chinese Legal Studies
Borden Ladner Gervais LLP / University of British Columbia
Mr. Douglas Robertson
Senior Partner
Davies Ward Philips & Vineberg LLP
Mr. Robert Van Adel
President & CEO
Atomic Energy of Canada Limited
I have written on China, nuclear energy, nuclear reactors and their nuclear developments previously. Search for "China", "nuclear" and "reactor" in Section 5 and Section 6, here and here
Banks, Financial Services:
Mr. Neil Tait
Special Advisor to Chairman & CEO on Asia
BMO Bank of Montreal
Ms. Connie Mak
General Manager, Asia
BMO Investments Inc.
Mr. Warren Gilman
Managing Director, Asia Pacific
CIBC [Li Ka-shing owns 10 percent of the Canadian Imperial Bank of Canada and is the bank’s largest individual shareholder.]
[. . . . ] Li’s port operations handle 30 percent of Hong Kong’s trade. He is linked with critical Hong Kong utilities, properties, retail chains and telecom networks.
[. . . . ] In March 2000 The Associated Press reported that if Richard Li’s Pacific Century CyberWorks (PCCW) took over Hong Kong Telecom (HKT), the family’s holdings would take up one-quarter of the stock market’s capitalization of US$631 billion.
It is also widely believed that Li Ka-shing has certain politicians in his back pocket. Hong Kong’s Chief Executive Tung Chee-hwa, formerly the chairman of Orient Overseas International, is an old business partner of Li.
Li currently sits on the board of China International Trust and Investment Corp. [CITIC] as well as the Hong Kong & Shanghai Banking Corp. (HSBC)
He has poured US$1 billion into southern Chinese ports and infrastructure projects, and has invested US$2 billion in a real estate development complex in downtown Beijing. He has also donated US$150 million to build the Shantou University near his hometown in Guangdong, and supervised construction of the Chinese Foreign Ministry building in Hong Kong for free.
Does that make you stop and think at all?
[. . . . ] Li, already a millionaire through shrewd real estate and property management investments, vastly expanded his empire and his fame in 1979 by acquiring Hutchison Whampoa from what is now the HSBC. The latter had rescued Hutchison Whampoa from bankruptcy and sold it to Li’s Cheung Kong on easy terms (Cheung Kong now holds a 49.9 percent stake). [Cheung Kong Construction is involved in the Black Tusk highway construction for the Olympics in BC, 2010.]
The million-dollar question (or should we say billion-dollar question) is 'who benefits the most from the Vancouver/Whistler 2010 Winter Games'? [I would suggest there are more than games at stake. NJC]
The obvious answer is simply 'he who has the most to gain '.On this note, let us step back in time to 1986. Vancouver hosted Expo'86, an international event not unlike the scale of the proposed 2010 Winter Games. One and a half years later, then Premier Bill Vander Zalm concluded the sale of the Expo lands (84- hectare site on False Creek, representing one-sixth of downtown Vancouver) to Li Ka-Shing (and the Hui family) for a reported price of $145 million (said by many to be far too low, especially considering the tens of millions of dollars the province spent to complete the environmental clean-up of the site). Subsequently, his company, Concord Pacific Holdings, redeveloped the site into a multi-billion dollar downtown residential community. [Olympic] Bid Board Member, Stanley Tun-li Kwok describes himself at one of his corporate websites as 'Mastermind of Expo '86' [Keep reading when you find this paragraph -- networks of interest.]
Mr Alban Lo
General Manager, Trade Finance Western Canada and International Finance Centre
Scotiabank
Mr. Marc Sterling
Vice President
Manulife Financial
Mr. Dikran Ohannessian
Vice President, China
Sun Life Financial
. . . includes over 250 Canadian companies and organizations that are active or interested in the China market and a growing number of Chinese companies interested in trade with Canada. Members represent sectors ranging from agri-food, energy and manufacturing to business, legal and financial services, education and health care.
CCBC Executive Director Cornish -- on China Minmetals-Noranda
Who benefits, Ms. Cornish? It is an exclusive and rarefied little group, is it not?
. . . China Minmetals Corp.`s takeover bid for Noranda, controversy continues to boil
[. . . . ] Some Canadian government and trade officials muse about government intervention in the takeover bid. Others, including Prime Minister Paul Martin have no hesitancy, saying in essence that a Noranda takeover by a state-owned Chinese enterprise is part and parcel of the evolving global economy.
[. . . . ] Cornish reiterates that China has become -- and will remain -- one of the world`s largest consumers of all minerals and metals. Accordingly, and unsurprisingly, it`s taking steps now toward global equity ownership in these resources. "Similar international acquisitions will follow in virtually all major mineral and metal commodities," according to Cornish.
"On the Chinese side the objective will be to own a portfolio of mining properties around the world. A Noranda deal would give a major state-owned Chinese company perpetual access to an important Canadian resource.
"Admittedly this would diminish Canada-based decision making about the future use of that resource. . . ."
Cornish notes that the Chinese have a record of picking the countries and corporate partners that they regard as global leaders in order to learn from them. [. . . . ]
"The Noranda takeover bid is the beginning of a long term, natural, strategic relationship. The foundation for any progress in this regard has to begin with establishing a thorough understanding of Chinese interests, needs and trends in resource consumption."
Government intervention is definitely a bad idea, she says.[. . . . ]
Trying to turn back the rising waves of globalization is doomed to failure, Cornish suggests.[. . . . ]
There have been questions in the Minmetals controversy about the significance of Noranda`s ownership position in Falconbridge. Does Minmetals (and therefore the Chinese state) have backdoor designs on Falconbridge Limited?
If Minmetals buys Noranda and then buys in the minority Falconbridge interest, Canada would lose a major listed company and the degree of transparency about its operations would be significantly diminished, Cornish acknowledges. [. . . . ]
CCBC is planning to host a high profile reception and gala dinner in Beijing on January 21st on the occasion of International Trade Minister Jim Peterson's trade mission to China. It will be attended by his official Chinese host, senior government officials, members and guests of the Canadian trade mission and of course CCBC members and their guests. Other Canadian and Chinese government leaders may participate in this event. This event will be a superb opportunity to entertain important Chinese business contacts, partners, customers and government officials and otherwise feature your company's presence in China.
[. . . . ] Corporate tables: C$5,500 These will go to members on priority basis and then non-members. . . . numbers may be limited [. . . . ]
Invitation from Canada's Honourable James Scott Peterson, Minister of International Trade Business Mission to Shanghai, Beijing and Hong Kong - January 18-25, 2005 - China
On behalf of the Government of Canada, I am pleased to invite you to participate in the Canada Trade Mission I will lead to Shanghai, Beijing and Hong Kong, China, from January 18 to 25, 2005.
In the recent Speech from the Throne, the Government committed to putting particular emphasis on new and emerging markets such as Brazil, China and India. . . . Broadening and deepening bilateral trade and investment with these countries is a priority [. . . . ]
[. . . . ] China is our second-largest trading partner after the U.S. . . . China offers tremendous commercial potential for Canadian businesses in sectors such as financial services, education, natural resources, transportation, agri-food, information and communication technologies, biotechnology, aerospace and tourism. [Who benefits?]
The program. . . seminars and conferences, hospitality events and networking opportunities designed to introduce participants to local government decision-makers and local business leaders, as well as Canadian business people active in the region with experience to share. In addition to conducting sectoral seminars and providing background information on local commercial conditions, officials from International Trade Canada and at the Canadian Embassy in China will work with the delegates to identify potential business partners. [. . . . ]
Balkanization policy -- "France II" -- Jean Chretien's era and a re-alignment of interests
France II Lowell Ponte, FrontPageMagazine.com, Apr. 16, 03
[. . . . ] The nation north of the United States is no longer Canada. It has become France II, Nouvelle France, a cultural and political clone of the nation that behaved as America's enemy in trying to undermine our efforts to de-fang an Iraqi regime busy acquiring weapons of mass destruction.
[. . . . ] Now that France II has replaced Canada, Quebec no longer has any reason to secede from Canada. Quebec and its values now rule all of Canada.
It is no coincidence that France II has been rushing to disarm the citizens of its western colonies and the Maritimes with draconian national gun control. Those cowboy colonies, from Saskatchewan westward, in particular, are the source of France II's wealth and power.
The English-speaking peasants of Canada's west, whose language and values have much more in common with George Bush and the United States than with Jean Chretien and France II, will not be permitted to secede. [Ed's emphasis]
[. . . . ] But what possible reason, ask most Americans, could cause our next door neighbor and closest trading partner Canada to stab us in the back? To side with France and Saddam Hussein against us?. . . .
[. . . . ] One of the French oil companies that had been closest to Saddam Hussein is Paris-based TotalFinaElf. Its biggest shareholder is the same Paul Desmarais, and his son Paul Jr., brother of Chretien's son-in-law Andre, sits on Total's Board of Directors.
TotalFinaElf, incidently, recently and quietly moved to buy up a large share of a major oilsands project in the Canadian province of Alberta, which evidence suggests may be home to one of the world s two biggest relatively-untapped oil reserves. This gives both Montreal and France a Saddam-like interest in making sure Alberta can never secede to become either part of a new independent nation or a new state of the United States.
[. . . . ] Jean Chretien has followed an anti-American, pro-Saddam Hussein policy that may be bad for Canada, but his family stood to make many, many, many millions of dollars if Hussein could by hook or crook be kept in power. To paraphrase its beautiful national anthem, Oh Canada, Jean prefers greed to thee.
[. . . . ] The Desmarais family. . . .Vivendi. And he runs Power Corporation . . . .how the Desmarais family manipulates the national media as well as all major political parties in Canada, check out University of Windsor Professor James Winter s provocative book Democracy's Oxygen: How the Corporations Control the News.
[. . . . ] Canada has become closer to France and China, and moved farther from its traditional friendship with the United States. [. . . . ]