Vancouver, B.C. – November 27, 2012 – Despite softening economic growth forecasts for China amid a struggling world economy, China remains a profitable market for many Canadian businesses, according to the results of the Canadian Business in China Survey 2012 published today by the Asia Pacific Foundation of Canada (APF Canada).
The survey, measuring business performance of Canadian companies active or interested in China, showed 75% of respondents reported being profitable in China. Moreover, 66% noted business activity in China had grown over the last five years.
“Amid continued global economic uncertainty, this survey indicates that Canadian businesses seeking alternate sources of demand for Canadian exports have found success in China,” commented Mr. Yuen Pau Woo, President and CEO of the Asia Pacific Foundation of Canada. “Canadian firms have no illusion about the difficulties of doing business in China, but they have found the Chinese market to be profitable and have expanded their operations in that market over the last five years.”
A majority of 70% of Canadian companies noted that it was either much more difficult or somewhat more difficult to conduct business in China than in other international markets in which they operate. Among the biggest challenge that Canadian companies identified were ‘intellectual property rules and practices in China.’ This contrasts with U.S. and German companies that identified ‘human resources,’ and British and Swiss companies that noted the ‘global economic slowdown’ as a major challenge for doing business in China.
In addition to identifying challenges and opportunities to doing business in China, the survey also examined views of Canadian businesses on key policy issues affecting Canada-China trade and investment relations. With respect to a potential Canada-China free trade agreement (FTA), a significant number (82%) of respondents supported potential FTA negotiations with 39% agreeing that such an agreement would give Canadian manufacturers and exporters significant opportunities to expand and build new business activities in China. Another 83% agreed that the conclusion of such an agreement would increase their business activity.
The survey results were launched today at the Canada China Business Council’s 34th Annual General Meeting and Policy Conference in Montreal, Quebec.
The full report can be viewed here.
The Canadian Business in China – 2012 Survey was prepared by the Asia Pacific Foundation of Canada with support of the Canada China Business Council (CCBC) and by Air China (Canada). The online survey received 211 responses from Canadian companies from a variety of sectors in China.
About APF Canada
The Asia Pacific Foundation is an independent resource for Canadians on contemporary Asia and Canada-Asia relations. As a national not-for-profit organization established by an Act of the Federal Parliament in 1984, the Foundation brings together people and knowledge to provide the most current and comprehensive research, analysis and information on Asia and on Canada's transpacific relations. It promotes dialogue on economic, security, political and social issues, helping to inform public policy, the Canadian public and Canada’s Asia practitioners. The Foundation is funded principally through an endowment from the Government of Canada and by corporate and individual donors.
For additional information, please contact:
Asia Pacific Foundation of Canada