Kenneth T. Tran ,  B.Pharm, M.D President | AJPC-YCPA www.ajpc-ycpa.com
Plan West’s issues China & Asia market Do business with Chinese and Asian YCPA
Plan West’s issues China & Asia market Do business with Chinese and Asian YCPA
Young Men, Stay West?
1. Quebec & Canada’s issues Low growth rate. Quebec even lower.
Canada: 3% Quebec: 2,3%
Average annual real GDP growth 1981-2006 Montreal Economic Institute
1. Quebec & Canada’s issues Low growth rate. Quebec even slower Little working force population and aging population
 
1. Quebec & Canada’s issues Low growth rate. Quebec even slower Little working force population and aging population USA market overtaken by competitors
Globalization - competitor
Canada overtaken by China
1. Quebec & Canada’s issues Low growth rate. Quebec even slower Little working force population and aging population USA market overtaken by competitor Strong dollar cut down exportation
Strong dollar
1. Quebec & Canada’s issues Low growth rate. Quebec even slower Little working force population and aging population USA market overtaken by competitor Strong dollar cut down exportation USA protectionism & market saturation
Saturation
1. Quebec & Canada’s issues Low growth rate. Quebec even slower Little working force population and aging population USA market overtaken by competitor Strong dollar cut down exportation USA protectionism & market saturation Quebec didn’t do enough global diversification
Not enough…
Young Men, Go East?
Plan West’s issues China & Asia market Do business with Chinese and Asian YCPA
2. China & Asia Geographic Political structure Demographics Economy Highlights
2. China & Asia Geographic Political structure Demographics Economy Highlights
China - Geography World’s 4th largest country Beijing 13+4 M Tianjin 9+2 M Shanghai 16+4 M Guangzhou 12 M Chongqing 5+27 M Hong Kong 7 M Taiwan 23 M Japan 126 M Thailand 65 M Vietnam 87 M China - Population Total population: 1.34 milliard Inde 1.17 milliard Philippine 98 M Cambodge 11 M
2. China & Asia Geographic Political structure Demographics Economy Highlights
Political structure Government:  One-party state ruled by the CCP Leaders emerge from the political-bureaucratic structure of the CCP Authority over all organs of government Executive is a 15 members State Council elected by the National People Congress (NPC) NPC is composed of 2989 deleguates elected by 22 provinces, 4 municipalities directly under central government control, 5 autonomous regions and the armed forces
2. China & Asia Geographic Political structure Demographics Economy Highlights
Pic at 2015, with 1 billion of working-age population
Demographics - Education National nine years of compulsory education  (six years at primary school and three years in junior secondary school). Official figures show:  99.5% of all school-age children were enrolled in school in 2007. in 2007, 99.9% of primary school pupils went on to junior secondary school, and that of these 79.3% entered senior secondary school. Illiterate and semi-literate people over the age of 15 had fallen to 8.4%  (4.4% among men, 12.4% among women)
USA
Canada
Demographics - Education Reference:  McKinsey Global Institute   60 K 500 K Engineers and scientists per year USA China + India
Demographics – wages & savings Per capita income has nearly quadrupled in the last 15 years Low wages and no safety net keep most Chinese from spending
Demographics - millionaires
2. China & Asia Geographic Political structure Demographics Economy Highlights
Economy - China World second largest economy country after US since 2008 International Monetary Fund (2008)
Economy - China 20  USA 27  Canada Largest foreign reserves in 2009
China and Asia growth
Annual Growth Rate 1970-2008
Purchasing Power Parity
Public Debt
2. China & Asia Geographic Political structure Demographics Economy Highlights
Highlights Economic growth components
If economic growth is driven by three things: More capital More labour More productivity   Economic growth principle China has them .
More Capital World's largest holder of foreign exchange reserves Annual GDP growth in the last 2 decades:  China: 9.5% India: 6% « Asian Tigers »: 7-8% Asian tigers: Hong Kong, South Korea, Singapore and Taiwan
More Labour Unemployment rate as of Oct 2009 Quebec 8.8% Canada 8.4% USA 9.8% China 4.2%
More Labour 1 billion of labor force China is still not fully urbanized, only 1/3 of its population lives in towns  (world average urbanization: 45%)
 
 
 
 
 
Highlights Economic growth components Big Market
Big Market World's biggest base of cell-phone subscribers: 600 million (India: 362M) As of June 2009, number of netizens: 338 million. China's passenger car sale: 5.4 millions (Jan to July 2009)
Bankrupt GM
Highlights Economic growth components Big Market Mature Market
Mature market Crisis go-through 1998: doubtful loan of Chinese banks created a major crisis    BJS injected 40 billions $US 2004: 3 yrs after OMC adhesion, BJS injected 29 billions $US to save bad loans of BOC and CCB 2009: subprime crisis    world economy tourmoil, BJS injected 586 billions $US
Reality joke 'After 1989, capitalism saved China.  After 2009, China saved capitalism.' China stabilizes global capitalism, 2009
Highlights Economic growth components Big Market Mature Market Corporate governance
Communism: bad governance? Worldcom Tyco Enron Parmalat Bernard Madoff Countrywide Bear Stearns Satyam Computers Galleon Group Sponsorship scandals Conrad Black Norbourg Nortel
Highlights Economic growth components Big Market Mature Market Corporate governance Still high speed growth
Still high-speed growth Serious development  ONLY now  is reaching the 800 millions in rural areas, where per capita annual income is just $354 Outside major cities, wages are as little as 45 cents an hour. Another 20 years of high-speed growth
Highlights Economic growth components Big Market Mature Market Corporate governance Still high speed growth China is buying the world North America not sole dominant anymore
China World
China World
China’s foreign investment Oil in Nigeria, Lybia, Congo, Brazil, Kazakhstan, Canada Natural gas in Iran Mining in Canada Iron ore in Australia Real estate in England IT in USA Automobile: Hummer, Saab, Volvo
China in Congo
 
 
 
Quebec in China Power Corporation Bombardier SNC Lavalin Quebecor Alcan-Rio Tinto Transcontinental Mediagrif Interactive Technologies Mitec Telecom CAE Mechtronix Prompt Inc.
 
China invests abroad 2008, $50 billion (up from $25 billion) US: $318 billion But China has only begun, and it won’t stop anytime soon
 
China evolves First decade of 21st Century: workshop Second decade: leading exporter of capital
Highlights Economic growth components Big Market Mature Market Corporate governance Still high speed growth China is buying the world North America not sole dominant anymore
Share of world economy (GDP growth) 45.7% Developing countries 54.3% Industrialized countries 24.6% Asia Pacific 20.3% Western Europe 24.8% North America
Resume – knowing that USA is losing its world dominance
Share of world economy ( Assets under management )
Resume – knowing that USA is losing its world dominance So-called developing countries grow faster
Industrialized < Developing
Resume – knowing that USA is losing its world dominance So-called developing countries grow faster China & Asia grow much faster
Who goes faster?
Resume – knowing that USA is losing its world dominance So-called developing countries grow faster Asia grows much faster China and Asia will be world leader
 
Middle of 21 st  Century
It’s time To Go East To intensify global (Asia) diversification
Moving to East “Asia and China are the centre of gravity of the world and of our business.” Stephen Green, Executive Chairman of HSBC
Moving to East &quot;We came to Asia for the costs, we stayed for the quality, and we're now investing for the innovation.&quot;  Daniel Scheinman Senior Vice President and General Manager, Cisco Media Solutions Group
You want to go East Where to start?
Plan West’s issues China & Asia market Do business with Chinese and Asian YCPA
3. Business with China & Asia Legal Changing Rules & Regulations Political Role of government in private sector Social Local business practices Cultural Linguistic
Basically, You need to know Respect for superiors, duty to family, loyalty to friends, sincerity and courtesy  “Guangxi” – build relationship first Bring your own good interpreter
Understanding the culture Greetings  Name Nod, bow slightly or handshaking Conversation Lower eyes and staring Topics – culture, history, geography “ Face” (given, earned or lost) Restaurant: Eating Host & guest
Understanding the culture Take your time (less Western deadline) Meeting Business attire Don’t be late Favor done for you Gifts Opinions in front of peers are rare
Plan West’s issues China & Asia market Do business with Chinese and Asian YCPA
4. AJPC - YCPA Founded in 1999 NPO Voice of rich and strong network of young Chinese and Asian professionals & entrepreneurs
YCPA growth
YCPA
YCPA
YCPA - Polyglot
YCPA - multiethnic
YCPA - Polyvalent
YCPA - Mission Share Help Promote Lead Canada ↔ Asia
Q & A AJPC | YCPA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Young Men, Go East!

  • 1.
    Kenneth T. Tran, B.Pharm, M.D President | AJPC-YCPA www.ajpc-ycpa.com
  • 2.
    Plan West’s issuesChina & Asia market Do business with Chinese and Asian YCPA
  • 3.
    Plan West’s issuesChina & Asia market Do business with Chinese and Asian YCPA
  • 4.
  • 5.
    1. Quebec &Canada’s issues Low growth rate. Quebec even lower.
  • 6.
  • 7.
    Average annual realGDP growth 1981-2006 Montreal Economic Institute
  • 8.
    1. Quebec &Canada’s issues Low growth rate. Quebec even slower Little working force population and aging population
  • 9.
  • 10.
    1. Quebec &Canada’s issues Low growth rate. Quebec even slower Little working force population and aging population USA market overtaken by competitors
  • 11.
  • 12.
  • 13.
    1. Quebec &Canada’s issues Low growth rate. Quebec even slower Little working force population and aging population USA market overtaken by competitor Strong dollar cut down exportation
  • 14.
  • 15.
    1. Quebec &Canada’s issues Low growth rate. Quebec even slower Little working force population and aging population USA market overtaken by competitor Strong dollar cut down exportation USA protectionism & market saturation
  • 16.
  • 17.
    1. Quebec &Canada’s issues Low growth rate. Quebec even slower Little working force population and aging population USA market overtaken by competitor Strong dollar cut down exportation USA protectionism & market saturation Quebec didn’t do enough global diversification
  • 18.
  • 19.
  • 20.
    Plan West’s issuesChina & Asia market Do business with Chinese and Asian YCPA
  • 21.
    2. China &Asia Geographic Political structure Demographics Economy Highlights
  • 22.
    2. China &Asia Geographic Political structure Demographics Economy Highlights
  • 23.
    China - GeographyWorld’s 4th largest country Beijing 13+4 M Tianjin 9+2 M Shanghai 16+4 M Guangzhou 12 M Chongqing 5+27 M Hong Kong 7 M Taiwan 23 M Japan 126 M Thailand 65 M Vietnam 87 M China - Population Total population: 1.34 milliard Inde 1.17 milliard Philippine 98 M Cambodge 11 M
  • 24.
    2. China &Asia Geographic Political structure Demographics Economy Highlights
  • 25.
    Political structure Government: One-party state ruled by the CCP Leaders emerge from the political-bureaucratic structure of the CCP Authority over all organs of government Executive is a 15 members State Council elected by the National People Congress (NPC) NPC is composed of 2989 deleguates elected by 22 provinces, 4 municipalities directly under central government control, 5 autonomous regions and the armed forces
  • 26.
    2. China &Asia Geographic Political structure Demographics Economy Highlights
  • 27.
    Pic at 2015,with 1 billion of working-age population
  • 28.
    Demographics - EducationNational nine years of compulsory education (six years at primary school and three years in junior secondary school). Official figures show: 99.5% of all school-age children were enrolled in school in 2007. in 2007, 99.9% of primary school pupils went on to junior secondary school, and that of these 79.3% entered senior secondary school. Illiterate and semi-literate people over the age of 15 had fallen to 8.4% (4.4% among men, 12.4% among women)
  • 29.
  • 30.
  • 31.
    Demographics - EducationReference: McKinsey Global Institute 60 K 500 K Engineers and scientists per year USA China + India
  • 32.
    Demographics – wages& savings Per capita income has nearly quadrupled in the last 15 years Low wages and no safety net keep most Chinese from spending
  • 33.
  • 34.
    2. China &Asia Geographic Political structure Demographics Economy Highlights
  • 35.
    Economy - ChinaWorld second largest economy country after US since 2008 International Monetary Fund (2008)
  • 36.
    Economy - China20 USA 27 Canada Largest foreign reserves in 2009
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
    2. China &Asia Geographic Political structure Demographics Economy Highlights
  • 42.
  • 43.
    If economic growthis driven by three things: More capital More labour More productivity Economic growth principle China has them .
  • 44.
    More Capital World'slargest holder of foreign exchange reserves Annual GDP growth in the last 2 decades: China: 9.5% India: 6% « Asian Tigers »: 7-8% Asian tigers: Hong Kong, South Korea, Singapore and Taiwan
  • 45.
    More Labour Unemploymentrate as of Oct 2009 Quebec 8.8% Canada 8.4% USA 9.8% China 4.2%
  • 46.
    More Labour 1billion of labor force China is still not fully urbanized, only 1/3 of its population lives in towns (world average urbanization: 45%)
  • 47.
  • 48.
  • 49.
  • 50.
  • 51.
  • 52.
    Highlights Economic growthcomponents Big Market
  • 53.
    Big Market World'sbiggest base of cell-phone subscribers: 600 million (India: 362M) As of June 2009, number of netizens: 338 million. China's passenger car sale: 5.4 millions (Jan to July 2009)
  • 54.
  • 55.
    Highlights Economic growthcomponents Big Market Mature Market
  • 56.
    Mature market Crisisgo-through 1998: doubtful loan of Chinese banks created a major crisis  BJS injected 40 billions $US 2004: 3 yrs after OMC adhesion, BJS injected 29 billions $US to save bad loans of BOC and CCB 2009: subprime crisis  world economy tourmoil, BJS injected 586 billions $US
  • 57.
    Reality joke 'After1989, capitalism saved China. After 2009, China saved capitalism.' China stabilizes global capitalism, 2009
  • 58.
    Highlights Economic growthcomponents Big Market Mature Market Corporate governance
  • 59.
    Communism: bad governance?Worldcom Tyco Enron Parmalat Bernard Madoff Countrywide Bear Stearns Satyam Computers Galleon Group Sponsorship scandals Conrad Black Norbourg Nortel
  • 60.
    Highlights Economic growthcomponents Big Market Mature Market Corporate governance Still high speed growth
  • 61.
    Still high-speed growthSerious development ONLY now is reaching the 800 millions in rural areas, where per capita annual income is just $354 Outside major cities, wages are as little as 45 cents an hour. Another 20 years of high-speed growth
  • 62.
    Highlights Economic growthcomponents Big Market Mature Market Corporate governance Still high speed growth China is buying the world North America not sole dominant anymore
  • 63.
  • 64.
  • 65.
    China’s foreign investmentOil in Nigeria, Lybia, Congo, Brazil, Kazakhstan, Canada Natural gas in Iran Mining in Canada Iron ore in Australia Real estate in England IT in USA Automobile: Hummer, Saab, Volvo
  • 66.
  • 67.
  • 68.
  • 69.
  • 70.
    Quebec in ChinaPower Corporation Bombardier SNC Lavalin Quebecor Alcan-Rio Tinto Transcontinental Mediagrif Interactive Technologies Mitec Telecom CAE Mechtronix Prompt Inc.
  • 71.
  • 72.
    China invests abroad2008, $50 billion (up from $25 billion) US: $318 billion But China has only begun, and it won’t stop anytime soon
  • 73.
  • 74.
    China evolves Firstdecade of 21st Century: workshop Second decade: leading exporter of capital
  • 75.
    Highlights Economic growthcomponents Big Market Mature Market Corporate governance Still high speed growth China is buying the world North America not sole dominant anymore
  • 76.
    Share of worldeconomy (GDP growth) 45.7% Developing countries 54.3% Industrialized countries 24.6% Asia Pacific 20.3% Western Europe 24.8% North America
  • 77.
    Resume – knowingthat USA is losing its world dominance
  • 78.
    Share of worldeconomy ( Assets under management )
  • 79.
    Resume – knowingthat USA is losing its world dominance So-called developing countries grow faster
  • 80.
  • 81.
    Resume – knowingthat USA is losing its world dominance So-called developing countries grow faster China & Asia grow much faster
  • 82.
  • 83.
    Resume – knowingthat USA is losing its world dominance So-called developing countries grow faster Asia grows much faster China and Asia will be world leader
  • 84.
  • 85.
    Middle of 21st Century
  • 86.
    It’s time ToGo East To intensify global (Asia) diversification
  • 87.
    Moving to East“Asia and China are the centre of gravity of the world and of our business.” Stephen Green, Executive Chairman of HSBC
  • 88.
    Moving to East&quot;We came to Asia for the costs, we stayed for the quality, and we're now investing for the innovation.&quot; Daniel Scheinman Senior Vice President and General Manager, Cisco Media Solutions Group
  • 89.
    You want togo East Where to start?
  • 90.
    Plan West’s issuesChina & Asia market Do business with Chinese and Asian YCPA
  • 91.
    3. Business withChina & Asia Legal Changing Rules & Regulations Political Role of government in private sector Social Local business practices Cultural Linguistic
  • 92.
    Basically, You needto know Respect for superiors, duty to family, loyalty to friends, sincerity and courtesy “Guangxi” – build relationship first Bring your own good interpreter
  • 93.
    Understanding the cultureGreetings Name Nod, bow slightly or handshaking Conversation Lower eyes and staring Topics – culture, history, geography “ Face” (given, earned or lost) Restaurant: Eating Host & guest
  • 94.
    Understanding the cultureTake your time (less Western deadline) Meeting Business attire Don’t be late Favor done for you Gifts Opinions in front of peers are rare
  • 95.
    Plan West’s issuesChina & Asia market Do business with Chinese and Asian YCPA
  • 96.
    4. AJPC -YCPA Founded in 1999 NPO Voice of rich and strong network of young Chinese and Asian professionals & entrepreneurs
  • 97.
  • 98.
  • 99.
  • 100.
  • 101.
  • 102.
  • 103.
    YCPA - MissionShare Help Promote Lead Canada ↔ Asia
  • 104.
    Q & AAJPC | YCPA
  • 105.
  • 106.
  • 107.
  • 108.
  • 109.
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Editor's Notes

  • #104 Share experiences and knowledge Give a hand to those in need Promote Asian contribution to the development and growth of Canadian society Promote tomorrow’s Asian leader Act as access point to Asian culture and business world Strengthen relationships, encourage trades and investments between Canada and Asia