Canada China Business Council Luncheon

I was also honoured last year to welcome Premier Li to Canada, and to attend the CCBC meeting in Montreal on October 13, 1995. That was a special day which marked the 25th anniversary of the date when Canada and China established diplomatic relations. The visit of Premier Li was a sign of the strong links between Canada and China and the growth of our special relationship. I had the opportunity to meet with Premier Li again this morning to review the relationship between Canada and China -- a relationship that is growing stronger all the time.

It is a great pleasure for me to be back in Shanghai two years after the visit of Team Canada in 1994. And what a change in two years! The plans that Team Canada saw are now skyscrapers and bridges and world-class museums. I congratulate all the citizens of this great city who are here today. You have made your dreams a reality.

I am proud to know that Canadians have been here to share in your efforts and your achievements. Some of the Canadians here today helped design your new high-tech stock exchange and financial centre. Some have helped plan more than a dozen of your new office towers and residential complexes. Others have become major investors in Pudong. You are showing what good partnerships are formed when Canadians and Chinese work together.

In a few more years, I know that we will see even more impressive achievements. Electricity, the life-blood of a modern economy, will pulse into Shanghai from CANDU nuclear reactors. Canadian insurance will be widely sold. Canadian clothing will be more widely available. The people of this city will be enjoying Canadian salmon and beef -- the best in the world -- and other Canadian foods as well.

We are making progress. And Canada recognizes that the mutually beneficial cooperation of our two countries will require sustained effort. There has been a Canadian presence in this country for many years, and it will continue for many years to come -- for in the words of the ancient Chinese proverb, If you are in a hurry, you cannot eat hot porridge. Believe me, we have a great appetite for increased ties with this corner of the world. And the commitment to do the long-term work necessary to maintain these ties.

This is the third consecutive year that I am addressing the Annual General Meeting of the Canada China Business Council. Two years ago I led the first Team Canada mission to China. It initiated the Team Canada approach which we are still using to develop business opportunities for Canadian companies. In fact, I will be leading a new Team Canada mission in January. But the first Team Canada trip to China remains very special to me -- and to all of us in Canada.

Canada's growing ties with China are part of a stronger, growing Canadian presence in the whole Asia Pacific region. I have just come from the APEC meeting in Manila where I also had an opportunity to discuss bilateral issues with President Jiang Zemin. Next year will be the Canada's Year of Asia Pacific, an important milestone in our relations with this region. Throughout the year there will be events highlighting the importance of the Asia-Pacific region all across Canada, including displays of Chinese art and performances of Chinese music. Relationships between states are more than treaties and trade. The human dimension is an essential dimension.

Canada has gone from being a country that was traditionally focused on Europe to one which is increasingly focused on Asia. This shift in national consciousness has many roots. One of the most important is the growing number of Canadians with historical and cultural roots here. As members of that community join with others throughout our country, our appreciation for the Asian ways of doing things is greatly strengthened.

Ten years ago, there were only a few thousand young Canadians studying Asian languages in the few Canadian schools that offered such programs. Today there are more than 30,000 such students, and more Asian language programs are sprouting up in schools in every region of Canada.

Canadians are experiencing a profound change in the way that we see ourselves and our place in the world. Canada is proud to be a Pacific nation. I can tell you that there is a growing sense of excitement about our connection to the Asia-Pacific region.

The Canada's Year of Asia Pacific will culminate with the APEC Leaders Meeting in Vancouver in November 1997. I look forward with pleasure to welcoming President Jiang Zemin to Canada at that time.

Of course, bilateral trade between Canada and China has been growing rapidly. On the Canadian side this has been assisted by the renewed strength of the Canadian economy. We have been getting our economic house in order. Our deficit is being reduced dramatically, and interest rates are at their lowest levels in decades. Our economic growth might not match the astonishing growth rate here in China -- but still, the IMF has predicted Canada will enjoy the highest rate of growth in the G-7 for the next two years.

Accompanying this economic renewal has been a change in attitudes toward trade. There is a new consensus in Canada that includes all political shades and all regions. Canadians believe that we can and we must succeed on the international stage. We believe that our exports can compete with the best in the world. And we understand that liberalized trade is our best hope for job creation and economic growth.

The result has been skyrocketing exports for Canada in recent years -- including a dramatic increase in exports to Asian markets. Your presence here today shows very clearly that Canadian companies have embraced the opportunities of Canada's Pacific future.

Two years ago, Premier Li and I challenged the CCBC and the business communities of our two nations to reach a goal of $20 billion in two-way trade by the year 2000. I am pleased to see that you are well on the road to meeting that target. Last year trade increased by 50%. Our two-way trade is approaching $9 billion. And it is not only our large companies; small and medium-sized firms have also developed their markets. But there is more that we can do together.

During the Team Canada visit in 1994, Premier Li and I pushed forward the negotiation of the sale of two CANDU reactors to China. It is a sign of our close cooperation that he and I were able to be here together to witness the signing of this important contract between our two countries -- a contract that represents increased jobs and economic growth for both our countries. The ground at Qinshan will be broken early next year in order to begin the actual construction. Premier Li has joined me in urging our respective nuclear industries to move forward in their examination of the next phase of Qinshan.

The CANDU project is only one in a number of large scale infrastructure projects in China. We are working together on projects in hydropower, transportation, telecommunications and agriculture. There is a good fit between Chinese needs and Canadian capabilities.

I am also delighted to witness the signing of a joint venture agreement between Manulife and its Chinese partner. This establishes Manulife as a pioneer in China's insurance market. The Canadian services industry has experience and technology to share as China modernizes in these sectors -- whether it be insurance, banking or legal services. I would also like to congratulate the Bank of Montreal on the recent announcement of the licencing of their Beijing office. We look forward to more mutually beneficial business partnerships in the financial services area.

The relations that are developing between Canada and China are not limited to the commercial field. Canadian environmental specialists are working with Chinese industrialists and policy-makers to help reduce the impact of industrial pollution -- not only on China, but on the whole world. We have shared experiences in privatization. And legal specialists from both countries are working together on a series of projects to strengthen the China's legal framework. A transparent system based on the rule of law is as important to business aspirations as it is to the Chinese people.

I have always believed that a China opening to the world and developing economically can only be good for the people of China, both materially, and in terms of their political well-being.

My government will work to ensure that the relationship between China and Canada continues to provide beneficial opportunities for both countries. The importance of the CCBC in developing our links will increase as the new century dawns. Canada-China trade has generated thousands of jobs for our citizens. I want to thank all of you for your important work in promoting trade opportunities between Canada and our Chinese partners.

In Canada, we often speak of the 1994 Team Canada trip and the dramatic success it represented for Canadians. I have been pleased to be here to witness some of the results of that trip. As I look around this room, I see how much progress we have made. The potential is even greater. Our task is to put our shoulder to the wheel and to use the talents and initiative of Canadians and Chinese to build our mutual prosperity.