The Canadian Chamber of Commerce in Hong Kong Capitalizing on opportunities in the PRD Region via Hong Kong

1. The Canadian Chamber of Commerce in Hong Kong Capitalizing on opportunities in the PRD Region via Hong Kong 24 Oct 2004

2. Andrew Turczyniak – CEO, Asia • Royal Bank of Canada • Responsible for all Royal Bank of Canada strategy and business in Asia ex-Japan • Originally from Bradford Ontario • 16 years of International banking and capital markets experience – 8 in London, 4 in Sydney and 4 in Hong Kong • Currently spending more than 50% of the week in Beijing as RBC expands its mainland presence • Chairman of RBC Asian Operating and Risk Committees 24 Oct 2004

3. Bruce Hicks – Managing Director • TPIZRESOURCES Limited • Established in 2006 to invest in and develop energy efficiency and environmental infrastructure for industrial sites in Southern China • Energy and environmental service provision through long-term outsource service contracts – utility model • Originally from northern Manitoba • 21 years in Hong Kong • Between 1994 – 2005, was a partner of the Distacom Group which invested in, launched, developed and then sold 8 startup wireless businesses in Asia, Africa and Europe • CEO of SUNDAY Communications Ltd between 2002 – 2006 24 Oct 2004

4. PRD – The Past Twenty-five Years • Since 1979, when Special Economic Zones were established in Shenzhen and Zhuhai, Hong Kong firms have been leaders in the region • PRD has experienced massive economic development • Hong Kong has transformed from manufacturing to a service economy • HK has become inextricably linked with the PRD

5. The PRD is: • Factory to the world • A major contributor to the overall economy of China • Considered the fastest growing economic region in the world • Within PRD, Hong Kong is: • An invaluable supplier of trade and investment support services • > 70,000 firms and over US$ 80 B of investment • An employer of over 11 M and a major exporter of PRD goods to the world • Included in China’s 11th 5 year plan • As manufacturers continue to move up the supply chain and as China’s domestic market develops, HK which provides a full range of services supporting the PRD, will become increasingly important PRD - Today

6. Canada In The PRD • Canada in HK • Over 250,000 Canadians citizens in HK • Canadian firms in HK: 150 with 450 represented through distributors, agents or JV partners • Inward direct investment in HK over C$3.5 billion • HK’s FDI in Canada: C$6.3 billion

7. Canada In The PRD • Canada in HK • Over 250,000 Canadians citizens in HK • Canadian firms in HK: 150 with 450 represented through distributors, agents or JV partners • Inward direct investment in HK over C$3.5 billion • HK’s FDI in Canada: C$6.3 billion • United States in HK • Over 54,000 US citizens in HK • US firms in HK: 1,260 with 295 regional headquarters and 594 regional offices • Inward direct investment in HK over US$ 27 billion • HK’s FDI in the US: US$3.4 billion

8. How Do The Chinese View Canadians? • Grassroots familiarity and affection - everyone in China knows Canada • Acknowledge and appreciate the differences of Canada vs. US • Canada has historically enjoyed good political relations with China • A good source of raw materials and energy • A niche provider in a few other areas • But ……. Canadians are considered not very proactive when it comes to business

9. What Are Canada’s Benefits As Far As China Is Concerned? • Raw materials and energy • Strong links to Asia particularly through western Canada • Concentrated Chinese populations in Canada • What else?....we need to be much more proactive.

10. Be Much More Proactive • Be well prepared – know where you’re going and who you’re meeting • Respect formality and personal protocol • Be clear about what you want and ask for it when pursuing business • Put good people on the ground • Take advantage of Hong Kong • Canadian Chamber of Commerce in Hong Kong • Canadian Consulate in Hong Kong • Invest Hong Kong • HK Trade Development Council • Etc