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V. Challenges

V. Challenges. Typical Challenges. Remote location, isolation from foreign markets Limited size of domestic markets Lack of (certain) natural resources Periodic devastation from natural disasters Inadequate infrastructure Government deficit Limited air connections Over-fishing

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V. Challenges

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  1. V. Challenges

  2. Typical Challenges • Remote location, isolation from foreign markets • Limited size of domestic markets • Lack of (certain) natural resources • Periodic devastation from natural disasters • Inadequate infrastructure • Government deficit • Limited air connections • Over-fishing • Uncertain land ownership rights • Lack/emigration of skilled workers • Unemployment • Some islands are low-lying, prone to submersion • Political & Social Stability

  3. VIII. How our Beijing-based Trade Office can assist youWe’re in Beijing to Help You!

  4. China Trade Office Functions • To support and facilitate the development and promotion of Chinese foreign direct investment into the Pacific Forum Island Countries in partnership with stakeholders in both regions; • To support and facilitate the development and promotion of exports into China from the Pacific Forum Island Countries in partnership with key stakeholders in both regions; • To support and facilitate the development and promotion of tourism flows from China into the Pacific Forum Island Countries in partnership with key stakeholders in both regions; • To collect, collate, and disseminate commercially relevant information to a target audience of Chinese and FIC business people through a range of appropriate communication channels and media; • To promote a realistic & positive image of the FICs business environment, exports, tourism and investment opportunities to a targeted Chinese audience; and • To keep FIC decision makers and opinion leaders informed of stakeholder dynamics in both regions

  5. 驻华代表处业务架构

  6. Our Professional Team • Ben Zong = Vice General Manager • Ben was born in Linzi, Zibo, Shandong in 1973. He graduated from English Department, Shandong Normal University in 1995, as Honor Graduate Class of 1995. He then graduated from School of Translation and Interpretation (former UN Translators and Interpreters Training Program), Beijing Foreign Studies University in 1997. He is currently a candidate at Finance MBA program jointly offered by Chinese University of Hong Kong and Tsinghua University from 2005 to 2007 (part time). • From July 97 to May 99, Ben was Project Manager at HK China Aerospace International Holdings Ltd. – Beijing. From May 99 to May 01, he was with Ford Motor China Government Affairs Department and Siemens China Corporate Communication Department as Translator, and Communication Specialist Cum Translator respectively. He then worked as Commercial Representative for Unocal China till July 04. He was Investor Relations Manager Cum Assistant to Chairman at Asia Media Holdings Ltd., whose subsidiaries included Asia Premium Television Group, CTTnet and AirTV, from July 04 to April 06. He also had brief entrepreneur experience during the internet boom, jointly creating a B2C business that sold terri-cotta warrior replicas and lacquerware online. Ben joined Pacific Islands Forum China Trade Office in July 06, with responsibilities for Trade and Investment, and is committed to pushing the business development to a new high with dedicated colleagues. • Telephone: 0086-10-6532 6622 Ext. 225 Cell: 86-13501035037 • Fax: 0086-10-6532 6360 Email: ben.zong@pifto.org.cn

  7. Our Professional Team • Eddie Yuan = Investment Development Manager • Eddie was born in Hubei in 1970, and graduated from Xiangfan College in 1991. He also attended MBA courses. From 91 to 93, he was with Gucheng County Economic Commission, Hubei. He was Business Clerk with a Korean shoe manufacturing company from 94 to 95, and Regional Inspector for Reebok China Service Ltd. from 95 to 97. He worked for Nestle Guangdong Ltd. as Supply Chain Manager from 1997 to 2002. He was Investment Consultant at Beijing Guoyan Investment Consulting Firm from 03 to 04, and later joined Hide Holding Company Beijing Representative Office as Senior Investment Project Manager. He was Vice General Manager with Topro International Beijing Representative Office in 2005. Eddie joined our Office in March 2006 as Investment Development Manager with responsibilities for developing investment projects between China and the 16 Pacific island countries we represent. • Eddie has rich experience in international trade and investment, esp. project investment, corporate M&A, restructuring and international strategic cooperation. He was consultant to several local governments in soliciting investment and private companies in international financing. He is ready to provide tailored professional service to Chinese entrepreneurs who wish to pursue overseas investment. • Telephone: 86.10.6532.6622 Ext. 226 Cell: 86. 13701096807Fax: 86.10.6532.6360 Email: eddie.yuan@pifto.org.cn

  8. Our Professional Team • Yolanda Jiang = Export Development Manager • Born in Tianjin in 1978, Yolanda graduated from Reservist Military School, Tianjin in 1997, and then received Diploma in Economics Management from Chinese Communist Party School. She received Professional Logistics qualification in 2006. • She was Manager, Export and Import Department, Ningbo Huaxi International Trading Co., Ltd. from Oct. 05 to July 06, and Manager, Non-chemical Export Department, Hong Kong Vikudha International Trading Co., Ltd. from May 03 to Oct. 05. She worked for British Oxforwick Education Exchanging Tianjin Representative Office as Executive Assistant from Jan. 02 to May 03. And prior to that, she was with Motorola (China) Electronics Ltd. as Supervisor, Human Resources Department from July 1997 to Sept. 2001. Yolanda joined our Trade Office in August 06, and has responsibilities for export development. She is committed to utilizing her abundant information, contacts and experience to provide professional trade services to companies from both China and the Pacific islands. • Telephone: 0086-10-6532 6622 Ext. 213 Cell: 86-13681341290 • Fax: 0086-10-6532 6360 Email: yolanda.jiang@pifto.org.cn

  9. Our Professional Team • Inge Vanneste = Business Development Manager • Inge obtained her Master in Chinese Studies (Sinology) from the University of Leuven, Belgium in 1997. After a government-sponsored scholarship at Nanjing University, China in 1998, Inge returned to Belgium to study Business Administration at the University of Leuven. • In 2000 Inge moved to Stuttgart, southern Germany, where she started working for the DaimlerChrysler Group, one of the world’s leading automobile companies. From Feb. 2000 to Dec. 2001, Inge supported the development of the international sales and coordination centre at DaimlerChrysler’s Financial Services Division. In this role, she was in charge of coordinating the sales activities of 7 European countries and answering the requests for information and quotation of international clients. In her function of International Key Account Manager, from Jan. 2002 to July 2004 Inge was responsible for the acquisition of international clients, including negotiations, contract conclusion and implementation. From Aug. 2004 until June 2006, Inge was Project Manager for DaimlerChrysler Financial Services, charged with the establishment of a new company division in the Belgian market. This task covered a complete project cycle, including market research and feasibility study, establishment of the business case and strategy, as well as the successful implementation in all business areas concerned. • Inge moved to China in July 2006, to join her partner. She is looking forward to using her extensive project management and business development experience to support and expand the activities of our Trade Office. • Telephone: 0086-10-6532 6622 Cell: 86-136552987807 • Fax: 0086-10-6532 6360 Email: inge.vanneste@pifto.org.cn

  10. Appendix 1: China-PIC Forum

  11. Win-win Cooperation for Common Development • At the Opening of the First Ministerial Conference of the China-Pacific Island Countries Economic Development and Cooperation Forum • April 5, 2006 • “Strengthening cooperation and realizing common development”

  12. Excerpts from Premier’s Speech • “As a Chinese saying puts it, ‘Just as distance tests a horse's strength, time will show a person's sincerity’. As far as China is concerned, to foster friendship and cooperation with the Pacific island countries is not a diplomatic expediency. Rather, it is a strategic decision. China has proved and will continue to prove itself to be a sincere, trustworthy and reliable friend and partner of the Pacific island countries forever.”

  13. Excerpts from Premier’s Speech • “I propose that China and the Pacific island countries work together in the following fields: conduct regular exchanges between governments, parliaments, political parties and non-governmental sectors to enhance mutual trust and understanding; strengthen consultation and coordination on major international and regional issues; accommodate each other's interests and reinforce mutual support; and establish a new economic and trade relationship of mutual benefit that meets the needs of the island countries.” • “Economic ties are an integral part of the relationship between China and the Pacific island countries. Our respective economies are mutually complementary. China has funding and technical expertise. The island countries are rich in natural resources. Herein lie huge potentials for bilateral cooperation. Following the principle of "looking to the future, advancing steadily and working for mutual benefit and common development", we can certainly make new progress in our economic cooperation and trade ties.”

  14. Excerpts from Premier’s Speech • To meet the current need of economic development of the Pacific island countries, China has decided to take the following steps: • 1) To strengthen cooperation between the business communities of China and the Pacific island countries, China will provide RMB 3 billion of preferential loans in the next three years to boost cooperation in resources development, agriculture, forestry, fishery, tourism, textiles and consumer products manufacturing, telecommunications and aviation and ocean shipping. The Chinese Government will also set up a special fund to encourage Chinese companies to invest in the Pacific island countries.

  15. Excerpts from Premier’s Speech • 2) To support the Pacific island countries in developing their economy and ease their debt burden, China will give zero-tariff treatment to the majority of exports to China from the least developed countries in the region that have diplomatic ties with China. China will cancel their debts that became mature at the end of 2005 and extend by ten years the payment of debts contracted by other island countries that became mature at the end of 2005. • 3) China will provide free anti-malaria medicines to the island countries affected by the disease in the next three years to help them treat malaria. China will continue to send medical teams to the island countries and conduct annual training courses for health officials, hospital managers and medical researchers of these countries. China is also ready to exchange information on bird flu prevention and control, and cooperate with the island countries in various ways in this field.

  16. Excerpts from Premier’s Speech • 4) China will provide training to 2,000 government officials and technical staff from the island countries over the next three years to assist them in capacity building. • 5) To accelerate the development of tourism of the Pacific island countries, China has decided to formally approve Papua New Guinea, Samoa, and the Federated States of Micronesia as destinations for Chinese tourists. Thus, all the seven island countries having diplomatic ties with China are now approved tourist destinations for Chinese citizens. • 6) China will provide assistance in building an earthquake or tsunami early warning and monitoring network in light of the need of the island countries to improve their capability of managing earthquakes, tsunamis and other natural disasters.

  17. Appendix 2: China-PIC Economic Cooperation and Development Guiding Framework

  18. China+Pacific Islands Win-Win Partnerships & Mutual Cooperation New Focus: SME-2-SME Business Cooperation China+Pacific Islands Economic Integration

  19. China-Pacific Island Countries Economic Development & Cooperation Guiding Framework • The First Ministerial Meeting of the China-Pacific Island Countries Economic Development & Cooperation Forum (hereinafter referred to as the “Forum”) was held in Nadi, Fiji from April 5th to 6th, 2006. • The Ministers from the following countries and regions were in attendance: • the Commonwealth of Australia * • the People’s Republic of China • the Cook Islands • the Republic of Fiji Islands • Federated States of Micronesia • New Zealand * • Niue • the Independent State of Papua New Guinea • the Independent State of Samoa • the Kingdom of Tonga, and • the Republic of Vanuatu Note: Australia and New Zealand were not signatories to the Guiding Framework.

  20. 3. Trade • Article 3-1 Expansion of trade between China and the Pacific island countries is the common goal and all countries shall endeavor to conclude and actively implement bilateral trade agreements consistent with international trade rules on the basis of equality and mutual benefit. Article 3-2 The consultation mechanisms established within the Forum provide a platform for facilitating companies of China and the Pacific island countries, thereby fostering a favorable trading environment. Article 3-3 Support shall be rendered to participating countries to hold specific product/service expositions and conduct other forms of cooperation to expedite the entry of their products and services into the markets of other participating countries. Article 3-4 Communications among organizations and institutions，such as chamber of commerce, guild and forum of entrepreneurs，of China and the Pacific island countries, shall be promoted, and information exchanges about markets, commodities, services and trade shall be enhanced in order to increase bilateral trade. Article 3-5 In recognition of the increasing importance of trade in services in respective countries, efforts should be made, in accordance with their national legislation, to promote the most favorable conditions for strengthening trade in services between China and the Pacific island countries.

  21. 4. Investments and Enterprises Cooperation • Article 4-1 Efforts shall be made to improve the investment climate of China and the Pacific island countries, and establish a legal framework which is conducive to investment promotion and protection. This should include the signing and implementation of bilateral agreements on investment promotion and protection and on the avoidance of double taxation. Article 4-2 Efforts shall be made to encourage and facilitate enterprises to make investment and conduct co-operation in the fields of common interest and, through the establishment of all kinds of enterprises, make contributions to the economic development of China and the Pacific island countries. Article 4-3 Advanced information technology shall be utilized to facilitate the exchange of trade and investment-related information between enterprises of China and the Pacific island countries.

  22. 5. Co-operation in Agriculture • Article 5-1 Mutually agreed measures shall be adopted in order to foster cooperation in the field of agriculture, including fishery, between China and the Pacific island countries. Article 5-2 Enterprises shall be encouraged to enter into joint venture partnerships in agriculture, including fishery. Priority shall be given to encouraging cooperation in the study and formulation of agricultural development programs, transfer of technical expertise, construction of agricultural infrastructure, manufacture of machines for agricultural use, processing of agricultural products, fishery and plant farming as well as assessment and sustainable use and development of fishery resources. Article 5-3 Experience of all countries in the development of agriculture，including fishery，shall be shared with a view to facilitating investment, technical cooperation and cooperation between enterprises.

  23. 6. Co-operation in Tourism and Transportation • Article 6-1 China and the Pacific island countries envision great potential in tourism and cooperation in this field shall be actively promoted. The experiences of all participating countries in the development of tourism shall be shared with a view to attracting and facilitating investment and cooperation between enterprises. Priority shall be given to promotion of land-based tourism including eco-tourism, and cruise tourism, co-operation in hotel construction, operation and management, and the processing and production of tourism handicrafts. Article 6-2 The Pacific island countries shall be granted Approved Destination Status for Chinese citizens. Article 6-3 Bilateral consultations between relevant institutions of China and the Pacific island countries shall be promoted in order to explore the possibilities of civil aviation services compatible with multi-destination tourism.

  24. 7. Co-operation in Finance • Article 7-1 Efforts shall be made to exchange experiences in the financial services sector, including banking and insurance. Article 7-2 Co-operation between the Chinese financial institutions，including banking and insurance enterprises，and their counterparts in the Pacific island countries shall be enhanced.

  25. 8. Co-operation in Engineering and Infrastructure Construction • Article 8-1 Efforts shall be made actively to encourage and promote discussion among enterprises from China and the Pacific island countries to explore different types of co-operation in the fields of transportation, electric power, wind and solar power technology, telecommunication, water supply, water treatment and urban planning, and to facilitate co-operation in the above-mentioned fields.

  26. 9. Co-operation in Natural Resources • Article 9-1 Exchanges and co-operation in the field of natural resources shall be strengthened, and efforts shall be made to optimize utilization of resources on the basis of sustainable development. Article 9-2 Co-operation in the sustainable exploitation and utilization of natural resources shall be promoted on the basis of mutual benefit.

  27. 10. Co-operation in the Development of Human Resources • Article 10-1 Co-operation in the development of human resources and personnel exchanges shall be promoted and improved to enhance trade and to foster mutual understanding and friendship between China and the Pacific island countries. Article 10-2 Specific training schemes shall be made available in most fields involved in this Forum. Specific projects shall be put forward, and co-operation in the fields of education and vocational skill training, as well as language training, shall be developed.

  28. Appendix 3: Sample Investment Project Details (Word File) 11 pages

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