BC companies like Ballard Power Systems (TSX: BLD) and Dynamic Attractions didn’t necessarily need Prime Minister Justin Trudeau to come to China to help them sign multimillion-dollar deals with Chinese partners last week.
Both have previously signed contracts in China.
But it doesn’t hurt to have the leader of your country on hand for official signing ceremonies.
Ballard, which builds hydrogen fuel cell stacks, and Dynamic Attractions, which builds amusement rides, were among the dozens of Canadian companies and institutes that formalized deals worth an estimated $1.2 billion last week during the prime minister’s official August 30 to September 7 visit to China.
“This was the next step in a progression of commercial deals,” Ballard spokesman Guy McAree said of an agreement signed last week to provide fuel cell power modules for buses in China.
“In British Columbia, the premier has done a fair bit to try to improve trade relations with China, and it’s very important to see the federal government do the same thing. It sends a strong signal that Canada is open for business.”
While in Shanghai last week as part of a trade mission to China and attending the G20 Summit, Trudeau was on hand for the formal signing of contracts, letters of intent and memorandums of understanding between dozens of Canadian companies and institutes and their Chinese partners.
One of the bigger deals signed with a Canadian company was between Port Coquitlam’s Dynamic Attractions – a subsidiary of Empire Industries Ltd. (TSX-V:EIL) – and Altair (Shanghai) Space Technology Ltd. to jointly build, own and operate the $600 million Space Park theme park. (See “Dynamic to partner with Chinese tech company on $600m theme park” – Business in Vancouver issue 1401; September 6-12.)
“We’ve put a lot into building this relationship and developing the Space Park plan with Altair,” said Dynamic Attractions president Guy Nelson. “However, the Canadian trade mission put an impetus on finalizing the agreement. Without a doubt, the Canadian trade mission to China has been positively impactful on this deal.”
Other agreements signed with B.C. companies and institutes included:
•a letter of intent between Vancouver investment bank Fort Capital Partners and Zhonguancun Private Equity and Venture Capital Association for up to $656 million worth of investment capital in North American health sciences, clean-tech, media, telecommunications, foods, agriculture and energy sectors;
•a licensing agreement between the Vancouver Airport Authority and Beijing Capital Airlines (BCA) for a new thrice-weekly flight between Vancouver and Hangzhou-Qingdao;
•a partnership between Harbour Air and Zongshen Group to bring commuter seaplane services to China;
•a memorandum of understanding between Kwantlen Polytechnic University and Beijing University of Chinese Medicine (BUCM) that will allow grads from Kwantlen’s traditional Chinese medicine diploma program to transfer to BUCM;
•a $30 million teacher training program and curriculum design program between BC Institute of Technology and Three Gorges Polytechnic University;
•a $9.7 million Softbank China Capital investment in H+ Technologies, a Vancouver company that makes hologram projectors;
•an investment agreement between Zhen Partners Fund IV, L.P. and Whistler Water Inc. to market and sell bottled water in China.
Canada does not have a free trade agreement with China – the world’s second-largest economy – but does have a Foreign Investment Promotion and Protection Agreement.
“China presents a large and growing market for Canadian businesses,” Trudeau said September 3, while in Hangzhou, where he and Alibaba Group chairman Jack Ma announced the Canada Pavilion – a digital “hub” on Alibaba’s Tmall e-commerce site that will help brand and market Canadian goods.
“That is why we’re increasing our commercial presence in the Chinese market and encouraging our small and medium-sized enterprises to tap into the enormous opportunities there.”
