Chengdu: A Networking Success

Chengdu

Sino-Canadian Event

Networking

Dinner with the Business Family

Chengdu Planning Exhibition Hall

Chengdu City Diorama

Free Trade Zone

We started off our 5 days in Chengdu with the Sino-Canadian Youth Leader Economic & Cultural Exchange Reception. Here we met with the China Youth Ambassadors(CYA)-our JTC counterpart in Chengdu, as well as various businesses, entrepreneurs, Canadian trade commissioners, and Chinese government officials. This was the best way to start the western leg of our trade mission because it provided us with the opportunity to network and set up meetings to dig deeper into discussions later in the week. It was also another great opportunity for me to promote Canadian Ag and talk about farm life in Manitoba!

One of the unique parts of our mission in Chengdu was our partnership with the CYA. This gave us a new perspective on Chinese culture, business, and government. Through my new acquaintances I was connected with Mr. Yang Tao of Penta Continent Gas Co., Ltd. and his colleagues who operate a rapeseed processing plant. Due to the changing business environment in China and supply of agriculture commodities they are interested in importing and processing Canadian agriculture products to suit the palette of the Chinese market. I was fortunate to be invited to a meeting to learn more about China’s agriculture industry, food processing and potential trade opportunities. This gave me some insight on the beginning steps of building a business relationship in China. It all starts with social interaction. In fact the meeting was almost more personal interaction than business interaction and this is what to expect in the first steps of building a partnership in China. We met for a traditional, family style meal at a restaurant in downtown Chengdu. The gathering included not only the businessmen, but their families as well. Business conversation is reserved for after dinner; during dinner is a time to socialize. We enjoyed conversation about our families, life in Manitoba, life in Chengdu, and traveling. Following the meal we got into some conversation about Canada’s agriculture industry and Mr. Yang’s interest in entering the importing and food processing industry with his colleagues. I hope to continue the conversation we started and help create an opportunity for trade between Canada and China.

With the JTC and CYA teams we visited the Chengdu Planning Exhibition Hall and met with the Chengdu Municipal Chamber of Commerce where we learned about the local government’s plans for expansion and community improvement in Chengdu. After watching a couple films boasting Chengdu’s greatness and bright future I asked my Chinese colleague what she thought of the presentations. I won’t quote her exactly, but let’s put it this way: the Chinese like to exaggerate, whether it is making a situation seem far better or far worse than it actually is. In this case, it was definitely the former. It is true that Chengdu is developing rapidly; it was recently named a first tier city, placing it in the same category as Beijing, Shanghai, and Guangzhou. However the propaganda we were exposed to was not an accurate reflection of the growth and failed to recognize some of the negative impacts of rapid growth on the local community. That being said, Chengdu is known as the gateway to the west of China, it is a beautiful city, and becoming developed; investing in Chengdu is important for accessing a large portion of China’s population.

Chengdu is working to encourage foreign business; we learned this while visiting the Free Trade Zone. Although the same restrictions apply in the free trade zone in terms of what can and cannot enter the country, it provides a simplified process for products and services to be transferred into the China. Firms operating in the Free Trade Zone receive tax savings, shorter customs clearing times, assistance in distributing products and services across China, and other benefits. It is a great starting place for firms entering the Chinese market. Although Chengdu is more centrally located, it is well connected with international logistics including: the fourth largest airport in China, it is a central hub for railroads with efficient connections to Europe, and it has cargo ship access via rivers from Shanghai. The Chengdu Free Trade Zone provides a good environment for start-ups and could serve as an excellent opportunity to bring niche agriculture products from Canada to China.

Overall our mission in Chengdu was very fruitful and I especially valued the opportunity to connect with the China Youth Ambassadors from Chengdu.