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The Spirit of Canada: Innovative and Young

Remarks by the Hon. David Kilgour

Secretary of State (Asia-Pacific) and M.P. for Edmonton Southeast

To Junior Team Canada

and the Guangzhou Chapter of the Canada-China Business Council

China Hotel, Guangzhou, China

August 16, 2002

*Check Against Delivery

Members of Canada-China Business Council, Mayor Liu of Foshan, Consul Generals of Asia Pacific, distinguished guests, ladies and gentlemen. I'd like to offer a particularly warm welcome to the younger people here: Kingold MBA students and JTC delegates. My message is about innovation, youth, and Canada's relations with China.

Guangzhou has opened my eyes to the opportunities for economic prosperity and growth in this country. It is a vibrant city. My only regret is that all of us can't spend more time here.

We started our visit with a presentation by our Consul General, Paul Lau, on the opportunities in South China, entitled "The Pearl of China." As I mentioned yesterday, I've never thought of a city or region as a pearl, but there seems to be no better way to describe the region here! To borrow a few stats from Paul Lau, it ranks #1 right across the board - #1 in trade volume, #1 in trading history, and #1 in foreign direct investment. It is the wealthiest region of China.

With a population of 165 million - a full 13% of China as a whole - it is an incredibly important regional force. Total imports and exports in and out of this region total $220 billion a year (CAD), representing 40% of China's total. Foreign direct investment to the region is higher still - a staggering $220 billion (CAD). Not surprisingly, the region is leading the country in terms of disposable income and economic growth.

Guangdong, in particular, is exceeding all expectations, with a GDP growth of 9.5%, well over the 7.3% national average. It is also at the forefront of China's ongoing economic reforms, having been one of the earliest to open its doors to international trade, and indeed, as China's only door to the west for 200 years before 1911. As such, there is no place better in China to discuss global technological and economic advances than here in the province of Guangdong.

A Changing World

The world is changing; the young and educated are leading the charge. We are in the midst of a massive shift in the way we communicate, live, work and learn, and the way we do business and trade. You've heard all the buzzwords - "wireless" … "e-com" … "the power of the Internet" … "globalization" … "the global village." We hear them so often, that it's easy to dismiss them, but they really are revolutionizing how we do business and live.

And they're picking up speed. In China, for example, the number of cell phone users is increasing at a rate of 5,000,000 a month! Technologies converge. New markets emerge. Mergers and acquisitions are a commercial "way of life." Companies are restructuring, and entire industries are co-operating. Trade barriers are giving way to trade integration. The monopolies and state-owned enterprises of yesterday are being toppled by competition, efficiency and privatization. In short, innovation and globalization are making the world a smaller and often better place … and significantly reshaping our social, economic and political landscape in the process.

For business, this translates into exponential opportunities - for foreign investment, global partnerships, joint ventures, trade. But there's also the human element - something often forgotten - which, in the bigger picture, is even more important. Technological advances, particularly in biotechnology and health, hold enormous promise for improving the quality of life everywhere. This is the subject of my talk today, and I'll touch on Canada's accomplishments in these areas in a moment. But allow me, for a minute, to challenge each of you to try to see things from a global but human perspective.

Below the Bottom Line

Don't fall into the trap of thinking only of profits, return on investment or the bottom line. Regardless of where we live, we're all in this together, all six billion of us. We share similar values. We breathe the same air. Whether we're from Guangzhou, Saskatchewan, Islamabad or Rome, when it comes down to it, most of us want the same things - happiness, health, good education for our children, to be appreciated for who we are, to be treated with dignity and respect.

Having met many of you during the Junior Team Canada mission this week, I know you're bright and ambitious, but I can tell that you also have good hearts. At almost every meeting we've been to together, someone speaks out about the environment or the values that Canadians hold dear. One of you, yesterday, during your briefing with the consulate, stressed the importance of transparency in laws. Many of you ask about education and increasing our "human links." Our future business leaders clearly are not only driven to succeed but are determined to make this a better world, and I encourage you, in the coming weeks and years, to watch for the opportunities to help your sisters and brothers around the globe.

In China, this could mean taking investment west to help jumpstart the region that needs it most. It could mean creating "people to people" links, particularly in the areas of education and the arts. Consider, for example, building educational bridges - anything that brings our youth here and China's young people to our home. Work with your Chinese counterparts to bring a Junior Team China to Canada. Be creative. Think outside the box! A young pianist from Western Canada, Martin Mayer, recently finished a 15 city tour of China. Next year, theatres across China will open to "Dracula," courtesy of the outstanding Royal Winnipeg Ballet. Cultural exchanges like these inject life into our relations - and corporate sponsorship and support are often key.

Canadian Presence in the Region

Clearly, the ties between countries aren't just about politics and trade. But that doesn't mean trade and investment aren't enormously important. As we see here in Guangzhou, investment energizes cities, fuels local economies, stimulates growth and creates local jobs. A Canadian manufacturing company in Suzhou, for example, which I was fortunate to visit earlier this week, went from a few employees to over 1000 in just a few years, with plans to reach 3000 by the end of next year. Here in South China, Canadian firms are not only establishing manufacturing bases but also investing in R&D. A perfect example in Guangzhou is Nortel's centre at Zhongshan University, which has grown from just a few to about 200 mostly young staff within just a few years.

Canadian companies are unquestionably successful here, and these are the kinds of success stories we, as Canadians, can be proud of. Across all the key sectors, we enjoy significant accomplishments in the region, and we're represented by some of our best. In the financial services sector, we have Manulife here, along with the Bank of Nova Scotia and the Bank of Montreal. In transportation, we have Bombardier. In IT, Nortel. You get the idea.

In the environment sector, we're represented by Richway, Trojan and, of course, SNC-Lavalin. In construction and materials: B+H International, MHKW Architects, and Fresbec. In the energy sector, we have SM Group, as well as DSG-Canusa, to name a few. Agriculture and biotechnology - the list is long: Evergreen Vegetables, Galton Brewery, Clearwater Fine Foods, YES Biotech, WEX, Rocky Mountain … I could go on! And, of course, there's the National Gallery of Canada, as well as some of our finest educational institutions, including the Universities of Saskatchewan and British Columbia, which I understand may have some alumni here today.

Such successes aren't limited to Guangzhou. I could describe dozens of successful ventures in Shanghai and Beijing. Without a doubt, Canadian companies are leaving their mark on China. Many of you may be wondering how you can do the same.

Biotechnology and Health

As unbelievable as this sounds, some of you may decide to forego business and focus on other fields, like the sciences, instead. Or you may discover that you have a technical flair or a passion for building, designing, perhaps R&D. If that's the case, go for it! Many other Canadians did … and look at the good they're bringing to people around the world.

In the area of health, Canadian researchers have made significant advancements in battling cancer, diabetes, cystic fibrosis, Alzheimers and HIV/AIDS.

Two Canadians, Banting and Best, discovered insulin in 1921, still the only treatment for diabetes. The University of Alberta has built on this strength by developing a tool for creating insulin naturally, called Islet-cell transplantation.

In the fight against cancer, Canadian researchers have made significant inroads in the global search for a treatment or cure. Julia Levy from UBC co-discovered photodynamic drugs; the University of Calgary's Patrick Lee developed a reoviruis - a potential treatment.

Our Hospital for Sick Children in Toronto has been a leader in the treatment of children, but it also gave us significant hope in the battle against cystic fibrosis with the discovery of the defective gene that causes the illness by Lep-Chee Tsui in 1989. Dr. Tsui is now the president of the University of Honk Kong, and we look forward to his continued leadership in health science research and his promotion of Canadian science in this region.

Research into Alzheimer's took a significant leap forward with the work of researchers at the University of Toronto and McGill. McGill's Judes Poirier identified a link between Alzheimer's and apolipoprotein E. Peter St. George-Hyslop, of the University of Toronto, successfully immunized mice against the disease.

And Dr. Bernard Belleau, who lead a group of researchers at McGill University in the 1980s, discovered 3TC (lamivudine), a medication that plays a key role in the treatment of AIDS. Dr. Belleau was also instrumental in founding a pharmaceutical company called BioChem Pharma Inc., one of the largest of its kind in Canada. The firm invests over $80 million in medical research every year.

On the commercial side too, Canada ranks extremely well when we compare our biotech sector to those of other countries. We are first in the world in terms of R&D per biotech employee, second to the United States in the number of biotech companies, and third in biotechnology revenues, after only the United States and the United Kingdom.

As you can see, Canadians accomplishments in biotechnology and health have implications for patients, families and researchers around the globe. Canada is not only a country of cold winters and snow. We are a country of innovators, and they're changing the world.

Telecommunication and ICTs

Another area where Canadian expertise is often overlooked is telecommunication and information and communication technologies. In 1876, Alexander Graham Bell made the first successful telephone call from his Ontario lab. In 1901, Marconi received the first transatlantic wireless message on what are now Canadian shores. Fast forward to 1972, when Canadian scientists launched the first telecommunication satellite - the Anik A.

Then there's the Internet. Most of you want things to move fast. The high-speed network is your connection to the rest of the world. So just how fast is "high speed"? Well, I'm told that Canada's CA*net 3 can download a two-and-a-half movie in one-fifth of the second. Now that is fast! With a bandwidth greater than any commercial Internet link, CA*net 3 is the fastest in the world.

Despite the global slowdown in the IT sector, our ICT sector still attracts investors from around the world. Our telecommunication companies regularly form strategic alliances with international firms to increase distribution and develop new products. Our regulatory environment makes it easy for Canadian businesses and their international partners to move innovative new products and services into the global market. Canadian companies already benefit from one of the worlds' best communication infrastructure, but investment in Canada offers even more - access to the most advanced development networks anywhere. There's our all-optical CA*net 3, which I've already mentioned, and Canada’s National Test Network which, at 6,000 kilometres, is the longest fibre optic network in the world.

In short, our high speed networks open worlds of opportunity, and it is our young people who will help us capitalize on these strengths. Multimedia, virtual reality, real time audio and video … electronic commerce, telemedicine, distance learning … The possibilities are endless, and so are the opportunities to use advancements such as these to do good around the world.

In Closing

At this point, I'd like to hear from you. To those from this region, how do you see Canada? To the Canadians visiting or living here, how is Canada viewed in the eyes of the people you meet? What can we do to better brand our country as something more than a place of Mounties and snow? What can the Government of Canada do to let the rest of the world know of the tremendous accomplishments of Canadian innovators, like the ones we touched on today? How can we better promote the accomplishments of our youth, our image makers and breakers in the years to come?

And please, don't be shy. I know that's not a problem for JTC; those of you who heard last night's singing will undoubtedly agree! But to the rest of our guests, please do share what you think. And if you have further ideas, I'd love to hear from you when we get back. You have my email - kilgour@parl.gc.ca. Please also visit my website: www.david-kilgour.com. I'll try to post some of the responses to the Web. Thank you again for listening. It has been a great pleasure.

 
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