Canadian small and medium enterprises (SMEs) have become much more aggressive in seeking opportunities in the Chinese market in the period dubbed as ＂post- recession era.＂ They are active in everything ranging from financial services, technology, and education to manufacturing, mining and energy.
＂Certainly, more Canadian SMEs are looking to China, and we see a growing interest in the Chinese market,＂ said Sarah Kutulakos, Executive Director of Canada China Business Council (CCBC), to Xinhua. ＂This is because they can't rely on the U.S. market any more,＂ she said.
Jean-Michel Laurin, Vice President, Global Business Policy at the Canadian Manufacturers and Exporters, echoed Kutulakos' observation about the U.S. market. Due to weaker demand south of the border and the fact that the North American market is not growing as fast as it used to, Laurin observed, many Canadian businesses have had to readjust their strategy and try to find new customers overseas.
＂They (SMEs) are increasingly looking (for) opportunities at other markets that can grow their sales and increase the revenue,＂ said Laurin. ＂China is undoubtedly on the top of the list. Lots of companies are naturally inclined to look for opportunities in China.＂
＂From our experience, more than 50 percent of all of our clients doing business with China are SMEs. This number is significantly up from 2008,＂ said Mark Bolger, Asian Regional Manager, Export Development Canada (EDC), a Canadian government owned export credit agency.
China's Economic Growth Continues to Impress
Bolger said Canadian companies have expertise in many different fields of interest to China, including clean technologies, green building technologies, urban planning and architecture.
On the other side of the Pacific, China has much to offer Canadian SMEs. China's enormous economic growth, and its increasing demands for energy, new technology and construction of new infrastructure, are all helping draw Canadian SMEs who have succeeded in these sectors, in hopes of obtaining new opportunities.
Another factor drawing Canadian companies to China is the Chinese government's interest in promoting sustainable economy growth and protecting the environment. This is helping encourage Canadian SMEs with relevant expertise and technology to take a look at the Chinese market, according to experts.
Clearford Industries Inc., a wastewater treatment technology firm, found that its technology meets China's aggressive clean water goals by turning waste water into clean water. Clearford has readjusted its focus market from North America to Asia.
According to Bruce Linton, the President and CEO of Clearford, Canada only has 32 million people, a little more than the population of Chongqing city in China. However, the infrastructure in Canada has been focused for more than 40 years and no growth point.
＂We really need to go to China, where maybe six or seven million people need the infrastructure. The best place for our system is in countries that want the green and sustainable infrastructure,＂ said Linton, adding that China now has very strict rules on preserving water.
As a newcomer to the Chinese market since last December, Clearford has already worked on three projects in China. Linton sees these as ＂pilot projects,＂ to demonstrate the benefits of the company's products. ＂If you could do three of these a year, there' s no reason you can't do 30 next year,＂ said Linton ambitiously.
Clearford is not alone. According to Kutulakos, more than half of CCBC's most innovative members are small to medium-sized enterprises (1-499 employees). Many new members, like Clearford, want to succeed in the Chinese market and increase their revenues and profits. They come to CCBC for help developing business strategies in China, and building relationships and partnerships with Chinese officials and business counterparts.
Research & Consulting