Shtabsky & Tussman LLP

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DOING BUSINESS IN CANADA: An Introduction for businesspersons from China * C.H. William Cheung, B.S.Sc., M.Phil, LL.B., FRI, CITP Partner, Shtabsky & Tussman LLP, 1400 10025 - 102A Avenue , Edmonton, Alberta, Canada T5J 2Z2 Tel: 780-429-4671 Fax: 780-424-3580 e-mail: bcheung@stlaw.com Presented at Conference on West China Meets Western Canada: A Trade and Investment Conference (October, 2001) Edmonton, Alberta, Canada DOING BUSINESS IN CANADA: An Introduction for businesspersons from China 1 INTRODUCTION As China is likely to be part of the WORLD TRADE ORGANIZATION (WTO) in the very near future, one can envisage that trade between China and Canada will dramatically increase in the years to come, particularly in light of the bilateral agreement on WTO signed between Canada and China in November 1999. The purpose of this presentation is to introduce the subject matter to our friends in China. It is believed that a mutual understanding on topics of this nature would facilitate doing business between China and Canada. The presentation will compare some values fundamental to the Canadian society as reflected in Canada's laws and business practice with that observed in China through the writer's regular business visits to China. The following areas will be discussed: a. The role of Government in business b. The role of the legal profession in business The advantage of utilizing Canadian corporations for the North American Market The contractual process and dispute resolutions The Rule of Law and how it affects business f. Other business practice points 2 THE ROLE OF GOVERNMENT IN BUSINESS 2.1 In this section we shall examine the role of government and business in Canada with emphasis on the Province of Alberta. An explanation about the concept of exclusive jurisdiction is also offered. 2.2 Our friends from China would quickly note the difference in the role of government in business between the two countries. In China, state-owned enterprises have played a major role in the economy. Private enterprises only began to establish themselves in the 1990's. It will take some time before they will take the place of government as business operators, if this will happen at all. One may therefore say that in China, the Government is an "˜operator' of business. China's entry into the WTO may allow itself to open its market in such businesses as air transportation, railways, banking and insurance, telecommunication networks, TV and radio broadcasting. These businesses have, up to this date, been operated by the government. 2.3 The government in China is also a "˜regulator' of business. An example is that the Bureau of Industry and Commerce at the Central, Provincial and Municipal levels are involved in issuing licences and permits to business enterprises that operate at the relevant levels. Other government authorities such as health authorities and the Bureau of Tourism are also involved in licensing businesses in the hospitality industry. 2.4 In Canada, the government is not an "˜operator'. Few businesses are owned or operated by it. Most businesses are left with the private sector.

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