A profound global economic shift towards Asia is underway. China and India are at the forefront of this global transformation but the region as a whole -- including Japan, Korea, and the countries of Southeast Asia -- is driving economic growth and forcing Canadians to rethink their place in the world. With an average growth rate of 10% annually in the last decade, China recently surpassed Japan as the world's second-largest economy.
It was a top investment destination in 2010 receiving over $100 billion in foreign direct investment (FDI). China is Canada's second largest trading partner after the U.S. and Canada's largest export market in Asia. The strength of the Chinese economy during the global economic downturn of 2008-2010 has been a major factor in Canada's relatively strong economy during this period. In British Columbia, the emergence of China as a new market for wood product exports has been a lifeline for mills in rural communities such as Quesnel, Williams Lake and Vanderhoof.
India's pace of growth has been second only to China at an average rate of eight percent annually over the last five years. India has a large young and welleducated demographic, and a rapidly growing middle class. India's trade and investment relations with Canada are relatively undeveloped, but there has been rapid growth in exports, imports and inward investment to Canada in recent years. For example, the numbers of Indian students at Canadian universities and colleges has increased by about four-fold in the space of three years.
A February 2011 poll of Asia practitioners conducted by the Asia Pacific Foundation of Canada found overwhelming enthusiasm for Asian markets. In all, 98% of respondents believe that China is important for the economic prosperity of Canada, while 89% believe the same for India. Yet, the Canadian public as a whole remains relatively uninformed about Asia and uncertain (or fearful) about what it means for Canada. When asked if they would support a Chinese state-owned entity taking a majority stake in a Canadian asset, only 18% agreed.
The Canadian business community is beginning to recognize the need for Asian markets to be integral to their competitive strategies and Canadians as a whole are tuning in to the rise of Asia as a phenomenon that will affect their lives now and into the future. In turn, the Federal government and provincial and territorial governments are putting more emphasis on Asia in their international strategies.
While British Columbia has been a provincial leader in relations with Asia and is the natural "gateway" for trade, investment, and human linkages across the Pacific, other provinces are also recognizing the need for an Asia-focus. Alberta, for example, recently announced an Asia Advisory Council, which will help inform and advise on strategic priorities throughout the region.
While government leadership on Asia is essential,the key to deeper economic, cultural, research, and people-to-people ties across the Pacific will depend on business and civil society. To that end, APF Canada will initiate a National Conversation on Asia (NCA) that will provide a platform for private sector, non-governmental and educational groups to deepen their understanding of the importance of Asia, and to come up with Asia-strategies that are relevant to their specific interests. The importance of emerging markets such as China and India is not that they are "emerging", but that they are already vital to many sectors of Canadian society, and will be increasingly so in the years ahead.
1. Around 200 of the top 700 cities, by population, in the world will soon be in China.
2. Wide scale consumption -- China will become the third largest consumer market in the world by 2025.
3. Hong Kong has nearly 300,000 Canadians, equalling Canada's 16th largest city.
4. China has surpassed Japan as the world's second largest economy.
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