Exploring Economic Benefits of Sister Cities: Prince George and Jiangmen 1100 Patricia Blvd. Prince George, BC, Canada V2L 3V9 Tel. 250.561.7633 www.investprincegeorge.ca Exploring Economic Benefits of Sister Cities: Prince George and Jiangmen Jiangmen 2/28/2014 Partnerships for Prosperity The aim of sister cities is to foster communication across borders, promote cultural, educational, and sporting exchange, initiate collaborative research, and increase tourism and trade between the two cities. Page 1 Exploring Economic Benefits of Sister Cities: Prince George and Jiangmen Table of Contents 1. Exploring Economic benefits of sister cities: Prince George and Jiangmen……………………3 2. The city of Jiangmen…………………………………………………………………………………………………………………………………4-6 3. The city of Prince George……………………………………………………………………………………………………………………… 7-8 4. Potential export products to Jiangmen………………………………………………………………………………………… 9-10 5. Opportunities for Prince George Manufacturing sector………….……………….………………………………… 11 6. Opportunities for Prince George Construction sector………………………………………………………………… 12 7. Opportunities for Prince George Healthcare and social assistance sector……..……………… 13 8. Opportunities for Prince George Scientific and Professional services sector…………….14-15 9. Opportunities for Prince George Education Services sector…………………………………………………… 16 10. Opportunities for Prince George Agriculture and Forestry sector………………………………… 17-18 11. Opportunities for Prince George Information, Culture, and Recreation sector……………… 19 12. Opportunities for Prince George Mining, Oil, and Gas sector…………………………………………………20 13. Conclusion and key economic benefits…………………………………………………………………………………………21-22 14. About City of Prince George - Economic Development....………………………………………………………….. 23 15. Appendix 1 – Investment promotion organizations in Jiangmen………………………………………… 24 16. Appendix 2 – Industry association in Jiangmen…………………….…………………………………………………… 25 17. Appendix 3 – Business promotion organizations in Prince George…………………………………… 26 18. Appendix 4 – References………………………………………………………………………………………………………………………… 27 Page 2 Exploring Economic Benefits of Sister Cities: Prince George and Jiangmen Exploring Economic Benefits of Sister Cities: Prince George and Jiangmen Partnerships for Prosperity SISTER CITIES Sister city relationships are cooperative arrangements “International twinning is one means of promoting development. While not a practical between two cities in different countries designed to option for all communities — and not a panacea promote economic and cultural exchanges. These for any — well thought-out and supported twinning arrangements can form part of new relationships provide long-term mutual benefits to both development strategies for many BC communities” cities and bring overall economic gains to their respective -BC Province- countries. They aim to encourage cultural awareness and understanding, with a view to enhance the flow of ideas and knowledge sharing, as well as to grow tourism and trade between the two cities. This study aims to provide information about areas of opportunities for Prince George businesses in the city of Jiangmen. We hope this study will encourage Prince George businesses to connect with businesses and organizations in Jiangmen to explore economic opportunities. EXPLORING ECONOMIC BENEFITS OF SISTER CITIES The economic benefits of sister cities are broad ranging and typically include: • Attracting foreign students • Increase in trade • Increase in tourism • Access to business supporting organizations and associations • Establishing business contacts • Collaborative research Did you know? • Sharing information about best business practice Charleston, South Carolina’s sister city partnership with Spoleto, Italy creates $30 • Knowledge and technology sharing million in economic benefits annually • Cultural and sporting exchanges The proposed sister city relationship between Prince George and Jiangmen can focus on education, culture, trade, tourism and sport. Cultural and commercial benefits are not mutually exclusive; enhancing cultural, sporting and educational exchanges will promote commercial exchange over the longer term. Page 3 Exploring Economic Benefits of Sister Cities: Prince George and Jiangmen The city of Jiangmen The city of Jiangmen is located in southern China’s Guangdong province with a resident population of 4.4 million. Jiangmen is well connected by air, rail, road and sea. Five international airports operate within a two-hour drive of the city. It is also a convenient 2.5-hour ferry ride away from Hong Kong. Profile of Jiangmen Economy Jiangmen, Guangdong Province – Southern China Main industries Manufacturing Motorcycles Household appliances Electronics Paper-making and paper products Food processing Synthetic fibers Garments Stainless steel products Planned industries Industrial development Electronic information plan: Emerging Equipment manufacturing industries, all present Midstream and downstream petrochemicals and assisted by the Modern agriculture government Food processing Paper-making and paper products Textile and chemical fibers Clean energy Strategic advantages Geographic location Within 200 kms from major markets such as Guangzhou, Shenzhen, Zhuhai, and Hong Kong In close proximity to 5 international airports 6 ports including the Jiangmen Port, which is the second largest river port in the province of Guangdong 330 kms of coastline with 258 islands Page 4 Exploring Economic Benefits of Sister Cities: Prince George and Jiangmen International trade Exports in 2012 were worth US $12 billion (refer to Table 1) Imports in 2012 were worth US $5.4 billion Infrastructure China’s electric energy base Developing 7 wind farms with 383 generation units and a capacity of 345,700 kilowatts Named one of the top 10 green economies in China 11 industrial parks (refer to Table 2) 19 national-level industrial bases Planning to develop harbour industrial zone with heavy industries– petrochemicals and machinery plant Skilled workforce: 64,000 highly skilled and 500,000 skilled China’s outstanding tourist city, land of hot springs and geothermal park Table 1. Exports from Jiangmen Industry No. of companies / Export volume to Oct Annual export manufacturers 2012 (US $bn) growth Housewares 3,500 8.8 6.3% Small electrical appliances 300 0.8 7% Bags, suitcases and leather goods 500 0.12 6% Motorcycles 130 0.5 6.5% Building materials 1,500 1.2 10% Page 5 Exploring Economic Benefits of Sister Cities: Prince George and Jiangmen Table 2. Core industrial parks in Jiangmen Jiangmen High-Tech Industrial Park Cross-industry high-tech platform with a port industrial park and commercial centre (362 projects operating of nearly 500 planned) Taishan Clean Energy (Nuclear Power) Nuclear equipment development under Twelfth Five-Year Equipment Industrial Park Plan Guangdong Regional Rail Transit Advanced rail and supporting industries Industrial Park Advanced Manufacturing Base Jiangsha Cross-industry platform with auto and motorcycle, food, Demonstration Zone new energy and new materials; more than 60 foreign- funded enterprises, annual output of about US $5 billion Jiangmen Industrial Transfer Park Development of electronic information, metal machinery manufacturing, textiles and clothing Xinhui Economic Development Zone Cross-industry platform with chemicals, stainless steel and machinery Taishan Advanced Manufacturing Auto parts, hardware, machinery and related advanced Industries Park industries Taishan Guanghai Bay Industrial Park of Equipment manufacturing, chemical, marine engineering Guangdong and harbour Guangdong Yinzhou Lake Paper Base Paper making and related industries Yamen Designated Electroplating Metal plating including gold, silver, copper, chromium and Industrial Base zinc Heshan Industrial Park Advanced manufacturing with new energy, new light sources, new medicine, auto parts, machinery and electronic information Page 6 Exploring Economic Benefits of Sister Cities: Prince George and Jiangmen The city of Prince George The city of Prince George is the largest city in Northern British Columbia with a population of 76,000 serving a region of 326,000 people. The city is the service and supply hub for one of the fastest- growing regions in Canada and plays an important role in the province's economy and culture. It is well-connected with road, rail, air and marine infrastructure. Profile of Prince George Economy Prince George, British Columbia (BC) Province Main industries Retail and wholesale trade Healthcare and social services Accommodation and food services Construction Manufacturing Transportation and warehousing Educational services Forestry Professional, scientific and technical services Information, culture, and recreation Growing industries Professional, scientific and technical services Bioenergy Construction Transportation and warehousing Educational services Forestry Tourism and recreation Strategic advantages Geographic location Connected to global markets via air, road, rail and marine infrastructure Business and industrial service and supply hub for Northern BC Centrally located within the emerging LNG and mining sector in BC Centrally located within the existing and growing forestry and mining sectors Education, health and cultural centre for Northern BC Page 7 Exploring Economic Benefits of Sister Cities: Prince George and Jiangmen International trade Products: Lumber Pulp and paper Wood pellets Manufactured metal products Environmental and engineering services Exploration and drilling Oil and gas Chemicals Infrastructure Service and supply hub for Northern BC serving a variety of industries (primarily forestry, mining, oil and gas) Prince George is at the centre of a growing bioenergy sector Light and heavy industrial parks Canadian National (CN) network and intermodal facility Prince George Airport (YXS) – which has the third largest runway in Canada (11,450 feet) Major highway access to North American markets within 1-3 days Two major west coast ports within 800kms Major provincial Highways 97 and 16 Advanced education through the University of Northern British Columbia (UNBC) and the College of New Caledonia (CNC) Healthcare and service centre - University Hospital of Northern BC - BC Cancer Agency Centre for the North - Northern Health Authority headquarters Page 8 Exploring Economic Benefits of Sister Cities: Prince George and Jiangmen Potential export products to Jiangmen Lumber Due to ongoing development of residential, commercial and industrial complexes in Jiangmen, there is an increase in demand for lumber. BC softwood lumber exports to China reached $1.39 billion in 2013. Jiangmen is planning projects worth $4.2 billion in 28 cities of the Yangtze river delta region including commercial, real-estate, hotels and logistics. Wood Engineered products The demand for higher value products such as Oriented Stranded Board (OSB) is increasing in China. Export of Canadian wood-based value-added products and plywood and veneer to China grew by 152 and 56 percent respectively in 2013. Environmental, Engineering design, Professional services are becoming more relevant as more and Architectural services and more economies seek to increase value-added activities and compete for investment within manufacturing. Canada is still a significant net exporter of engineering and architectural services and is the fourth largest exporter globally. This is one of the fastest growing industries in Prince George; employment in this industry grew nearly by 53 percent in 2013. Jiangmen is planning several commercial, residential and industrial complexes, which provide opportunities for Prince George businesses. Wood pellets BC produces nearly 1.87 million tonnes of wood pellets; 350,000 tonnes of pellets is produced in Prince George. There are dedicated terminals in Vancouver and Prince Rupert port for wood pellets exports. The demand from China for wood pellets is increasing due to their initiatives to reduce greenhouse gases emissions. Wood pellets are used for generating heat and also for cofiring with coal to produce electricity. Jiangmen is one of the leading energy producers in China and wood pellets may replace some of the coal from their power plants. Page 9