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Report on the Trade Mission to the People’s Republic of China and Japan The Honourable Andrew Fraser MP Treasurer and Minister for Employment and Economic Development 18-25 June 2010 Blank 2 TRADE MISSION OVERVIEW .................................................................................. 4 WHY THIS MARKET? CHINA .................................................................................. 5 WHY THIS MARKET? JAPAN ................................................................................. 6 OFFICIAL DELEGATION MEMBERS ....................................................................... 7 TRADE AND INVESTMENT QUEENSLAND REPRESENTATIVES IN-MARKET ..... 7 BUSINESS DELEGATION MEMBERS – CHINA ...................................................... 8 LAUNCH OF HEAT FASHION EVENT ................................................................... 12 MEETING WITH EXECUTIVES FROM MOTION PICTURE ASSOCIATION .......... 13 LAUNCH OF THE 2010 ASIA PACIFIC SCREEN AWARDS (APSA) ...................... 14 INSPECTION OF SHANGHAI WORLD EXPO 2010 SITE ...................................... 15 OFFICIAL LAUNCH OF QUEENSLAND WEEK AND STATE LUNCHEON ........... 16 OFFICIAL OPENING OF PHOTO EXHIBITION: POST-EXPO REDEVELOPMENT OF BRISBANE SINCE WORLD EXPO 1988........................................................... 17 QUEENSLAND GOVERNMENT RECEPTION........................................................ 18 CHINA EXECUTIVE LEADERSHIP ACADEMY, PUDONG (CELAP) DIALOGUE .. 19 QUEENSLAND GOVERNMENT TRADE & INVESTMENT FORUM ON ENERGY AND RESOURCES - SHANGHAI ........................................................................... 20 MEETING WITH MR TANG DENGJIE, VICE MAYOR OF SHANGHAI MUNICIPAL PEOPLE'S GOVERNMENT, SIGNING OF MEMORANDUM OF AGREED COOPERATION (MOAC) ........................................................................................ 21 SIGNING OF FOUR COLLABORATIVE AGREEMENTS BETWEEN QUEENSLAND INSTITUTES AND SHANGHAI ............................................................................... 22 TOTAL ENERGY SOLUTIONS (TES) SIGNING CEREMONY WITH XUHUI DISTRICT SHANGHAI ............................................................................................ 23 QUEENSLAND GOVERNMENT RECEPTION PROFILING HEAT ARCHITECTURE ................................................................................................................................ 24 TOURISM QUEENSLAND GOLD COAST MARATHON FUNCTION ...................... 25 OFFICIAL OPENING OF TRADE AND INVESTMENT QUEENSLAND'S NEW PREMISES IN TOKYO ............................................................................................ 26 MEETING WITH MR AKIO MIMURA, REPRESENTATIVE DIRECTOR AND CHAIRMAN, NIPPON STEEL CORPORATION ...................................................... 27 MEETING WITH MR YOSHITARO IWASAKI, PRESIDENT, IWASAKI GROUP ..... 28 QUEENSLAND GOVERNMENT RECEPTION........................................................ 29 MEETING WITH MR EIJI HAYASHIDA, PRESIDENT AND CHIEF EXECUTIVE OFFICER, JFE STEEL CORPORATION ................................................................. 30 LUNCH MEETING WITH TOKYO GAS CO LTD ..................................................... 32 MEETING WITH MR HIDEAKI OHNO, DIRECTOR GENERAL, INTERNATIONAL DEPARTMENT, BANK OF JAPAN .......................................................................... 33 LAUNCH OF "PURE HEAVEN" PRODUCTS IN JAPAN ......................................... 34 QUEENSLAND TREASURY CORPORATION COMMITMENTS ............................ 35 3 TRADE MISSION OVERVIEW Summary The aim of this trip was to reinforce the utmost priority the State places on trade and investment relationships with key trading partners of China and Japan. I promoted Queensland as a trade and investment destination, promoting specific skills and capabilities at targeted events and meetings in each market. During the trip, I also gathered intelligence to assist Queensland businesses to take advantage of emerging opportunities in these markets. China In China I officially launched Queensland Week at Shanghai World Expo, reinforcing Queensland’s commitment to China and promoting the State’s capabilities under the global spotlight of Expo. I met with the Vice Mayor of Shanghai and re-signed the 9th Memorandum of Agreed Cooperation between Queensland and Shanghai for 2011- 2013, now in its 21st year. During Queensland Week, I promoted the HEAT initiative for creative industries in fashion and architecture, opened a photo exhibition on Brisbane’s Development since World Expo 88 at Shanghai Urban Planning Exhibition Centre in People’s Square. I addressed attendees at the Queensland China Trade and Investment Forum focusing on Energy and Resources, outlined investment opportunities in Queensland, reinforced our existing cooperation with China and reaffirmed the Queensland Government’s position to welcome the Chinese investment. The Forum attracted over 100 senior executives from all over China. I observed a number of signings on collaborative science and technology related agreements between Queensland universities and their Chinese counterparts, and also observed Queensland company, Total Energy Solutions, sign a preferred supplier agreement with Xuhui District Government of Shanghai. I addressed future leaders of China on the topic of “Innovation in the Australian Public Sector using Queensland as a case study“ at the China Executive Leadership Academy Pudong (CELAP) – the address was the second annual Australia China Futures Dialogue, the first of which was an address by Bob Hawke in December 2009. Japan In Japan I met with key clients of Queensland industry – namely JFE Steel, Nippon Steel and Tokyo Gas, and reassured them of Queensland’s commitment to our significant relationships and encouraged further investment. I officially opened Trade and Investment Queensland’s new office in Tokyo and provided assistance and support to Queensland company Pure Heaven at their promotional campaign. I addressed 300 attendees at the Queensland Government Reception in Tokyo, an excellent platform to network with key Queensland clients and reaffirm the State’s support for them. The remainder of my time in Japan was spent undertaking numerous Queensland Treasury Corporation (QTC) related meetings as part of the annual QTC Roadshow. 4 WHY THIS MARKET? CHINA China - the world’s third largest economy, third largest exporter of goods and services, and Australia’s biggest trading partner. China’s strategic influence will naturally grow with its expanding economy. China is one of Queensland’s most important markets and its importance will only increase in the future. The Queensland Government recognises that China is a major contributor to the current global order and has Trade and Investment offices strategically located in Shanghai, Guangzhou and Hong Kong and a presence in Beijing to nurture our bilateral trade and investment relationship and spearhead opportunities for Queensland businesses. The objective of the mission was to strategically position Queensland as a reliable source of future trade and investment for China. Queensland’s commitment to China is highlighted through its involvement in Shanghai World Expo 2010 – this year’s biggest international event and the world’s largest ever Expo. The mission reinforced Queensland’s relationship with the Chinese government and business communities at the highest levels through targeted meetings, events and activities that took place during Queensland Week. Another key element of the visit was the re-signing of the Memorandum of Agreed Cooperation between Queensland and Shanghai, the Sister-State agreement which has already been in effect for 21 years. In doing so, I reaffirmed the State’s commitment to its long-standing bilateral relationship with China, particularly the Queensland-Shanghai Sister State relationship. More than two decades of growth at around 10 per cent every year has raised living standards significantly, with nearly half of China’s population now living in urban centres. These advances present significant opportunities for Queensland businesses, with key sectors identified for trade and investment focus including: Food and Agribusiness Education and Training Green Building and Infrastructure Energy and Resources Creative Industries Tourism Queensland Week events focused on these key sectors. These events facilitated introductions and business matching which will lead to trade and investment outcomes over the coming months in each of the abovementioned sectors. 5 WHY THIS MARKET? JAPAN Japan is Queensland's largest merchandise export market. This trade mission reinforced Queensland's relationship with Japan and the State's commitment to strengthening business ties with major Japanese corporations investing in Queensland. The overall objective of the visit to Tokyo was to encourage business activity in Queensland and further investment in existing and emerging, yet strategically important industries, such as coal and Liquefied Natural Gas (LNG). I reassured major Japanese corporations that Queensland is committed to providing the necessary infrastructure and services to support their investment interests in Queensland. The trip to Tokyo involved a series of meetings with Queensland Treasury Corporation (QTC) investors and representatives of QTC’s Fixed-Interest Distribution Group (FIDG) members. These meetings, undertaken on an annual basis, were on this occasion designed to provide participants with a timely overview of the 2010-11 Queensland budget and