This tour was definitely a highlight of our visit, as Mr Mah passionately answered our questions all afternoon, describing in detail all aspects of Giordano’s manufacturing, strategy, international trade, ecommerce, government relations, retailing, and marketing operations. It was an impressive live case study of a company that has become hugely successful in China, returning back to China after having been forced out of the Chinese market between 1994-2000 due to disagreements with government officials.

Mr Mah’s energy and enthusiasm was immensely inspiring to us, as he discussed innovations in all aspects of his operations that earned his company a 2008 Hong Kong Exchange Corporate Governance Excellence Award. A great finish to an amazing learning experience!

Giordano's China office and retail store located on Shanghai's Nanjing Road

Mr Bernie Mah, Executive Chairman of Giordano China and U of A alumni, explains how Giordano went from being shut out of the Chinese market in 2000 to achieving its present day position as a retail leader in China

At the Suzhou Industrial Park (SIP), we were greeted by Mr Alan Wong, Senior Project Manager at SIP, who recruits and manages commercial tenants within the park. Mr Wong discussed the special incentives offered for businesses located in Suzhou, and explained that 130 of the Fortune 500 companies already had a presence in Suzhou. Mr Wong explained his desire to upgrade tenants within the industrial park from labour intensive industries to non-polluting high end industries. SIP is currently recruiting businesses in the pharmaceutical, precision mechanics and service industries.

Ms Liang joined us for lunch and had an opportunity to discuss her experience as a U of A MBA grad working in Suzhou.

After lunch, we visited Johnson and Johnson Suzhou, where M. Frederic Caubit, general manager of Johnson and Johnson Suzhou, discussed opportunities and challenges of managing manufacturing operations in Suzhou. The J&J manufacturing operations in Suzhou produce knee and hip replacement products for medical clinics around the world. M. Caubit, a French expat and as it turned out, a fellow former student with Pascal Bisson of our U of A MBA group, explained how, through conservatives practices, his plant has not experienced a single product safety issue since he started manufacturing 26 months ago. His plant implemented LEAN manufacturing 3 years ago, and it was fascinating to examine their LEAN cellular manufacturing operations at work on a subsequent tour of the shop floor.

On the road back to Shanghai, we stopped in Changshu and were met by Dr Zhang, a Chinese-Canadian who was born in Shanghai and received her Ph.D. in Economics from the University of Manitoba. Dr Zhang described the history of Canadian Solar Inc, from its roots in 2001 as a small spin-off of Ontario Hydro to its present day position as one of the top five global players in the solar panel industry. Canadian Solar Inc has nearly 7,000 employees who manufacture and sell solar cells and modules. It has 7 sales offices worldwide, with its headquarters located in Kitchener, ON. It has R&D partnerships with the University of Toronto, ECN, and Dupont. It was interesting to hear how Dr Zhang was able to leverage Canada’s reputation for quality in her company’s branding. As a Canadian company, she stated that her company has a much better reputation for product quality than her Chinese competitors, and she backs her quality guarantee with a 25 year warranty on all her products.

Suzhou Industrial Park welcomes the University of Alberta

At Johnson and Johnson Medical Suzhou

MBA students attend a briefing by Mr Frederick Caubit, general manager of Johnson and Johnson Suzhou

Dr Zhang discusses Canadian Solar Inc's manufacturing operations with U of A MBA students

Tour of Canadian Solar Inc's manufacturing operations

In the afternoon, the group was hosted by businessman and developer Mr Li Ruohong at his King’s Garden Villa, one of Beijing’s most exclusive residential properties.

Mr Li regularly facilitates negotiations and cultural exchanges between business and political leaders at his estate. During the Beijing 2008 Olympics, for example, 10 heads of state visited Mr Li at King’s Garden Villa.

Mr Li is an extremely successful, influential and well connected businessman in China. After a successful career as a developer, for the last 10 years Mr Li has been working to promote peaceful interaction between nations and business sectors as chairman of the China World Peace Foundation. He is also a member of the University of Alberta’s Business Advisory Council and was gracious in providing us with his insider views of China’s role in the world and of opportunities for business in China.

Mr Li’s Q&A session provided us with insight into Chinese infrastructure and energy sector investments in Africa, his view of short and long-term growth prospects for the Chinese economy, and, in particular, opportunities within clean energy wind and solar sectors in China. He explained China’s non-interference foreign policy, a policy that seeks the objectives of mutual respect and world peace.

Mr Li discussed the challenges of reconciling China’s traditionally command economy with modern, free-market values. He discussed his vision for what he calls a “global economic supermarket” to which all nations contribute. As long as the rules are clear, Mr Li explained, the outcome of the “global economic supermarket” will be beneficial to all nations.

Mr Li closed by graciously offering his contacts and assistance to the group for anyone who wants to do business in China.

Mr Li discusses the Chinese business environment with U of A MBA students

MBA students enjoy the entertainment over dinner following the panel discussion at King's Garden Villa

The insight that Prof Li provided into Chinese decision making was candid and fascinating, and allowed the group to gain a greater understanding of how China’s government effectively carries out its decision-making.

Prof Li began by describing the role the National People’s congress and the Chinese Communist Party, the organization of government, and the development of its leaders. He then discussed Chinese decision-making, as it changed from a commanding economy in the 1970s to the present-day global and market economy.

As the Chinese economy continues to open, the government’s organization allows it to remain capable of rapidly and decisively managing change. The government is well organized to control such rapid growth, whereas some western governments and cultures are not organized as effectively to implement policies for change.

As was mentioned during the seminar, “while other governments talk, the Chinese government walks!”

Later in the day, the group had time to climb the Badaling section of the Great Wall, and stopped at the silk market for shopping on the way home.

Prof Li provides a briefing on Chinese governance and the regulatory environment in China

Professor Li of the Chinese National School of Administration, a leading expert on Chinese governance

Mr Wong, head of BYPC, personally hosted our group through an introduction, Q&A, and tour through the campus. Mr Wong emphasized how far BYPC had progressed in recent years in terms of environmental stewardship. In particular, BYPC has made huge improvements in terms of reducing the amount of harmful sulpher in refined oil and also in its wastewater treatment technology.

Yanshan Petrochemical welcomes the University of Alberta School of Business

Mr Wong, plant manager of Yanshan Petrochimical, discusses the Chinese oil industry with U of A MBA students

Mr David Wong, Alberta’s representative in Beijing, provided us with an overview of China-Alberta economic trade. Mr Wong talked briefly about Chinese state-owned Sinopec’s $4.65 billion investment in Syncrude, and other factors involved in relations between Alberta and its second largest export market.

Mr Li Da, University of Alberta BCom 2004, and Beijing chapter University of Alberta Business Alumni Association president, talked about his successful Deya Tech software venture in China. He discussed the complexities of Guanxi, the high speed of business development, and the role of government involved in new ventures in China.

During the afternoon, the group visited the summer palace and during the evening visited the traditional neighbourhood of Hou Hai.

At the Canadian Embassy in Beijing

With our pre-trip studies and project completed, the day of departure to China had finally arrived. Our professor, Dr Edy Wong, was already in China confirming scheduling arrangements, and would meet us when we arrived in Beijing. 

Our group of 29 MBA students, of which 17 are full-time and 12 are part-time students, along with Jayne Ference, our trip coordinator, arrived in Beijing on the afternoon of May 5th. We were greeted at the airport by a representative of the China National School of Adminstration (CNSA) and were escorted to our CNSA accommodation.  

The CNSA is a prestigious training center for middle and senior civil servants, and senior executives within the Chinese government, and has an ongoing relationship with the University of Alberta School of Business.  The CNSA would be our hosts and provided us with accommodation while in Beijing.

After supper at the CNSA, the evening provided an opportunity to recover from jet lag and/or shop at the local mall in preparation for the next day’s visit to the Alberta China Office.