(Attributed to Troy Fleece of Regina Leader-Post)
I.
Background
On
the 10th of November 2019, a story titled “Chinese Woman Seeking
Canadian Immigration...” by a CBC reporter, Geoff Leo, caused an uproar of
attention in Saskatchewan. The article refers to the Global Trade and
Exhibition Centre (GTEC), which was developed by Brightenview Development
International Inc. and built by PCL Construction. The content of the story
highlighted the developer’s failure to refund a customer and the existence of a
‘secret cooperation agreement’ between the developer and the Saskatchewan
Government (please note that no such cooperation agreement has
been found between Brightenview and the provincial government though the
reporter has such a speculation). The customer Amber Zhang was declined
a full refund after being declined a work visa application. Amber Zhang wrote
to Brightenview, if their money is not in her account in two days, she would
accept the reporter’s interview. She didn’t care whether his motives were
political or not, and she would reach the effect of what she wanted. They
should consider how to avoid her $120,000 affecting their $1.2 million or $12
million income[i].
The CBC article criticized the GTEC for having an imperfect business model and
coined it as, “a megamall of immigration”[ii].
In an email message from Brightenview’s lawyer, CBC was said being used and
manipulated by the customer so as to defame GTEC and Brightenview[iii].
On 12 November 2019, another article was published by CBC raising the megamall
issue again on the same day Premier Scott Moe expressed his dissatisfaction
with Ottawa after the Federal election. After this, CTV had several interviews
and reports on the GTEC on November 12th, 14th, and the
17th expressing different views. On 2 December 2019, there were 2
pages of articles published on Regina’s Leader-Post covering the GTEC[iv].
The
relationship of Amber Zhang with her stakeholders is described as follows. After
Amber Zhang started her immigration application at Global Fortune, Gobal
Fortune referred her to the GTEC project. Then Zhang made a deposit for owning
a store at GTEC. When CIC declined her work permit and visa application, Zhang
made a complaint to ICCRC. However, Zhang was sued by MLG for default on
contract and slander on Brightenview. As the GTEC project is one catering to
business immigrants opening stores at GTEC and meeting government immigration requirements
while conducting business at the same time, the GTEC issue is both a
immigration issue and an economic one. Mr. Leo has reported on the fraud of a
Chinese immigration company Canmax Group (which was later changed to Wilson
Legal Consulting) before, and that company is also linked to Brightenview the
same way as in this case, besides the fact that Brightenview and Canmax had the
same founders and that a founder Feng Niu was chased by an Interpol Red Notice
from China. This does not ensure that Brightenview is illegal or the project
developed by Brightenview should be cancelled. With the case of land sale at
GTH (the place where GTEC is located) at which the provincial government bought
and sold two pieces of land and ended up losing $10 million, there seems a
conflict of interest between a public and a private position, which caused the
previous Minister of Economy Bill Boyd to
resign.
II.
Disputes
1.
Megamall Model
Brightenview
says GTEC is modeled after the wildly successful wholesale markets in China.
One of them, Yi Wu (near Shanghai), is billed as the largest market of small
wholesale commodities in the world, featuring tens of thousands of suppliers.
Buyers from a wide range of industries fly from all over the world to shop
there. Instead of businessmen flying to Shanghai, Beijing or elsewhere the
centre will enable North American wholesalers, retailers, contractors to access
the Chinese factory direct products right here in Regina. However, immigration
lawyer Kurland said, "hindsight shows that the model delivered real estate
benefits to real estate developers but little or no tangible benefits for provincial
immigration programs." He said a permanent wholesale market in a smaller
city like Regina is untenable. Potential immigrants were lured with provincial
government endorsement and no requirement to operate a business and live in SK
as asserted in the article by Leo mentioned at the beginning though just 60% of
applications have been approved by Ottawa to start their business at GTEC. According
to the CBC reporter, a store owner Sonya said she could not see one visitor in
a day and that her English was poor[v].
Nevertheless, a business entity that has been operated by 70 new immigrants for
less than a year creating things like, an investment of more than 42 million
Canadian dollars, nearly 150 job creations, about 11 million in taxes, and more
than 32 million in living expenses in the provincial capital with an annual GDP
of 14.173 billion and a population of 230,000, has actually made indelible
economic contributions[vi].
Though Yiwu has the population 5 times bigger, there is no data showing that
the model cannot be borrowed.
Though
evidence shows no existence of a ‘secret cooperation agreement’ between the
developer and the Saskatchewan Government, Immigration and Career Training
Minister Jeremy Harrison said the GTEC wasn’t “setting up newcomers in this
business model for success in the way that we could have been in another sort
of scenario”, and the province changed its immigration investment rules cancelling
eligibility under that program for the GTEC and similar “multi-business retail
condo” projects (note that Multi-business retail condos and business incubators
are now on a list of ineligible businesses that also includes co-operatives,
home-based businesses and property rental activities) within 2 days after the
CBC article came out. Mr. Harrison also said, “there probably is going to be
litigation from tenants that would be coming out of that towards companies.”[vii]
The columnist Murray Mandryk compared this to the NDP government’s investment
in Spudco, which was eventually resolved in court — a $36-million-plus loss for
Saskatchewan taxpayers[viii].
The NDP leader Ryan Meili raised the question: “What will be done to help those
who are damaged by this?”[ix]
No data showed that the provincial government invested heavily into the GTEC
project, and these two projects are overseen by two different governments.
The
Yiwu Model is quite successful in China with a county selling C$10 billion (with
40% manufactured locally) exporting C$6 billion annually. Moreover, it has been
spread to Sweden bringing up local employment and tax revenues, with more than
400 Chinese businesses having moved in. With introduction of the model’s
low-tax, a good product mix and specialized division of labor combined with use
of modern technology and e-commerce, Regina could well benefit from it[x].
2.
Immigration
The
basis of many of Zhang’s comments was that she was unable to obtain a work
permit, which she blames on Brightenview contractual obligation to refund. In
fact, Zhang had applied and obtained her work permit using her business
investment plan out of GTEC. Zhang concealed this fact while speaking to CBC
Geoff Leo in her interview[xi].
The
fact that the Chinese immigration company Global Fortune provided misleading
information should not be used as a reason to prevent Chinese business
immigrants. Actually, except for providing misleading information and promising
to potential immigrants on the result, nothing else has been found yet to
charge the company. Also, Brightenview should be allowed to continue to operate
unless direct evidence has been found showing that Brightenview is plotting
together with the involved immigration company. To date, the Saskatchewan
government has approved more than one hundred GTEC applications from foreign
nationals. The province said its policy shift doesn't affect those people. It
only applies to future applications. CEO Joe Zhang of Brightenview commented
that this policy change decision of the government was not based on verified
facts and evidences in terms of risk assessment and economic impact, and he
raised the question that many restaurants and convenience stores were for sale
and being flipped just for the sake of eligible business investment for the
SINP applicants. However, the province said this policy change would help to
promote increased connections with the local business community and help
entrepreneurs obtain new business skills and expanded networks[xii].The
GTEC business owners stated that the most disappointing thing for them was the
constant negative assertion from the media. “We have not done anything wrong,
why are we always being attacked? We have brought tangible economic
contributions to the local area. Why are we still not welcome? We are the
owners of the GTEC mall, we bought the property to operate our business in the
mall, and the mall is involved in an inexplicable political debate for us to
experience these unfair treatments.”[xiii]
The private discussion between the developer and the customer should not be
used to question the business model of the GTEC mall. Also, reporters should verify
the source’s authenticity and validity before reporting as the denial of work
visa application is concerned[xiv].
As
to the assertion of taking a short-cut to immigrate and not operate, it was rebutted
by the store owners there saying that they had a clear understanding that they
needed to run a specific business to obtain their immigration status[xv].
Furthermore,
as commented in Regina Leader-Post, Canada, as a country often described as a
melting pot, has people from all ethnic groups to contribute to its rapid
growth. With the help of local employees, language should not be a determining
factor for foreigners to advance and succeed in their entrepreneurial attempt.
The GTEC owners made this very clear.[xvi]
The point is that businessmen from India, Pakistan, Malaysia, the Philippines
and other countries or regions should also be encouraged to come to this mall so
as to bring more diversified products and technology to Regina.
3.
The Market
GTEC
owners said they were interested in talking face-to-face with the lady named
Sonya, who said there had been no one in one day as reported
also in the article by Leo, because the news report seriously
deviated from reality. Moreover, they were questioning whether a low turnout of
visitors would mean poor management[xvii].
Danyi from Shanghai is one of the 70 owners, mainly engaged in home textiles,
ranging from bath towels, towels to down comforters. She said that the GTEC is
a collective where everyone is working together to contribute to the economy of
Saskatchewan. Her products are in short supply right from the start[xviii].
III.
Reflections
While the SINP should verify the genuineness of
entrepreneurs’ intent to immigrate and their performance to conform to the BEP
and BPA, business immigrants should be encouraged including all honest hard-working
Asian people. Immigration fraud of a private business should not be taken as
something the provincial government should be responsible (though both the
Federal and provincial government have to set up clear measurable and
enforceable rules to prevent and punish it), and economic development should
always be the government’s focus for reason of both growth and keeping up with
the expenses. Though the government should avoid running businesses on its own,
it should cut down on business taxes, increase expenditures on public
utilities, and create a fair, open, competitive and equitable business
environment. Direct investment into businesses and endorsement on any private
business should be refrained. As long as the GTEC operates in compliance with
laws and regulations and follows all Saskatchewan business practices, and as
long as the GTEC is not involved in the bad immigration practice directly, it
should be allowed to continue to operate and develop. Immigration applicants
who cheated or provided misleading information on their application or on media
or social media should be put in a black list and banned from reapplying. Immigration
companies that provide misleading information and make false promises to
clients should be heavily penalized. Businesses under SINP review and relevant
business providers that do not abide by the rules should also be heavily
penalized, but business models should not be restricted, and eligible business
immigrants from all countries and regions should be welcome.
[i] Elirons International Consulting Inc: Going to court? GTEC developer
Brightenview said...(in Chinese), North American Business Guide, 7 Dec
2019, please view the complete article
from https://mp.weixin.qq.com/s/dhMuw7mtUyr5zvybugNqug.
[ii] An unverified report, an unwarranted charge, Regina Leader-Post, 2
Dec 2019.
[iii] Geoff Leo: Chinese woman seeking Canadian immigration caught in
shadowy, confusing world of government-supported megamall, CBC News, 10 Nov
2019. Please view the whole article from https://www.cbc.ca/news/canada/saskatchewan/brightenview-mall-shadowy-world-1.5341635.
[iv] Elirons International Consulting Inc: What’s wrong with the GTEC?
The newspaper Leader-Post has something to say (in Chinese), North American
Business Guide, 6 Dec 2019, please view the complete article from https://mp.weixin.qq.com/s/BogIkwBzZy6nqkACl9cLrQ.
[v] Geoff Leo: Chinese woman seeking Canadian immigration caught in
shadowy, confusing world of government-supported megamall, CBC News, 10 Nov
2019.
[vi] lirons International Consulting Inc: What’s wrong with the GTEC?
The newspaper Leader-Post has something to say (in Chinese), North American
Business Guide, 6 Dec 2019, please view the complete article from https://mp.weixin.qq.com/s/BogIkwBzZy6nqkACl9cLrQ.
[vii] Arthur White-Crummey: NDP blasts 'immigration scam at the GTH'
after ministry drops mega-mall from program, Regina Leader-Post, 12 Nov 2019.
[viii] Murray Mandryk: GTH and GTEC mess frighteningly similar to NDP's
Spudco, Regina Leader-Post, 15 Nov 2019.
[ix] Arthur White-Crummey: NDP blasts 'immigration scam at the GTH'
after ministry drops mega-mall from program, Regina Leader-Post, 12 Nov 2019.
[x] The Yiwu Model (in Chinese), MBA Library, please check the
information by clicking https://wiki.mbalib.com/wiki/%E4%B9%89%E4%B9%8C%E6%A8%A1%E5%BC%8F;
the Yiwu Model moved to Sweden, and a Chinese trade city appeared in North
Europe (Chinese), http://finance.sina.com.cn/g/20070810/15313871766.shtml.
[xi] Elirons International Consulting Inc: Going to court? GTEC
developer Brightenview said...(in Chinese), North American Business Guide, 7
Dec 2019, please view the complete
article from https://mp.weixin.qq.com/s/dhMuw7mtUyr5zvybugNqug.
[xii] Geoff Leo: Brightenview asks Sask. government to reverse ban on
megamall immigration applications, CBC News, 12 Dec 2019, please also take time
to read the complete article https://www.cbc.ca/news/canada/saskatchewan/brightenview-asks-sask-government-to-reverse-ban-on-megamall-immigration-applications-1.5394578.
[xiii] We hope there is a voice that can speak for us, Regina Leader-Post,
2 Dec 2019.
[xiv] A purchase agreement dispute between private parties leads to
negativity towards the GTEC business model? Regina Leader-Post, 2 Dec 2019.
[xv] Businesses don’t need to be actively managed or operated? Regina
Leader-Post, 2 Dec 2019.
[xvi] Poor English will lead to business failure? Regina Leader-Post, 2
Dec 2019.
[xvii] Does low mall visitors equal poor management? Regina Leader-Post, 2 Dec
2019.
[xviii] Elirons International Consulting Inc: The GTEC will be the last
copy? The owners and the media met face to face (in Chinese), North American
Business Guide, 21 Nov 2019, please view the complete article from https://mp.weixin.qq.com/s/R8-FJzMvY8HEkG4R63XITA.
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