Doing business with Chinese companies is not simple, need to have fast and efficient transportation services along nor does it happen quickly. Take Harbour Air, a China's coastal routes, and Zongshen indicated that local Vancouver-based float plane company that has undertaken governments are strongly supporting the new endeavour. a strategic partnership with a large Chinese firm to pro- Besides the expertise and knowledge Harbour Air vide float-plane services and knowledge in a new venture. will bring, the new company will be called Harbour Air The firm will help Zongshen Industrial Group set China. Another reason for utilizing this approach is to up the first float-plane operation in China. Given the generally introduce more aviation into China. Part of the 1.4 billion people in China and the many waterways, it long-term plan is to build its own seaplanes as the busi- is hard to imagine that there are no planes in operation. ness expands into Malaysia and Vietnam. The expertise Harbour Air brings to the relationship will This relationship will also allow Harbour Air to provide a solid launching pad for services in Shanghai and expand into the northern area of British Columbia, where other South Asian places. oil and gas development is creating more demand for Part of the deal allows for the purchase of 49% of coastal plane services. shares of Harbour Air from its current owner and CEO, Greg McDougall. McDougall indicated that he had been CRITICAL THINKING QUESTIONS: approached for a number of years to export the expertise but 1. Besides expertise, what other advantages might resisted for fear of bureaucracy and lethargy as regulators Harbour Air have in partnering with Zongshen? dealt with expansion of low-flying aircraft. However, he felt 2. What might be some disadvantages for Harbour Air in the time was now to move into another market. There is a the future with the current ownership arrangement