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