Mr. Balloch was Canada's ambassador to China for 5 1/2 years until mid-2001. That year, he launched Balloch Group, a consulting firm, which now has 40 employees. It serves western and Chinese clients and has formed an alliance with CIBC World Markets.

In addition, he is president of the Canada China Business Council and director of Vancouver-based Ivanhoe Mines Ltd., Ivanhoe Energy Inc., Methanex Corp. and Calgary's Zi Corp.

He's a bundle of energy and has an exceptional grasp of facts, economic realities and Chinese politics, thanks in large measure to his immersion in the country's language and culture. He's also a crusader who thinks that Canada is a vulnerable country because business simply doesn't understand what's going on here.

"Canada is not as strong an economy as we would like to think and it has to change or it will continue to gracefully decline," he said. "Canadians are good at auto parts, mining, oil, oil services, forestry and financial services. There are restrictions in China in terms of mining and oil exploration and production [they have state- owned enterprises that get the pick of prospects] but there are no restrictions on others.

"China is a huge wood importer from New Zealand and elsewhere. Canadian forestry companies should be here. Transportation costs are Old Think. It's rubbish. Canadian forestry companies just want to grumble because of softwood lumber tariffs in the States and because the Japanese market has collapsed."

But doing business in certain sectors in China is a breeze compared to the bureaucratic, protectionist and xenophobic Japanese market.

"It's easier to crack the Chinese market because they are more willing to change their building code," he said. "The economy will never support a market for two by fours in housing. But you can sell windows and doors. And in the auto-parts area, if a Canadian parts supplier has not integrated China into its supply chain it's doomed because [it] will face Chinese competition in the U.S."