Business China 2007

China says it's ready to spend in U.S.

2007-10-14T11:02:00.000-07:00

San Antonio Express news covers Business China Conference 2007

Web Posted: 10/11/2007 08:16 PM CDT
Meena ThiruvengadamExpress-News Business Writer

China is looking to spend $200 billion and wants to direct some of that cash toward the U.S., the Chinese Embassy's minister and deputy chief of mission said in San Antonio on Thursday.
"The U.S. is one of our primary targets," Washington, D.C.-based Zheng Zeguang said during a daylong seminar on doing business with China. The seminar at the University of the Incarnate Word was hosted by the University of Texas at San Antonio International Trade Center, Free Trade Alliance San Antonio and the U.S. Chamber of Commerce.

China is the United States' No. 2 trading partner behind Canada, according to statistics from the Census Bureau. Early this month, it launched the China Investment Corp., one of the world's largest sovereign funds.

The national trade deficit with China was $57.6 billion in August, a "welcome breath of fresh air on the trade front," according to economist Brian Bethune with the research and forecasting firm Global Insight. The figure is the lowest in seven months.

"It's not the policy of the Chinese government to pursue a trade surplus with the U.S.," Zheng said during a luncheon speech. "It's against our best interest."

Texas energy, high tech and IT businesses are in a particularly strong position to benefit from the investment fund, he said afterward. A group of city leaders and business owners from San Antonio went on a trade mission to China last month.

And a trade delegation from China is scheduled to visit San Antonio later this month, said Kyle Burns, executive director of the Free Trade Alliance San Antonio.

Tindall & Foster Join BC07

2007-09-26T12:09:00.000-07:00

Robert F. Loughran, Managing Partner, Tindall and Foster P.C. in Houston, will provide BC 07 attendees with insight and guidelines for business immigration issues with China during the "Big Picture" session. We're excited to welcome him and his firm as a premier sponsor for the event. Make sure to stop by their booth to meet their team for future immigration inquiries and resources.

Tindall & Foster, P.C. is one of the nation's largest law firms specializing in immigration law, and enjoys a national reputation in this field. The Firm's Immigration and Nationality Section handles all aspects of U.S. and international immigration law. The firm specializes in employment-based business immigration and emigration, family-based immigration and naturalization, deportation and removal defense, immigration-related litigation, consular and point of entry assistance, visas for artists and entertainers, foreign investors, deemed exports, and employer audits. Their client base includes major U.S., European, Latin American, Chinese, Japanese and Middle Eastern companies, as well as small to mid-size companies and individuals with both routine and unique immigration-related needs.

A Clear View of China and US Manufacturing

2007-09-25T12:49:00.000-07:00

It is a fact that U.S. manufacturing employment is declining. Between 2001 and 2005, 2,677,000 manufacturing jobs were lost according to the U.S. Census. The question is the extent to which job loss is attributable to foreign trade:

➢ The value of manufacturing output in the United States continues to grow, although manufacturing is increasingly a smaller part of the U.S. economy. In constant dollars, manufacturing output for 2005, the most recent year for which full information is available, was about 7 percent higher than in 2001.

➢ The role of technology and higher productivity is a larger factor than imports in overall job loss. The numbers by different economists vary, but the consensus appears to be that two jobs are lost due to higher productivity to every one job lost to imports. Most economists note that the binge spent on capital equipment and high technology in manufacturing in the late 1990’s did not have its full impact until the post 9/11 period when companies actually figured out how to use the stuff.

➢ It is also clear that industries using low skilled labor or having a high ratio of labor to capital are the ones most likely to be forced to close or to shed jobs. Most manufacturing sectors with high valued added and complex production processes have generally maintained their employment levels or have grown in recent years.

➢ From December 2000 through December 2005, the economy added 10,424,000 non farm jobs against the 2,677,000 manufacturing jobs shed during the same period. While some of these new positions were “McJobs” as critics claim, there is substantial evidence that the majority of these new positions paid as much as, if not more, than manufacturing jobs.

➢ A survey by the Conference Board found that most U.S. foreign direct investment going into China is not for the production of products to be exported to the United States. Rather, such investment is primarily for sales to the Chinese domestic market or to South Asia. The substantial majority of U.S. foreign direct investment is still going to advanced countries.

➢ The growth in U.S. exports has also been a substantial factor in sustaining U.S. manufacturing and the impact of trade agreements has been critical to export growth.

o During the last five years of the 1990’s, when the United States effectively only had the NAFTA Trade Agreement, exports to NAFTA climbed by 52 percent versus 25 percent for overall U.S. exports. The data is similar when applied to subsequent trade agreements.

o U.S. exports to Singapore climbed by 19.4 percent during the first full year of the Treaty.

o Exports to Australia climbed by 11.4 percent the first year of the treaty (2005) and by another 12.3 percent in 2006.

o U.S. exports grew by 42.2 percent between 2001 and 2006. A cheaper dollar is important here, particularly during the last two years, but the impact of trade agreements is also a major factor.

➢ As to whether the Chinese currency is fairly valued, what is the fair value? The Economist sites Goldman Sachs, the investment bank, as having 14 different methodologies to value currencies on a bilateral basis. Of these, twelve indicated the Chinese currency is not overvalued against the dollar and the other two did not present major shifts.

What all of this suggests is that manufacturing job loss is more complex, given technology, labor-capital ratios, and the beneficial effect of export growth. There are shifts occurring within manufacturing and certainly many communities have been adversely affected. But, the U.S. manufacturing sector is now producing more than it ever has.

Concerning China, the country has considerable room for improvement, witness toy recalls, theft of intellectual property, and other maladies. But the loss of 46,000 jobs in August 2007, if correct, is not necessarily China’s gain. Some of these jobs may end up in China. Some may end up in other countries. Some may not end up anywhere else because they are no longer needed. Job loss is far more complicated than a zero-sum game.

- Doug Smith, Sr. International Business Consultant
International Trade Center

Judge Wolff & Governors Office Join Chinese Embassy at Business China 2007

2007-09-20T12:24:00.000-07:00

Bexar County Judge Nelson Wolff and Aaron Demerson, Executive Director, Office of the Governor, Economic Development & Tourism are joining Chinese Deputy Chief of Mission, Zheng Zeguang, at the Business China 2007 conference in San Antonio, Texas on October 11th.

China's booming economy provides many economic opportunities and prospects for the rest of the world, especially for Bexar County companies across the Pacific. Business China 2006 was a tremendous success and laid the foundation for this year¹s expanded program. The US Chamber of Commerce¹s Senior Trade Advisor, Leslie Schweitzer, will address US-China trade policy which will add exclusive insight for Texas companies attending.

Business China 2007 conference is expected to have over 150 attendees and guest speakers ranging from logistics experts, export specialists, and government officials from around the United States and China.

This full-day seminar is designed to provide key information and resources for any business interested in developing supplier and export opportunities with China. The seminar will begin by highlighting the fundamentals of doing business with China followed by lunch and will eventually progress to deeper topics and issues in the logistics, exporting, and supplier environments.

One of the main highlights of the event includes a keynote luncheon presentation by Minister Zheng Zeguang, Deputy Chief of Mission with the Chinese Embassy in Washington, DC. who will address US-China trade relations. The conference will also host a VIP reception the night prior with the Chinese Embassy, US Chamber of Commerce, and key community business executives to strengthen the region's ties to China.

For more information on the event or on U.S.-China trade, please contact The International Trade Center at (210) 458-2470.

Latest Conference Update

2007-09-17T11:26:00.000-07:00

Well phones have been off the hook here and keyboards typing away as our team is preparing the top China business conference of the year for Texas on October 11th in San Antonio, Texas. Check our latest line-up below or on the website at www.businesschinaconference.org.

Welcoming

* 7:30 am - Registration and continental breakfast

* 8:30 am - Welcoming Remarks
San Antonio Mayor Phil Hardberger

* 8:35 am - US Chamber Trade Campaign
Leslie Schweitzer, Senior Trade Advisor, U.S. Chamber of Commerce, Washington, D.C., USA

Theme: The Big Picture

* 8:40 am - Talk: China Economic Foundations and Global Implications
Daniel Rosen, Principal, China Strategic Advisory, New York, New York, USA

* 9:25 am - Talk: China Business Fundamentals: An On-The-Ground Perspective
Moderator: Leslie Schweitzer, Senior Trade Advisor, US Chamber of Commerce, Washington, D.C., USA
Jeffrey Bernstein, President and CEO, Emerge Logistics Co. Ltd, Shanghai, PRC
Jeremy Haft, Author, All the Tea in China: How to Buy, Sell, and Make Money on the Mainland and Chairman of BChinaB, Washington D.C., USA
Mark Duval, Director of Business Operations, Motorola Governor, AmCham China, Beijing, PRC
Bill Weidner, President & COO, Las Vegas Sands, Las Vegas, Nevada, USA

* 11:00 am - Wén huà: Chinese Business Culture
Betsy Neidel, Founder, Blue Heron Holdings Inc., Austin, Texas, USA

* 11:35 am - Resources for Texas Businesses
William Zarit, Regional director, East Asia/Pacific, US Commercial Service, US Dept. of Commerce, Washington, D.C., USA
Robert F. Loughran, Managing Shareholder, Tindall & Foster, Houston, Texas, USA

Keynote Luncheon

* 12:15 pm - Judge Nelson Wolff, Bexar County Texas (confirmed)
Executive Director Aaron S. Demerson, Office of the Governor, Economic Development & Tourism (invited)
Honorable Zheng Zeguang, Deputy Chief of Mission, Chinese Embassy, Washington, D.C., USA (confirmed)

Theme: Precision & Velocity, Moving Boxes To and From China Panel

* 1:15 pm - Logistic Trends Panel
Fed Ex Global Services
David Mak, CEO, H&T International Transportation Ltd, Guangzhou, Guangdong Province, PRC
Jorge Canavati, VP Business Development, Port San Antonio, San Antonio, Texas, USA

Simultaneous Panels

Theme: Close-up: Successful Supplier Relationships Panel

* 2:30 pm - Finding the Right Supplier, Ed Novess, President, Port 2 Port Inc., Austin, Texas, USA
Agreements and Navigating Legal Issues by Cox, Smith, & Matthews (invited)
Foreign Exchange Risk & Impact on Your Chinese Transactions by Alberto Bilton, VP Foreign Exchange & Derivatives, JP Morgan Chase, Dallas, Texas, USA
Manufacturing Relationships & Quality Control, Alan Wm. Radke, CEO, Greener Bags, San Antonio, Texas, USA

Theme: Close-up: Selling US Products in China Panel

* 2:30 pm - Market Research: Children of Mao vs. Little Emperors, Betsy Neidel, Founder, Blue Heron Holdings, Austin, Texas, USA
Payment Methods & Risks in China, Lori Reeder, Global Trade Services, VP, Southwest Regional Manager, JP Morgan Chase, Austin, Texas, USA
Key Industry Opportunities in the Middle Kingdom, Austin Zhao, Director, Pathway to China, Houston, Texas, USA
Perspective & Experience, Brenda Hall, CEO, Bridge360, Austin, Texas, USA

4:30 pm - Networking Mixer: Business Generation and Connections

How Microsoft Conquered China

2007-09-12T10:59:00.000-07:00

In the CNN Money July issue, it featured an article “How Microsoft conquered China”. In this article, the senior editor David Kirkpartick discussed the story how Microsoft gain its success in China in the past couple decades. For sure it was not an easy task. Microsoft tried to use the business model in China they used everywhere else but they failed miserably. They had to deal with different business customs, intellectual properties rights, government regulations and such. These are common problems that businesses have to deal with nowadays doing business with China.

Intellectual properties rights are one of the most concerned issues when it comes to business with China. ‘As Ya-Qin Zhang, who heads Microsoft’s Chinese R&D, puts it: “In China we didn’t have problems with market share. The issue is how do we translate that into revenue.”’ The problem is not that Chinese do not like to use branded products; Chinese would rather look at the dollar value. Because of that, counterfeit products are very popular. In order to solve the problem, most companies would try to take it to court but most usually result in failure. Microsoft started work with the Chinese government after legal approach has failed on them. “If a foreign company’s strategy matches with the government’s development agenda, the government will support you, even if they don’t like you.”

It is a very different game play when is comes to doing business in China. The Chinese have a unique way of doing business. Without basic understanding, billions of dollars can be lost. “It took Microsoft 15 years and billions of dollars of lost revenues to learn how to do business in China” Kirkpartick quoted Sigurd Leung in the article. Microsoft might be able to afford losing billions of dollars but most small and medium size businesses cannot afford that. Microsoft served as a very good example why research about a new market is so important.

Full article: http://money.cnn.com/magazines/fortune/fortune_archive/2007/07/23/100134488/index.htm

Judge Wolff & Bexar County ED Join BC07

2007-08-31T08:40:00.001-07:00

BC07 is excited to confirm the participation of Bexar County Judge Nelson W. Wolff at the conference. Judge Wolff has been a great advocate in encouraging two-way international trade between Bexar County and Asia. At BC07 he will highlight his team's efforts on increasing the County's global competitiveness as the first speaker during our luncheon.

Bexar County's Economic Development team will also actively participate in the conference as a marketing sponsor. Make sure to visit their exhibit table to meet learn about business growth opportunities and meet some of the most dynamic and global-minded economic development professionals in South Texas. In the interim, you can also visit them online at www.bexar.org/economicdevelopment.

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China Today's Top Stories

2007-08-16T09:20:00.000-07:00

China to Ensure Toy Quality

China's Ministry of Commerce will help related departments implement measures to ensure the quality and safety of China-made toys, said a spokesman with the ministry on Thursday.

The measures include enhancing self-discipline and supervision of the toy industry, helping local authorities train manufacturers to improve management over product quality, and strengthening international cooperation and information exchange on toy production, spokesman Wang Xinpei said.

Wang said most toys made in China were produced in accordance with importers' designs, techniques and quality criteria. Some problematic toys uncovered recently stemmed from poor quality management in the production process and slack supervision by importers and traders as well.

A spokesman for China's General Administration of Quality Supervision, Inspection and Quarantine said late last week that the United States importers and brand owners should take responsibility for recalled toys.

To prevent loopholes in quality control, overseas brand owners should improve their product design and supervision over product quality, the spokesman said.

The U.S. product quality watchdog filed 29 recall cases involving toys made in China last year.
A recall case filed by US RC2 Corp. and CPSC last month involved toy trains made by a Guangdong-based company which used paint containing lead poisonous to children.

On Aug. 2, another toy company, Fisher-Price, also recalled more than one million character toys with unqualified paint. The producer's paint provider made the paint using fake materials.
China's quality control department has suspended the export of the problematic toys, while the police have launched an investigation into the case.

China exported more than US$7 billion worth of toys last year, a growth of 7.5 percent over the previous year. The total included 300,000 batches of toys sold to the United States.

Food safety

On Wednesday, a spokesman for the Chinese embassy in Washington called for global cooperation to improve food safety, noting that it along with product quality is an international problem.

"No country's products are immune to problems," said Zhao Baoqing.
But Zhao added that China will intensify food safety supervision and punish all those responsible for supplying tainted food.

"Food safety and product quality is an international problem, and is also something that all countries pay attention to," said Zhao, who previously worked for China's product quality watchdog, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).

Zhao admitted that China's food safety needs improving, but said that the vast majority of Chinese exports to United States are of high quality.

"During 2004 to 2006, more than 99 percent of Chinese food to the U.S. met the U.S. safety and quality standards," he said.

The official said the Chinese government has been actively cooperating with other countries to seek solutions to issues of food safety and product quality.

"Quality and safety questions are something that every country has to deal with," Zhao reiterated, adding that more international cooperation and less finger-pointing was needed.
(Xinhua News Agency August 16, 2007)

http://www.china.org.cn/english/news/221152.htm

Why We Need China and Why China Needs Us

2007-08-13T14:21:00.000-07:00

By Thomas Donohue of the US Chamber of Commerce

Though this week’s Congressional vote to extend normal trade relations with China lacked the widespread media attention, intensive grassroots efforts, and nonstop lobbying blitz that characterized last year’s passage of a permanent extension, it had equally important consequences for our economy, natural security, and global stability.

Permanent extension of favorable trade ties is on hold until China completes its accession into the World Trade Organization, which now appears likely to occur late this year or early next year. In the meantime, Congress did the right thing and renewed year-by-year normal trade relations status with China—something it has done every year for the past 20 years.

Why is it important that we continue to have normal trade relations with China? First, trade with China offers U.S. workers and businesses tremendous opportunities. The United States exported over $18 billion in goods and services to China last year, supporting hundreds of thousands of high-paying U.S. jobs and improving American living standards. Our commercial relationship with China is more important now than ever before given that U.S. manufacturing, agricultural and high-tech sectors are in the midst of a serious economic downturn and need access to foreign markets to recover.

However, encouraged by recent challenges in U.S.-China relations, a small but vocal group of labor union bosses, human rights activists, political ideologues and anti-free traders opposed China NTR, arguing that China should be punished through the loosening of U.S.-China economic ties.

But history is proof that commercial engagement is America’s most effective tool in promoting democracy, free enterprise, human rights, and rule of law in China. Consider the enormous economic, political, and social changes that have gripped China in the first two decades since normalization of U.S.-China economic ties.

China’s per capita gross domestic product has increased fivefold, with some 250 million Chinese having been lifted out of poverty. A completely state-controlled economy and closed society back then, today China boasts more than a million private businesses, which created more than 4 million new jobs last year alone and account for more than 20% of China’s $1 trillion gross domestic product.

China’s economic engagement with the U.S. and other Western democracies triggered the historic display of free political expression in Tiananmen Square, and the infiltration of American traditions and values into China through open engagement has forced the unbending Communist Party to loosen its grip on Chinese society, even recently inviting private businessmen to join the party.

But China has a long way to go before its people enjoy the same freedoms Americans do. That’s why it’s important we continue to engage China, nurture it, and guide it along the path toward a free enterprise democracy.

We have already laid the foundation for a strong, multifaceted partnership. Over the last quarter century, the U.S. and China have worked together to address a host of regional and global concerns, from the threat of nuclear conflict between India and Pakistan to developments on the Korean Peninsula.

But we need to build a more trusting, lasting relationship, one that will withstand the tests of minor disagreements or disturbances. We must strive to see the day when an occurrence like the spy plane incident last spring doesn’t unravel our entire relationship. Like in any strong marriage, we must work through the rough spots in our relationship by expanding two-way dialogue and promoting mutual understanding.

Increased trade is our strongest ally in this endeavor.

China’s impending entry into the WTO sets the framework for a continually growing U.S.-China partnership and opens up plentiful new opportunities for U.S. companies and workers. But in many ways, China’s entry into the WTO represents the beginning, not the end, of a long process to bring China into the community of nations. It’s our duty to make sure China lives up to its commitments and remains true to economic reform. Congress helped with its vote to extend normal trade relations. (Click title to see original article)

Thomas J. Donohue is President and CEO of the U.S. Chamber of Commerce.

Seven Myths about US-China Trade and Investment

2007-08-13T12:27:00.000-07:00

1. American companies invest in China to shift jobs there and export back to the United States.

According to Swiss investment bank UBS AG, more than 50 percent of PRC export by value are produced by foreign firms in China, "but the vast majority of these are Hong Kong, Taiwan and Korean companies..." US-China Business Council (USCBC) survey findings are consistent with this data: USCBC member companies primarily invest in China to serve the Chinese domestic market, not export back to the United States. Fifty-seven percent of the respondents to the 2006 USCBC Member Priorities Survey said that their main investment objective was to access the Chinese market. Twenty-five percent of USCBC members invest in China to export to other markets in Asia or around the globe. Only 18 percent invest in China as an export platform to the US market.

2. China is causing the decline of American manufacturing.

US manufacturing output is at an all-time high. Real value-added manufacturing output has risen every year since 1987, except for brief declines during the 1990-91 and 2000-01 recessions. Manufacturing value-added output has also remained a relatively constant share of US GDP.

Manufacturing employment has been declining for four decades - long before China was a major trading partner - as the US economy has shifted from a manufacturing - to a services-based economy.

The United States is still the world's largest manufacturer, and its share of global manufacturing output has stayed the same over the past decade at about 22 percent (it has been hovering around 20 percent since 1982.) China's share is 8 percent, up from 4.2 percent in 1995. China's gain has come not at the expense of American manufacturing but rather primarily at the expense of Japan, which has seen its share of global manufacturing go from 21.1 percent to 17.8 percent over the past decade.

3. China's market is closed to American companies.

In fact, China and Hong Kong combined are our third-largest export market, at $73 billion in 2006. Moreover, China is by far the most rapidly growing market for US goods, having grown nearly four-fold over the last 10 years.

4. China's World Trade Organization (WTO) entry was a bad deal for America.

China's WTO-mandated market openings have clearly benefited American companies. US exports to China have grown 150 percent sine China's WTO entry in 2001, which is more than double the rate of the second most rapidly growing market over the same period, the Netherlands. In addition, as US companies take advantage of service sector openings mandated by China's WTO entry agreement, the US services trade surplus is projected to grow from $2 billion to $15 billion by 2015.

5. China doesn't allow American companies opearting there to be profitable.

According to the 2006 survey of USCBC member companies, 81 percent of companies say that their Chinese operations are profitable, a significant increase from a US government survey in 1999. And more than half say that profitability rates for their China operations meet or exceed their company's global profit margins.

The latest statistics from the US Bureau of Economic Analysis indicate that in 2006, US affiliates in China repatriated profits of $4.5 billion back to the United States.

6. China's undervalued currency creates the large US trade deficit and prevents American companies from selling more to China.

China does need to move faster with reforms to allow its exchange rate to better reflect market forces.

But Oxford Economics has estimated that even a 25 percent revaluation of the renminbi against the dollar would decrease the total US trade deficit, which was more than $800 billion in 2006, by only $20 billion after two years.

In addition, USCBC member companies generally do not cite the exchange rate as a key business issue affecting their competitiveness in China. Many are concerned, however, about potential repercussions that could impact US exports to China should the political dispute between the two countries over the exchange rate worsen.

7. China forces American companies into joint ventures.

Nearly 75 percent of foreign investment in China now goes into 100 percent foreign-owned enterprises, not joint-ventures with Chinese partners.

****
These myths distract us from our real economic and commercial problems with China.

The economic and commercial relationship clearly benefits the American economy, but problems do exist. Greater market access, transparency, national treatment, and better intellectual property rights protection would help to level the playing field for US companies. We need to focus on those issues, and on enhancing American competitiveness overall, to ensure we benefit from our trade relationship with what will soon be the second-largest economy in the world.

2007, The US-China Business Council

Coca Cola Partners with the Beijing Olympic Games

2007-08-09T09:21:00.000-07:00

Here's another commercial of a company using the Olympic partnership to strengthen their brand.

U.S. Companies Race to the Olympic Partnership Finish Line

2007-08-08T13:32:00.000-07:00

When Beijing won the bid as the host for the 2008 Olympic Games, many multi-billion dollar corporations and companies such as Visa lined up to win the race for this golden opportunity to use the Olympic icon rights in order to claim their place and gain visibility in China, and ultimately, in the world.

In 2005, United Parcel Service (UPS), a US-based courier, was granted the First Olympics Sponsorship. In 2006, the company opened its first retail centers in Shanghai and began setting up network outlets in colleges and hotels.

Today marks 365 more days before the official opening of the games. As that day approaches, we’ll sure to see more and more of these types of commercials in all sorts of mass media.

Check out these coporate sponsor sites:

- Visa
- UPS
- Starbucks
- L’Oreal
- Coke

Grand Celebration for the One-Year Countdown of the Olympic

2007-08-08T12:49:00.000-07:00

Official Beijing Olympic Games 2008 Web Post: 08/08/2007

(BEIJING, August 8) -- Tiananmen Square turned into a festival of jubilation Wednesday night as people from across China and from around the world gathered to celebrate the one-year countdown to the Beijing 2008 Olympic Games. (Read full article)

Mark your calendar for October 11, 2007

2007-08-06T07:52:00.000-07:00

It's been confirmed! The International Trade Center, Free Trade Alliance San Antonio, and US Chamber of Commerce will be hosting Business China 2007:Unlocking Opportunities for Texas Businesses on October 11th in the Sky Room at Incarnate Word University in San Antonio.

This conference is one of the most exciting international events in South Texas for companies interested in expanding and/or developing their business in China by providing the latest US-China trade info, invaluable contacts, and breakout sessions for sourcing and exporting.

Our special guests this year include Minister Zheng Zeguang, Deputy Chief of Mission, Chinese Embassy and Leslie Schweitzer, Sr. Trade Advisor, US Chamber of Commerce.

Here is the tentative agenda - we'll keep you posted on updates and revisions.

Give us a call at 210.458.2470 for more detail information.

8:00 am - 8:30 am

Registration and networking, continental breakfast

8:30 am - 8:35 am

Welcoming remarks

8:35 am - 8:40 am

Remarks on US Chamber's grassroots trade campaign

8:40 am - 9:25 am

China Business: Economic foundations and global implications. Presentation summarizes the primary forces driving China's economic growth, the policy debates arising from that growth, and the future potential market opportunities. A comprehensive picture of China is developed in a short period of time, and the strategic decisions facing US businesses are made clear. The bottom line is that our economic success or failure with respect to China has mostly to do with our decisions, not with policies made by Beijing. Daniel Rosen, Principal, China Strategic Advisory

9:25 am - 10:25 am

China business fundamentals: an on-the-ground perspective Moderator: Leslie Scheweitzer, Senior Trade Advisor, US Chamber of Commerce Hank Levine, Senior CP, Stonebridge China Charlie Martin, Former President, AmCham-China Bill Weidner, President and COO, Las Vegas Sands

10:45 am - 11:45 am

Resources for Texas businesses, Moderator: William Zarit, Regional director, East Asia/Pacific, US Commercial Service, US Dept. of Commerce

12:00 pm - 12:20 pm

Afternoon keynote: His excellency Zheng Zeguang, Deputy Chief of Mission, Chinese Embassy

12:20 pm - 1:00 pm

Lunch

1:00 pm - 1:15 pm

Closing Lunch Remarks, Leslie Scheweitzer, Senior Trade Advisor, US Chamber of Commerce in the afternoon after lunch, we will have a Logistics session on how to move products from and to China.

1:15 pm - 2:15 pm

Moving a Box from and to China - Logistic Trends and Updates

2:15 pm - 2.30 pm

Break

2:30 pm - 4:30 pm

Two afternoon plenary sessions:

1. Project Management Sourcing: Topics include

How to find a manufacturer

Customs regulations Quality Assurance

Negotiating price

Intellectual Property

2. Project Management Exporting: Topics include

Market feasibility and analysis

Distribution and sales channels

Finding a local partner

Top sectors for U.S. companies

4:30 pm Conclusion of Seminar

An Overview of the Major Regions in China

2007-07-27T08:17:00.000-07:00

Beijing

Beijing is the capital of the People's Republic of China, and the country's political and cultural center. It has a long history that dates back more than 3000 years, and has served as the center of power for more than 500 of those years. Beijing is not only China's political center, but also its cultural one. The Chinese language dialect spoken in Beijing, putonghua, serves as the model for the rest of the country to follow, and is the language of instruction taught in schools across the country. All of China, ranging from the Western portions of the country to the Southern reaches, sets their clocks to Beijing time. Beijing is the model for a distinctively Chinese development, and is a city that has undergone drastic changes over the past 20 years; an example for the rest of China to emulate. These changes continue to keep pace today, and present a wide range of opportunities for foreign investment.

Beijing is also home to 475 research centers, and more than 60 institutions of higher learning, including Peking University and Qinghua University. Beijingers are perhaps the most well-educated in all of China, and are at the forefront of technological change and advancement in the country. Beijing is a city of more than 12.5 million inhabitants, a municipal area occupying 16,808 square kilometers. Together with Shanghai, Tianjin and Chongqing, Beijing is classified as a separate municipality with the same status and responsibilities as a province. This special status enables the Beijing municipal government to approve independent foreign investment projects up to a value of $30 million, making it an attractive location for foreign investment in China. The major industries in Beijing include tourism, electronics, chemicals, automobile, machinery, metallurgy, textiles, garments, and household appliances.

Shanghai

Shanghai covers the Consular District of Jiangsu, Anhui and Zhejiang provinces and the City of Shanghai. The region's GDP was over US$ 400 billion in 2004, accounting for roughly 25 percent of China's total GDP. The economy of this region, known as East China, is roughly equivalent to that of the Philippines. The GDP of Shanghai alone grew 11.1 percent to over US$ 109 billion in 2005, accounting for over five percent of China's total output. GDP per capita in Shanghai is over US$ 6,200.

Shanghai is the industrial, financial, and commercial center of China. It hosts a concentration of manufacturing activity in such key industries as automotive, electronics, telecommunications, machinery, textiles, iron and steel, and petrochemicals. Shanghai has a population of some 17.5 million, not including up to three million visitors who are in the city on any given day.

In 2005, exports from Shanghai to other parts of the world were US$ 90.7 billion, an increase of 23% over 2004, and constituting about 16% of China's total. About 25 percent of China's total exports pass through Shanghai's ports. Two-way trade between Shanghai and the U.S. was more than US$ 31 billion in 2005, a 19% increase over 2004. Foreign direct investment (FDI) in East China has been increasing steadily for several years. In Shanghai, contracted FDI in 2005 was US$ 14 billion, and actual realized investment was US$ 6.9 billion.

The U.S. is one of the top investors in Shanghai. The U.S. share of Shanghai’s cumulative FDI, at approx. US$ 9.5 billion, is roughly 10% of Shanghai's total. There are some 4,700 U.S.-invested projects in Shanghai. The American Chamber of Commerce in Shanghai is the largest in Asia, with over 3,000 members, and some 80 new members per month. Some 15,000 Americans are long-term residents of Shanghai, and many more work on short-term visas. The City of Shanghai has the status of a province and receives preferential treatment from the central government, particularly as an incubator for reforms and pilot projects. Costs tend to be somewhat higher in Shanghai than in nearby cities, but the business environment is generally more transparent. Sectors to watch in the region are IT, telecommunications services, transportation infrastructure (ports, metro and light rail), distribution services, environmental technologies, construction materials, architectural and engineering services, industrial equipment, machine tools and manufacturing process controls.

Guangzhou

The area generally referred to as Southern China covers the provinces of Guangdong, Fujian, Guangxi Autonomous Region, and Hainan Island. These four provinces have a population in excess of 200 million, and contain China’s richest cities, as the South was the first area in China to be opened to the outside world. Much of that development, especially in Guangdong, has been fueled by the region’s proximity to the Hong Kong Special Administrative Region (HKSAR) and Taiwan. HKSAR has provided much of the capital, technology and business savvy that has made the Pearl River Delta China’s most prosperous region. Meanwhile, Taiwanese firms are the leading investors in Fujian, which is home to two of China’s wealthiest and most developed cities, Xiamen and Fuzhou.

Chengdu

Chengdu, the capital of Sichuan Province, is the most important commercial center in West China. This metropolis of 10.44 million lies 1,500 miles from China’s eastern seaboard. The city has a market reach of 200 million consumers and it is the distribution center for southwest China encompassing Sichuan, Yunnan and Guizhou Provinces, the Tibet Autonomous Region, and the Municipality of Chongqing. Sichuan Province boasts one of the most diversified industrial bases in the country and Chengdu is a key manufacturing center for the electronics, machinery, pharmaceuticals, chemicals, metallurgy and food processing industries. The IT industry has been designated as the Number One Project for growth in Sichuan Province. Sichuan is also the national headquarters for feed grain companies. In 2003, the city of Chengdu had a GDP of RMB 187.08 billion ($22.6 billion), a 13% increase over 2002.

Chongqing, the most recently established municipality directly under the Central Government since 1997, is the largest administrative municipality in China with a population of 30.9 million. Chongqing is strategically located in the upper reaches of the Yangzi River. According to current patterns of Chinese economic development, there are three economic belts: the eastern, western, and central belts. Chongqing has been identified as the connecting point between the eastern and western belts. Chongqing has received a great deal of financial and policy support from the Central Government, enabling its economy to grow rapidly and increasingly compete with Chengdu. Chongqing is famous for the scenic Three Gorges and the Three Gorges Reservoir. Once the construction of the Three Gorges Dam is competed, river navigation between Chongqing and Shanghai will become more reliable. Pillar industries in Chongqing are machine building, metallurgy, chemicals and pharmaceuticals. Since the early 1980’s, many companies in the national defense industry have shifted to manufacturing civilian products, playing an important role in the automobile and motorcycle industries in the city. With its strong heavy industry foundation, Chongqing is expected to become the automotive capital of western China. In 2002, Chongqing had a GDP of RMB 197.1 billion ($23.7 billion), a 10.3% increase over 2001. Southwest China’s economy has enjoyed relatively sustained growth in recent years and will continue to grow at 9 to 10% over the next few years.

Shengyang

Northeast China, historically known as Manchuria, is comprised of three provinces: Liaoning, Jilin and Heilongjiang. With a population of over 107 million people, the region is rich in natural resources and is known as China’s center of state-owned heavy industrial manufacturing. While reform of public sector enterprises continues to lag behind schedule throughout the region, provincial governments are encouraging development of private sector businesses in several sectors including information technology, telecommunications, environmental technologies, automobile parts, and tourism.

Regional leaders would like to see the Northeast become the fourth great coastal area to increase trade and draw in foreign investment. While it is well known that the Chinese government strongly encourages the economic development of the Southwest through its Great Western Development Initiative, it is little known that the Northeast is also a top priority.

In October 2003, the 16th Communist Party Congress endorsed the Rejuvenate the Northeast Initiative. In November, the National Development and Reform Commission announced its approval of 100 projects that are expected to require an investment of USD 7.3 billion (61 billion RMB). The Chinese central government plans to cover only 20% of planned investment by allocation of funds from the State treasury. The financing tools are expecting to primarily include interest subsidies on commercial loans from State policy banks and market liberalization to attract foreign and domestic investment. The projects will be unevenly distributed throughout the Northeast, with Liaoning having secured approval for 52 project proposals, Jilin with 11 projects, and Heilongjiang with 37 projects. Liaoning is home to about 10 percent of China’s large and medium size state-owned enterprises.

Shenyang, the capital of Liaoning Province, is considered the industrial center and transportation hub for Northeast China. Shenyang’s comprehensive manufacturing base is divided into forty sectors, including nonferrous metals, chemicals, automobiles, aircraft, machine tools, building materials, electronics, textiles, pharmaceuticals and light industrial products. The city’s GDP reached $16.9 billion (140 billion RMB) in 2002. Industrial production accounted for 43.9% of city GDP, while agriculture accounted for 6% and services for 50.1%. Liaoning’s GDP reached $66 billion (545 billion RMB), among which industrial production accounted for 47.8% of provincial GDP, agriculture for 10.8% and services 41.4%.

In November 2003, the central government released statistics that clearly demonstrate the comparative strength of the Northeast over the Southwest in terms of international trade activity. In 2002, total trade value for the Northeast reached $ 29.79 billion, which represented 4.7 percent of China’s total trade. The Southwest accounted for $ 9.17 billion, which was 1.5 percent of China’s total trade in 2002. With regard to foreign direct investment, the Southwest utilized $1.08 billion, while the Northeast utilized $5.18 billion. Liaoning typically attracts about 75% the Northeast region’s foreign direct investment.

Source: http://www.buyusa.gov/china/en/introduction.html

Are You China Ready?

2007-07-23T09:42:00.000-07:00

Go to http://hq-intranet04.usfcs.doc.gov/bid/chinabic_questionnaire.asp (a courtesy of export.gov) to assess your market readiness. Export.gov, supported by the U.S. government provides useful and up-to-date information and resources dedicated to assisting U.S. companies to explore business opportunities at the same time addressing challenges to doing business in China. The International Trade Center, conveniently located in the downtown UTSA campus is also available to provide you and your business with no-cost, confidential consulting services as well as the latest import and export info on China. Please visit http://www.texastrade.org/ for more information.

Resources for Trade and Cultural Information - Texas

2007-07-19T13:29:00.000-07:00

San Antonio

Alamo Asian Chamber of Commerce- Business/Economic Development
http://www.alamo-aacc.org/

The Alamo Asian American Chamber of Commerce is a not-for-profit organization that supports the advancement of the Asian American community in business, cultural and leadership endeavors.

Chinese Society of San Antonio - Education and Cultural Preservation
http://www.sachinese.org

The organization, established in 1984, has been a sponsor and participant in many cultural and social activities in the San Antonio area since. The mission of the CSSA is to promote the understanding and communication of the Chinese community, to voice the concerns of the Chinese community, and to achieve a sense of community by sponsoring social and cultural activities. The CSSA is non-religious, non-political, and non-profit organization.

Other organizations in Texas

Austin Asian American Chamber of Commerce (AAACC), Austin, TX - Business/Economic Development
http://www.austinaacc.org/

The Austin Asian-American Chamber of Commerce was created to serve the Asian-American business community in Austin. AAACC hosts meetings and mixers, workshops, classes and training seminars on various business subjects. The organization is also invovled in the development of an Asian-American Resource Center (AARC) with NAAO, city officials and other community organizations, as well as ethnic, cultural, arts charitable activities, and annual charity and fundraising events.

Benefits of joining the organization include networking opportunities relationship building with governmental entities and other Chambers of Commerce, developing contacts with community organizations and leaders, access to listing in the membership directory, discounts to events, seminars, and workshops, periodical newsletters, free business training. For non-profit organizations, benefits also include international business development opportunities, access to conference facilities, and possible grants. As for corporate sponsors, benefits further extend to logo advertising on the website with web link, recognition at events, sponsorship opportunities, as well as listing in business directory.

Asian Chamber of Commerce, Houston, TX - Business/Economic Development
http://www.asianchamber-hou.org/

The Chamber has the dual purpose of promoting trade between Houston and Asia and to foster economic development in the Houston area Asian-American communities. The Chamber was incorporated on June 20, 1990 as a Texas non-profit corporation. The Chamber hold professional seminars and speaker's series on topics related to Asia and the Asian-American community as well as provide networking opportunities through regular activities such as meetings, seminars and luncheons. The Chamber also participates in trade shows and trade missions.

Asian Pacific American Heritage Association, Houston, TX - Culture Awareness
http://www.apaha.org/

The Asian/Pacific American Heritage Association (APAHA) was formed in 1992 to "promote awareness and increase understanding of the Asian/Pacific American culture and its diversity through education and celebration". APAHA has collaborated with various community and educational entities to provide ongoing educational, cultural and scholarship programs to the Asian/Pacific and Greater Houston communities. As a non-profit, 501(c)3 organization, APAHA’s main objectives include enhancing racial harmony in our city, promoting cross-cultural awareness, education and appreciation between and among Asian/Pacific Americans and other ethnic groups by outreaching to schools, businesses, and other institutions.

APAHA provides many of its sponsored events to its members and the community. These gatherings are aimed to educate, inform, and entertain the public on Asian/Pacific American arts, culture, and heritage.

Chinese Community Center, Houston, TX - Education and Culture Preservation
http://www.ccchouston.org/

Established in 1979 as a Chinese Language School, the Chinese Community Center (CCC) today serves nearly 5,000 families each year through educational, cultural, and social service programs. The Center is a non-for-profit social services agency IRS 501(c)(3) organization in which funding and support come from individuals, public and private sector sources and the United Way of the Texas Gulf Coast.

The Center now serves the very young through the Child Development Program; youth through after-school tutorials, Summer Camp, and Chinese Language School; adults through the Adult Education Program that includes ESL, GED, job training and computer classes; and senior adults are assisted through Community Service, the Adult Day Program, and the employment program. The Center now serves as a center stage for the major events in the Chinese community in Houston.

Greater Dallas Asian American Chamber of Commerce (GDAACC), Dallas, TX - Business/Economic Development
http://www.gdaacc.com/

The Greater Dallas Asian American Chamber of Commerce (GDAACC) is the largest Asian American Chamber in the United States with over 1,200 members currently. GDAACC is positioned to be the focal point of Asian American economic development and cultural exchange.

The organization has developed Leadership Tomorrow, a program created for emerging Asian American leaders in the DFW area who are interested in developing their leadership skills, as well as other job training, entrepreneur development programs. GDAACC also hosts the Texas Asian American Business Symposium in Dallas, Texas. The symposiums are designed to emphasize business opportunities for Asian Americans as well as business opportunities in the Asia Pacific region for American Companies.

FYI: Cultural Considerations

2007-07-17T08:44:00.000-07:00

China has a long history of more than 5,000 years and has experienced feudalism, communism, civil war, invasion and now a booming market economy. Since 2001, following its entry into WTO, China offers huge potential market for investment, sales, and cultural exchanges. More and more organizations are venturing or looking to venture into China. There are four key Chinese values one should keep in mind for a smooth and successful transaction.

- Mian–zi (literally means face)

Mian-zi is the personal pride and is the basis of a person’s reputation and his or her social status in any given situation. In the Chinese business culture context, “saving face” or “losing face” and “giving face” are essential for successful business exchanges. Causing someone to lose face through public humiliation can damage business relationships. On the other hand, praising someone (in moderation) in the presence of his or her professional or social group is a way to “give face” and earns respect and loyalty.

- Guang-xi (literally means relationships or connections)

Guang-xi is the network of elaborate relationships promoting cooperation/trust and, for centuries, has been and continues to be the primary vehicle for accomplishing everyday tasks.
These are sincere, supportive relationships based on mutual respect. Guang-xi is a fundamental aspect of Chinese culture. In the world of business, possessing the right guang-xi is necessary for surviving the difficulties and frustrations that are often encountered in life, as well as in business.

- Keqi (literally means guest behavior)

Keqi, meaning guest (ke) and behavior (qi) translates as “thoughtful, courteous and refined behavior”. In business terms, this simply means that you must demonstrate humility and modesty. In negotiations especially, humbleness and patience are key.

- Confucianism

This is an ethical belief system based on the teachings and writing of the sixth century philosopher, Confucius. In this system, emphasis is placed on the concept of relationships with total and complete respect for personal responsibility and obligation.

This philosophy has been the most vital cultural factor in the development of Chinese society, and it remains effective in Chinese business culture today. Confucianism is responsible for the preservation of surface harmony and the collective good.

Sources
Asia Times - http://atimes.com/
Asia Pacific Management Forum - www.apmforum.com/news.htm
South China Morning Post - http://www.scmp.com/
Time, Asia - www.time.com/time/asia

Best Prospect Sectors in China

2007-07-12T09:26:00.000-07:00

Aerospace and Aviation

Over the next twenty years, China predicts that its air transportation passenger volume will grow annually by 11%. It will become the world's second largest aviation market and will require an additional 1,790 aircraft to handle the increased volume. Expansion of airport infrastructure will also continue with 49 airports slated for new construction and 701 airport expansion projects under China's current five-year plan, which began in 2006. Furthermore, a new system of regional control centers and full conversion from program to radar based air traffic control will be introduced over the next 5-10 years.

At present, CAAC is drafting the 11th Five-Year Plan and 2020 Vision for the aviation industry. It is expected that the annual growth rate will be 14%. By 2010 (the end of the 11th Five-Year Plan), the China expects to have 186 airports, which includes 3 national hubs, 7 regional hubs, 24 medium hubs, 28 medium airports and 124 small-size airports. The total investment will be $17.7 billion. It is estimated that the number of airports with scheduled airlines will be 260 by 2015.

Along with passenger airport equipment, large growth has been seen in the air cargo sector. China also plans to improve aviation security systems and equipment, computer information management, settlement ticketing systems, global distribution systems and E-commerce. Airport retail concessions are also a new concept for Chinese airport authorities. As airports are faced with the challenge of making money they are considering bringing in partners via food and other retail concessions. Finally, safety equipment - including emergency vehicles - continues to be an area of interest for Chinese airport authorities. Priority will be given to foreign investment, which will be directed toward airport infrastructure construction, technology upgrade and management training. China is a fast-growing market for air traffic control equipment. Over the past 10 years, CAAC has spent approximately $1 billion on air traffic management (ATM) infrastructure improvements.

Agribusiness and Food

China is now the world’s fourth largest importer of agricultural goods and its imports are expected to continue growing. China Customs records for 2004 indicate the country imported over $35 billion in agricultural, fishery, and forestry commodities. Presently, U.S. agricultural, fishery, and forestry exports to China are at their all-time greatest levels; China Customs records indicate the value was $8.1 billion in 2004.

Automotive

China is set to become the world’s second largest new automobile growth market by the end of 2006 and this growth is spurring demand for U.S. automotive parts, services, and aftercare products. The total output value of the automotive sector for the first three quarters of 2006 was $143 billion dollars.

China encourages the development of clean and fuel efficient vehicles in an effort to sustain continued growth of the country’s automobile industry. By the end of 2007, China plans to reduce the average fuel consumption per 100 km for all types of vehicles by 10%. The proportion of vehicles burning alternative fuel will be increased to help optimize the country’s energy consumption. Priority will be given to facilitating the research and development of electric and hybrid vehicles as well as alternative fuel vehicles. Major cities like Beijing and Shanghai already require Euro III emission standards. Currently auto parts and accessories enjoy lower levels of tariffs than cars (the average tariff is 10-13% for parts/accessories and 25% for cars). China has agreed to lower tariffs on imported auto parts and accessories to 10%.

The Chinese Government is in the midst of a massive upgrade of its transportation infrastructure. Ports are being improved for greater use of China’s waterways, and airports are being improved across the country. All of these projects bring opportunities to U.S. construction equipment, engineering, and electronics and safety devices companies, especially for projects funded by the World Bank, Asian Development Bank, OECF, and similar multilateral lending agencies that use transparent bidding procedures.

In the past few years, China has been rapidly developing its highway system. The investment for highway construction has increased enormously from 2000 owing to increased government attention. US$4.25 billion was invested in Beijing’s infrastructure in 2004, and another US$22 billion will be invested before the 2008 Olympics to improve Beijing’s traffic congestion issues. Improving infrastructure has facilitated the increased use of automobiles.

Moreover, China has sixteen major shipping ports with a capacity of over 50 million tons per year. Combined China’s total shipping capacity is in excess of 2,890 million tons. By 2010, 35% of the world’s shipping is expected to originate from China.

Construction Materials and Services
Consumer Goods/Recreation
Energy
Environmental Technologies
Information Technologies
Machine Tools
Medical and Pharmaceutical
Security/Safety Equipment
Services
Telecommunication Equipment and Services
Transportation and Infrastructure

Source: www.export.gov/china

China: Factors to winning the bid for the 2008 Olympics

2007-07-12T08:54:00.000-07:00

Two events in the late 20th century and early 21st century will go down in history as events of historic significance for China. One was the smashing of the Gang of Four and launching of the reform and opening-up. The other is Beijing's hosting the 2008 Olympics. The winning bid to host the Games is a symbol of China’s rising standing among its world peers. In the contest to become a host for the Olympics, countries must compete with each other in areas of economic power, development potential, cultural tradition, education and science as well as international image. Since 1993 when China lost to Sydney in hosting the Game, China has made extensive and intensive changes in all areas in which impacted the rest of the world as well. This is how they won the bid for the 2008 Olympics.

Significant Progress
· China’s GDP has risen 2.5 fold, ranked 4th at 2.7 trillion USD (2006), compared to U.S. at 13.3 trillion USD ranked 1st, followed by Japan and Germany.
· China is Asia’s fastest growing economy over the past 20 years
· In 1985, average income in China was $280 USD; in 2005 the average income had increased to $1,290 USD.
· China's transportation and communications infrastructures had been significantly improved.
- The recent railway infrastructure in the Western regions, particularly Xinjiang and Tibet, China’s most remote regions helped reunite China.
- China is working on more plans for infrastructure development in these regions in roads, railways and oil pipe lines.
- The railway infrastructure significantly boosts tourism in China which brought 8 million U.S. dollars to Xinjiang, a year-on-year growth of 40.6 percent.
· The construction of sports venues and environmental protection projects had also made impressive progress.
· Hong Kong and Macau returned to the sovereignty of China and were functioning smoothly as two special administrative regions of China, which helped enhance China's international status.
· Internationally, the country's relations with the United States and European countries began to develop in directions favorable to China, thanks to effective diplomatic strategy and policy.
· China adopted effective monetary policies in response to the impact of the 1997 Southeast Asian financial crisis, including maintaining the stability of the RMB foreign exchange rate. This helped keep the crisis from spilling over to larger areas, while maintaining the stability of China's own economy.

The Official Website of the Beijing 2008 Olympic Games

http://en.beijing2008.cn/

Sources:
www.worldbank.org
http://english.peopledaily.com.cn
www.wikipedia.com

China's growth on export and import sector

2007-07-03T13:17:00.000-07:00

China’s global competitiveness has been rising since the 1990’s. Import and export with the United States reflected that. In early 90’s, China replaced South Korea and Taiwan as the largest footwear supplier for the United States. China has also replaced Hong Kong, Taiwan, and South Korea as the largest toys and sports supplier through the past 10 years. According to New York Times, 80% toys in the U.S. are made in China. In 2005, China has become the largest supplier for consumer appliances and IT hardware products. Previously, Japan and Mexico were the largest suppliers for the United States for those sectors.

Other than growth in export, import sector has grown rapidly at the same time, especially components to be assembled into finished products. China’s import was $53.4 billion in early 1990’s. In 2005, it has grown to $295 billions, which is an average growth rate of more than 15% per year. In 2006, China imported more than 400 billion dollars, exceeding the Japanese for the first time. China becomes the third’s largest importing country.

China has tripled its economy in the past decade or so and still has a lot of potential to grow. The question is how much will the economy expand and how much of the global market will the Chinese take over in the next ten, twelve years?

Useful links for doing business with China

2007-07-03T12:51:00.000-07:00

East Asian Civilization has always been a mystery to most. For years, most Americans looked at China as nothing more than just a communist country on the other side of the ocean. As China opened up more and more since the 1990’s, Americans have seen growing business opportunities within, espeically import and exports start to arouse. Due to the cheap labor and cheap material, China became a very popular market for both importers and exporters.

In the eyes of American businesses, China is full of opportunities to gain profit. Yet, there are many challenges American businesses have to face when going into this market. For example, American businesses tend to run into language issues, different business norms and regulation issues. What should American business consider before going into importing/exporting business with China? Because of the long history the Chinese have, many Americans still see Chinese as somewhat a communist country with a highly controlled economy. Because of all the negative issues from the Tinanmen Massacar in 1989 to the recent toothpaste recall, Americans tend to have doubts about the political side of China. Culturally, Chinese have their unique sets of believes and customs. Nevertheless, what is the actual situation?

Research is one of the very first steps to gain a basic understanding of any new market. However, where to find information? Here are some helpful links to begin

http://www.export.gov
The U.S. Government Export Portal. The China country commercial guide on the site gives a good general overview.

http://www.export.gov/china
There are more categories regarding different issues.

http://www.customs.gov.cn/YWStaticPage/7019/50b0697a.htm
General Administration of Customs of the People’s Republic of China
Regulations regarding importing and exporting.
(The Chinese version has more information then the English one)

http://www.china-customs.com/customs-tax/
HS number for Chinese

http://big5.mofcom.gov.cn/
Ministry of Commerce of the People’s Republic of China

http://www.aqsiq.gov.cn/
General Administration of Quality Supervision, Inspection and Quarantine of the People’s of Republic of China

http://www.chinese-culture.net/html/chinese_business_culture.html
Some article about Chinese business cultural and other related articles.

http://www.china-embassy.org/eng/
Embassy of People’s Republic of China in the United States of America

The Iternational Tade Center can also help provide more extensive market research. You can contact us as 210.458.2470 or via www.texastrade.org

Conference highlights local business opportunities in China

2006-10-26T10:22:00.000-07:00

By Meena Thiruvengadam, San Antonio Express-News Business Writer
Published 10/25/06

China's more than 1.3 billion citizens make the country a lucrative export market, and several Texas companies are looking to get in on the action. Dan Ludwig, president of Registration Systems Inc., a San Antonio database and information management company, says there's an opportunity for him in China. "I'd like to see if I could help develop more transparency within Chinese organizations," he said.

And although Kinetic Concepts Inc. isn't quite ready to dive into the Chinese market, it is interested in exploring opportunities there. The medical device company already has a presence in 20 countries.

"Right now, for us, it's more about looking at what our long-term strategy should be," said James Cravens, the company's senior vice president of human resources.

Dozens of exporters attended the Business China 2006 conference, sponsored by the International Trade Center at the University of Texas at San Antonio and the Free Trade Alliance San Antonio. About 150 people turned out for the one-day event Tuesday at the University of the Incarnate Word.

"I've been doing this for 11 years, and I don't ever recall a country-specific event we've done that's attracted this kind of interest," said Blake Hastings, executive director of the Free Trade Alliance San Antonio, a local international trade advocacy group.

Texas exports to China grew 10 percent in 2005 to $4.9 million, according to data from the UTSA International Trade Center. Among the state's top exports to China are integrated circuits, chemicals and raw cotton.

"China's importation of commodities in huge quantities has provided manufacturers of the world with a vast market and has stimulated the global economy," Chinese Consul Hua Jinzhou said.

San Antonio's best export opportunities are in the biomedical, engineering and environment sectors, said Elisa Chan, a local businesswoman spearheading efforts to promote trade between San Antonio and China.

"The country is developing at a tremendous speed. They'll be looking at getting innovation and services from somewhere," she said. "San Antonio is positioned very well because we have so many different industries to offer."

Port San Antonio plans to export to China through Mexico

2006-10-02T07:30:00.000-07:00

SA Express News
Web Posted: 09/21/2006 07:53 PM CDT

Meena Thiruvengadam
Express-News Business Writer

LAREDO — Port San Antonio will send its first shipment to China through a new Mexican trade corridor within the next month, a port official said here Thursday.

Cotton will make its way from fields in Texas and Mississippi through the Mexican west coast Port of Lázaro Cárdenas and into China, said Jorge Canavati, Port San Antonio's marketing director. Canavati spoke during an annual border manufacturing conference at Texas A&M International University.

Click title for full article...

Henry Paulsons (US Sec. of Treasury) speech on China Strategy

2006-09-13T19:23:00.000-07:00

This link leads to the US Treasury Department page and contains the full speech given by Henry M. Paulson, US Secretary of the Treasury, on Sept. 13, 2006

http://www.treas.gov/press/releases/hp95.htm

and commentary by Krishna Guha of Financial Times

http://www.ft.com/cms/s/7443b020-433e-11db-9574-0000779e2340.html

also by Glenn Sommerville of Reuters posted on CNN Money

http://money.cnn.com/2006/09/13/news/international/bc.economy.paulson.reut/index.htm?postversion=2006091315

International Firms Confirm Speaker Participation

2006-09-12T16:22:00.000-07:00

We are excited to confirm the following speaker's conference participation:

"Chinese Market Entry Strategies for US Exporters"
:: Mark Pitts, VP Business Consulting, United States, Synovate Business Consulting Inc.; www.synovate.com

"Local Perspectives on Doing Business with China"
:: Walter Groff, VP of Division 8, Southwest Research Institute; www.swri.org
:: David Garcia, Distribution & Return Sales Manager, Vtech Communications, Inc.; www.vtechphones.com

Each of these speakers are industry experts and contribute high-value content and experience to their sessions.

Don't miss this opportunity to gain valuable insight. Register today at 210.458.2470.

Business Development Mission to China

2006-09-07T14:41:00.000-07:00

US companies have the chance to make or increase sales in China by joining Commerce Secretary Gutierrez as he leads a business development trade mission to Shanghai and Beijing from November 13-17, 2006. The mission aims to: address obstacles to trade, provide information on export financing, and assist new and experienced exporters increase business activities.

Applications and additional info at http://www.export.gov/chinamission.

Special thanks to the San Antonio DOC USEAC, a Business China 2006 marketing partner, for submitting this event.

Intertek Confirms Participation

2006-09-07T12:20:00.000-07:00

We are excited to announce the confirmation of Intertek Global Market Access Manager, Bill Holz, as a conference speaker on "CCC Guidelines for US Exporters." Mr. Holz will present in the afternoon export track from 2:15 pm - 3:15 pm.

The CCC (China Compulsory Certification) Mark
CCC, which stands for China Compulsory Certification, became effective on May 1, 2002. The two previous systems (CCIB and CCEE or Great Wall) caused a great deal of inconvenience for enterprises dealing in both domestic and foreign trade by carrying different national quality standards. With CCC as a single procedure, this burden has been lifted, providing faster, more cost-effective access to Chinese markets.

Intertek's Experience with the CCC
Intertek’s global market access experts can provide high quality service and help obtain the necessary certifications for fast market entry into China. For more information on the Chinese market, visit Intertek's Global Market Access Information Center today at http://www.global.etlsemko.com/marketaccess.

Texas Exports to China

2006-09-05T10:58:00.000-07:00

Texas Exports to China:

Texas Exports to China grew by 10 percent in 2005, reach $4.901 million. There were 197 different products sold to China with an export value exceeding one million:

➢ The largest single export was integrated circuits, which at $634 million, accounted for 13 percent of Texas exports to China.

➢ Exports of ethylene, office machine parts, and raw cotton, each exceeded $200 million.

➢ 56 of the 197 products with a value greater than $1 million grew increased by more than 100 percent between 2004 and 2005. 128 products had growth rates above 10 percent

View full list of Texas Exports at http://ied.utsa.edu/itc/China/TexasExportstoChina.pdf.

Latest Confirmed Speakers

2006-08-31T12:40:00.000-07:00

Here's an update on our latest confirmed speakers...

China Business Culture: Catherine Farris, President, Catherine Farris & Associates
South Texas-Mexico Competitive Positioning: Bruce Miller, CEO, Port of San Antonio
Financing Export Activities: Randy Penn, President, Penn International

Welcome!

2006-08-29T14:03:00.000-07:00

Greetings from the International Trade Center in San Antonio, Texas!
Lai Zi De Zhou Shen An Dong Ni Ao Guo Ji Mao Yi Zhong Xin de Wen Hou.

This blog is focused on providing info and receiving feedback on the upcoming "Business China 2006: Unlocking Chinese Trade Opportunties for Texas Businesses" conference in San Antonio, Texas on October 24, 2006

Attendees will receive up-to-date information, contacts and resources for launching into and/or developing business with China.

CURRENT AGENDA
8:45 am – 9:15 am Registration, continental breakfast & networking
9:30 am – 10:00 am Opening Remarks (San Antonio Mayor Hardberger confirmed, pending invitation for Chinese Consulate - Houston)
10:15 am – 11:00 am China in the World Economy: Past, Present & Future
11:00 am – 11:45 am China Business Culture; Catherine Farris, President, Catherine Farris & Associates, Austin, Texas
12:00 pm – 1:15 pm Keynote Luncheon: South Texas Competitive Positioning Panel (Bruce Miller, CEO, Port of SAT)

SIMULTANEOUS TRACK I SOURCING
1:30pm – 2:15 pm US Customs & Logistics
2:30 pm – 3:15 pm Legal Issues, Due Diligence & IPR
3:30 pm – 4:15 pm Payment Methods

SIMULTANEOUS TRACK II EXPORTING
1:30pm – 2:15 pm Market Entry
2:30 pm – 3:15 pm Chinese Customs & Regulations
3:30 pm – 4:15 pm Financing Export Activities

4:30 pm – 5:30 pm US-China Case Study
5:30 pm Closing Remarks

Further information is available on www.texastrade.org or contact us at +1 (210) 458 2470. Thanks for visiting!