The Kentucky World Trade Center (KWTC) organized a successful
trade mission to Beijing, Shanghai, Shenzhen and Dongguan,
China from November 12-19, 2004. KWTC staff members, Ying Juan
Rogers, Susan Cook and Holley Groshek led the delegation. Mission
participants included representatives from Lectrodryer, National
Products, Shipper’s Supply, IDEA, TubeMaster and the Mayor’s
Office for Economic Development in Lexington.
China’s accession to the WTO on December 11, 2001 has offered
significant opportunities for U.S. companies, and highlights
the country’s transition from central planning to market-based
regulatory principles. GDP growth in China was over 9% in 2003,
and Chinese figures show American companies invested close
to US$ 4 billion in 2002. China is America’s fifth largest
export market. Promising growth sectors for U.S. exports include
energy, chemicals, machinery, telecommunications, medical equipment,
construction, services and franchising.
The purpose of the mission was to encourage participants take
advantage of these new opportunities by helping them establish
working business relationships in China. The KWTC worked with
the World Trade Center (WTC) offices and the China Council
for the Promotion of Trade (CCPIT) offices in each city to
find business partners and set up one-on-one meetings and factory
visits for each company.
Prior to the individual meetings, the Chairman of the CCPIT
in each city briefed the delegates on the business and economic
climate in their region, and answered their individual questions.
The CCPIT Beijing arranged a trade program with a group of
over 75 Chinese business representatives promoting trade with
Kentucky. In addition, two commercial representatives from
the U.S. Embassy provided a breakfast briefing for the delegation,
detailing obstacles and opportunities for U.S. companies in
China.
By participating in the KWTC delegation, rather than traveling
to China individually, companies were able to secure corporate
and government-level introductions that may not have been possible
otherwise. Members of the delegation reported making significant
progress toward finding and selecting suppliers, distributors,
and joint venture partners, and many have already made plans
for return visits to follow up with the leads generated on
the trip.
Shanghai
With a population of over 16 million, Shanghai is the industrial,
financial and commercial center of China. It hosts a concentration
of manufacturing activity in automotive, electronics, telecommunications,
machinery, textiles, iron and steel, and petrochemicals.
In 2003, exports from the city were US$48.5 billion, constituting
about 11% of China’s total exports, and about 25% of China’s
total exports pass through Shanghai’s ports. Even with such
a large volume of exports, the city still imports more goods
than it exports. U.S. investment in Shanghai in 2003 totaled
US$8.2 billion.
Shenzhen & Dongguan
Located in close proximity to Hong Kong, Shenzhen and Dongguan
have a population of 10 million and 7 million respectively.
Shenzhen’s GDP for 2004 is expected to reach 300 billion,
and the city has an annual trade volume of close to US$114.3
billion. The city’s major exports to the U.S. include textiles,
electronics, computers and communications equipment. Shenzhen
is also the location of Walmart’s first operation in China.
Dongguan
exports nearly US$28 billion worth of products per year,
or 6% of China’s total exports, with 32% of those destined
for the U.S. The city also contains 5% of China’s total foreign
direct investment. Of 15,240 foreign-owned enterprises in Dongguan,
130 are U.S.-owned, and growth has reached 1,500 new investment
projects per year. Dongguan is a major manufacturing base for
furniture, machinery and electronics. There are 3,500 furniture
manufacturing operations alone in Dongguan.
Beijing
With a population of over 13.5 million, Beijing is the capital of China and the
country's political, cultural and international exchange center. Major industries
include electronics and telecommunications equipment, chemicals, automobiles,
machinery, metallurgy and food making. Beijing’s hi-tech industry is now
one of the most competitive in China.
Beijing
exports grew by an average of 8.7% per annum from 1996 to
2002 and reached US$ 8.4 billion in 2002. Major exports include
machinery, transport equipment,
textiles and garments, foodstuff, mechanical and electronic products, and hi-tech
technological products. From 1996 to 2002, Beijing’s imports increased by an
average of 11.28% per annum to reach US$ 18.4 billion. Major import commodities
were machinery and equipment, mechanical and chemicals and raw materials and
other light industrial products.
Among
the world’s largest 500 enterprises, close to 160 have invested
in Beijing. In 2002, the utilized amount of FDI increased
by 1.1% to US$1.8 billion, equivalent to 7.8% of the cumulative
amount from 1991 to 2002.
On
July 13, 2001, Beijing won the bid to host the 2008 Summer
Olympics, offering a tremendous business opportunity for
U.S. companies. The city is planning to invest more than
$23 billion in preparation. Much of this money will be spent
on construction projects in the following areas: facilities,
transportation, telecommunications, and environmental improvements.
The Beijing municipal government has promised that bidding
on projects will be open and on an equal basis with foreign
and domestic companies. For up to date news and bidding announcements,
subscribe to the Olympics Hot Sheet e-newsletter at www.buyusa.gov/china/en/hotsheets.html.
You may also find bidding information on www.chinabidding.org.
