The Kentucky World Trade Center (KWTC) led a successful trade mission to Beijing, Shanghai, and Shenyang, China from September 15-24, 2005. Mission participants included representatives from Humana Inc.; Cunningham Golf Cart from Louisville; Frost Brown Todd; the Mayor of Winchester, Mr. Dodd Dixon; the Mayor of Richmond, Mrs. Connie Lawson; the Mayor of Versailles, Mr. Fred Siegelman; the Director of the Bluegrass Area Development, Mr. Jas Sekhon; the City Attorney for Jessamine County, Mr. William Arvin; and the Director of the Paris-Bourbon County Economic Development Authority, Mr. Craig McAnelly.

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. Kentucky exports to China have increased 300% from 2001-2004. 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 to take advantage of these new opportunities by helping them establish working business relationships in China. In addition, the mission helped to foster better understanding of a non-western culture and growing marketplace. The delegates mainly focused on business opportunities in China and reverse business opportunities for our local communities, but they did have an opportunity to explore the many diverse cultural activities and traditional cuisine.

The KWTC set up pre-arranged onsite business meetings for each participant. In Shanghai, the World Trade Centers Association held its annual General Assembly, during which delegation members were able to meet with many business leaders from China and around the world. Delegates also benefited from participating in business matchmaking meetings.

By participating in the KWTC delegation, rather than traveling to China individually, companies and officials 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. As one member delegate noted during a break from the World Trade Center General Assembly, “You just can’t fully appreciate what is happening here (China) until you are on the ground and experiencing it for yourself. China has a lot going on and we need to fully understand what we are dealing with in order to compete.” Truer words could not have been spoken, and if our local companies are to remain competitive and take advantage of global opportunities, we must learn the new dynamics of a global economy.

City Profiles

Shanghai
With a population of over 17 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.

Shenyang
Shenyang has over 5,800 industrial manufacturers with over 140 industrial categories, and a complete set of industries, including metallurgy, chemistry, pharmaceutical and textiles, electronics, automobiles, aviation, building materials and machine manufacturing, and enjoys a comprehensive processing and equipment producing capability. Finished industrial goods are sold in more than 50 countries in areas around the world.

Among the said industries, the machine manufacturing industry is world famous, and the machine tools, power transforming and distributing equipment, universal equipment, large-sized mining machinery and automobile industries are playing an important role in the national economy, with the potential and capability to challenge the world markets.

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.