Transcript China Presentation

CS Shanghai & East China
Northwest China Council
Portland, Oregon
October 3, 2007
Chip Peters, Commercial Officer – Shanghai China
The U.S. Diplomatic
Mission in China
Embassy in Beijing
4 Consulates
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Shanghai
Shenyang
Chengdu
Guangzhou
Our Consular District
• Municipality of Shanghai:
– Plus, 3 surrounding provinces
Shanghai Overview (2006)
JIANGSU
ANHUI
GDP per Capita:
$7,131 vs.
($1,800 for all China)
Population:
18 – 20M (estimate)
= Texas
Area:
= Delaware
U.S. Residents:
25,000
ZHEJIANG
Consulate General
of Shanghai
Sections Include:
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Political & Economic Section
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Public Affairs Section
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Visa Services & U.S. Citizen Services
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Patent and Trademark Office
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Agricultural Trade Office
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Commercial Service
The U.S. Commercial Service
• Agency:
– U.S. Department of Commerce
• Mission:
– Promote U.S. Exports
– Protect U.S. Commercial Interests Abroad
– Promote Foreign Direct Investment (FDI) into US (new role)
• Locations:
– In U.S.: 105 Export Assistance Centers
– Overseas: 157 offices in 84 countries
Our “Core Services”
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Business Facilitation
Trade Promotion Events
International Partner Search
International Company Profile
Single Company Promotion
Gold Key Matchmaking
• International Buyer Programs
• Trade Shows & US Pavilions
• Trade Missions
Market Research
• Market Research Library
• Country Comm. Guide (CCG)
• Customized Market Research
Customized Programs
• Platinum Key Service
• Business Facilitation Services
• Advocacy & Trade Disputes
Shanghai Growth
Shanghai Pudong: Pre 1990
If Shanghai were
a country, it would
have the world’s
40th largest
economy.
WSJ – 5/6/2007
In 2005, Shanghai completed
towers with more space for living
and working than there is in all the
office buildings in New York City.
NYT – 10/18/2005
Shanghai Pudong: Post 2000
Shanghai Features
• Ideal geographic location
• Concentration of MNCs
– Manufacturing, Finance
Center, R&D, High Tech
• More transparent business
environment
• Educated work force
• Infrastructure
– Ports, airports, railway,
highways, industrial parks
Reaching the 2nd Tier Cities
More Market Access. Same Quality Service.
14 Secondary Cities with American Trading Centers
 Dalian
 Nanjing
 Chongqing
 Qingdao
 Hangzhou
 Shenzhen
 Harbin
 Tianjin
 Kunming
 Wuhan
 Nanjing
 Xi’an
 Ningbo
 Zhuhai
American Trading Center
Cities in Our Region
Estimated
Populations
•Nanjing:
6.0 M.
•Hangzhou: 6.5 M.
•Ningbo:
5.4 M.
Business Opportunities
• China is world’s largest market
– 4th largest U.S. export
destination
• (3rd if include Hong Kong)
• Last 15 years, China fastest
growing country in history
• 20-year olds have known
nothing but upward mobility
Best Prospect Sectors
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Agrochemicals
Air Traffic Management
Equipment Market
Safety and Security Market
Automotive Components Market
Coal Mining Equipment
Construction Equipment Market
Banking Technology
Credit Card Market
Education and Training
Franchising
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Semiconductor Industry
Machinery
Marine Industries
Liquefied Natural Gas
Power Generation
Specialty Software
Telecommunications Market
Water and Wastewater
Treatment
Medical Equipment
Find research on these sectors:
www.export.gov/china
Oregon, Computers,
and Electronics
• Oregon’s # 2 export market is China
• Oregon Export Market Share (2006)
– Canada 17.6%, China 9.1%, S. Korea 8.4%
• Oregon’s Top Exports to China
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Computers and Electronics $939 M
Paper Products $74 M
Waste & Scrap $73 M
Machinery Manuf. $58 M
Leather Products $54 M
Source: US-China Business Council 2007
Business Challenges
Operational Challenges
Business Challenges
• Power Shortages
• IPR Infringement
• Traffic Congestion
• Transparency
• Pollution (air & water)
• Rule of Law
• Coast vs. interior disparity
• Corruption
• Size & diversity of regional markets
• Protectionism
• Workforce turnover
Economic Challenges
• Unemployment
• Stability of financial system
• Demographics
• Energy & natural resources
• Rapid urbanization
Practical Tips
Understand the Market
• Visit China
Set Realistic Expectations
• Conduct due diligence before entering market
– The 6D’s
Protect Your Interests
• Register your Intellectual Property
• Review all contracts with legal counsel
• Have an exit strategy; be prepared to “bail”
The China BIC
www.export.gov/china
Useful Sites
• Contact the Portland Export Assistance Center
– http://www.buyusa.gov/oregon/partner.html
• Visit our Web site
– www.buyusa.gov/china
• Protect Your IPR
– www.stopfakes.gov
• Are you ready for China?
– www.export.gov/china
Don’t Forget…
In China…
Everything is possible, nothing is easy.
Thank You
谢谢