WSCRC

Washington State China Relations Council

Windermere Cup

Saturday, May 6, 2017

Montlake Cut, Seattle

Regatta 10 a.m. – Noon

Opening Day Boat Parade Noon – 2 p.m.

Details at WindermereCup.com

The University of Washington and Windermere Real Estate are excited to host the 31st annual Windermere Cup races to be held on Saturday, May 6, on Lake Washington.

The races are held as part of the celebration of Seattle’s Opening Day of Boating Season and are followed by the Seattle Yacht Club’s Opening Day Boat Parade. More than 800 rowers compete in this prestigious event, which culminates with the women’s and men’s Windermere Cup races.

Following the races, fans are invited to join the regatta champions for an awards ceremony and presentation of the Windermere Cup Trophy on the stage located near the video board on the NW side of the Montlake Cut, near the finish line.

Admission to the event is free. Viewing is available on the shores of the Montlake Cut, or by boats anchored to a log boom in Lake Washington.

For more information, visit windermerecup.com.

POLICY BRIEFING SERIES LAUNCH — US-China Business Relations: Export Controls & Technology Transfer

On April 19, 2017 WSCRC launched the first session of its Policy Briefing Series (PBS) with briefings from Godfrey Guerzon, Homeland Security Investigation (HSI) Senior Special Agent and Nelson Dong, Head of Dorsey & Whitney’s National Security Law Group and co-Head of its Asian Law Group. The WSCRC PBS engages leading subject-matter experts from government, industry, law, and technology communities to provide in-depth insights on current key issues in US-China-WA relations.

Nelson Dong presented a comprehensive background on the role and scope of Chinese industrial espionage in the United States, civil and criminal enforcement tools of US government investigators and prosecutors, US customs and border protection (CBP) policy.

Godfrey Guerzon provided a comprehensive overview of HSI’s Counter-Proliferation Investigation Program, described two Seattle case studies and underscored the importance of industry cooperation in enforcing US export laws.

Please contact WSCRC staff for copies of speakers’ Powerpoint presentation.

Attendees included Congressional staff, K&L Gates, Global Innovation Exchange (GIX) at University of Washington, Skagit County, Washington Search Partners, and MKL Enterprises Ltd.

Dorsey & Whitney’s Seattle Office generously hosted the event.

WSCRC 37th ANNUAL BANQUET HIGHLIGHTS

WSCRC convened its 37th Annual Banquet on March 15, 2017 at the Bell Harbor Conference Center in Seattle. More than 260 guests representing key sectors – aerospace, agriculture, architecture, banking, bio-tech, clean-tech, hi-tech, investment, law, manufacturing, real estate, shipping, etc. – as well as national, state and local government attended the event. Watch video highlights here.

The program began with welcome remarks from Port of Seattle Commission President Tom Albro, who introduced newly-appointed WSCRC Chairman Andy Wilson. The new chairman outlined WSCRC’s new vision to amplify Washington state’s national voice and visibility on the role of Washington state in US-China trade relations and more broadly, advocate equitable globalization. Andy Wilson then introduced newly-appointed WSCRC President Mercy A. Kuo.

The banquet featured keynote speaker Ambassador Carla A. Hills – Chairman and CEO, Hills & Company International Consultants; Chair, National Committee on U.S.-China Relations; Co-Chair, Council on Foreign Relations; and U.S. Trade Representative (1989-1993) – addressed the future of US-China trade relations. Ambassador Gary Locke introduced Ambassador Hills and then both ambassadors exchanged their views on the new US administration’s plans to renegotiate North American Free Trade Agreement (NAFTA) and reconsider the rules of the World Trade Organization (WTO).

When asked what would happen if the US decides to circumvent rules in the WTO and exercise American sovereignty, Ambassador Hills replied, “If we tear up the WTO, we would be out in the jungle! The law of the jungle would preside. Our average tariffs are two percent. Some countries we trade with put 50 percent tariffs on US products. If we did not have WTO rules to protect us, then they would retaliate, and we would counter. We would be in a very bad situation with trade wars brewing, and the economy would be a mess.”

Ambassador Hills underscored four critical factors in the framing the future of US-China trade relations: 

  • 1) Explain the trade facts to the public, so public can judge based on fact, not fiction. Most American’s don’t know 80 percent of our trade is through global supply chains. Twenty years ago, East Asia had about two-thirds of our deficit. Today, China has become the major player in East Asia supply chain. Sixty percent of US imports are intermediate goods that make our exports globally competitive.

 

  • 2) Convene high-level leadership meetings. The Strategic and Economic Dialogue is important and useful, but there should be higher-level meetings where both countries’ leaders can talk candidly about the solution to key issues.

 

  • 3) Enforce established rules. If we ignore the rules, why should any other nation abide by them.

 

  • 4) Increase skill training of workforce. Jobs need skilled workers, and tech has advanced our economy but does not give solace to laid off workers. Need to also develop better social programs to assist displaced workers.

Government representatives also shared their views on US-China trade relations:

Brian Surratt, Director of Economic Development, Office of the Mayor of Seattle highlighted the WSCRC’s role in preparing Mayor Ed Murray’s 2016 delegation to China, including key Chinese cities – Shenzhen and Hangzhou, and Hong Kong.  Surratt noted that Xiamen Airlines, Vanke (real estate developer), and BGI (world’s largest genome bank) have opened first offices in Seattle.

Brian Bonlender, Director of the Washington State Department of Commerce, underscored that WSCRC is critical in these times of uncertainty in US-China relations. Since the United States entered WTO 20 years ago, now is a good time to review and improve our work around trade with China – intellectual property protection, state run companies are subject to regulations of private, environmental protection, and personal data protection.  Governor Jay Inslee has lifted the travel ban, drastically ramping up business development work for the state. Department of Commerce will be in 10 different countries around the world, and will implement international attraction and trade promotion plan. Washington state has led the country in export program. 71 opportunities and 6,000 jobs in business development.  Governor Jay Inslee is planning a visit to China in August. The Commerce Department in collaboration with the Chinese Ministry of Commerce are planning an inbound investment forum in fall 2017 in Seattle.

Yang Yihang, Economic and Commercial Counselor, People’s Republic of China Consulate General in San Francisco noted that in the past 30 years, economic relations between China and the United States have developed rapidly. In 2013, bilateral trade reached USD 519 billion – 207 times the volume of 1979. China has become the US’s biggest trade partner. In 2017, Chinese company’s direct investment in the US had increased 132 percent to USD 19.5 billion. US companies’ investment in China grew by 52 percent. Companies from both sides are optimistic. Counselor Yang emphasized that China – Washington economic relations are unique. In 2016, trade between China and Washington state reached USD 20 billion. In exports to China, Washington ranks first among US states. He affirmed that it is mutually beneficial for two sides to cooperate, and Washington state is leading the way.

Dr. Vikram Jandhyala, Vice President for Innovation Strategy at the University of Washington highlighted the University’s collaboration with Tsinghua University in China on Global Innovation Exchange (GIX) – a global incubator to develop in-depth perspective on technological innovation.

 

WSCRC also honored Robert A. Kapp with the Sidney Rittenberg Award for unique leadership in advancing US-China relations. Stanley Barer, co-founder of WSCRC, presented the Sidney Award to Bob Kapp for his service as WSCRC executive director from 1979-1987 and 1992-1994.

WSCRC Builds New Partnerships in Shenzhen and Hangzhou

The Washington State China Relations Council helped to organize and lead a weeklong business mission to China May 9 to 13 that resulted in nine major agreements and investments.

Seattle Mayor Ed Murray and 60 business and education leaders visited Hong Kong and Shenzhen, a city with more than 10 million people that has become the high-tech and innovation hub of China. The trip was part of a larger effort to encourage more foreign direct investment in Seattle, expand economic opportunities for local companies, and establish international partnerships. WSCRC worked in partnership with the Seattle Metropolitan Chamber of Commerce and Trade Development Alliance of Greater Seattle to support the International Leadership Mission to Shenzhen.

Among the deals announced in Shenzhen:

• A new nonstop flight between Seattle and Shenzhen by Xiamen Airlines will begin service in September.

• Shenzhen-based genomics company BGI and the University of Washington signed an agreement to develop a joint precision medicine institute to advance biomedical research and health care.

• China Vanke, the largest residential builder in China, announced its first investment in Seattle, partnering with developer Laconia to invest $200 million in a new residential tower.

“Seattle and Shenzhen are changing the world, and at the same time our cities are changed by the power of innovation,” Murray said. “Through stronger partnerships with our international peer cities, we can help each foster new advancements in technology and sustainability and create new opportunities for growth.”

WSCRC, which hosted “Shenzhen Day” for 65 companies and Shenzhen Vice Mayor Tang Jie on Earth Day in 2015, has played a key role in connecting the two cities and promoting partnerships between companies and organizations.

During the May trip, WSCRC signed an agreement with the Shenzhen Foundation for International Exchange and Cooperation to enhance strategic relationships and promote non-governmental cooperation between Shenzhen and Seattle. The agreement focuses on deepening exchanges between cross-border enterprises and entrepreneurs, as well as joint cultural and environmental programs.

Other agreements included:

• The City of Seattle and the City of Shenzhen signed an agreement to support “collaboration and exchanges among relevant entities in medical research, medical education, and the biotech and health industry in Seattle and Shenzhen.”

• Washington State University and BGI signed an agreement to cooperate on efforts to establish and conduct programs and activities of basic and applied research, technology and information transfer, and economic development.

• Snohomish County and the Economic, Trade and Information Commission of Shenzhen Municipality signed an MOU to develop a long-term promotion of bilateral trade and investment between the two regions.

Following the visit to Shenzhen, 20 business, government and academic leaders traveled with Mayor Murray to Hangzhou, Zhejiang Province, for a city partnership and ecommerce mission organized by WSCRC. The delegation included executives from Amazon, Blue Nile, Costco and the University of Washington.

Hangzhou Mayor Zhang Hongming met Mayor Murray and the delegation and both sides exchanged ideas about the city partnership. The two cities signed an agreement to promote cooperation in trade and economy, ecommerce, information technology, life sciences, education and people-to-people exchanges. Mayor Zhang then hosted the group for an official lunch.

Members of the delegation then visited the headquarters of Alibaba and met with company executives.

During the Hangzhou visit, WSCRC signed agreements with two Hangzhou business organizations to begin exchanging visits and cooperating to promote the growth of business ties. Hangzhou’s Philadelphia China-US Culture Center hosted a “Seattle Meets Hangzhou” event with dozens of businesses from Hangzhou and interactive discussions on cross-border e-commerce, investment, education and tourism.

A city of more than eight million people, Hangzhou embodies both traditional Chinese culture and online industries of the future and will host the G20 Summit, to be held in China for the first time in September.

“This trip to Shenzhen and Hangzhou achieved many tangible results for our region,” said Kristi Heim, president of the Washington State China Relations Council. “We are so pleased to have played a role in bringing about new partnerships and closer ties between Seattle and two of the most innovative, important and dynamic cities in the world. Building these channels for engagement will help create more economic opportunities and lasting positive relationships between our people.”

“The trip reinforced our region’s close — and deepening — ties with China,” said Marc Berger, Senior Director, Executive Communications & China Practice at Nyhus Communications and a WSCRC board member. “The agreements that were signed and the announcement of Xiamen Airlines’ direct flight from Shenzhen to Seattle added important substance to our already strong relationships. Seattle will continue to grow in importance as a partner for Chinese companies that are investing in the U.S., and this trip further solidified the role of WSCRC at the forefront of the US-China relationship.”

“I would like to thank each person who has contributed to the success of this important mission to China,” said Jim Young, founder of Century Law Firm, PLLC and Vice Chair of the WSCRC board. “It’s probably the largest delegation from Seattle to China ever, involving the teamwork of many outstanding organizations and govermental agencies. Our success simply would not have been possible without the many sleepless nights of our friends in Seattle, Hong Kong, Shenzhen and Hangzhou.”

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