WSCRC

Washington State China Relations Council

WSCRC Co-hosts Dialogue on US-China Trade Policy

WSCRC along with Davis Wright Tremaine and the UW School of Law Global Business Law Institute hosted a dialogue about US China trade on September 6th, 2019.

Representative Rick Larsen (Dem. 2nd District) and Dr. Lisa Brown, Director of Commerce for Washington State, provided comments and then engaged in a discussion moderated by former Ambassador to China Gary Locke.  Director Brown outlined the importance of trade with China to Washington’s economy and noted that the State will soon send a trade delegation to China. Representative Larsen commented that there is a consensus in the Congress about what’s wrong with the US-China trade relationship but there is currently no coherent strategy to address the problems.

After a series of probing questions posed by Ambassador Locke, a lively Q and A concluded the session.

Policy Briefing Series: US-China Trade War: Impact on WA State

On October 24, 2018, the Washington State China Relations Council held a session of the Policy Briefing Series titled “US-China Trade War: Impact on WA State” featuring speaker Lori Otto Punke, President of the Washington Council on International Trade (WCIT). The WSCRC Policy Briefing Series provides a venue to speakers who are experts in their respective China-related fields to interact directly with WSCRC’s membership through timely, focused discussions. The series 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.

Lori leads advocacy efforts to increase Washington’s international competitiveness and oversees the management and growth of WCIT. She is also the founder and principal of LOP Strategies, where she helps clients ranging from Fortune 500 companies to small businesses and associations on public affairs, policy and communication. Speaking about the recent NAFTA renegotiation, Lori detailed the revamped dispute mechanism and its implications for domestic laws, as well as international trade obligations. She initiated a comparative conversation on the renegotiated NAFTA and selected provisions of the Trans-Pacific Partnership (TPP).

Lori elaborated upon the progression of the US-China trade dispute. Citing the rationale of the Trump administration, the speakers described the intention as to punish China for past trade transgressions like stealing intellectual property to encourage Chinese companies and government entities to follow norms established by the WTO and other related organizations. As Lori noted, “the devil is in the details” when it comes to managing tariffs and retaliatory measures.

The lively Q&A session involved the experts in the audience, such as Robert Hamilton, Governor’s Advisor for Trade Policy for the State of Washington, and Glen Bachman, Commission President of the Port of Everett. Following an overview of the impacts of tariffs on Washington State’s agricultural sector, the conversation touched upon how American farmers are bracing for possible trade retaliation from China for Trump’s tariffs on steel and aluminum. China imports more than half of annual US soybean exports, which are shipped through Washington State ports. If China cuts back further on US agricultural products during current trade tensions, Commissioner Bachman noted it would take a considerable amount of time and effort to reverse the damage.

WSCRC extends thanks WSCRC Government Affairs Committee member Spencer Cohen for serving as a discussion moderator.

Summary Author: Mengyao Liu

Corporate Executive Briefing Series: Doing Due Diligence in the China

On October 4, 2018, the Washington State China Relations Council held its fifth session of the Corporate Executive Briefing Series, featuring Dane Chamorro, Senior Partner at Control Risks Asia Pacific business. A former US diplomat, Dane was previously Director of Global Risk Analysis for the Asia Pacific region and Managing Director of the company’s North Asia business, encompassing Greater China, Korea and Mongolia. The Corporate Executive Briefing Series is a series of conversations which aims to provide a unique venue in which Washington business owners and executives can substantively increase their knowledge of commercial engagement with and in China.

Control Risks is a specialist global risk consultancy that helps organizations succeed while remaining secure, compliant and resilient. Drawing from his extensive experience working throughout China and Asia for Control Risks, Dane discussed how President Xi Jinping is altering the Chinese economic and political landscape in a manner that emphasizes a Party led, regulatory driven model governing data, capital, social control. This “alternate ecosystem” will require foreign operators to adapt to new rules, and standards. Using the example of increased steel production in provinces outside of Beijing’s vicinity despite regulatory pressure, Dane explained the motives and targets of the Chinese government’s massive reorganization led by President Xi.

In terms of foreign involvement in China through businesses, investment, and other avenues, Dane cautioned that trade conditions will worsen before they improve as the US-China trade dispute unfolds. He cited a few specific ways in which US companies will be impacted, concluding that foreign manufacturers are likely to benefit in the short term and see some business growth. However, multinationals will remain disadvantaged in the longer term as they are unlikely to have equal opportunities as local competitors, given the national and local resources and support that local Chinese companies can access, and the operational and regulatory obstacles that foreign companies are facing.

The Q&A session addressed the changing role of due diligence in the China market during this moment in US-China relations, as well as the experience of US businesses working with Chinese partners. In answering an audience question about precautions companies should take before doing business in China, Dane called attention to the need for a comprehensive appraisal of a businesses and prospective partners, especially to establish assets and potential liabilities.

WSCRC extends thanks to WSCRC board member Sean Connell for serving as a moderator for the event.

Summary author: Mengyao Liu

Founders Forum: Conversation with Ben Zhang

On September 27, 2018, the Washington State China Relations Council held the first session of its new Founders Forum series, featuring Ben Zhang, Founder of Greater China Industries. The WSCRC Founders Forum highlights leaders in US-China innovation in technology, entrepreneurship, and business. Participants contribute to a targeted, meaningful dialogue with a Founder/CEO working on the front lines of US-China relations. Discussions feature the trials and tribulations of starting a company, operating across cultures, and growing an international business.

Greater China Industries is a manufacturer and importer of custom original equipment manufacturer (OEM) product. The company sources product needs that range from simple orders of printed stickers to more complicated products, such as detailed injection molded OEM components used in manufacturing. Since founding the company in 1995, Ben Zhang has seen the company enjoy steady growth and demand for imported products. Speaking about his humble beginnings as an international student from China attending the University of Washington, Ben emphasized the importance of strategic vision and delivering high-quality products.

On the topic of US-China trade and its impact on his sector, Ben touched upon the growth of manufacturing in other countries in Southeast Asia. He noted that making connections with those markets was an important part of participating in the global economy. In response to a question about reticence towards “Made in China” products among prospective clients, Ben remarked, “When the rubber hits the road, a superior price point will win out.” He also gave many examples of how dedicated service oriented towards the success of his client has shaped his business over the years.

The lively Q&A session addressed long-term trends in the US-China business relationship, as well as the experiences of Greater China Industries working with American and Chinese partners. In answering an audience question about distinction between clients and customers, Ben emphasized the importance of consistent service and face-to-face relationships in transforming one-time customers into returning clients. WSCRC President Mercy Kuo concluded the program and invited attendees to mingle over refreshments.

WSCRC extends special thanks to WSCRC board members Yuping Wang of Davis Wright Tremaine as venue host and Ben Zhang of Greater China Industries for furnishing refreshments.

Summary Author: Mengyao Liu

China-US Ningbo City Snohomish County Trade and Investment Forum

On September 20, 2018, the Washington State China Relations Council, in partnership with Snohomish County, Economic Alliance of Snohomish County, the Port of Everett, and Illuminate Global LLC, hosted a delegation from the city of Ningbo in Zhejiang Province for the China-US Ningbo City Snohomish County Trade and Investment Forum. The delegation included representatives from both government and industries in Ningbo, including automotive, information technology, and tourism.

Dave Somers, County Executive of Snohomish County, detailed the history of international exchange between the US and China that has taken place in Washington State. He elaborated upon current efforts to maintain economic and cultural ties through facilitating trade missions, delegations, and business connections. Stephanie Wright, Chair of the County Council of Snohomish County, emphasized the importance of trade and investment in the US-China relationship. She encouraged delegates to learn more about Snohomish County and the opportunities for collaboration it offers to prospective investors. Patrick Pierce, President and CEO of the Economic Alliance Snohomish County, outlined the globally recognized brands operating in Snohomish County, as well as its wealth of educational institutions.

Jianhua Xu, Deputy Director of the Ningbo Business Association, introduced the City of Ningbo, which boasts active export-oriented economy. The United States has always been an important trading partner with Ningbo, with Dow Chemical, DuPont, MSK, Cooper, John Deere, Procter & Gamble and others investing in projects in the city. Jing Shi of the International Investment Promotion Bureau of the City of Ningbo detailed how the city has accelerated its international development through leveraging its ports and private economy. Zhijun Yang of the Yinzhou District Investment Cooperation Bureau of the City of Ningbo encouraged investors to explore opportunities in Ningbo, as well as promoting its tourist attractions and educational partnerships as well.

The event brought together representatives to strengthen international ties between the US and China through trade and investment. After Mr. Somers and Mr. Xu exchanged gifts following the presentations, the gathering commenced networking and exchanging information for future partnerships. WSCRC board directors Holly Yang, Yuping Wang and Michelle Zhou also attended the event.

Summary Author: Mengyao Liu

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