Northwest China CouncilPortland, OregonOctober 3, 2007

Chip Peters, Commercial Officer – Shanghai China

CS Shanghai & East China

The U.S. Diplomatic Mission in China

Embassy in Beijing

4 Consulates• Shanghai• Shenyang• Chengdu• Guangzhou

Our Consular District

ZHEJIANGZHEJIANG

JIANGSUJIANGSU

ANHUIANHUI

• Municipality of Shanghai:– Plus, 3 surrounding provinces

GDP per Capita: $7,131 vs. ($1,800 for all China)

Population: 18 – 20M (estimate)

= Texas

Area: = Delaware

U.S. Residents: 25,000

Shanghai Overview (2006)

Consulate General of Shanghai

Sections Include:

• Political & Economic Section

• Public Affairs Section

• Visa Services & U.S. Citizen Services

• Patent and Trademark Office

• Agricultural Trade Office

• 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”

Business Facilitation• International Partner Search• International Company Profile• Single Company Promotion • Gold Key Matchmaking

Trade Promotion Events• International Buyer Programs• Trade Shows & US Pavilions• Trade Missions

Customized Programs• Platinum Key Service• Business Facilitation Services• Advocacy & Trade Disputes

Market Research• Market Research Library• Country Comm. Guide (CCG) • Customized Market Research

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: Pre 1990

Shanghai Growth

If Shanghai were a country, it would have the world’s 40th largest economy.

WSJ – 5/6/2007Shanghai 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

Chongqing

Hangzhou

Harbin

Kunming

Nanjing

Ningbo

Nanjing

Qingdao

Shenzhen

Tianjin

Wuhan

Xi’an

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

• 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

• 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

– 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

• Power Shortages• Traffic Congestion• Pollution (air & water)• Coast vs. interior disparity • Size & diversity of regional markets• Workforce turnover

• IPR Infringement• Transparency• Rule of Law• Corruption• Protectionism

Operational Challenges Business Challenges

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 BICwww.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.

谢谢谢谢Thank You