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Crossing the Great Wall Leads to Export Opportunities

Although many companies have avoided China because of concerns about marketing their products, many others have vaulted the Great Wall and are enjoying lucrative sales. In fact, China was ranked America's 4th largest trading partner in exports in 2006.

Just like the building of the Great Wall, China's economic gains have come brick by brick over a long time. Here again history repeats itself showing how once the serious risk-takers established trade routes, many others are able to take advantage. The high growth areas of China are around Guangdong province, Shanghai, Beijing, and N.E. provinces.

Did you know?

China aspires to quadruple its GDP to US$4 trillion by 2020.
China expects its trade in services to achieve robust growth by 2010, with annual increases of around 20 percent expected over the next five years.
The Ministry of Commerce set the target in its 11th Five-Year Plan for the country's commerce development between 2006 and 2010
The plan said service imports and exports would grow at an annual rate of 20 percent to US$400 billion in 2010

Virginia-based exporting companies should consider:

The United States is China's 4th largest supplier with exports of $55.2 billion in 2006.
China was Virginia's 3rd largest export market with $942.5 million.
Thus far, for the beginning of 2007, exports to China are up 35.9%.
Leading exports via Virginia to China consist of: electrical machinery, paper, plastics, medical equipment, base metals, fibers and wood.
In Hong Kong, there is an office of the VEDP Division of International Trade staffed by a local international trade professional supporting Virginia exporters.

Why now?

Since China joined the WTO in 2001, the government is effecting regulatory changes that will allow it to fulfill its obligations and ultimately improve its socio-economic structure while increasing GDP. Beijing will be focusing on Western China which has been migrating into the Eastern coastal cities. A U.S.-based company establishing itself now will have in-roads into the upgrading of this western region.

In order to export so many "Made in China" products, Chinese firms need to buy machines and raw materials from abroad. Virginia companies can provide these inputs. Also, the Chinese population is becoming more affluent. As their income rises, preferences for U.S.-branded products will increase.

How do you get started?
If you do not already have sales in China, you should consider streaming into the vast amount of inputs and resources. Now is the time to open a channel with help from a VEDP Trade Manager here and in China.

Drop by Drop Makes the Lake

If you are serious about exporting to China, consider these steps.

Before you should ever undertake any initiatives in a foreign country, get background data on your product going into China. The VEDP's research staff can help you understand what is going to China from the US and other countries. Contact your local International Trade Manager or email ITR@YesVirginia.org.

Consider joining us on a Trade Mission to Beijing and Shanghai, June 2-9, 2007. Let the VEDP international trade professionals coordinate your travel, pre-screen prospects, and schedule meetings so your investment is fruitful. Click here for more details:

Michael Howley will be the Trade Mission leader for this upcoming trip to China and he will gladly provide you with more detailed information about the Trade Mission opportunities. Michael has led many previous missions and is an International Trade Manager for the Division of International Trade of the VEDP. Feel free to contact him at: mhowley@yesvirginia.org or (703) 506-1030.