U.S.-China Trade: Opportunities and Challenges for U.S. Business
OVERVIEW
• International Trade Administration
• China Trade: Opportunities
• Best Prospect Sectors
Support for U.S. Companies
• China Trade: Challenges
• U.S. Response: Three-Pronged Strategy
• ITA MAC’s China Work & Key Contacts
B. U.S.-China Trade: Opportunities
Chinese Middle Class Growth Trajectory
B. Opportunities: Hawaii
C. Best Prospect Sectors
Support for U.S. Companies
Travel and Tourism
Education and Training
Banking Services
Franchises
Medical Equipment
Retail Food/Snacks/Fisheries
Safety and Security
Marine Industries
Construction
Automotive
Water and Waste Management
Oil &Gas / Power Gen / Coal
INDICATIONS
Import U.S. goods to balance trade
RMB 6.6 = $1 by 2009
10th NPC – HU’s “Harmonious Society”
–Medical / Education / Environment
Consumer spending to drive economy
–Growing middle class
–Retail sales up 20% in ’07
–70% of GDP by 2015
Age > 65 = 1995 10% / 2030 22%
Best Prospects
TRAVEL & TOURISM
Best Prospects
EDUCATION / TRAINING
o 67,000 Chinese students in 2007
12% of foreign students
o E-Learning major opportunity
Ministry of Education – “All Schools Connected”
550,000 K-12 schools / 200 M students by 2010
67 universities – E-learning degrees
o Short-term training & workshops / Business Ed. /
Materials & equipment / Lend & exchange faculty /
Educational consulting services
Best Prospects
BANKING SERVICES
Best Prospects
FRANCHISING
Best Prospects
MEDICAL EQUIPMENT
Best Prospects
RETAIL FOOD / SNACKS / FISHERIES
Best Prospects
SAFETY & SECURITY
Best Prospects
MARINE INDUSTRIES
Best Prospects
CONSTRUCTION
Best Prospects
AUTOMOTIVE
Best Prospects
WATER & WASTEWATER MANAGEMENT
Best Prospects
OIL & GAS / POWER GEN / COAL
AISA PACIFIC PARTNERSHIP FOR CLEAN DEVELOPMENT & CLIMATE
2ND TIER URBAN MARKETS
Not just Beijing, Shanghai, & Guangzhou
Another Key Market Driver
2ND TIER URBAN MARKETS
260+ cities of 1M or more
Top 14 Second Tier Markets
– 8% population / 54% imports
Growing 2% faster than national GDP
Partnership with Chinese Council for the Promotion of International Trade
– Help U.S. business succeed in China
Top Secondary Markets
In China… Everything is possible, nothing is easy. ~ Boccio’s Theorem
U.S. COMMERCIAL SERVICE China
U.S. COMMERCIAL SERVICE China
U.S.Commercial Service – China
19 Cities
– 5 CS Offices
– 14 Secondary markets
150 U.S. & locally- engaged staff
D. Challenges
•Trade deficit
•Economic nationalism
•IPR
•Standards
•Transparency
•Product safety
1. Challenges: China Trade Imbalance
2.Challenges: Economic Nationalism
3. Challenges: Intellectual Property Rights
4.Challenges: Standards
5.Challenges: Transparency
•U.S. commends China on efforts to increase transparency:
•April: NPC mandatory notice & comment for draft laws.
•May: Chinese FOIA
•June: Chinese SED IV commitment – notice & comment on draft State Council rules.
• … but much work remains:
• U.S. businesses still face unclear laws, unfair administration, ambiguous criteria, delays in approval, and insufficient notice about rule changes.
World Bank Transparency Index 2004
(Top 10 Economies in real terms)
6. ProductSafety
• Growing concerns about product safety
• Two agreements were signed last December
• Working with China to improve oversight over the quality of goods and ensure safe supply chains
E. U.S. Response: Three-Pronged Strategy
• Aggressive engagement through bilateral fora: JCCT and SED
• Strict enforcement of trade laws, coupled with robust trade promotion
• Use of multilateral channels to resolve disputes
1. U.S.-China Trade Dialogues
2. Enforcing Trade Laws
• Commerce currently maintains 63 orders on imports from China – 26% of total antidumping/countervailing duty orders currently in effect
• 19 new initiations in 2007 compared to 4 in 2006. 13 initiations in 2008 (up to 7/24)
• Dollar value of trade affected in 2007 was nearly $8 billion
3. Use Multilateral Channels
• Brought 6 cases against China with the WTO Dispute Settlement Body: semiconductors, industrial subsidies, auto parts, IPR enforcement, IP market access, financial information distribution
• Filed 1 case in 2008 and 3 cases in 2007
• Closed 1 (semiconductor), suspended 1 (subsidies), and winning 1 (auto parts in July)
F. ITA MAC China Work: Compliance
• Sector-Specific Casework:
e.g., Redundant regulation of imported medical devices
• 3 elements:
Pro-active Monitoring
Compliance Action
Outreach
ITA China Work: IPR
• China IP Webinar Series: http://www.stopfakes.gov/events/china_webinar_series.asp
• August 12 Webinar on “Olympic Logo Campaign and the Future of Trademark Protection in China”
• To subscribe to China IPR News for U.S. Industry, email Chinaiprnews@mail.doc.
• To register online for free one-hour consultation with a private attorney: http://www.abanet.org/intlaw/china_program2.html
• China IPR Toolkit, online guide to registering, protecting,enforcing your IP in China http://beijing.usembassy-china.org.cn/ipr.html
ITA China Work: Programs, Capacity Building, Missions
• Capacity building:
Transparency roundtable – leading to NPC notice & comment decision in April;
Anti-Monopoly Law Program;
Standards & Conformity Assessment Program;
Program for Entrepreneurial Growth;
Telecom Law Program (fall)
• Trade missions: Health Care Mission; APP missions
F. ITA Contacts
Your first resource is: www.export.gov/China or 1-800-USA-TRAD(E).
Considering entering the market?
– Contact your local U.S. Export Assistance Center (USEAC):
– John Holman, Hawaii USEAC Director
– Email: John.Holman@mail.doc.gov– Phone: (808) 522-8041
Facing trade barriers while exporting to China?
– Call your USEAC or contact OCEA:
• Nicole Melcher
• Email: Nicole.Melcher@mail.doc.gov
• Phone: (202) 482-2515
U.S.Commercial Service-China
U.S.
China Business Information Center at export.gov/china
800-USA-TRADE
CHINA
http://www.buyusa.gov.china/en
Export.China@mail.doc.gov
