(February 21, 2012) To give California’s businesses a distinct advantage in China, Governor Edmund G. Brown Jr. recently announced plans to open new trade and investment offices in China.
According to the Governor’s Office, the California-China Trade and Investment Office will provide California companies with increased access to Chinese business contacts and provide Chinese investors with access to California projects that will benefit from increased investment. Financing for the office will be provided by partners in the private sector through the Governor’s Office of Business and Economic Development (GO-Biz). In addition to developing these financial partnerships, GO-Biz will work with the Chinese government to facilitate the opening of the office.
China is the world’s largest exporter of goods and third largest importer, ranking closely behind the United States and the European Union. The vast majority of China’s exports to the U.S. go through California ports. In 2011, China continued as California's third largest trading partner, with more than $14.2 billion in exports. In addition, China invested $1.5 billion in California projects in 2011, or 10% of all Chinese investment in the United States.
The announcement of the new trade offices coincided with a visit to Los Angeles by Chinese Vice President Xi Jinping. During Vice President Xi’s visit, he discussed trade and investment opportunities with Governor Brown and U.S. Vice President Joe Biden. The Los Angeles visit was Vice President Xi’s last stop in a four-day tour of the United States. The trip was covered by the Los Angeles Times.
The State of California has not had a formal presence in China since the previous foreign trade offices were closed in 2003. The new trade and investment offices are slated to open in Shanghai and Beijing.
The move to increase direct investment in California was covered by several different news articles in The Sacramento Bee, San Jose Mercury News, and the Associated Press.
CalChamber Position
The California Chamber of Commerce, in keeping with long-standing policy, enthusiastically supports free trade worldwide, expansion of international trade and investment, fair and equitable market access for California products abroad, and elimination of disincentives that impede the international competitiveness of California business.
For more information on California-China trade, visit the China Trading Partner Portal page on the CalChamber website.
Several recent economic plans drafted by governmental and private entities, including a report by Lieutenant Governor Gavin Newsom, have recommended that the state expand its overseas presence to facilitate investment and trade growth during the current economic recovery.