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Connecticut has many links with China, and companies from the state have been on successful trade missions to sell goods there. But this weekend a different kind of mission will set out for China – one that aims to bring investment back to the state. WNPR’s Harriet Jones reports.
Connecticut has had links with China’s Shandong province, its sister state for some 25 years. John Schuyler of accounting and advisory firm Marcum, was among the representatives who went out with that very first twinning mission. He’s been back more recently.
“Between 1989 and 2008 I had not been back to Shandong. And Jinan was unrecognizable. It was like changing centuries.”
Jinan, the capital of Shandong is now a high-tech center – one with plenty of wealth.
“It has a huge software development park that has a semi-permanent presence from Stanford University, Microsoft, Oracle. They had built something like six new university campuses, a lot of infrastructure.”
In other words, there’s a lot of money there, looking for places to invest. And while Connecticut has recently launched successful trade missions – one last year sold some $25 million worth of Connecticut-made goods in China, until now the state has not sought inward investment from the country in a strategic way.
“A lot of our best international companies have been doing this, and they’ve been using it to expand their markets and their reach. I think the middle market has not been able to reach it as much as possible. I think it’s an opportunity for mid-size companies.”
So the mission that leaves this weekend will represent some 45 small and mid-size companies that want to look into attracting investors from China. Schuyler says this mission involves lots of synergies.
“A lot of the companies involved have business plans that entail penetrating the China market because they’ve got a product where that is significant. So this kind of makes sense both ways, to get the investment to go to that market from that market.”
And what’s in it for the Chinese? Anne Evans of the US Commerce Department.
“They recognize that America is a very talented country and they want to invest in that talent here – not to take it away, but here. And they also I think want to get dollars out of China.”
She says Chinese investors have indicated they’re interested in high-tech companies, biomedical firms, Information technology and alternative energy. Executives of the companies themselves won’t travel on this trip – instead they’ll be represented by trade organizations and officials.
“This is what the Chinese asked for – they’re really looking for a menu.”
Those investors who like what they see will be invited for a return trip to a forum in Middletown this summer to meet the companies. Evans says its an excellent opportunity for Connecticut’s high tech sector.
“Companies are always looking for investment, particularly some of our startup companies, our high-tech companies. So this could mean the difference between really not going anywhere or being huge successes, and creating jobs here in Connecticut.”
John Schuyler of Marcum says this initial trip will feel the way, but he’s hopeful it could lead to a new kind of link between China and Connecticut.
"Is there an opportunity here? Have we hit it at the right time? Is there an interest in this, and can we get out of the way and let the companies pursue it?"
For WNPR, I’m Harriet Jones.
And as the trade mission progressed, WNPR heard from one of the delegates in Jinan….
Officials from the US Commerce Department and several trade bodies are visiting the provinces of Lioaning and Shandong, representing more than 40 Connecticut mid size companies looking for investment. Shandong is Connecticut’s sister state and Matthew Nemerson, CEO of the Connecticut Technology Council is among a few of the original delegates from the first mission back in the 1980s to have returned to Shandong this week.
“A very small and hopeful state 25 years ago. Now a larger economy than Germany, it seems.”
Speaking to WNPR from the city of Jinan he says business meetings have been proceeding alongside diplomacy.
“We’ve also been meeting with many different government officials who are also interested and would love to have the Governor come back on tour, they’d love to send a delegation to Connecticut. So some of the diplomacy that’s going on here is really to turn the clock back 25 years and then build the kind of relationships that we might have if we hadn’t stopped coming to China.”
Delegation members have so far staged two presentations to potential investors who may be interested in Connecticut companies. Nemerson says particular themes have emerged.
“There’s an official edict here in Shandong that the state do more in biotech and pharmaceutical and build that up, so they’re looking for opportunities in America, large biotech and biomedical technology companies.”
He says they’re also interested in IT and other high-tech industries. The US Commerce Department is hoping to host a return visit by Chinese officials to its Middletown office this summer.
For WNPR, I’m Harriet Jones.
