News Releases
Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - September 10, 2003
Contact:  Governor's Communications Office, 360-902-4136
Alt Contact:  Sharon Wallace, Department of Community, Trade and Economic Development, 360-725-4019; Mike Louisell, Washington State Department of Agriculture, 360-902-1813

Gov. Gary Locke to Lead Second International Trade Mission to China

Gov. Gary Locke today announced he would lead an international trade mission to China next month to promote bi-lateral trade, tourism and investment in Washington state. The mission is scheduled for Oct. 11-18.

China is the state’s second largest trading partner and offers exceptional opportunities for business development for Washington companies and for educational and cultural exchanges.

The purpose of the mission is to promote two-way trade, which is vital to Washington’s economy, generating $95 billion per year overall and making Washington the fourth largest exporting state in the U.S. The mission will focus on agriculture and high technology, and will help the state continue its economic development efforts.

“We are focused on creating jobs in these tough economic times,” Locke said. “Our trade missions yield results. They create more opportunities for Washington farmers and businesses, and more jobs for Washington citizens.”

Joining the governor on the mission will be Martha Choe, director of the state Department of Community, Trade and Economic Development (CTED); and Valoria Loveland, director of the Washington State Department of Agriculture (WSDA); as well as business and agricultural leaders from around the state. Approximately 70 delegates are currently signed up to participate.

“China promises great opportunities for Washington state companies,” Choe said. “One specific opportunity is the 2008 Beijing Olympics. China will invest more than $26 billion to prepare and implement the world games. Already Washington companies are benefiting from this investment and there are opportunities for more of our companies to participate. China is and should continue to be a top trade and tourism market for Washington state.”

Loveland said, “China is our fifth largest market for Washington’s agricultural exports and it’s critical for us to continue to develop trade there. Our goals are to continue to expand existing trade in fruits, French fries, consumer-ready grocery items, and seafood; seek out new marketing opportunities for additional products; and be an advocate for trade policies that benefit our growers. We will build on the successes of past trade missions and gain new insights on how to do more business in China.”

Meetings are planned with top Chinese government officials and corporate leaders, in addition to other trade and economic development activities. The delegation will visit the cities of Beijing, Guangzhou and Shanghai. Details of the governor’s scheduled activities include:

Beijing (Oct. 13-14)
· Open a new Starbucks store

Guangzhou (Oct. 14-16)
· Present awards to Chinese importers of Washington apples

Shanghai (Oct. 17-18)
· Conduct a seminar to attract Chinese business investment to Washington state

Locke will also promote sales of Boeing airplanes to Chinese airlines and urge Chinese airlines to initiate direct passenger service between China and SeaTac Airport. The governor will also try to mitigate some of the Chinese barriers to the import of Washington potatoes.

Washington state exported $3.5 billion in products to China in 2002, making it Washington’s second largest export market (Japan is first). While the aerospace sector comprised the majority of the state’s exports in 2002 (approximately $3.1 billion), exports by other industries such as paper/wood products, food and agriculture, electronics, industrial machinery, and medical/surgical equipment are strong and have considerable growth potential. A recent CTED study ranked China as the No. 1 future export market by Washington state companies.

Locke has made two trips to China since he became governor in 1997: one official trade mission in 1997, and a special trip with Boeing in December 2002 to help promote Boeing airplanes, celebrate the 30th anniversary of U.S.-China trade relations and promote Washington companies to assist in preparations for the 2008 Olympics in Beijing.

“We are all excited about the great potential of this trade mission,” Locke said. “I have confidence in the delegation we’ve assembled. Our itinerary is very ambitious – but very promising. We will work hard to advance our state’s position as a leader in two-way trade with China. We are confident that we will return with new opportunities for Washington businesses and farmers, which will translate into more jobs for the citizens of our state.”

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Related links: www.governor.wa.gov; www.cted.wa.gov; www.agr.wa.gov
Editor’s Note: A fact sheet and delegation list are attached.


Governor’s Trade Mission to China
Oct. 11-18, 2003
Fact Sheet

Purpose of the Mission

Washington state is in an excellent position to leverage its strategic geographic position and already close ties with China to develop opportunities for the industry, services and agricultural businesses throughout the state.

It is important that Washington state is recognized as a leader and a major market for trade and investment by Chinese companies. China’s recent accession to the World Trade Organization (WTO) and selection to host the 2008 Olympics present immediate opportunities for Washington companies to become well established in the Chinese market. Timing is critical to success. Washington state can bring value to Washington’s business sector and also create opportunities for future exports.

The objectives of this mission include:
· Positioning Washington state as a world leader in two-way trade of goods and services with China;
· Opening trade doors for Washington companies;
· Working with key leaders to improve conditions for business;
· Developing personal relationships between the governor and China’s new leadership at the state as well as the provincial level;
· Forging close business ties with Chinese companies; and
· Furthering trade, education and cultural relations.

Why China?

China is an important trade partner for Washington state with demonstrated growth potential. The significance of the Chinese market to our state is illustrated by the following facts:

· Washington state exported $3.5 billion in products to China in 2002, making it Washington’s second largest export market (Japan is first). While the aerospace sector comprised the majority of our exports in 2002 (approximately $3.1 billion), exports by other industries such as paper/wood products, food and agriculture, electronics, industrial machinery, and medical/surgical equipment are strong and have considerable growth potential.

· China has been ranked as the No. 1 future export market by Washington state companies, according to a recent survey conducted by CTED.

· The 2008 Olympics in Beijing will provide potential business opportunities for Washington companies as the Chinese government prepares for this event and invests in the infrastructure and other needs. The Chinese government has committed $26 billion for the Olympics.

· China’s accession to the WTO is creating greater market access and more business opportunities for Washington companies.

· China is the only country in Asia that has maintained a GDP (Gross Domestic Product) growth rate averaging between 7 percent and 8 percent since the Asian financial crisis in 1997.

· The International Monetary Fund estimates that the size of China’s economy could actually pass that of the United States as early as 2007, using a method of calculation that takes into account price differentials between countries.

· Industries such as aerospace/transportation, agriculture, wood/paper and building materials that constitute the traditional base for Washington state’s economy have much to gain by further expansion in the Chinese market.

· There are also many opportunities for new growth industries such as information technologies and renewable energy.


Why Now?

These are tight budget times, but the governor’s trade missions are designed to spur economic recovery by creating opportunities in other countries for Washington businesses and farmers.

Capitalizing on Washington’s competitive advantage in international trade is part of the governor’s economic recovery plan for the state.

The governor wants to:
· Encourage exports of Washington products to a rapidly developing country, providing enormous economic opportunities for our companies, farmers and workers; and
· Work to make sure our state’s products are not unfairly excluded from other countries due to tariffs and non-tariff barriers.

We know trade missions are beneficial for the state. For example:

· The state’s trade missions to Japan, Korea, China and Singapore last year were very successful. Those missions helped Washington businesses sell products and services to some of the world’s most promising markets. The delegation returned from Japan and Korea with immediate new sales for Washington businesses. They also returned with opportunities.
o During their visit to Korea, the delegation promoted Washington potato products with Korean snack food manufacturers. In February, a delegation of Korean food manufacturers came to Washington to continue discussions and tour the state’s processing plants and farms.
o South Korea also recently opened its market to all varieties of cherries. Prior to May 2003, South Korea allowed only the import of Bing, Lambert and Van cherries. The governor raised this issue during last year’s trade mission.
o Also while in South Korea last year, the governor raised concerns about the possibility that the government of South Korea was going to implement a labeling policy for genetically modified potato products. In April 2003, South Korea announced that it did not intend to extend biotech labeling for potato products for the foreseeable future.

· Locke and Martha Choe, director of the state Department of Community, Trade and Economic Development, promoted Boeing airplane sales in a one-day trip to Beijing, China, in December 2002. Beijing will also be hosting the 2008 Summer Olympic Games. Locke and Choe also showcased the many Washington companies that can help Beijing put on the games. Several Washington companies will be playing a major role in the design, engineering and construction of facilities for the 2008 Beijing Olympic games.

· After visiting China last December, Locke and Choe traveled to Singapore to promote Washington biotechnology companies. As a result, Singapore is now interested in funding biotech companies in Washington and recently came to visit some of the state’s great biotech firms.

· This past May, the governor and U.S. Sen. Maria Cantwell announced the historic first-ever shipments of fresh Washington potatoes to Mexico, which will help spur the state’s economy and create jobs. The shipments were made possible by a U.S.-Mexico bilateral agreement reached in March to open the Mexican market to Washington state fresh potatoes.
o Locke was instrumental in starting the talks that led to the historic agreement. During his trade mission to Mexico in 1999, the governor met with many high-level officials in the Mexican government, including then-President Ernesto Zedillo.

What about the threat of Severe Acute Respiratory Syndrome (SARS)?

The World Health Organization has removed Beijing from the list of cities to avoid due to SARS concerns. In the event that SARS or any other health or safety issue occurs, the governor will evaluate the situation and determine if the mission should be postponed or canceled.

Governor’s Trade Mission to China
Oct. 11-18, 2003
Delegation List
(9/10/03)

Business

Food and Agriculture

R. James Cook, Interim Dean, College of Agriculture & Home Economics, WSU
Michael M. Pink, Commissioner, Washington State Potato Commission
Pat Boss, Executive Director, Washington State Potato Commission
Ben George, Rancher
Thomas I. Wahl, Director, IMPACT Center, WSU, Pullman
Roger Knutzen, Owner, Knutzen Farms, Burlington
Roger Shen, VP China Development/Chief Representative, ConAgra Foods-
Foodservice Company/Lamb Weston Shanghai Office
Charles Witzleben, President, SuperValu International
Orlin Reinbolt, CEO, Landmark Seed Company
Andrew S. Brassington, Executive Vice President and Chief Operating Officer,
C.M. Holtzinger Fruit Company
Tracy King, Export Director, Washington State Apple Commission

Non-Food and Agriculture

Gary B. Palmer, President, Web Press Corporation
Daniel R. Hesse, Chairman & CEO, Terabeam Corporation
Jackson Tse, President & Chairman, China Pacific Group
Fred C. Decicco, Sales Manager, Sharpe Mixers
Steven Drury, Technical Director, Sharpe Mixers
Jerry Quinn Lee, CEO, Mulvanny G2 Architecture
Ming Zhang, Senior Vice President, Mulvanny G2 Architecture
Whit Alexander, Co-Founder, Cranium, Inc.
Jack Lawrence, CFO, Cranium, Inc.
Jan Watson, Head of Operations, Cranium, Inc.
Chenta Chen, President, Protrade International Corp.
John McCoy, Director of Governmental Affairs, The Tulalip Tribes
Scott D. Nelson, President, The Nexus Group
Michael Thompson, President, Weyerhaeuser Asia, Ltd., Tokyo
Renren Zhang, Managing Director, China, Weyerhaeuser Company
Alan Ralston, Director, Northwest Region, State Relations, The Boeing Company
Starr M. Tavenner, Director—Global Strategy & Alliances; China Country Team
Leader, The Boeing Company
Kathy Lombardo, Senior Vice President, Northwest Regional Manager, CH2M
Hill
Thomas Taylor, Senior Vice President & Manager, Overseas Banking Division,
U.S. Bank
Gordon Liu, Attorney, Bullivant Houser Bailey, PC
Allen D. Clark, Partner, Davis Wright Tremaine
Alex Choe, CEO, Virtualtek Corporation, Bellevue
Paul Bulson, Director Asia, MWH
Zheng Li, Ph.D., Chief Science Officer, Teranode Corporation
Amy Sommers, Attorney, Garvey Schubert Barer
Tod Sakai, General Manager, Armstrong Homes
Shuke Miao, General Manager, Mortenson China Ltd.
Jun Tang, General Manager, Microsoft China

Education

Dr. Mike Metke, President, Lake Washington Technical College
Ross Jennings, Executive Director, International Programs, Green River
Community College
Visakan Ganeson, Director of International Programs, Skagit Valley College
Yanan Xu, China Program Director, City University (Beijing and Shanghai only)
Joseph Coyne, Professor/Washington State University Spokane (Beijing only)
Elizabeth Willis, Trustee, Pierce College

Medical

Dr. John Kirkpatrick, Medical Director, Virginia Mason Medical Center

Government

Gary Locke, Governor, State of Washington
Martha Choe, Director, Washington State Department of Community, Trade &
Economic Development (CTED)
Valoria Loveland, Director, Washington State Department of Agriculture (WSDA)
Ruth Kagi, Representative, Washington State House of Representatives
Mic Dinsmore, Chief Executive Officer, Port of Seattle
Timothy Farrell, Deputy Executive Director, Port of Tacoma
Julie Collins, Director, Economic Development & Governmental Affairs, Port of
Tacoma
Clare Petrich, Commissioner, Port of Tacoma
Roger Nyhus, Communications Director, Office of the Governor
Robert Hamilton, Governor’s Advisor for Trade Policy
Sharon Wallace, Communications Director, CTED
Larry Williams, Assistant Director, International Trade Division, CTED
Tong Zhu, East Asia Program Director, International Trade Division, CTED
Kathleen Sebastian, Research & Special Projects Manager, CTED
Karen Shen, China Representative, CTED
Brent Heinemann, Director, International Relations & Protocol, Office of the
Governor
Janet Leister, Program Manager, International Marketing Program, WSDA
Meg VanSchoorl, Senior International Trade Specialist, International Marketing
Program, WSDA







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