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Wednesday, June 11, 2008
Ties to China growing but still challenging
The Atlanta Journal-Constitution
Georgia companies are taking notice of the opportunities in China fueled by the upcoming Beijing Olympics and the growing Chinese market.
A panel of local leaders Tuesday discussed those ties, but offered caution of doing business in the country with the largest population in the world.
Sam Williams, formerly with the Portman Cos. and now president of the Metro Atlanta Chamber of Commerce, remembered when the architect/developer entered the Chinese market in the 1980s with a major project in Shanghai.
“There was no treaty or legal protocols between our two countries,” Williams said during a panel discussion at the Commerce Club on the Georgia-China connection. “You couldn’t file a legal mortgage in China.”
Mason Cargill, a partner with Jones Day, actually helped represent the Portman interests in China in the 1980s, and he has continued his work in international ever since.
“It’s much easier for an American company to do business in China today than it was 10, 15, 20 years ago,: Cargill said, adding that now China has been producing lots of lawyers. But Cargill cautioned: “For small companies, China is a difficult place to do business.” Ken Stewart, commissioner of the Georgia Department of Economic Development, said the state now has a trade office in Beijing, and that Georgia exports to China increased 47 percent between 2006 and 2007.
Other ties: Delta now has the right to fly directly to Shanghai. The merger with Northwest will provide other connections to China. Leaders are trying to get the Chinese government to open a consulate in Atlanta. Several Chinese companies have announced investments in Georgia. And Georgia’s ports now have 23 all-sea routes from Asia.
Gary Black, president of the Georgia Agribusiness Council, said the state’s biggest industry (agriculture) already has been exploring business ties with China. “We have some quality opportunities of what we can produce here in Georgia,” Black said.
