Dragons are legendary creatures in Chinese mythology that symbolize, power, strength and good luck. Much as dragons transform their shape and size, China is transforming from a rapidly expanding production-focused economy heavily dependent upon exports and foreign direct investment to a “slow and steady” growth consumer-focused economy with rising demand for higher-quality goods and services.
This “new normal” is changing the relationship between the U.S. and China. It’s creating enormous new opportunities for Georgia businesses, workers and investors.
On May 11, the Atlanta office of the Thompson Hine LLP Law Firm — in association with Shanghai-based Hui Ye Law Firm, Frazier and Deeter LLC and the DeKalb Chamber of Commerce — hosted the first in a series of seminars covering a wide range of topics vital to U.S. businesses operating (or considering operating) in China, including intellectual property, corporate governance, tax planning and investment.
Entitled “The New Normal – What Every American Business Needs to Know to Succeed in China,” the theme that emerged in the presentations and discussions at the event is that Georgia’s future as a global economic leader is linked to China’s investment in Georgia and to Georgia’s investment in China.
Despite China’s “normalization” goal, Chinese investment worldwide will grow from $500 billion today to more than $2 trillion by 2020. Chinese investment in the U.S. rose to $17 billion in 2014, with a significant amount in technology, consumer products manufacturing, agriculture and real estate. China is the second-largest foreign market for Georgia business, with more than $3.6 billion in exports.
Georgia’s top exports to China are shifting towards a technology focus, including aircraft, paper products and machinery. China is increasing R&D expenditures more than 20 percent annually. The success of Georgia’s technology sector is critical to the state’s long term economic health – from enterprising startups to Fortune 500 companies and from densely populated urban centers to rural areas. With our well-educated and well-trained workforce and growing technology base in the automotive industry, software, medical devices, energy and advanced engineering, Georgia should be attractive to Chinese investment.
Building a solid economic bridge between Georgia and China will not simply happen. The Southeast is a highly competitive market for top-tier Chinese investment and regional rivals are scooping up the rewards. Chinese-owned Volvo just announced its $500 million factory and 4,000 jobs will go to South Carolina. Moving ahead of the competition, and staying ahead, requires a firm commitment to collaboration, creativity and leadership involving all stakeholders, from Georgia’s state and local government officials to business and civic leaders to private entrepreneurs and investors.
Georgia took an important step in Feb. 2013 when the state Department of Economic Development opened a trade office in China. Gov. Nathan Deal then led a high-level delegation of state officials and business leaders to Shanghai, Qingdao and Jinan. The combined efforts are starting to show results. Two Chinese companies announced locations and expansions in Gwinnett County in recent weeks and the Department of Economic Development is committing to hire a new representative for the trade office in Qingdao.
Much like the dragons of Chinese folklore who are friendly and wise, Georgians can show their own wisdom by welcoming Chinese business to the Peach State, expanding opportunities for all.
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