Officials from the United States are echoing the exhortation of
the 19th-Century forebears and telling their countrymen to "Go
west" -- but this time in China.
More American entrepreneurs and companies were eyeing China's,
less developed western hinterland, said William A. Brekke,
commercial counselor of the US embassy in China.
"Western China's provinces are quite like the American western
regions years ago, full of business opportunities. Both American
and Chinese companies can find chances for cooperation here,"
Brekke said at the sixth China Western Region International
Economic Cooperation Fair in Xi'an, northwest China's Shaanxi
Province.
The fair is held in conjunction with the 11th Investment and
Trade Forum for Cooperation between East and West China, which over
the past 10 years, has seen the signing of 1,305 foreign investment
contracts worth a total US$15.6 billion.
More than 4,000 foreign investors from 30 countries attended
this year's event.
The US embassy's foreign commercial service brought
representatives from the states of Kentucky, Illinois, North
Carolina, Maryland and Idaho this year, making it the biggest-ever
US Delegation to the forum.
"About 50 percent of the American companies in China are
currently based in Shanghai and Beijing. What they will do next is
to help American firms enter China's medium-sized cities and
western regions," Brekke said.
The development of western China had strong support from the
Chinese government and big western cities, especially Xi'an and
Chengdu, were very strong in high technology, electronics and
energy, said William Chu, director of Asia Pacific office of North
Carolina.
He said he would recommend the western provinces to the US firms
wanting to do business in China.
Last month, Idaho-based Micron Technology Inc. invested US$ 250
million in a manufacturing facility in the Xi'an Hi-tech Industries
Development Zone.
It was Micron's first manufacturing facility in China and is a
project involving the biggest investment ever made at the Xi'an
High-Tech Zone.
Applied Materials Inc., a major nanotechnology manufacturer,
also opened a new technology support center here last month.
The latest in the wave of American companies "going west" is
software giant Oracle, which is to open its fifth Chinese branch in
Xi'an.
"China is already the largest export market of Idaho State,"
said Roger Madsen, acting director of Idaho Department of Commerce,
who has visited China six times in the past three years.
China launched the western development strategy in 2000 to help
the relatively backward west catch up with the more prosperous
east.
The strategy involves 12 provinces, autonomous regions and
municipalities, covering 6.85 million square kilometers and with a
combined population of about 367 million.
The combined GDP of western regions reached 3.33 trillion yuan
(US$481 billion) in 2005, compared with 1.66 trillion yuan (US$214
billion) in 2000.
However, the used foreign capital totaled US$2.17 billion in the
western regions last year, making up just three percent of the
country's total.
David Snodgrass, managing director of the Kentucky China Trade
Center, said with eastern markets maturing, he believed more US
firms would move from east to west, or explore more markets in the
west.
"Opportunities are in every field here depending on the firms
who find the cooperation here," he said.
Snodgrass, who mainly helps US firms find partners in China,
said he was convinced he would soon be introducing Chinese
investment to the US.
"It'll be very soon, don't you think?" he said.
( Xinhua News Agency April 11, 2007)
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