The Chinese Are Coming, Part VIII -- To My Town
I often blog (hence Part VIII) about how we should expect Chinese companies to increase their foreign investments as they become larger and more confident of their place in the world. There have been many articles of late on how China is expanding its political and commercial presence into Africa and South America.
Today's Seattle Times reports that the City of Dalian just opened a trade office right here in Seattle, right on the heels of Chinese President Hu Jintao's Seattle visit. The purpose of the office is to promote trade and investment between the two countries. The article mentions Dalian is known for its outsourced software programming and "other industries" that "closely match Seattle's business mix."
Mei Young, who will be heading Dalian's new Seattle trade office says she is organizing a trade mission in July to Dalian, Shenyang, Beijing and Qingdao to coincide with a Dalian trade fair that includes marine and air-transport industries. "We want to do one-on-one discussion" between companies in the same industry, Young said. "If you're in the boating industry, we want to help you sit down with similar people over there."
The new office is in the Westin Building, which presently houses a number of consulates, Asian companies, trade offices, and data centers. We have a number of clients in that building and I hate visiting them there because of the security. It is the only building in Seattle of which I am aware where visitors are ID'ed and where the person you are visiting must come down to take you up to their office.
I view Dalian's establishing a trade office in Seattle as a smart move on their part. I have spent a considerable amount of time in Dalian and know the city fairly well. Right now, many of the foreign companies with operations there are Japanese and, to a lesser extent Korean. The Japanese like Dalian for call centers and telephone support centers there. They use Japanese speaking Chinese at a fraction of the cost of Japanese workers. Dalian time is only one hour different from Tokyo time and direct flights between the two cities take only three hours.
There is, however, one very large sticking point between Dalian and the Japanese and that is that Dalian is in the historical Manchuria region where the Japanese committed many of their worst atrocities against the Chinese. I have had many conversations with Chinese friends, including in Dalian, regarding the presence of Japanese businesspeople in China and -- to a person -- they all remain angry at Japan both for what the Japanese did to the Chinese and, perhaps even more so for their failure to own up to it. I mention all of this only because there is a clear and unequivocal preference in China, and particularly in Manchuria, for non-Japanese business.
Dalian is a pleasant enough city with a good port, good infrastructure, and plenty of nice hotels. Its government is less dynamic in many ways than that in some other parts of China, but it is not backward either. We have worked with foreign companies (U.S. and Russian) involved in Dalian in the fishing, ship repair, and hotel business and they have all done well there.
Welcome to Seattle.

Comments (1)
Read through and enter the discussion by using the form at the endAllen - April 30, 2006 6:21 AM
I am Chinese. Thank you for this on Japan. It is true.