China Companies Seek Chemical Trade Partners in U.S.
CEOs and top executives from chemical and industrial manufacturing companies in China search for U.S. partners in promoting trade in the life sciences and consumer products industries.
The U.S. Department of Commerce is working to match firms in China with U.S. companies under a global trade initiative to expand international sales in the chemical industry. A delegation of CEOs and other high-ranking executives from chemical and pharmaceutical manufacturing companies located in China, attended a briefing on the chemical industry in New Jersey yesterday, co-sponsored by The Commercial Service of U.S. Department of Commerce and NJ Commerce Commission at Kean University in Union. The companies represented were mostly small to mid-size businesses from second tier cities such as Changzhou, Jiangsu, part of the Weitang Chemical Zone, bordering Shanghai on the east coast of the country, near the southern bank of the Yangtze River.
Lisa Tang, a Commercial Specialist with The U.S. Commercial Service under the U.S. Department of Commerce, presented an overview of business and industry in China's second tier cities, and the opportunities for U.S. companies to access these untapped markets. "China is the fourth largest export destination. It has the fastest growing economy in the world...growing at a speed you can hardly imagine," said Tang, whose office is based in Shanghai.
It's an economy that can't be ignored -- with complex challenges. Tang discussed some of these challenges, including intellectual property rights infringement; transparency; rule of law; corruption and protectionism.
The key to doing business in China, said Tang, is finding a China partner you can work with for the long term. Connecting with an experienced established partner with a good network are critical components to establishing long-term partnerships. Tang advised reaching out to private companies that "are aggressive and will do a better job than state-owned enterprises."
Tang encouraged businesses to manage their expectations by formulating a realistic plan with a market entry strategy and an exit strategy as well. Tang said the most important advice for businesses is to make the '"6 D's" a priority. "Due diligence. Due diligence. Due diligence."
More than 50 executives attended the briefing and match-making session. The event was part of a multi-destination tour conducted by the U.S. Department of Commerce with companies participating in the INFORMEX global trade show taking place on Jan. 29 in New Orleans.
Companies interested in learning more about global business partnerships or on conducting trade with China, visit www.BuyUSA.gov/newark or www.export.gov.
