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September 16-24, 2006 “New Majority” Mission to China

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80 Wall Street, Suite 418, New York, NY 10005 Tel: +1 (212) 966-0100 Fax: +1 (212) 966-2786 URL: www.aabdc.com Published by Hanzhou AABDC wishes to thank the American International Group, Inc. for its support in making this report possible. “New Majority” Trade Mission to China “New Majority” Trade Mission to China

What “New Majority” Delegates are saying… Names and Affiliations of Trade Mission Delegates

Going to China was extraordinary! New York State and the northeast corridor do the Mr. William Boyland, Jr. majority of trade with China, and it was a great opportunity to both learn about China’s NYS Assemblyman, 55th District, Brooklyn economy and build bridges for balanced trade with both government and business leaders. William Boyland, Jr. NYS Assemblyman, 55th District, Brooklyn Ms. Earlene Hooper, NYS Assemblywoman, 18th District, Long Island This Trade Mission was a defining experience for me because I realized the critical importance of cross-cultural exposure and understanding for both the Chinese and American Mr. Jimmy Men people. AABDC is an essential link for this type of learning and communication. NYS Assemblyman, 22nd District, Flushing, Queens Earlene Hooper, NYS Assemblywoman, 18th District, Long Island Mr. Nick Perry AABDC is creating an environment for all different groups and organizations to understand NYS Assemblyman, 58th District, Brooklyn different cultures and ways of doing business. I recommend that AABDC keep up its hard work and expand the number of Trade Missions. Mr. Adam Clayton Powell IV Jimmy Meng, NYS Assemblyman, 22nd District, Flushing, Queens NYS Assemblyman, 68th District, Harlem/East Harlem

The economic development of China is remarkable. What stood out for me in all three cities was that even though they are ancient urban areas, I never had the sense that I was in an old city; everywhere, new construction and building is happening! AABDC Staff (U.S. & China) Nick Perry, NYS Assemblyman, 58th District, Brooklyn Mr. John Wang This was an amazing and eye-opening trip! I went to see another country and culture, and to President learn how New York can do business with China, especially Harlem and East Harlem. The East Harlem Chamber of Commerce also brings people from the Chinese Consulate through Mr. Victor Wong AABDC to visit our Chamber of Commerce on Trade Missions to the U.S. AABDC / Managing Director of China Adam Clayton Powell IV, NYS Assemblyman, 68th District, Harlem/East Harlem Mr. Michael Liang Vice President

AABDC 2007 Business Tours to China Concept & Copy – Target Communications Graphic Design – Fusia Communications Retail Shopping Tour April 13-24, 2007 Manufacturing Products in China July 6-17, 2007 Private Label Design September 16-27, 2007 Made in New York November 9-20, 2007

For information call: 212-966-0100 www. aabdc.com

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About AABDC

Founded in 1994 as a non-profit organization, the Asian American Business Development Center (AABDC) is engaged in activities that help strengthen their capacity to compete, establish relationships and develop trade opportunities between the United States and China.

AABDC furthers its mission by:

Reaching out to Asian American businesses offering its workshops and services; Providing information and technical assistance; Improving access to procurement opportunities; Increasing opportunities; Greetings from New York State Senator Malcolm Smith Increasing access to current technologies and technology training; Providing a valuable networking structure that promotes visibility and access; and It is my great pleasure to provide some introductory comments about the New Majority Trade Mission Facilitating and promoting strategic ventures between Asian and non-Asian businesses. to China that took place from September 16-24, 2006. Four years ago, I began working with AABDC to encourage both New York State government officials and business people to learn about business Some of the major initiatives AABDC undertakes to serve the small business opportunities with China—by participating in Trade Missions and experiencing first hand China’s economic progress and prosperity, culture, history, and the remarkable determination, tenacity and community include: friendliness of its people.

Asian Business Partnership Since 2003, I have promoted and participated in four such Trade Missions myself. Given that the U.S.-Asia Trade Development majority of U.S. trade with China occurs with New York/New Jersey and the northeast corridor, it is New Majority Alliance critical that our own elected officials and business leaders become acquainted with the China of the Special Programs and Events 21st century. Several of these trips were organized specifically for “New Majority” legislators, and provided us with a foundation to build friendship and an ongoing dialogue with Chinese government After the events of September 11th, AABDC spearheaded the Rebuild New York City officials and business leaders. In 2004, I Co-Chaired a delegation of 16 business entrepreneurs. initiative to provide financial and business development assistance to small businesses in AABDC’s Trade Mission Reports capture the perspectives and experiences of the Trade Mission Chinatown. The AABDC Financial Assistance Center and Chinatown Tourism Project were delegates themselves. As such, they provide a unique vantage point for readers to learn about China. created as a result of this initiative. In addition to this current 2006 “New Majority” China Trade Mission Report, a second report entitled 2006 “Outstanding 50” Trade Mission Report focuses on a Trade Mission in October 2006 for a group of New Some examples of current AABDC projects: York business leaders.

An economic development zone in China is interested in developing a promotional and It is most satisfying to me as a New York State Senator that I am an informed and articulate advocate marketing plan for the U.S. and is looking for U.S. companies to locate in the zone. for both my constituents in Queens, and New York State as a whole in terms of the issues and promise A U.S. fashion designer is looking for distributors in China. of developing both and enhanced cross-cultural understanding between the people of A well-known Chinese city needs to have a major promotional event organized in two great countries. My office is always eager to assist the people of New York State in expanding business opportunities that will benefit both countries. New York City. Focused trade missions to China are conducted on an ongoing basis. As you read this report, I hope you enjoy your own “trip to China”! An exhibition and trade center for Chinese products in New York City is under consideration. An American manufacturer is seeking Chinese factories for order fulfillment. An American entertainment company is seeking entry into the China market. Sincerely, Malcolm Smith, New York State Senator

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New York State Assembly members (from left to right): Jimmy Meng, Nick Perry, Arleen Hooper, William Boyland and Adam Clayton Powell IV attended the AABDC Hangzhou office opening ceremony.

MAP OF CHINA HIGHLIGHTING CITIES VISITED Beijing - Hangzhou - Haining - Shanghai John Wang, President of AABDC, presented a gift to Mr. Yu Zhihong, Party Secretary of the Haining Municipality.

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Sightseeing, Shopping, Golf … and Chinese Cuisine!

Throughout the Trade Mission tour, planned and impromptu opportunities for sightseeing in each city also gave participants an exposure to important aspects of China’s culture and history as well as a chance to relax and even play golf. In Hangzhou, delegates were the first golf players on a brand new 36 hole course located in one of the city’s resort areas. Haining provided opportunities for participants to visit the world’s largest Leather Market … and purchase beautifully made leather goods such as shoes, jackets, coats, purses and other items for much less than they would cost in the United States.

For some delegates, visiting historic sites was a highlight of the Trade Mission. These included sailing on beautiful West Lake in Hangzhou, visiting a 4th century Buddhist Temple as well as seeing ancient hanging gardens and attending a theater performance featuring A Message from John Wang, President, AABDC Chinese acrobats in Shanghai. Likewise, nearly everyone noted that visiting the Great Wall was one of the most impressive moments of the entire trip. Nick Perry perhaps best captured Since 2003, AABDC has worked closely with New York State Senator Malcolm Smith to the group’s sentiments: organize New York-China Trade Missions customized for New York State “New Majority” legislators—a concept first proposed by AABDC in 1995 to reflect the changing demographics While I was quite impressed by China’s tremendous economic development, I must say in the U.S. of Afri can American, Hispanic and Asian ethnic groups. This 2006 “New that visiting the Great Wall was extraordinary. It is quite something to imagine what Majority” Trade Mission Report captures the experiences of five New York State Assembly people must have gone through in terms of the tasks of transporting stones and putting members, representing African American, Hispanic and Asian American constituents, who them together… people did that without the kind of equipment we have today! traveled to China as a New York State delegation from September 16-24, 2006. A companion report, 2006 “Outstanding 50” Trade Mission to China, covers the itinerary and perspectives Finally, throughout the trip, delegates experienced a wide variety of China’s best cuisine, seven New York State business people who traveled to China on a ten-day Trade Mission usually served on rotating lazy susan platters that allowed each individual the opportunity between October 11-21, 2006. to select their own menu from an extraordinary range of dumplings, vegetables, meats, fishes, shrimps, scallops, chickens, ducks, goose, fruit … and other delicacies. A special highlight of the 2006 “New Majority” Trade Mission was the official opening of AABDC’s office in Hangzhou, China on September 21, 2006, making it the first New York-based business development center to have a presence in China. We are deeply grateful that five New York State Assembly leaders were there to commemorate this important New York-China connection. In the words of Assemblywoman Earlene Hooper, “With the opening of this AABDC office, there will be no break in the conversation between New York and China.”

This report also captures the benefits of visiting China first-hand in terms of experiencing its people, culture and customs, economic development and business opportunities. Likewise, we have intentionally tried to reflect the experience our five distinguished delegates. We hope you enjoy reading it.

Sincerely, John Wang, President of AABDC

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2006 “New Majority” Trade Mission to China Adam Clayton Powell IV noted: September 16-24, 2006 “Currently, China has the majority of trade with the U.S. We must make sure the trade is balanced. Otherwise, people will not be happy about trade with China. U.S. labor is What do the commuities of East Harlem, Harlem, Flushing, Brooklyn, and Long Island not happy. From their view, jobs are being taken away. Likewise, the Federal all have in common? government, President and Congress want the RMB (currency) to go up. In China, however, it is not allowed to fluctuate with the market. The U.S. Secretary of the Treasury recently visited China to discuss this issue. China is a very modern state, Answer: Five New York State legislators passionately interested in cross-cultural based on the three beautiful cities that we visited. The Chinese people mean well … and understanding; U.S.-China trade opportunities; Chinese architecture, golf, food, we must continue to have dialogue on these issues.” economic development—and, the 2008 Olympics in Beijing!

The 2006 “New Majority” Trade Mission delegation to China consisted of five New York State AABDC Office Opens in Hangzhou Assembly members representing the following Districts: As noted earlier, Hangzhou, the capital city of Zhejiang Province, is a major city in the William Boyland, (55th) Brooklyn; Yangtze River Delta and a traffic hub in southeast China. Established as a county over two Earlene Hooper, (18th) Long Island; thousand years ago, Hangzhou is also one of the cradles of Chinese civilization. Today, it is Jimmy Meng, (22nd) Queens/Flushing; the political, economic, science, technology, and cultural center of the Province as well as the Nick Perry, (58th) Brooklyn; and key tourism city, with a population of nearly 6.5 million people. Recently, it was awarded Adam Clayton Powell IV, (68th) Harlem/East Harlem. “Best Human Residence Prize” by the United Nations, “International Garden City Title,” by the World Recreation Organization, and “Securest City Title” by the Ministry of Public Security. This report captures the perspectives of these legislative professionals, whose vision and commitment to cross-cultural dialogue, balanced Chinese-American trade opportunities, as On September 21, 2006, AABDC opened an office in Hangzhou, making it the first New well as a keen appreciation of China’s culture, people and extraordinary economic York-based business development center to have a presence in China. As part of the Trade development provided the impetus for their nine-day visit to the cities of Beijing, Hangzhou, Mission, all of the New York State Assembly delegates were also guests at the opening. The Haining and Shanghai. Likewise, the delegates’ first-hand experience of China gave them an choice to locate the office in Hangzhou is its key location. It is one of the most enhanced understanding of the Chinese government’s role in the country’s economic entrepreneurial cities in China with a concentration of information technology, software and development and growth. This, in turn, has provided these New York State legislators with a integrated circuit manufacturing companies. By high-speed highway, it is only two hours greater ability to effectively address their own constituents’ interests and concerns regarding from Shanghai. Hangzhou has its own airport, rail and port, making access to the rest of the doing business with China. country convenient and efficient.

Trade Mission Itinerary To coincide with the new office opening, AABDC signed an exclusive representation agreement with the Jianshan New Economic Development Zone, described earlier in this report. National, provincial and municipal officials as well as local business leaders From September 16-24, 2006, the AABDC Trade Mission delegation visited the cities of attended the new office opening to show their support for AABDC’s commitment to Beijing, Hangzhou, Haining, and Shanghai. Their intensive nine-day itinerary included a promoting trade between New York and the Yangtze River Delta economic belt. combination of meetings with government and business leaders in each city visited, tours of Assemblywoman Earlene Hooper noted during the opening event, “With the opening of this economic development zones, as well as sightseeing and visits to important cultural and AABDC office, there will be no break in the conversation between New York and China.” historic sites. The complete itinerary is highlighted on the following page.

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As Americans, the Chinese people were also curious about us. As a woman of African September 16-19 – Flight to Beijing: ancient capital and China’s center of government. American descent, I stood out to many Chinese. They simply had never met anyone After checking into the Beijing Hotel, delegates visited the Beijing City Planning from an African American background. One man just stopped peddling his bicycle and Exhibition Center (including 2008 Olympic Village) and then saw—and climbed—the stared! I even took my forefinger and rubbed it across my cheek to show him that this Great Wall of China. On Monday and Tuesday, Trade Mission delegates participated was my skin. On the whole trip, I saw one American woman from Chicago and one man in a ‘whirlwind series of meetings’ with both U.S. and Chinese officials. These who were Black. This trip was a defining experience for me because I realized the included: a briefing with the Commercial Office of the U.S. Embassy; as well as critical importance of cross-cultural exposure and understanding for both the Chinese meetings with the Chinese Ministry of Foreign Affairs, Ministry of Commerce of China, and American people. and the All-China Federation of Industry and Commerce. On Monday evening, the Chinese People’s Institute of Foreign Affairs hosted a dinner for the New York U.S.-China Balance of Trade State legislators.

All delegates expressed a similar passion for getting to know the people of China and September 19-20 – Hangzhou: One of China’s oldest and most cultured cities and the ensuring continual dialogue. Likewise, Trade Mission delegates stressed the critical “Silicon Valley” of China. After flying to the ancient city of Hangzhou (located in importance of realizing a balance of trade between the United States and China. In the U.S., Zhejaing Province), on September 20, Trade Mission delegates met with the Zhejiang the majority of trade with China actually takes place with New York State and the northeast China Council for the Promotion of International Trade, Zhejiang Federation of corridor. John Wang noted, “Given the ups and downs in trade relations between the U.S. Industry and Commerce, and the Foreign Affairs Committee of Zhejaing People’s and China, the New Majority Trade Missions provide a stabilizing influence in terms of Congress. In the afternoon, delegates also enjoyed a boat ride on the beautiful West ongoing dialogue between American and Chinese leaders.” This was also reflected in the Lake and visited the Lai Feng Pagoda. Later that evening, they attended a dinner views of the New Majority legislators. Assemblyman William Boyland Jr. remarked: hosted by the People’s Congress.

“The opportunity to go to China was extraordinary. We had a very diligent schedule. September 21 – Haining: an emerging ‘2nd tier’ city with a newly created economic We got educated! We worked hard and were greeted by top officials. Once you’re there, development zone located at the mouth of the Yangtze River delta region. On the educational aspects of the Trade Mission and how much there is to learn hits you. In September 21, the five New York State legislators attended the official reception for the terms of what I observed, we are all in the same game. Understanding of cultures on opening of AABDC’s new office in China, located in Hangzhou. This event included an BOTH sides is the key. If we work together, I am almost sure that we can do trade official Signing Ceremony with Haining City, a luncheon hosted by the Mayor, and a equally on both sides. You have to keep talking … everything exists inside of tour of the Jianshan New District—an economic development zone just southeast of conversation and communication.” Haining City in Zhejaing Province, located on China’s east coast. Later, delegates visited and shopped in “Leather City”, the largest leather market in the world, located While trade issues between the two countries are complex, developing channels for in Haining. innovative solutions to long-standing issues of international trade between the U.S. and China, is progressing. Examples include: September 22-24 – Shanghai: China’s largest and most international city; return flight to U.S. In Shanghai, the final city on the Trade Mission’s itinerary, delegates toured IBM’s innovative model for the sale of its personal computer business to Lenovo; and the Shanghai Urban Planning Exhibition Center. Later that day, they also visited the China’s entry of the in 2004, and participation in dialogue on Shanghai Museum and attended a performance of the Shanghai Center Theatre critical trade issues of intellectual property rights and piracy, Acrobatic. Finally, the Trade Mission completed the final leg by flying back to Beijing and then returning to the U.S. on September 24. In every city visited, New Majority legislators met with Chinese government officials to discuss trade issues, as well as learn about China’s economic development plans, as detailed in the Trade Mission Itinerary. Given that China is still in its infancy in terms of developing consistent and enforceable statutes nationally, numerous trade issues are still works-in-progress.

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China’s Long-Term Economic Development Noted William Boyland, Jr.:

Traveling from one city to another by plane and bus also offered opportunities to observe the “I’m a builder, and for me, the architecture stood out. There is a huge variation in vast amount of construction underway in China’s urban areas: apartment buildings, terms of different architectural styles in buildings that you just don’t see in the U.S. skyscrapers, manufacturing sites, universities—to name just a few examples. And All shapes and sizes of facilities exist in China. In Shanghai, there are so many everywhere, one could see the people of China busy in daily life—e.g., sidewalk vendors, skyscrapers with different shapes and materials, unlike the U.S., where it’s mostly street cleaners with brooms, bicyclists riding to and from work, parents chasing energetic perpendicular, rectangular design. We also saw the Olympic Stadium in Beijing, and toddlers … with 1.3 billion people, China offers a never-ending opportunity to “ with its intertwining metal parts, you can see directly into the field from wherever you people watch”. are sitting!”

As part of the Trade Mission itinerary in each city, delegates also had numerous occasions to Environmental Concerns visit several of China’s economic development zones on the East Coast. For example, At the same time, delegates also noted that addressing environmental and pollution concerns JianShan New District is an economic development zone just southeast of Haining City in such as smog and polluted rivers pose a serious challenge to the sustainability of China’s Zhejiang Province located on China’s east coast. It is 75 miles (120 kilometers) from economic progress, if not quickly addressed. Chinese officials acknowledged that this as a Shanghai and 35 miles from Hangzhou, two already well-developed cities, with their own high priority in terms of integrating sound environmental practices into economic policies airports and express highways, making JianShan New District very accessible. The District and regional plans. At the same time, sustained development requires ongoing expansion in covers 12,000 acres and a third of the area (4,000 acres) is allocated to industrial jobs for its citizens; however, if regulatory, legal and environmental protection expenses development. Over fifty percent of the industrial area has become a sofa manufacturing increase considerably, the Purchase Power Parity (PPP) of its currency will decline, and zone; the other fifty percent is divided into two zones focused on attracting non-polluting China’s ability to sell its manufactured goods at lower prices than other countries could machinery and electronics manufacturing for instrument, precision optical, bio-medical, be jeopardized. automobile and auto parts. Reflecting on the development also taking place in other urban areas along the eastern seaboard, Assemblyman Nick Perry noted: Cross-Cultural Understanding

“I was quite impressed by the huge amount of development taking place in China; While every member of the 2006 Trade Mission could immediately mention at least ten likewise, there are so many entrepreneurial opportunities in this country. China also invaluable perspectives they gained from visiting China first-hand, one area that stood out seems to be superb at planning for the future—they are able to create economic for each person was the importance of cross-cultural understanding between people from development plans 20 years out and have a real possibility that they will be built, even different historical heritages and cultural backgrounds. Noted Assemblywoman with a change in leadership!” Earlene Hooper:

Architectural Innovation “When I was in college, I read many of Pearl Buck’s novels … and especially loved Likewise, delegates noted how impressed they were with the comprehensive coordination The Good Earth. However, I was born in the South in Maryland and had had no and planning for the 2008 Olympic Games; including the building of Olympic Village opportunities to interact with people from Asia. I simply had no acquaintance with facilities which will continue to be used after the event is over. Delegates also remarked on individuals from the many different countries of this huge continent. This trip to China the enormous number of high-rise apartment buildings going up, with hundreds of cranes gave me a first-hand opportunity to deepen my appreciation and understanding of the dotting the skyline in every city. Similarly, new infrastructure systems—highways, bridges, people of China. We climbed the Great Wall with families from both urban and rural high-speed rail trains, and even 100 new subway stations in Shanghai—are being built to areas of China. We enjoyed the politeness and friendliness of people in Shanghai. And accommodate visitors who will be attending the Olympics in 2008 and the World Expo everywhere we went, gifts, tea and the red carpet were pulled out and showered upon us. in 2010.

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