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© 2010 American Chamber of Commerce in Shanghai Blog
We have concluded our 2010 Doorknock and I believe it is the best one yet in terms of audience, added credibility and forming relationships both within the private sector think tanks and government. This was due to the hard work and diligence of the AmCham Shanghai delegation, led by Robert Roche, chairman of AmCham Shanghai and our AmCham Shanghai staff, led by Brenda Foster, and including David Basmajian and Justin Chan.
I would like to add my personal thanks to everyone who participated and made an effort to help make the American business community stronger. It was a pleasure to work with all of you!
Warm regards,
Phillip E. Branham
Chair, 2010
Washington, D.C. Doorknock
AmCham Shanghai delegates at East West Center event
Speaking to a sold out audience of more than 100 attendees, AmCham Shanghai delegates Robert Roche, Ben Kinnas and Chris Murck spoke on the U.S. – China commercial relationship with a focus on the importance of the China market to achieving the President’s goal of doubling U.S. exports in the next five years. The panel discussion was moderated by Brenda Foster and Satu Limaye, Director of the East West Center in Washington, D.C. and held at the East West Center’s D.C. office.
To listen to an audio recording of the event, please click here.
On Wednesday delegates met with Michael McKinnon, the Director of the President’s Export Council – the national advisory committee focused on promoting international trade. The Council’s 28 private sector members are appointed by the president and serve “at the pleasure of the President” with no set term of office and is a key part of the National Export Initiative (NEI).
Wednesday’s meeting was an opportunity for delegates to provide feedback on the NEI and input on the reception delegates received from meetings so far in D.C. Delegates reported that while most we had met with so far on the trip saw the NEI as a “good first step” many had significant questions. Most common was a concern that there was not enough detail on the NEI as a plan and a question about how much of a priority the NEI really was to the administration. And despite the fact that increasing exports is an issue supported on both sides of the aisle, partisan politics has crept into the discussion. Republican members have raised significant questions on funding. Given the current budget challenges, was spending federal dollars on a trade promotion program the best use of funds? Many Democrats still have concerns on trade generally – is it going to lead to job losses in my district or state?
While the AmCham Shanghai delegation strongly supports the NEI, delegates expressed concern that the initiative could “die on the vine” without additional leadership to ensure funding and to prioritize as a key part of the president’s to bolster the economy. But overall the discussion was productive and Chairman Robert Roche promised to provide additional feedback from AmCham Shanghai members on the program itself.
The following op-ed appeared in The Hill, a leading Capitol Hill daily, on September 27. The op-ed was written by Robert Roche, Chairman of AmCham Shanghai.
As the U.S. continues its steady, but so far jobless, economic recovery, U.S. policy makers have rightfully set their sights on increasing exports to create American jobs and generate sustained economic growth.
The American business community supports this effort and an increasing number of U.S. companies have targeted China as an important export destination for their products and services. And for good reason – China is the fastest growing market for U.S. exports and is arguably the most important destination for future export growth.
As a consumer market, China’s opportunities to increase exports have just started to expand. In the first half of 2010 alone, domestic consumption pushed up China’s imports by 50 percent.
On Capitol Hill, China is receiving increased attention of a different kind. Support is building for legislation meant to force China to revalue its currency in the hopes that it will protect jobs in the U.S. It’s election season in Washington and voting for a bill to “get tough on China” is a mouthwatering political opportunity for congressmen fighting for their political lives.
But American businesses aren’t focused on short term political calculus; our goal is increased U.S. exports and sustained economic growth at home. What is the best way for Congress to create American jobs? Support the president’s National Export Initiative (NEI), which is a great first step to boosting U.S. exports and creating new jobs, and to take targeted, specific action focused on increasing the competitiveness of American companies exporting to China.
America’s biggest competitors enjoy a commitment to trade promotion at the highest level of their government and have been focused on the China market for years. To compete more effectively, American companies need the U.S. government to aggressively promote US exports. The NEI is a good first step but we can’t stop there.
The U.S. ranks behind Germany, South Korea and Japan in exports to China. These countries not only export tens of billions of dollars more to China by volume, they are managing to maintain more market share than the U.S. in an increasingly crowded China market. China’s potential is so great for U.S. exporters that capturing one additional percentage point of China’s import market translates to $11.3 billion in additional exports and over 75,000 American jobs.
When it comes to export promotion, “Germany is the model,” says General Electric Chief Executive Jeffrey Immelt. Germany, which has an economy less than one fourth as large as the U.S., exported two-thirds as much as the U.S. to China in 2009.
Trade missions are considered an “official instrument” of German Trade Policy. Chancellor Angela Merkel oversaw approximately US $5 billion in new trade deals that benefit German companies on a trade mission she led to China in July, her fourth in the past five years.
Similarly, French President Nicolas Sarkozy led a trade delegation to China in November 2007 to promote economic links, the result: a grand total of US $30 billion worth of deals were signed.
A trade mission to China led by President Obama would dramatically raise the profile of U.S. goods overseas and help US companies win new Chinese customers. Presidential leadership brings instant credibility in a country like China, where government plays a major role in the economy.
German Centres, placed all over the world, target German companies trying to break into foreign markets. The German Centre in Shanghai is the largest in the world supporting more than 90 German companies with low cost, flexible office space, integrated business centers and qualified support services.
With funding from the EU, the European Chamber of Commerce offers its members comprehensive support including a bilateral project on the protection of Intellectual Property Rights and a EU-China Managers Exchange and Training Program.
To support its smaller businesses, Japan’s trade promotion agency, JETRO operates Japanese pavilions at the annual China International Industry Fair that provide Japanese companies an opportunity to close deals with Chinese companies. In 2009 alone, JETRO reached an audience of some 7,000 Chinese trade companies that brought participating Japanese companies more than two hundred prospective deals.
To enhance US export competitiveness in China, the U.S. needs to ramp up its efforts to match funding and resources committed by China’s non-US trading partners. The models are already out there. Fully funding the NEI and placing additional focus on the China market will help American companies compete in the world’s fastest growing market and provide new job opportunities for millions of Americans.
Roche is chairman of the Board of Governors for the American Chamber of Commerce in Shanghai.
Doorknock delegates meet with U.S. Trade Representative Ron Kirk
On Tuesday morning, the entire AmCham Shanghai Doorknock delegation attended a series of meetings to make the case for increased U.S. exports to China. The morning began with a visit to the Export-Import Bank of the United States (ExIm Bank) to discuss export financing with ExIm Bank Chairman and President Fred Hochberg.
The delegation then met with U.S. Trade Representative Ron Kirk and Deputy USTR Demetrios Marantis to discuss market access. The morning meetings concluded with a visit to the Department of Commerce at the Herbert Hoover Building, where the delegation sat down with Secretary of Commerce Gary Locke to reiterate support for President Obama’s National Export Initiative.
The Doorknock delegation with Secretary of Commerce Gary Locke
On Monday, AmCham Shanghai Chairman Robert Roche, President Brenda Foster, and delegates Phil Branham, Ben Kinnas, Stephen Maloy and Steven Tseng paid a visit to the White House. At the top of the agenda was AmCham Shanghai’s latest Viewpoint U.S. Export Competitiveness in China, and a key message for this year’s delegation is support of President Obama’s National Export Initiative (NEI).
The Doorknock delegation met key officials at the White House
White House Business Council Executive Director Elizabeth Vale and Tina Tchen, Director of the White House Office of Public Engagement, were particularly interested in the Viewpoint’s six recommendations to enhance U.S. competitiveness in the world’s fastest growing market. With a focus on building upon the NEI with specific, targeted actions to support U.S. companies in China, the discussion centered around AmCham Shanghai’s recommendation for a presidential-level trade mission to China and targeted U.S. Export-Import Bank financing for companies exporting to China. There was a special focus on financing for U.S. SMEs.
NEI funding must be approved by Congress, and despite the obvious importance of increasing U.S. exports and the need for the U.S. government to step up support of exports to compete with America’s export competition in China – namely, Germany, Japan and South Korea among others – getting the votes for any spending initiative in the current political environment will be tough. Elizabeth and Tina asked that AmCham Shanghai continue to advocate for NEI funding when meeting with legislators, both in D.C. and when they visit Shanghai. The delegates agreed to keep up the pressure on Congress to come through with this important funding.
Please click here to download a copy of U.S. Export Competitiveness in China.
With a vote expected this week in the House on the Ryan-Murphy bill (Currency Reform for Fair Trade Act) that would allow the U.S. to impose tariffs on countries that undervalue their currency, the AmCham Shanghai-led delegation began its annual Washington, D.C. Doorknock.
While AmCham Shanghai agrees China’s currency is undervalued, it is our position that legislation meant to force RMB revaluation won’t create American jobs and could in fact have the opposite effect.
During the first day of meetings, AmCham Shanghai communicated its message that the key to creating and supporting high-paying jobs in the United States requires increasing U.S. export promotion in China, which is the world’s fastest-growing market, while at the same time, continuing to press China for full market access.
The Doorknock delegation, including AmCham Shanghai President Brenda Foster, Chairman Robert Roche and Doorknock Chair Phillip E. Branham, with Clyde Prestowitz, president of the Economic Strategy Institute
Today’s meetings included a breakfast with Erin Ennis, vice president of the US-China Business Council, where the delegation discussed the political environment in Washington, D.C. as well as ways U.S. exports to China can create and support new jobs at home. Delegation members also met with Clyde Prestowitz, president of the Economic Strategy Institute and Ambassador Carla Hills of Hills & Company to discuss the U.S.-China commercial relationship.
A group of delegates also visited the U.S. Capitol to meet with Senator Dan Inouye (D-HI), president pro tempore of the U.S. Senate who also serves as chairman of the Senate Committee on Appropriations. The delegates engaged Sen. Inouye on the merits of increasing U.S. exports to countries like China and discussed the potential impact of the pending currency legislation.
The Doorknock delegation speaks to Senator Dan Inouye (D-HI)
AmCham Shanghai delegates also engaged two of the premier think tanks in Washington, D.C. to ensure that the on-the-ground experience of American companies in China is clearly communicated in the nation’s capital. Delegates met with Kenneth Lieberthal, director of the John L. Thornton China Center at the Brookings Institution and Nicholas Lardy, senior fellow at the Peterson Institute for International Economics to discuss the future of the U.S.-China commercial relationship and the impact of economic policies in both nations.
From September 26-29, AmCham Shanghai will send a delegation to the nation’s capital representing the views of the membership. The 2010 AmCham Shanghai Washington, D.C. Doorknock delegation will meet with members of the Administration, Congress and other key decision-makers to talk about the most important issues impacting the American business community in China.
It is election season in Washington which means Congress and the Administration is focused on the economy and supporting policies that will create American jobs. We will convey the message that China offers a tremendous opportunity for U.S. export growth and job creation for American workers. U.S. exports to China are up a staggering 330% since 2000 and companies doing well here in China support growth of the American economy.
At the same time, American companies need the U.S. government to vigorously engage China for full market access and on other issues that will help American companies compete in the world’s fastest growing market.
The AmCham Shanghai delegation is a representation of the AmCham Shanghai membership that includes representatives from Fortune 500 companies, SMEs and entrepreneurs. Please click here for bios on each delegate member.
We have developed this AmCham Shanghai Doorknock 2010 blog to provide an overview of the membership delegation as well as an ongoing update of meetings and events that will take place during the Doorknock.
We hope that you check in with our blog to get the latest news.
Thanks for your interest, and we’ll see you back in Shanghai!
Warm regards,
Phillip E. Branham
Chair, 2010
Washington, D.C. Doorknock
