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Trade Special: Relations better than ever

By Han Tianyang and Tony Murray (China daily)
Updated: 2009-11-14 13:39

As a businessman, I am happy to be based in China right now and to be doing business here. It's a good time to be in China," said John Watkins, chairman of the American Chamber of Commerce in China (AmCham-China) and also president of Cummins East Asia.

Watkins' words came in an interview with China Daily on the eve of the much-anticipated visit to Beijing by the US President Barack Obama.

According to Watkins, he is not the only one to feel this way about the current advantages and long-term potential of the Chinese economy.

Addressing the global market, he said: "I have heard from our member companies that global sales are down by a big number - 20 or 30 percent for many companies. Sales are down by only half that amount in China. There are also some sectors here where sales are actually up year-on-year.

"The Chinese government has done a very good job with the design and implementation of its stimulus package. This has helped the US companies do well in China this year."

With a history of more than 20 years, AmCham-China now has over 1,200 companies ranging from small and medium-sized companies to Fortune 500 businesses. It also has more than 2,500 individual members.

As a trade promotion organization, AmCham-China functions as a bridge between the US and Chinese governments and their commercial sectors. Summarizing its role, Watkins said: "Our aim is to help our members win in China."

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With regard to the impending presidential visit, Watkins said he believes that AmCham-China members will be most keenly interested in issues relating to open markets and energy, themes that are likely to dominate discussions during the tour.

In recent months, a number of trade disputes between the US and China have resulted in a tense bilateral trade relationship, with particular regard to Chinese tires, steel gratings and concrete-steel wire stands, as well as the import of poultry and auto products from the US.

Leaders from both sides confirmed their commitment to non-protectionism policies in the 20th meeting of the China-US Joint Commission on Commerce and Trade (JCCT), held last month in Hangzhou as a warm-up for the presidential visit.

Reflecting on the importance of free trade, Watkins said: "We would like to see the markets remain open for trade and investment. It's in nobody's interest in the long term to close the markets. The dialogue between both sides has reduced the frictions and AmCham-China welcomes that enormously."

As China and the US are each other's second largest trading partners, Watkins said he believes that it's inevitable that there will be occasional disagreements. He said: "In fact, I am surprised that there are not more issues. Between the US and Canada, for instance, there are far more of these kinds of cases than between the US and China."

Watkins was also very emphatic in his belief that cooperation in the areas of clean energy and energy efficiency between US and China will provide huge opportunities for his members.

During the JCCT session, China's Ministry of Commerce and the US Trade and Development Agency jointly signed a memorandum of understanding recognizing a new US-China Energy Cooperation Program initiated by AmCham-China.

Watkins said: "The program is a bilateral public-private partnership aimed at converting government policies and ideas into real business opportunities. It is based on AmCham-China's Aviation Cooperation Program, which proved very successful when it launched five years ago."

"So far 21 companies have signed up and we expect somewhere between 50 to 100 companies will take part in the future."

In addition to launching the energy cooperation program, Watkins has justifiable pride in AmCham-China's other achievements during 2009. As part of the chamber's two "door knock" trips in Washington this year, for instance, they made a breakthrough in terms of reducing processing times for certain visas, simplifying the application process for visas by their members' Chinese employees and customers. They also have worked closely with the US government to reform its export control regulations.

AmCham-China also actively communicates with Chinese government and discussed a number of market access and IPR issues, as well as proposing some solutions to local protectionism issues. At the request of their members and local governments, they have also organized provincial visits that have been "very popular" with both sides. Watkins said: "Up to now, we have initiated total of four provincial visits, covering some 13 cities this year."

With its primary mission of boosting economic relationships, AmCham-China has also done a lot of work to promote corporate social responsibility.

The organization held its 2009 Annual Charity Ball last month and subsequently donated 1.2 million yuan to charity. The money will be used for two causes, a UNESCO-led project to help several minority groups in Southwest China strengthen their healthcare system and for the Surmang Foundation to help alleviate poverty through health promotion in rural China.

Speaking of the organization's altruistic aims, Watkins said: "If you add up all the money we raised at the charity balls for the last seven years, it is around 9 to 10 million yuan. This is solely the amount the chamber has raised and doesn't include any sums contributed separately by our member companies."

Watkins has lived in China for nearly 30 years now and can speak fluent Chinese. He has become a passionate advocate for the country and is happy to declare: "China is my home."

Addressing the connection between US and China - seen by many as the pivotal economic, political and cultural relationship of the 21st century, Watkins said: "I personally think that the US-China relationship is as good, stable, broad and deep as it has ever been. In business, we always talk about continuous improvement and I want a continuous improvement in all aspects of ties between US and China."

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