“Oregon and China: Developing Strategies for Economic Development and Environmental Sustainability”

The Asian Education Foundation presented a panel discussion on “Oregon and China: Developing Strategies for Economic Development and Environmental Sustainability” at the Port of Portland on 11/16/09.

There were two panels. The first panel included (photos are in this order) the Speaker of the Oregon House Dave Hunt, who lead a recent legislative delegation to China; Representative Jules Bailey, a leader on both environmental sustainability and China related legislative issues (also on the legislative delegation); Annette Price, State Government Relations Manager for the Port of Portland (also accompanied the recent delegation); and Jon Blumenauer, Managing Partner of Hutani (here), who traveled to China this year with House Speaker Nancy Pelosi to discuss environmental policies with top Chinese leaders.

Speaker Dave Hunt reported that each trip was an opportunity to strengthen economic, educational and cultural ties; that the two countries have a lot more in common than the average Oregonian or US citizen thinks; that there are huge trade opportunities, not just in products, but services; that there are now amazing opportunities in sustainability; that our futures are tied together; that, after meeting with the Confucius Institute, the legislative bipartisan delegation agreed to work to make Oregon the top state in Mandarin education; and that he found discussions with the Chinese open and honest about our differences.

Representative Bailey, who has lived in China and speaks Mandarin, said he found the speed of change impossible to describe. There was no longer a strong contrast between Hong Kong and Beijing.

Annette Price noted that the Port of Portland has known of the importance of the Asian markets, especially Japan and China, and has spent lots of time and money building relationship in China. She also noted the stunning growth in China, and that “it’s not republican or democratic, it’s the future.”

Jon Blumenauer reported on his trip to China with Speaker Pelosi. He found China to be very serious about tackling issues of environmental sustainability. They will continue to put economic growth at the top of their agenda (they do have 40-150 million people living below their poverty level), but they are taking serious step to deal with their environmental problems.

There was a question and answer period. The most interesting exchange, IMHO, came on a question from former Secretary of State (now candidate for Governor) Bill Bradbury. He asked, in effect, what Oregon business sectors had the largest opportunities in China. Speaker Hunt answered that the already large agricultural export trade had opportunities to add value to their products. I agree with this. Representative Bailey noted sustainability services and expertise, but then added some significant comments. He said, in effect, that business sector advantages would change over time, so that what Oregon should aim for is an innovational and human capital competitive advantage. We needed to become the place for new ideas about business opportunities in China. We need to develop the capabilities to stay one step ahead of others in generating and implementing such ideas. I agree, and this is where legislative action is needed to develop our China related educational infrastructure.

After the question period, there was another panel of two China entrepreneurs: Ocean Yuan, President of Grape Solar, Inc. (here), and Executive Director of the China Solar Industry Consortium, the world's largest conglomerate of photovoltaic manufacturers; and Jack Chu, CEO of Terra Solar Global (here).

Ocean Yuan spoke of the federal and state tax incentives for solar, that the total cost of installed solar is 50% hardware and 50% labor for installation, and that there is a need to cut the hardware costs further to make solar more competitive.

Jack Chu said western assumptions can create blind spots in doing business in China, and that China is complex and different. New businesses should take their time to understand China.

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