California Governor Jerry Brown has designs on building some of the most expensive public works projects in the United States and wants to keep the state moving forward in its slow recovery from the recession.[HK Corporate Registration]
Where better to go searching for the money to further those interests than the world's second-largest economy and a country that has piles of cash to invest around the globe?
The governor of the most populous US state heads to China this week to begin a week-long trade mission that he hopes will produce investments on both sides of the Pacific. Brown will lead a delegation of business leaders in search of what he calls "plenty of billions."
"They've got US$400 billion or US$500 billion they're going to invest abroad, so California's got to get a piece of that," Brown said in an interview ahead of his trip to China.
Brown and business leaders accompanying him are trying to rebuild the state's official relationship with China after California closed its two trade offices and others [Hong Kong Company Formation, Incorporation, Business Registration]around the world a decade ago in a cost-cutting move. California finds itself playing catch-up to other states that have had a vigorous presence in China for years.
California, which would be the world's ninth largest economy if it were a separate country, will open a trade office in Shanghai during Brown's visit. The Bay Area Council, a coalition of business interests from the San Francisco Bay Area and Silicon Valley, is raising about US$1 million a year in private money to operate it.
"California shouldn't be the only state in the union not to have a presence with key foreign trading partners like China," said Jim Wunderman, president of the group.
The council opened its own office in Shanghai in 2010 to fill the void after the closure of the trade offices. Bruce Pickering, executive director of the Northern California office of the Asia Society, called the 2003 decision "penny wise but pound foolish."
"We've basically said: 'We're California, show up and stand in line with everybody else,'" Pickering said.
"You have to do a little more than just say you're welcoming a business," he said. "You have to really send a message that you are ready for it."
The Asia Society, a nonpartisan, nonprofit organization that promotes collaboration between the US and Asia, reported in 2011 that businesses from China have established operations and created jobs in at least 35 of the 50 US states, including California.
Pickering said California is behind other states in luring Chinese investment, while states as varied as Pennsylvania, Missouri, Florida and Arkansas have had an official presence there. The Republican governors of Iowa, Virginia, Wisconsin and Guam also are visiting China this month and meeting with provincial leaders to discuss trade and the environment.[Hong Kong Company Formation|Hong Kong Company Registration]
"I would think it would be very difficult to try to attract investment without having someone on the ground there on your behalf," said Joe Holmes, a spokesman for the Arkansas Economic Development Agency.
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