LACEY — With Gov. Gary Locke looking on, a top Chinese diplomat told state business leaders Friday that increased trade will stoke the fire of his nation’s economy and pad the profits of their enterprises.
"China is the world’s largest developing country … and a driving force for the world’s economy," Ambassador Peng Keyu said. With positive and practical relationships "we’ll see a better future."
Peng, who is based in China’s consulate in San Francisco, joined Locke at Saint Martin’s College for a conference on the basics of doing business in Hong Kong and mainland China.
Peng stressed that China has reduced tariffs, opened markets and increased protection of intellectual property rights since the country became a member of the World Trade Organization in 2001.
"China is a responsible government and met its multilateral obligations," he said.
Locke encouraged a strengthening of trade ties, saying it will give rise to new companies, help expand existing ones and create new jobs.
"China is a market of nearly unlimited potential," Locke said. "The benefits are mutual for millions of people."
After Japan, China is the second largest export market for Washington. The ties binding the state and China date back several decades with one of the early highlights coming in 1972 with the sale of Boeing jets for use by China Airlines.
Chinese firms and the government purchased $3.2 billion worth of goods and services from state enterprises in 2003, down from $3.8 billion a year earlier.
Locke expects resurgence in 2004 as a result of a seven-day trade mission to China that he made in October with 80 business, civic and academic leaders.
During the trip several agreements were reached for educational and cultural exchanges. Contracts for products and services were also signed, including one for the sale of presses to the People’s Daily newspaper.
Locke, the nation’s first Chinese-American governor, stressed the payoff came from "face-to-face" meetings.
"Chinese businesses don’t have to do business with the people and businesses of Washington," he said. "Healthy trade requires focus on relationships, not just transactions."
Friday’s conference occurred as new reports emerge showing China’s economy is robust, fueled by double-digit increases in industrial production.
Yet financial experts worry that the economy is overheating and will force government intervention through actions such as higher interest rates on loans that could curb investment in new companies and trim profits of existing ones.
That’s not likely, said Frances Iwasawa, a member of the Hong Kong Trade Development Council and one of the day’s presenters. "With the huge population, there is still room for China to grow
The encouraging words of Locke and Peng come at a time when critics of China’s leaders assert that the government is cracking down on political opponents and curbing those pushing a democratic capitalist path.
Locke said it is not a time to slow trade efforts but to continue exposing the people to democracy and its successes in the hope that it will help them accomplish it there.
"When so many Chinese students come to see our way of life, our prosperity and our freedoms, all they can do is talk about it upon returning to their country," he said.
Reporter Jerry Cornfield: 360-352-8623 or jcornfield@heraldnet.com.
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