Through my experiences in doing business in China, I realized there were hundreds of Chinese firms that would like to enter the US market, but who don't have the resources to set up individual offices here. Ever since I was appointed to the Council in 1995, it has been my goal to improve Oakland's economy by helping Chinese businesses set up a trade center. This center would greatly reduce costs for the Chinese firms, while granting them much better access to the US market. This year, we have taken the first steps toward that goal.

In April, 1997, our delegation of Oakland City and Port Officials went on a very successful trade mission to Asia. The trip concluded with a fruitful trip to the city of Shenzhen, China, just across the border from Hong Kong. There, the entire delegation held a busy day of meetings with the officers of several large financial institutions, development and investment companies who flew in from Beijing, Guangzhou (Canton), Quingdao (Tsing Tao), Maoming, Changsha and Weifang to meet with us.

This meeting was an historical first for Oakland; never before have so many Chinese businesspersons and government leaders flown to one central area (Shenzen) to meet with Oakland officials. Working agreements were signed to establish the center, and to keep all parties networked as they move forward. The key to doing business in China is 'guanxi' which means 'relationships'. We are on our way to making this trade center a reality.

The International Economic and Trade Center (ETC) is to be located in downtown Oakland. It will provide small to mid-size Chinese businesses the opportunity to display their goods and services in the United States. These are companies whose products have a market in the United States, but do not have the resources to set up individual offices in the US.

The ETC will provide display space for 100 to 200 businesses, as well as office space, meeting rooms and conference halls for all of the participating companies. The building will also contain some 50-100 living units for those visiting and working in the ETC.

The ETC is slated to open in Spring, 1998, and will be located at an interim site while a permanent building is constructed. The ETC will be managed by the Trade Center Management Group, composed of four large Chinese firms who have pledged to raise the capital necessary to construct and operate the ETC. Oakland will help find a suitable site for the ETC, and promote it nationally.

Benefits

• The ETC will give small and medium size local businesses in Oakland the chance to compete on equal footing with larger, more capitalized firms by giving them access to the same types of products and services that larger firms are able to find by sending people to China to conduct product and market research.

• The ETC will promote trade between the US and China, thus increasing traffic through the Port of Oakland. Presently, over 72% of the cargo passing through the Port originates in Asia. Any increase in trade between the US and China will also increase traffic through the Port.

• The ETC will attract business people from all over North America to come to Oakland to search for Chinese goods and services,

• The ETC will help promote Oakland as a major international trade center, and the main entry port for goods from the entire Pacific Rim.

• The ETC will bring new construction and jobs to downtown Oakland.