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S.C. Aggressive in Pursuit of Chinese Investment, Trade

S.C. Department of Commerce Establishes Base in Shanghai

Columbia, SC—China is getting a lot of media attention these days, and deservedly so. In just a few decades, the country has gone from isolated bystander to avid participant in the global economy.

South Carolina was one of the first U.S. states to recognize China’s transforming economic status and to work to build a positive relationship with that nation. Now, the Department of Commerce has ramped up its efforts by establishing an office in Shanghai. The South Carolina China Office will actively sell the benefits of a Palmetto State location to Chinese companies, while also helping South Carolina businesses take advantage of the tremendous export opportunities that exist because of China’s voracious appetite for goods.

A grand opening ceremony for the South Carolina China office will be held on October 18. Governor Mark Sanford, Commerce Secretary Bob Faith, and other state officials will attend the event as part of an investment mission to China and Japan in October.

"China is an increasingly important player in the global economy. This new office is about expanding opportunities for South Carolina companies to do business in a rapidly growing market of more than a billion people," Gov. Sanford said. "It's also about finding opportunities to bring Chinese production facilities to South Carolina, like we've done with Haier, the largest Chinese-owned manufacturing facility currently operating in the United States. All of this ties back into the notion of raising income levels and creating jobs for the people of this state."

As a result of South Carolina’s early efforts to market itself as the ideal U.S. location for Chinese expansion, one of China’s first foreign direct investments for manufacturing in the United States occurred in Camden, when Haier built a state-of-the-art refrigerator manufacturing plant there in 1999. In 2004, the Palmetto State was rewarded again with a second Haier investment, this time for a warehouse and distribution facility in Lee County. So far, Chinese investment totals $126 million and has created 1,250 jobs in South Carolina, and state officials see the potential for much more.

While Chinese companies are still feeling their way when it comes to foreign investment, there’s nothing shy about that nation’s demand for imported goods. The People’s Republic of China, which includes Hong Kong and Macau, is now the world’s 3rd-largest importer. South Carolina counts China as its 5th-largest export destination; the state’s exports to Mainland China rose a staggering 67.61% last year, and have nearly quadrupled in the last four years.

“During our mission to China in 2003, we witnessed an incredibly dynamic economy that will continue to expand in the years to come,” said Commerce Secretary Bob Faith. “It’s exciting to have South Carolina be a part of that growth. Establishing an office in Shanghai allows us to have staff on the front lines, recruiting investment and fostering trade relationships.”

John Ling will serve as managing director of the China office. Ling is a China native who has managed Commerce’s Asia international trade program for the last 5 years. Ling also was part of the team that brought Haier to South Carolina.

“John Ling is an exceptional member of the Commerce team,” said Faith. “His background, ability and experience are perfectly suited to his new responsibilities, and South Carolina will benefit from the stronger connections and new associations that John is able to create with Chinese partners.”

Gregory Guest has taken over Ling’s duties as Asia Pacific Trade Manager at the Department of Commerce’s offices in Columbia.

For staff in South Carolina’s Asia office, the priorities will be identifying and pursuing Chinese companies that are looking to make a new investment in the U.S., and helping establish and grow relationships between South Carolina businesses and the Chinese customers who may be interested in purchasing their products.