SALEM, Oregon - The new but familiar governor of Oregon said the state's relationship with China is "central" to his efforts to revamp the state's economy, adding that Oregon is "open for business" with the second largest economy in the world.

"We see huge opportunities for continuing to open markets for Oregon products in China," said Gov John Kitzhaber in a recent interview with China Daily in Salem, the state capital.

After statistics are compiled, China is expected to be Oregon's largest trading partner for a second consecutive year, partly due to the state's growing agricultural exports to China, officials said.

Kitzhaber is serving his third non-consecutive term as governor after Oregonians elected him in 1994 and 1998. Oregon faces an approximated $3.8 billion budget deficit for this fiscal year. The state unemployment rate of 10.6 percent is higher than the national average of 9.4 percent as of December.

Kitzhaber has placed Oregon's economy as his top priority. In addition to creating jobs, he said he has his sights on China-bound economic exchanges. He added that the state has "tremendous opportunities" for Chinese companies to make their presence felt in the US.

Oregon is exploring new export opportunities and making a greater effort to sell more value-added products, such as green technology, to China, he said.

Kitzhaber plans to visit China later this year and although an itinerary for the trip has yet to be determined, the governor and his colleagues are finalizing details to promote their home state in China to attract Chinese investors.

State Representative Dennis Richardson said he wanted to tell Chinese to come to his hometown for an authentic experience in the US and joked that "you (will) pay no tax" in reference to the state's no-sales tax policy, which Richardson believes will add value to this less-than-popular trade and tourism destination.

Gao Zhansheng, consul-general of the Chinese Consulate in San Francisco, said Oregon's exports to China were strong in 2010 with high growth in agricultural products.

Oregon's exports to China surpassed $3.04 billion in the first three quarters of 2010, compared to the total number of $2.9 billion in 2009. Exports of agricultural products increased by about nine times, he said.

"Great progress has been made in the Year of the Tiger," said Gao, who added Oregon is now China's fourth largest trading partner among the 50 states.

Oregon's exports to China in 2009 totaled $2.9 billion, with high-tech accounting for 74 percent, waste and scrap at 6.2 percent and agricultural products at 5 percent, according to the Oregon Business Development Department.

Oregon can offer environmental technologies and services as China encounters more environmental challenges in its developing economy, Oregon House Co-Speaker Arnie Roblan said.

Portland, Oregon's largest city, has the highest number of green buildings per capita in the US. It is regarded as a national leader in sustainable development and is ranked among the greenest cities in the country.

Oregon has attempted to reach out to China in previous decades. In 1984, Oregon attempted to establish a sister-state relationship with Fujian province largely due to the trade activities of Nike Inc, the leading sportswear and equipment supplier based in Oregon.

In 1988, Portland and Suzhou in Jiangsu province, became sister cities. Lan Jin, president of the Oregon Fujian Sister State Association, said each region has maintained frequent exchanges since then. He said Oregonians have developed a better understanding about China's role in the state's economic growth.

Kitzhaber said Oregon also has interests in further connecting with China in education, tourism and culture. He said he values the importance of education and cultural ties with China and is very interested in continuing to attract Chinese students to its local universities.

Oregon is the only US state with two Confucius institutes.

China Daily