Heartland state sets pace in growing relationship with China

When Nebraska Governor Dave Heineman visited China for the first time on a trade mission in 2007, he was surprised at how much his hosts already knew about his state in the US heartland.

Chinese business leaders he met on that trip impressed the governor when they mentioned that famous Nebraskan often called the most successful investor of the 20th century, and how much they wanted to be the "Chinese Warren Buffett".

"We've got a great role model in Warren Buffett, but I want it to go beyond Warren Buffett," Heineman told China Daily at the Republican National Convention in Tampa, Florida.

"I want the Chinese people to understand the warmth, the hospitality and welcoming atmosphere we have in Nebraska - that we will give your businesses the opportunity to grow and prosper."

The state's relationship with China has become closer in recent years. After the governor made a second trip to China in July, the state opened a trade office in Shanghai for further economic exchanges.

Heineman expects the Shanghai office will bring "fruitful" results as Nebraskans and Chinese seek more business opportunities on each other's territory.

Recently five Chinese companies decided to set up their US headquarters in Nebraska. Heineman said the state offers low-cost energy, a business-friendly tax environment and, due to its central location, the ability to transport goods anywhere in America in two days.

"A number of others have made commitments to us when we were in China this time," he said.

One of these was Shanghai Liuhe Qinqiang Food Co. Its chairwoman, Lu Jingjing, recently said that the agribusiness company decided to open an office in Omaha, the state's biggest city, to focus on meat exports to China.

"We want to help them, so as they grow and prosper they will tell other business leaders in China and encourage them to come to (invest in) Nebraska," Heineman said.

China, the United States' third-biggest market after Canada and Mexico, imported more than $100 billion in US goods and services in 2011, according to the US-China Business Council.

China is Nebraska's fourth-largest trading partner and among its fastest-growing overseas markets. The state's exports to China (chiefly corn, soybeans and meat) have grown by 30 percent in each of the past three years.

"Obviously we have a good relationship with Canada and Mexico - they are our northern and southern partners. But we are looking throughout the world," said Heineman, adding that fast growth may make China the state's No 1 trading partner.

The governor's optimism about the Chinese market isn't deterred by a recent slowdown in the pace of growth in the world's second-biggest economy. The current 7 percent to 8 percent expansion in the economy is "good enough", he said, given China's size, population and growing middle class.

The past few years have seen numerous US governors leading high-priority trade missions to China in pursuit of bilateral investment. This year, five US governors including Heineman have brought business executives from their states to explore the growing Chinese market, while a few more have lined up trips to China in coming months.

Heineman, the current chairman of the National Governors Association, believes the US and China have "an obligation to the entire world" given their status as economic superpowers.

"If China and America are strong, the world's going to be. And economically we need to be connected, and we need to have a strong relationship. In my state we would like to do our part," he said.

Nebraska hosted reciprocal trade missions in 2008 and 2011, when more than 100 Chinese business leaders came to explore opportunities in the Cornhusker State.

"We want to export to China, and we want you to invest in our state; it's a two-way street," said Heineman, who said Nebraska will host a third visit from a Chinese delegation sometime in 2013.

While the US is experiencing a weak economic recovery, many states have been active in seeking foreign investment.

On his recent week-long visit, Heineman met with Vice-Premier Wang Qishan. In Xi'an, he met with Shaanxi Governor Zhao Zhenyong as well as a number of business executives who were eager to learn more about the state.

Heineman wants Nebraska to build a lasting relationship with China.

"This is a partnership we want for a lifetime," he said. "We are not there for a partnership for a day. We want you to come to Nebraska to become part of our community and we want you to be here forever."

The state is working to establish a sister-state relationship with China's northwestern Shaanxi province, whose central location is similar to that of Nebraska in the US. Such an arrangement would encourage more exchanges in education, business and other areas, Heineman said.

For the governor, "going to Xi'an is like coming to Nebraska".

yuweizhang@chinadailyusa.com