Georgia seeks closer economic ties with China
Updated: 2015-05-24 06:44
By AMY HE in New York(China Daily USA)
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As competition heats up among Southern states in the United States for Chinese investment and trade, Georgia is increasing efforts to raise its visibility in the country.
The state is hiring a new representative for its investment office in Qingdao, where it conducts most of its business, and it has opened an office in Shanghai. Qingdao in eastern China is a major seaport and industrial center.
"Georgia has had representation in Chinese market since 2007 and the trade is often times the first leg into wider economic development strategy. Trade begets investments, so we have been ramping up our trade presence," said Mary Waters, deputy commissioner for international trade at the state's economic development department.
China is Georgia's No 1 overseas trade partner, though the state imports more from China than it exports. In 2014, imports increased by almost 6 percent to $18.6 billion. Top imports include heavy machinery, electrical machinery, furniture, plastics, medical equipment and toys, games and sports equipment.
Last year, Georgia sent more than $3 billion worth of goods to China. In 2007, exports totaled $1.6 billion. The main exports have been forestry products (wood pulp, paper and paper board, wood), civilian aircraft engines and parts, heavy machinery, cotton, meat products, aluminum, and electrical machinery.
"We're working with Georgia exporters to let them know China is a good potential market for them," Waters told China Daily. "China is a very important market for Georgia."
Last year, after a three-city trade mission to China the state economic development department signed a memorandum of understanding with the Qingdao Free Trade Port Zone to strengthen ties with Shandong province, where Qingdao is located.
"That memorandum of understanding is really meant to help increase communication, increase information sharing and really make opportunities available for Georgia companies that want to sell into the Chinese market through the port of Qingdao," Waters said.
Scott McMurray, director of international investment at the development agency, said that Georgia is strengthening relations with city and provincial officials in Shandong province.
"We've been trying to elevate our presence in the China market there. We've been taking periodic trips to China and getting in front of different companies, working different projects, and we've been doing that for a few years now," he said. "We're very, very dedicated to the China market and our presence there, and increasing our efforts at attracting investment."
While imports from China are up, more Chinese companies also are investing in Georgia. In 2014, the state received about $500 million worth of investment. The economic development agency said it's working on bringing several new Chinese projects to Georgia, but it didn't disclose details.
More than 64 Georgia companies have operations in China, according to the agency, and approximately 45 Chinese companies are in Georgia, of which six are manufacturing locations. The companies employ more than 590 Georgians.
Those companies included, ZTE USA, Hisense USA, Shanghai Aerotech USA and Cosco North America.
"There are a lot of different factors as to why Georgia is attractive to China, and one of the main ones is that the metro Atlanta area is a highly internationalized city. We've got connectivity with the Hartsfield-Jackson Airport," said McMurray, "giving (companies) immediate access to the market here, as well allowing them to travel back and forth to their home base in China.''
"Another really big one is the workforce, the talent pool that we have here for these companies, not only in manufacturing but the talent required for these office projects," he added.
amyhe@chinadailyusa.com
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