Delaware looking for China bank
Updated: 2016-05-04 10:55
By Paul Welitzkin in New York(China Daily USA)
Governor preens state as ideal package of services and laws for more investment
Delaware is home to numerous incorporated Chinese businesses along with half the Fortune 500 companies, and Governor Jack Markell is looking to make it the base for a Chinese bank or financial services titan.
"I believe that when Chinese banks and other companies look at the complete picture - a simplified incorporation process, a responsive bureaucracy and legal system, they will see that Delaware is ideal for their business," he said.
Markell made his comments on Monday at Fordham University in a forum sponsored by the Chinese Business Lawyers Association.
"Delaware's advantages include our judiciary, legal system and regulatory approach," said Markell. He cited the state's general corporation law " as one of the most advanced and flexible corporation statutes in the nation".
Markell also praised the state's courts and, in particular, Delaware's corporations court, or Court of Chancery. "Our judiciary is fair and is willing to become an active participant in resolving disputes," he said.
Markell said the state's regulatory system is not burdensome. "Not all regulations are good and not all are bad," he said.
Markell said that about 80 percent of the wealth that will be created in the world over the next few years will occur outside of the US - "mainly in China".
"I am convinced that our kids will have to learn to do business in another language besides English from here on out," he said. "That's why we have established a language immersion program that now has 2,300 students."
Elementary school students spend half their day receiving instruction in English and the other half in either Mandarin or Spanish. Markell said the program will give Delaware students a competitive edge in a globalizing business world.
Last year, he signed an agreement with Wanxiang Group, China's largest auto-parts manufacturer and the owner of a once-bustling General Motors plant near Newport, Delaware, for students to study at the company's facility in Hangzhou, East China's Zhejiang province, where they take daily language classes, visit local schools, participate in cultural activities, and tour sites of science and technology companies.
Wanxiang provided a grant of about $450,000 for the study abroad sessions in 2015 and 2016, with up to 24 students and four teachers participating each year.
Markell noted that the state has hosted five trade delegations from China in the last year, and he said that the state's largest college can be an effective tool in recruiting Chinese businesses. "We have over 1,000 Chinese students at the University of Delaware. They can help spread the word," he said.
Companies incorporating in Delaware began more than 100 years ago when then New Jersey governor Woodrow Wilson, who later became US president, opposed the business-holding company structure for his state. Delaware took advantage and hasn't looked back since.
Markell said he is proud of the financial services sector in his state's economy, noting that JPMorgan Chase, Capital One and Barclays are among financial companies in Delaware.
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