America's 'Last Frontier' offers opportunities for trade

Tourism, energy resources, winter sports and logistics have great potential for China-Alaska cooperation

Alaska Governor Bill Walker is paying a visit to China on September 25-29, attending the China-US Investment Forum in Beijing and meeting Chinese officials and company executives in Beijing, Shanghai, Hangzhou and Guangzhou. Walker talked with China Daily about his hopes to diversify trade and allure Chinese investment into the Last Frontier state.

Q: Chinese President Xi Jinping made a stop in Alaska on April 7 after a two-day summit with US President Trump in Florida and that has substantially increased the visibility and awareness of Alaska in China. What influence has the stopover had on Alaska's trade and cooperation (both economic and tourism) with China?

A: I was honored to host President Xi, Madam Peng and Chinese ministers in Anchorage. The visit highlighted the mutually beneficial partnership that Alaska has enjoyed with China, its largest trading partner. President Xi's visit showed Alaska can be an excellent tourist destination. President Xi and I also discussed Alaska's abundant resources including fish, oil and gas, agriculture, mining and timber products. Alaska looks forward to seeing more Chinese tourists visit our great state.

Q: China is now the largest trade partner of Alaska, which exported about $1.2 billion worth of products to the Chinese market in 2016. Of that total, more than half of the products sent to China were fish. How do you evaluate the future of trade with China and the changes in export structure? What areas have the most potential for growth in trade with China?

A: The most immediate opportunity between Alaska and China is getting reliable and stable natural gas to China through our proposed new Alaska LNG project. Also, Alaska has huge reserves of coal in the ground, and our mining potential is unparalleled.

Q: In addition to fish, Alaska also exports metals and timber and oil products to China. What is your view on the potential for exporting LNG and coal to China, with Alaska being much closer to the Chinese market compared to the contingent US and China and the US having pledged to strengthen cooperation in the energy sector?

A: Shipping between Alaska and Asia is short, at seven to nine days, and the route is direct; there is no third-nation to go through. Alaska holds the longest-running contract for LNG. Alaska also holds 11 percent of the world's coal supply.

Q: In terms of Chinese direct investment in Alaska, the figure is pretty small at the moment against a background of Chinese direct investment in the US increasing rapidly in recent years. Why does the pace of Chinese investment in Alaska seem so slow? What areas have the potential for Chinese investment and which you would recommend to Chinese investors?

A: Alaska provides significant resource investment opportunities in hydrocarbons and other resources. Additionally, the Alaska LNG project with its gas pipeline and LNG facility is an excellent opportunity to partner in the development of an energy export project using skills already developed in China.

Q: Alaska attracts a growing number of Chinese tourists because of its beautiful natural scenery and unique natural wonders. Could you discuss the current situation of tourism cooperation with China and describe what you think the future holds?

A: Alaska can be a wonderful Chinese tourist destination during both summer and winter. Summers offer spectacular beauty and outdoor opportunities, while the winters offer amazing beauty with the great Northern Lights dancing across the sky.

To assist Chinese travelers headed to Alaska, the Alaska International Airport System (AIAS) met with Consul General Luo (Lin quan) in San Francisco in June, as well as the North American headquarters staff for Air China airlines. Discussions centered on the potential for nonstop passenger service between Anchorage and China as well as tourism, air cargo, and trade opportunities.

AIAS staff then went to Beijing and met with Air China headquarters executives as well as the Civil Aviation Administration of China to discuss scheduled passenger service between China and Alaska as well as air cargo, tourism and trade opportunities.

Finally, the AIAS hosted the Shanghai Airport Authority (SAA) in July to discuss airport partnership and collaboration initiatives related to air cargo, customs processing and cargo transfer operations. AIAS currently has a Memorandum of Agreement with the SAA that was executed during the Alaska Air Cargo Summit held in Shanghai in 2015, which focused on airport collaboration and best practices to further strengthen each airport and the air cargo industry as a whole.

Q: Anchorage is a well-known air transport hub in the world and may play an important role in facilitating China-US trade. What is the current situation of air transport and logistics cooperation between your state and China and how do you evaluate the potential for further strengthening such cooperation? What are your suggestions for Chinese companies to get more involved in this sector?

A: As you can see from my previous response, we have already begun the process for direct flights from China to Alaska. Given the many areas of mutual benefits between China and Alaska, we will continue to work towards direct flights during both the winter and summer. To achieve that goal, we will continue to reach out to Chinese airlines and tourist companies to begin the direct flights.

Q: Alaska is well known for its winter sports. China will hold the 2022 Winter Olympics in the Beijing-Zhangjiakou area. In the coming few years before the 2022 Winter Olympics, what are Alaska's advantages in cooperation with China in the winter sports area and how?

A: President Xi and I discussed the possibility of having the Chinese Winter Olympic athletes train in Alaska for the 2022 Winter Olympic Games. I'm working with one of our university systems to accommodate this opportunity. With our cold winter climate and world-class ski trails, Alaska would be an excellent place for China's Winter Olympic athletes to train.

Q: You are going to visit China on September 25-29 to attend the 2017 China-US Investment Summit and meet with officials and company executives in Shanghai and Guangzhou. What are the main purposes for your attending the summit in China?

A: (My trip to China is) to continue to strengthen ties with Alaska's largest trading partner, and to tell China about how our state's vast resource opportunities can provide China with stable energy for decades to come.

Q: Is there anything else you would like to share with our readers?

A: Being over twice the size of Texas, Alaska is America's largest state. Given our close shipping location to China and our vast natural resources, it is only natural for Alaska and China to continue to strengthen our trade opportunities. Also, the opening of the Arctic for shipping routes from Asia to Europe provides opportunities for enhanced trade and investment by Chinese companies in Alaska. We look forward to continuing to build on the long trade history between China and Alaska.

yuanzhang@chinadailyusa.com