Governor Brown Combines Business and Politics in China

California’s Governor Jerry Brown has returned from his week-long trip to China, and he returns with a handful of agreements, a new trade and investment office, and lots of newly-generated goodwill. The Governor and his entourage left April 10 th , returning on the 17 th . The trip was planned to meet with Chinese government and business leaders. Accompanying the Governor was a delegation organized by the Bay Area Council , a business-sponsored public policy advocacy organization, that included about 90 business, economic development, investment and policy leaders from throughout the state, as well as senior officials from the Governor’s administration. Some highlights of the Governor’s trip include: Met with China’s Minister of Commerce Gao Hucheng Signed an agreement to bolster economic ties and cooperation between California and China with Vice Minister of Commerce Wang Chao. Spoke with Deputy CEO of HSBC China, Chris Davies. Signed an agreement to strengthen and coordinate efforts to improve air quality with China’s Minister of Environmental Protection Zhou Shengxian. Met with China’s Chairman of the National Development and Reform Commission Xu Shaoshi. Met with U.S. Ambassador to China Gary Locke. Gave a speech at the Trade and Investment Reception at the U.S. Embassy in Beijing. Announced $1.5 billion China-California investment deal. Met with China's Premier Li Keqiang. Opened the California-China Trade and Investment Office in Shanghai. The new trade office immediately announced four more business deals: Beijing-based pharmaceutical company JOINN Scientific is investing $50 million to establish a pharmaceutical production plant in cooperation with Staidson Pharmaceuticals, to be located at the former Bayer manufacturing facility in Richmond, California. Hongye International of Wuhai, China is investing $100 million of private equity investment into the Arcadia, California-based firm Singpoli Capital to develop green energy, biochemistry, media, high-technology and real estate construction projects in California. Sacramento-based McWong International and Emeryville-based New Logic Research Inc. have secured a $20 million contract with Inner Mongolia-based ChinaCoal Mengda New Energy Chemical Company and China National Coal Group for a zero-liquid-waste discharge project. Scripps Institution of Oceanography/UC San Diego (UCSD) signed an agreement with Ningbo University that includes: $50-$100 million of Chinese funding for a Scripps/UCSD research center for development of renewable marine resources and technologies at Ningbo University; the formation of $25 million marine innovation and technology fund for commercialization in China of Scripps/UCSD discoveries; and a program to send top Ningbo students for advanced academic work at Scripps/UCSD. Met with Shanghai's Party Secretary, Han Zheng. Signed an agreement to expand collaboration between California and its Chinese sister-state, Jiangsu, on climate change, technology, education and tourism with Party Secretary Luo Zhijun. Met with Guangdong’s Governor Zhu Xiaodan and Party Secretary Hu Chunhua and announced two agreements between California and Guangdong to further strengthen cooperation on trade, investment and climate change. Signed an agreement to advance collaboration on climate change, namely low carbon development between the two regions with Guangdong Development and Reform Commission Director-General Li Chunhong. Met with Shenzhen Party Secretary Wang Rong and discussed cooperation on trade, investment and climate change and later toured BYD, a Shenzhen-based company with its U.S. headquarters in Los Angeles that is pioneering electric vehicle and battery technology. In addition there were a number of other speeches, factory tours, meetings, banquets and photo-ops in a packed schedule. As you can see from the list of meetings, the Governor was on a business promotional tour, primarily promoting clean energy and clean air technologies and investments. Soon after arriving in Beijing, the Governor made his intentions clear. “We’re from California. We’re not interested in politics. We’re interested in business” he said. But in so saying, he was in fact engaging in politics, and doing it well. It would be pointless to irritate his hosts with lectures on human rights, or the evils of coal burning, something of which he is fully capable. California has an advantage over federal officials who might have made a similar trip. “California is perceived in China as a leader in cleaning up the environment without any ulterior motive,” said Yunshi Wang, director of the China Center for Energy and Transportation at UC Davis. “If these requests or demands come from Washington or Brussels, there’s some attitude in China that it’s some kind of effort to slow them down economically.” Meanwhile, air pollution control has moved to the top of the Chinese policy agenda according to Barbara Finamore who is the Asia Director of the Natural Resources Defense Council, based in Hong Kong. Chinese officials perceive that the choking air pollution in Beijing and other industrial centers is limiting economic growth, and increasing despite efforts to date to control it. Growing citizen anger over pollution exemplified by violent protests has increased the willingness of officials to finally act. And, they are fully aware of China’s position on the “Biggest Climate Change Contributors List.” “China is looking for partners with the technology and policy expertise to help them put these programs in place, while California is looking to boost business opportunities while sharing their climate and clean energy experiences,” says Finamore. Now that the Governor has built up the goodwill and opened some doors, it’s time for businesses to walk into those doorways.

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Governor Brown Combines Business and Politics in China

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