Expected 2010 China and Korea Mission Results
The purpose of attending the Florida-China Association, Inc./Florida-Korea Economic
Cooperation Committee, Inc. (FLOR-KOR) 2010 Mission to China and Korea is to follow up with
business ties already established between our regions as well as explore new opportunities.
Broward County first visited China in 2004 with Mayor Lieberman leading the mission and
again in 2006 with Mayor Graber leading the delegation. During the 2006 mission a contract
between Port Everglades and COSCO Shipping Line was signed worth approximately $1 million
annually for Port Everglades. Since Broward County has established China as a target market
we have also hosted a number of inbound missions. This will be Broward County’s first mission
to Korea.
As with every mission Broward County participates in, we will be meeting with potential
investors in Broward County. The Florida-China Association and FLOR-KOR are arranging in
country one-on-one meetings for Broward County and our office will work with other local
partners that deal with investors in China and Korea to introduce our office and inform them of
the assistance OESBD can offer foreign direct investors. We will arrange meetings with the
China Council for the Promotion of International Trade to maintain open trade lines between
our organizations and regions. We will also meet with Specialty Medical Supplies, a Broward
company with a facility outside of Beijing, to visit their facility that was established after their
participation on the Broward Mission to China in 2006. Further research will be conducted over
the next few days to create a formal report on meetings to be held during the mission.
China
China is currently the 3rd largest economy in the world. Despite the recent global financial crisis,
China’s gross domestic product grew 8.7 % in 2009. The trade relationship between China and
the United States is strong and continues expanding. Total two-way trade between China and
the U.S. increased from USD 33 billion in 1992 to USD 366 billion in 2009. China is the United
States’ number one source of imports with a total of USD 269 billion in 2009. At the same time,
U.S. exports to China totaled USD 69.6 billion which represents 6.6 percent of total U.S. exports.
The top U.S. exports to China are machinery (in particular electrical machinery) and aircrafts.
China’s overall trade surplus has declined from USD 368.7 billion in 2008 to USD 226.8 billion in
2009.
The leading sectors for U.S. exports and investment are:
1. Automotive components
2. Construction equipment and machine tools
3. Education and training
4. Marine industries
5. Healthcare
6. Water and wastewater treatment
7. Rail equipment
8. Renewable energy
9. Green building
China was the 4th largest trading partner for South Florida in 2008. Bilateral trade between
China and South Florida increased 15.21 percent from 2007 to 2008, reaching a total of USD
4.65 billion in 2008. South Florida’s exports to China were USD 254 million while imports from
China to South Florida totaled USD 4.40 billion. South Florida’s top exports to China include
metals (aluminum, iron, steel, and copper), paper, aircraft parts, medical equipment, fruits, and
landline and cellular phone equipment. South Florida’s top imports from China include
computers, landline and cellular phone equipment, electronics, TVs, computers, furniture,
juices, seats (excluding barber and dental), and footwear. There is currently 1 Chinese company
located in Broward County employing approximately 200 people (Foxconn International
Holding).
Advantages
China continues to be one of the world’s fastest growing economies and a key player in
international markets. With a population of over 1.3 billion people and a GDP per capita
average growth rate of 9% since 1990, China represents a central market for U.S. exporters. As
China continues to grow and more Chinese reach the middle class status, its needs for imported
goods and services will increase significantly.
For the last two decades China has gradually opened its economy and implemented marketoriented reforms. China joined the Asia-Pacific Economic Cooperation (APEC) group in 1991
which promotes free and open trade and investment and agreed to lower tariffs and trade
barriers after formally joining the World Trade Organization in 2001. Moreover, the bilateral
relations between China and the U.S. were strengthened through the establishment of the
Strategic and Economic Dialogue (S&ED) and a 2009-2010 work plan to improve transparency
and predictability for market participants which was formulated during the April 2009 session
of the US-China Joint Commission on Commerce and Trade (JCCT). These cooperation and
agreements provide the foundations for a more sustainable business environment and
increased bilateral trade.
Disadvantages
Entrance into China’s market can be challenging. There are not only cultural and language
barriers, but it is also necessary to carefully review product standards and conformity assessments
and identify legal issues such as how to protect intellectual property rights. In addition, in spite of
China’s progress towards a market-oriented economy, there is still some degree of
protectionism in certain sectors, especially those concerning state-owned companies.
Potential meetings in Beijing
The American Chamber in Beijing http://www.amchamchina.org
China Council on Promotion of International Trade (CCPIT) http://english.ccpit.org
The US-China Business Council http://www.uschina.org
Potential meeting in Shangai
Shanghai Financial Economic Council (SFECO) http://www.sfeco.net.cn/English/Default.aspx
The American Chamber of Commerce in Shanghai http://www.amcham-shanghai.org
China ExIm Bank http://english.eximbank.gov.cn
Korea
Korea is the 15th largest economy in the world with a gross domestic product of over USD 1.36
trillion. Seoul, the capital of South Korea, has a population of over 10 million people and is the economic
and financial center of the nation. The U.S. is Korea’s second largest trading partner and is strategically
located to serve as a gateway to key Asian markets. Korea is South Florida’s 30th largest trading partner
and 3rd largest in Asia with 2008 exports to Korea totaling USD 112 million and imports totaling
USD 566 million.
The best prospects for U.S. exports are in the following sectors:
1. Automotive parts and accessories
2. Broadcasting programming and equipment
3. Computer software
4. Construction machinery
5. Cosmetics
6. Defense industry equipment
7. Pharmaceuticals
8. Education and training services
9. Medical equipment and devices
10. Pollution control equipment
Advantages
Korea became eligible for the Visa Waiver Program facilitating the entrance into the United
States, and consequently, promoting tourism and business trips. In early 2009, the Korean
government announced the “Strategy for New Growth Engines" that targets sectors in which
the U.S. is highly competitive such as energy and environment, transportation systems,
information technology, convergent technologies, the health sciences, defense/aerospace
technologies and knowledge-based services.
Disadvantages
Negotiations on a Free Trade Agreement concluded in 2007, but the agreement is still pending
approval by the Korean and U.S. legislatures. Upon implementation, the agreement would
ensure significant market access for U.S. goods and services.
Potential Meetings in Korea
Korean International Trade Association (KITA) http://global.kita.net
Korea Trade Investment Promotion Agency (KOTRA) http://english.kotra.or.kr/wps/portal/dken
Korea-U.S. Economic Council (KUSEC) http://www.kusec.or.kr/kusec/eng_index.htm
The American Chamber of Commerce in Korea http://www.amchamkorea.org