Last Updated on October 28, 2019 by cassnetwork
Progress is being made on both sides of the Pacific Rim despite the perceptions of the trade war between the United States and China.
That was the takeaway message Mayor Dave Kitchell had last week from the 14th annual America-China Society of Indiana Conference in Indianapolis. Kitchell, the only mayor participating in the largest conference the organization has had, said presenters indicated there has been some impact on both countries, but the potential for greater trade and a mutual concern over North Korea’s future are reasons why the countries are working toward greater trade opportunities, particularly those that can help Indiana businesses.
“China is now the world’s largest pork market, and Indiana represents a significant share of that export market,” Kitchell said. “It’s also become the No. 1 automotive market, and that will continue to press the need for more original equipment auto parts as well as aftermarket parts from advanced manufacturing suppliers like ours in Logansport.”
Weilin Long, who served as Logansport’s Pacific Rim liaison prior to accepting a position with Indiana state government earlier this year, was one of the keynote speakers at the conference. She said there is a need for more education on both sides of the Pacific when it comes to the size of trade markets. China has 100 cities with a population of a million or more, but many in China think of people in India when they hear the word “Indiana” she said. While economic growth has been strong in China, it is slowing down, and the Chinese per capita Gross Domestic Product is still a fraction of what it is in the United States.
Another trend that is evident: Wage growth is forcing China to ship much of its lower production work to Vietnam. Chinese producers are focusing on higher-paying jobs at the high end of supply chains.
“Many of the issues involved in the trade war such as intellectual property have been out there for many years, and while there may not be any quick fixes, there is substantive dialogue that should produce more value for both countries,” Kitchell said.
Two of the concerns still to be resolved are agricultural exports to China which have dwindled along with the recycling market, which has bottomed out in the United States because China is not importing U.S. recyclables for re-use.
SOURCE: News release from Logansport Mayor Dave Kitchell