1. Northwest China Council Portland, Oregon October 3, 2007 Chip Peters, Commercial Officer – Shanghai China CS Shanghai & East China

2. The U.S. Diplomatic Mission in China Embassy in Beijing 4 Consulates Shanghai Shenyang Chengdu Guangzhou

3. Our Consular District ZHEJIANG JIANGSU ANHUI Municipality of Shanghai : –Plus, 3 surrounding provinces GDP per Capita: $7,131 vs. ($1,800 for all China) Population: 18 – 20M (estimate) = Texas Area: = Delaware U.S. Residents: 25,000 Shanghai Overview (2006)

4. Consulate General of Shanghai Sections Include: Political & Economic Section Public Affairs Section Visa Services & U.S. Citizen Services Patent and Trademark Office Agricultural Trade Office Commercial Service

5. The U.S. Commercial Service Agency: –U.S. Department of Commerce Mission: –Promote U.S. Exports –Protect U.S. Commercial Interests Abroad –Promote Foreign Direct Investment (FDI) into US (new role) Locations: –In U.S.: 105 Export Assistance Centers –Overseas: 157 offices in 84 countries

6. Our “Core Services” Business Facilitation International Partner Search International Company Profile Single Company Promotion Gold Key Matchmaking Trade Promotion Events International Buyer Programs Trade Shows & US Pavilions Trade Missions Customized Programs Platinum Key Service Business Facilitation Services Advocacy & Trade Disputes Market Research Market Research Library Country Comm. Guide (CCG) Customized Market Research

7. In 2005, Shanghai completed towers with more space for living and working than there is in all the office buildings in New York City. NYT – 10/18/2005 Shanghai Pudong: Pre 1990 Shanghai Growth If Shanghai were a country, it would have the world’s 40 th largest economy. WSJ – 5/6/2007 Shanghai Pudong: Post 2000

8. Shanghai Features Ideal geographic location Concentration of MNCs –Manufacturing, Finance Center, R&D, High Tech More transparent business environment Educated work force Infrastructure –Ports, airports, railway, highways, industrial parks

9. Reaching the 2 nd Tier Cities More Market Access. Same Quality Service. 14 Secondary Cities with American Trading Centers  Dalian  Chongqing  Hangzhou  Harbin  Kunming  Nanjing  Ningbo  Nanjing  Qingdao  Shenzhen  Tianjin  Wuhan  Xi’an  Zhuhai

10. American Trading Center Cities in Our Region Estimated Populations Nanjing: 6.0 M. Hangzhou: 6.5 M. Ningbo: 5.4 M.

11. Business Opportunities China is world’s largest market –4 th largest U.S. export destination (3 rd if include Hong Kong) Last 15 years, China fastest growing country in history 20-year olds have known nothing but upward mobility

12. Best Prospect Sectors Agrochemicals Air Traffic Management Equipment Market Safety and Security Market Automotive Components Market Coal Mining Equipment Construction Equipment Market Banking Technology Credit Card Market Education and Training Franchising Semiconductor Industry Machinery Marine Industries Liquefied Natural Gas Power Generation Specialty Software Telecommunications Market Water and Wastewater Treatment Medical Equipment Find research on these sectors: www.export.gov/china

13. Oregon, Computers, and Electronics Oregon’s # 2 export market is China Oregon Export Market Share (2006) –Canada 17.6%, China 9.1%, S. Korea 8.4% Oregon’s Top Exports to China –Computers and Electronics $939 M –Paper Products $74 M –Waste & Scrap $73 M –Machinery Manuf. $58 M –Leather Products $54 M Source: US-China Business Council 2007

14. Business Challenges Power Shortages Traffic Congestion Pollution (air & water) Coast vs. interior disparity Size & diversity of regional markets Workforce turnover IPR Infringement Transparency Rule of Law Corruption Protectionism Operational Challenges Business Challenges Economic Challenges Unemployment Stability of financial system Demographics Energy & natural resources Rapid urbanization

15. Practical Tips Understand the Market Visit China Set Realistic Expectations Conduct due diligence before entering market –The 6D’s Protect Your Interests Register your Intellectual Property Review all contracts with legal counsel Have an exit strategy; be prepared to “bail”

16. The China BIC www.export.gov/china

17. Useful Sites Contact the Portland Export Assistance Center – http://www.buyusa.gov/oregon/partner.html Visit our Web site – www.buyusa.gov/china Protect Your IPR – www.stopfakes.gov Are you ready for China? – www.export.gov/china

18. Don’t Forget… In China… Everything is possible, nothing is easy.

19. 谢谢 Thank You