Anderson’s Annual Woo Conference Emphasizes Continued Collaboration between U.S. and China Markets

By Bijan White

UCLA Anderson hosted the annual Wilbur K. Woo Greater China Business Conference, which brings together business leaders from the U.S. and China to discuss economic and investment opportunities for growth between the two nations. With the Chinese economy undergoing fundamental shifts, the conference represented one of many efforts to foster Chinese-American economic relations.

Opening statements by Anderson economist William Yu and Alan Chu, a partner at China Business Network, emphasized the changing nature of the Chinese economy. China’s GDP growth is decreasing and its export economy is unsustainable. “China’s economy is adjusting to a new normal,” said Yu. “In the future, it will shift away from investment towards consumption.” The China market represents 20% of U.S. agricultural exports and its economy is gradually centering on services. China’s debt crisis and rising wages beg the question of how China will maintain a healthy level of growth. How to rebalance the economy?

Chu explained that a transition to a high-value economy through rising investments in the U.S. is a possible solution for the unstable Chinese market. Through a variety of panels spanning innovation, media, health care and agriculture, business leaders and specialists addressed the issues in search of viable solutions.

 “Trade has never been so accessible,” remarked Sean Xiangyang, president of China Mobile International.  Discussing the role of innovation in international trade, he said that greater opportunities now exist thanks to technology and globalization, which allow China to expand its global ambitions. “The priority is innovation now, not manufacturing. It is becoming much easier with the accessibility of funds,” added Stella Li, senior vice president of BYD. “The automotive industry has transformed and climate change concerns are rising, hence the need for innovation.” This push for innovation can also be achieved through cross-border investments and exchange as increasing numbers of Chinese firms and work to attract American consumers. The growing number of Chinese studying in America increases joint Chinese-American research.

China represents 7% of the world’s arable land and 20% of its population, whereas the U.S. represents 13% of the world’s arable land and 5% of the population. As a result, the U.S. is one of the world’s largest agricultural producers and China is its top consumer. America has in many ways set the global standard for agricultural innovation with its knowledge and expertise in areas such as food safety, loss and waste prevention, and quality management, while China is rapidly developing its own agricultural technologies and practices. After 2008, health regulations in agriculture became the focus of many debates, particularly concerns surrounding GMOs. Simon Shao, CEO at Green Pasture International, explained that China responded simultaneously with the U.S. to such concerns and that “China is safer than it has ever been.” Similarly, Hua Liu, president of China Fisheries North America, emphasized that “most of the major fisheries have very good regulations” and that only low-cost producers stray from China’s advancing health standards.

Outbound Chinese investments in the United States have also experienced a positive trend. Direct investment from China rose from $4 billion in 2010 to $14 billion in 2013, mainly because of increasingly supportive environments to investment in both the U.S. and China. Brian Peck, deputy director of international affairs in the office of Governor Jerry Brown, explained that the U.S. represents a very friendly environment for investment through its “rule of law, stability, educated workforce, and high-tech centers.” Rex Hong, vice president at Cathay Bank, explained that Chinese investors are still very new to the American market and actively seek out local professionals to help navigate them. Therefore, the collaboration between both parties is essential in order to assure smooth transitions for Chinese investors and, conversely, a continued thriving presence of American firms in China.

The conference reaffirmed not only the desire for collaboration on the part of both parties, but Anderson’s active engagement in business relations between the East and the West. Boasting a diverse, international and curious student body and faculty, Anderson represents a wealth of opportunity for commerce between China and the US.