Time to make it or break it

The Year of the Ox promises to be busy for the American Chamber of Commerce in China (AmCham-China). Whilst a new Administration is settling into the White House under the presidency of Barack Obama, the effects of the financial crisis are making thems-elves felt on both sides of the Pacific. What should be expected from changes brought by the situation and the new leaders in place? “Relations between our two countries are better today than ever,” states John Watkins, newly elected to the helm of the AmCham-China, which represents 2,700 individuals and 1,200 companies established in China.
“But the status quo appears impossible to maintain. Pressure created by the economic crisis will either produce a rapprochement or a distancing between our countries. It is still too early to tell what Barack Obama’s policy on China will be. However, comments made here and there give us reason to be optimistic.” In order to support the continuation of bilateral trade, essential to the success of its members, the AmCham-China is carrying out dialogue with US government and Congress. “Although we are independent, our organisation makes frequent visits to Washington,” explains John Watkins. “Certain decisions can greatly contribute to US companies becoming more competitive or doing better deals in China. Many American SMEs sell their products exclusively on the domestic market. Unlike their European counterparts, they are not used to managing differences in language, technical standards, etc. To encourage them to penetrate foreign markets, the government can, for example, promote the study of languages, notably Chinese.”
Pending a clarification of the economic and political situation, the AmCham-China has, unveiled its ambitions for this year. “At the moment, there are numerous calls for market closures,” regrets John Watkins. “We believe that a return to protectionism would damage the peace and prosperity of our countries. We will therefore continue to plead in favour of an increase in trade and bilateral investments.” As a result, thirty years after the normalisation of relations between the countries, the AmCham-China has set itself three objectives for the next thirty years.
Number one: 1,000 billion dollars (54 billion euros) per year in US exports towards China, as opposed to the current 70 billion dollars (54 billion euros).
Number two: 1,000 billion dollars per year in sales made by US companies in China, as opposed to the current 100 billion dollars (77 billion euros). Finally, number three: 1,000 billion dollars per year invested by Chinese companies in the USA. “The combination of these three objectives can only increase the interdependence of our countries and reinforce the stability of relations,” says John Watkins. “Their realisation will mean that certain elements that trouble our relations today, such as the trade deficit or exchange rates, will disappear.”
In order to accompany the flourishing of its members, most of which now carry out activities beyond the zones of Beijing and Shanghai, the AmCham-China also intends to extend its local implantation. “In 2008, we opened a new branch in Tianjin and Wuhan, and we are counting on opening two or three more this year,” says John Watkins. “This is a matter of establishing relationships with local government officials and extending the services we offer our members, such as support for obtaining visas in either country.” On top of this, the AmCham-China has recently signed strategic cooperation agreements with around ten municipal and provincial governments.
The idea: to exchange information and participate in the organisation of events such as trade fairs, exhibitions and conferences. The Chamber is also counting on its members, involved in some forty forums and committees, to promote, in different industries, advances comparable to those that have been obtained thanks to the US-China Aviation Cooperation Program. “This public-private partnership drawing together the Chinese and American authorities as well as companies in the sector has led to considerable evolutions in the conditions for exercising civil aviation activities,” John Watkins proudly points out.