U.S. state keen to tap into China's market

Oregon, Inner Mongolia explore trade opportunities to strengthen partnership

The U.S. state of Oregon, which is keen to strengthen its economic partnership with China, hosted a trade delegation from the Inner Mongolia autonomous region last week to explore business opportunities. 

The delegation and agricultural stakeholders in Oregon have agreed that more than 50 farms from the U.S. state will supply 80,000 metric tons of hay to Inner Mongolia.

"We heavily rely on exports for profitability. So trade with China is very beneficial for our own farm, and it's very beneficial for a lot of the alfalfa farms in Eastern Oregon," said Mark Owens, a member of the Oregon House of Representatives and a farm owner.

Alfalfa is a plant that is used for feeding farm animals.

Oregon's agricultural sector is closely linked to Chinese markets. According to Owens, the state produces more than 220 agricultural products, of which approximately 80 percent are destined for export, making market diversification and expansion critical to farmer profitability.

"Hay exports are very important to alfalfa farmers in Oregon," Owens said. "Deals like this, at 80,000 metric tons, are very important. Oregon is very reliant on exports, just not alfalfa hay, but many agricultural products."

He stressed the importance of identifying markets and strengthening already established ones.

David Goracke, president of the Oregon Seed Council and owner of Cala Farms, emphasized that China is the most important export market for the state's seed industry.

"China is our largest export market. It is a very important and integral market to the Oregon seed industry," he said, adding the state is optimistic that China would continue to be a big user of its agricultural products in future too.

He said Oregon is known as the grass seed capital of the world and he hoped it would maintain that reputation and become a major supplier to China.

In addition to agriculture, Oregon offers Chinese investors and business partners opportunities across multiple sectors. The state's location and established trade infrastructure make it an attractive hub for Asian commerce, said Nick Triska, head of Business Development at Greater Portland Inc, a regional economic development organization.

He viewed the footwear and apparel industry as an area that binds the economies of Oregon and China.

Cultural, economic ties

"Being a trade-dependent state in the U.S., our ability to build and maintain cultural and economic ties with other parts of the world is really important," Triska said."Nike's world headquarters is based in Oregon. Adidas' North American headquarters is here. Columbia Sportswear and many other brands design a lot of their footwear here that then gets made in other parts of the world, including China."

He said a lot of intellectual property in the footwear space is tying the two markets together. "We also have some really great examples of international companies from China that are establishing a presence here in Oregon. Recently, we supported SBS Zipper (from China's Fujian province) in establishing a formal presence here in Oregon."

The timing of Oregon's trade outreach coincides with high-level diplomatic engagement between China and the U.S..

"We are thankful that the leaders from the two largest economies were meeting at the same time" that the meeting with the Inner Mongolia delegation to strengthen ties was happening, said Owens from the Oregon House of Representatives.

Triska viewed the summit as an opportunity for closer economic collaboration. "How our two countries are investing in the future of industry and enabling really great people with great ideas and helping them realize those ideas into businesses that can change the world — there's an opportunity for that," he said. "I'm listening very intently."

Owens noted his own engagement in relationship-building, citing his visit to China in October."We met some of the dairy folks and government people for person-to-person relationship building. … I'm very appreciative that they took the time and continue to build those relationships," he said.

Goracke, who traveled to Inner Mongolia in early November, said,"I think open communication is essential. We were able to get Chinese delegates and business officials out onto a farm tour so they could see firsthand how our family farmers are producing the seed and handling the seed."