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China trade
bill’s impact on
isles questioned

Some say only the relatively few
large companies based here
would benefit significantly

By Tim Ruel
Star-Bulletin

Robert Lees, secretary general of the Pacific Basin Economic Council, said local Papaya growers, software makers, architects and Internet companies are among those that could expand their businesses if Congress approves normalized trade relations with China.

But Patrick Tse, an international business marketing consultant in Hawaii, said only big businesses have the budget to deal with China, and the islands do not have many big companies. Moreover, it's uncertain whether normalized trade would lead to lower Chinese import duties on U.S. goods, said Tse, vice president of Timcorp International Marketing Co.

Yet another businessman, Robert Hale, said the trade bill would bring a more general sense of stability and predictability for businesses, which would help Hawaii companies go to China. Hale is vice chairman of Architects Hawaii Ltd., which does business in several Asian countries, including China.

The differing views on the benefits of U.S. trade police reflect the complexity of China's business culture, which is more geared toward personal relationships than free markets.

Yesterday, the House approved a controversial measure to end 20 years of annual congressional review of China's trade status with the United States. The bill is now being considered in the Senate, where it faces opposition but is expected to pass.

Supporters, including the U.S. Chamber of Commerce and both of Hawaii's senators, say the bill would usher billions of dollars in increased sales for U.S. exporters who do business with China.

Opponents, including both of Hawaii's delegates in House, say normalized trade would ease pressure on China to clean up its abuses of human and religious rights.

"We are told that increased trade will cause China to adhere more closely to international norms of human rights," said. Rep Neil Abercrombie, who voted along with Rep. Patsy Mink against the bill. "However, despite the increase in U.S.-China trade in recent years, this has not been the case," he said

Beyond the arguments over human rights is the dispute over whether Hawaii firms would benefit from the bill.

Tse does business with several Asian countries including China.

He said Hawaii's companies are too small to afford the advertising needed to reach China's massive population.

But Lees said he has seen small companies reach China, especially those that learn the language and make friends in the country, where personal relations are so vital.

One such company is Architects Hawaii, which expand to China during the 1970s. Hale said the biggest factors in reaching China was hiring a staff that could produce architectural drawings in Chinese. Then, making friendships in China paved the way to several successful projects.

Tse agreed that personal relations are key to doing business with China.

Lees noted that other opportunities exist for Hawaii companies, especially since the state has become such a tourism mecca.

More than 100 million people are slated to visit the Asian country in 2020, Lees said. That means hotels will have to be built, and Hawaii architectural firms can take part. Lees also had high hopes for Hawaii's small, but growing, technology sector to do business in China.

One such company is beimei.com, founded recently by Honolulu resident Jeff Liu. Beimei aims to facilitate trade between China and the United States through Internet, and he has several companies in China interested in doing business here, he said. He supports the trade bill.

"In fact, I think Chinese love Americans," Liu said. "They like American products."