 Our Man in Shanghai
By Maya Payne Smart, Contributing Writer Ling builds relationships, lays groundwork for investment John Ling works, literally, around the clock.
A 12-hour time difference between his Shanghai outpost of the S.C. Department
of Commerce and the agency’s Columbia home keeps his cell phone on 24 hours a
day as he forges ties between the Palmetto state and the world’s fastest growing
economy.
Jack Ellenberg, the commerce department’s deputy secretary for new investments, says Ling was a “natural fit” to lead the China office. “John is from Shanghai originally, but having grown up in South Carolina he understands the role that South Carolina plays in the global economy,” Ellenberg says. “His role primarily is an education process: educating the Chinese government and Chinese business community on the opportunities for investment in South Carolina as well as opportunities for trade relations.” Ling communicates the benefits of South Carolina’s pro-business climate, port access, skilled workforce and quality of life in fluent Mandarin. On the flip side, he fuels trade relations by promoting the state’s products. Ling scheduled a May visit to South Carolina with a very senior-level delegation from China on a buyer’s mission to purchase cotton here. With 1.3 billion people within its borders and average economic growth of 10% per year since 1990, China’s commercial influence is felt around the globe. Yet South Carolina remains the only state that has made a formal commitment to cultivating trade relations in the country by registering an economic office with the Chinese government. The Shanghai office opened in October 2005. “So far we have the most Chinese investment in the manufacturing sector among the fifty states,” Ling says. “South Carolina has been recognized by both the Chinese government and the U.S. government as a state that’s most aggressive in pursuing investment prospects from China.” Unlike the unregistered China offices of other states, South Carolina’s commercial interests are not represented by trading companies and consulting firms. “Our government is taken very seriously,” Ling says. “The image is that we are indeed a government agency and our mandate here is to work with Chinese companies to expand; we don’t have a personal agenda, we are neutral and we are here to help.” Ling believes four commercial and diplomatic factors strengthen the case for Chinese investment in the U.S and South Carolina in particular. First, he says, so many Chinese corporations sell so many products in this market that having operations here is a natural progression. Second, there’s a track record of successful ventures on U.S. soil, which builds confidence. Third, China also has a sizable foreign currency reserve, more than $1 trillion, that must be invested somewhere. Fourth, Ling says political pressure from the U.S. to have more balanced trade between the countries will prompt Chinese investment and job creation to offset criticism. The Shanghai office is a part of the Commerce Department’s larger global strategy, and follows in the footsteps of the Munich, Germany, and Tokyo, Japan, outposts established in the 1980s. Earlier this year the department announced plans to open its fourth international office, in Toronto. “We’ve already seen success with investment opportunities already occurring and an increase in the number of companies looking,” Ellenberg says of the operation. Hal Johnson, president and CEO of Upstate Alliance, lauds Ling and the Commerce Department for their early focus on earning trust and establishing credibility with the Chinese government. “It’s critical because China is a communist country and to do business with companies there you have to do business with the government first,” Johnson says. “It’s all about building relationships and that only happens with getting involved with political bodies there and showing that you care enough and understand enough about their culture and the way they do business.” Johnson calls Ling “an incredible asset to the state” and says his expertise and contacts in China paved the way for the Upstate Alliance’s most successful marketing trip to date. The whirlwind of visits that Ling helped coordinate with Chinese government officials, business leaders and economic developers in Beijing, Shanghai, Hong Kong, Qingdao and Tianjin in November of 2006 led to several Chinese delegations visiting the Upstate. Ling remains a critical link helping the Upstate Alliance stay in touch with the companies they met. “We’re a marketing organization, it’s our goal to brand and market the Upstate region and to convince people that this is a great place to do business,” Johnson says. “When you go out and market in the world to have even one company to visit you would be a success, but to have five is phenomenal.” |
