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2005 Exports from California to World. Provided by the Office of Trade and Industry Information (OTII), Manufacturing and Services, International Trade Administration, U.S. Department of Commerce. numbers are in thousands ($ USD).

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slide1

2005 Exports from California to World

Provided by the Office of Trade and Industry Information (OTII), Manufacturing and Services, International Trade Administration, U.S. Department of Commerce.

numbers are in thousands ($ USD)

slide4
China’s dynamic and growing market presents tremendous opportunities for U..S exporters… but China can be a challenging market in which to do business”
    • Secretary Gutierrez, U.S. Department of Commerce
slide5

The Other

by

Carlos Antonio Rovelo

the other
The Other
  • Do you export to
  • China
  • Mexico
  • Have you visited
  • China
  • Mexico
  • Do you speak
  • Mandarin or Cantonese
  • Spanish
  • DO YOU HAVE A FRIEND IN CHINA OR MEXICO
slide7
U.S. buys

40 percent of China exports

the other china 2010
The Other: China 2010

China’s exports are expected to double

manufactor
manuFACTOR
  • 55 PERCENT OF

GOODS PRODUCED IN CHINA

ARE MADE BY U.S. MULTINATIONALS

  • MOST OF WHAT USED TO BE MADE SOMEWHERE ELSE IN ASIA IS NOW BEING MANUFACTURED IN CHINA
the other1
The Other
  • The century of the Other
  • The difficulty to understand the Other
  • Ethnocentric
  • You cannot be an educated business person unless you are open to the Other
  • Listen to the Other
  • Individuality is alive and well in America
china as a market
China as a Market

Share of World Consumption

  • Cement: 40%
  • Coal: 31%
  • Iron Ore: 30%
  • Steel: 27%
  • Aluminum: 25%
  • Oil: 8% and growing 30%/yr

2003 Data

slide14

2004 U.S. REGIONAL TRADE

(Billions of U.S. Dollars)

Canada

Balance –67

Pacific

189

Atlantic

226 540

256

419 230

Balance –314

Balance – 189

Mexico

156

99

111

61

Balance – 45

South America

and Caribbean

Balance –38

slide16

Pacific trade move primarily from dominant seaports to inland port locations

Prince Rupert, CN

Vancouver, CN

Seattle

Tacoma

NY/NJ

Oakland

LA/Long Beach

Pacific Suez To U.S. East Coast

Panama Canal to Gulf

and East Coast Ports

slide17

Future Corridors

Prince Rupert, CN

Vancouver, CN

Seattle

Tacoma

NY/NJ

Oakland

LA/Long Beach

Pacific Suez To U.S. East Coast

Manzanillo

Panama Canal to Gulf

and East Coast Ports

New Routes Through Mexican Ports

Acapulco

mexico china exports to the us january february 2006
Mexico – China Exports to the USJanuary – February 2006
  • Mexican exports to the U.S. rose 8.3%, down from an increase of 12.6% in the same period last year
  • China’s exports to the U.S. soared 18% over the same time period
china s electromechanical exports january september 2005
China’s Electromechanical Exports January – September 2005
  • $299.02 billion – a 32.9% increase
  • 54.7% of total value of China exports
  • Computer equipment and spare parts - $73.28 billion – an 27.2% increase
  • Household electrical appliances and electronic products - $37.9 billion – a 29.1 % increase
  • Communications equipment and components - $32.34 billion – an 43% increase
  • Electronic Components - $27.75 billion – a 34.7% increase
  • Electronic equipment - $18.23 billion – a 27.5% increase

Source: China Knowledge

us china comparison
US-China Comparison

US China

Meat 37 67

Steel 104 258

Oil 20.4 6.5 *

Coal 574 804

Fertilizer 19 41

Million Tons per year except Oil at million barrels/day

* 30% annual increase

mexico s silicon valley

Mexico’s Silicon Valley

Guadalajara

In-bound processing (Maquiladora)

Electronic components, supplies and Machinery

$88 billion (2003)

$91.3 billion (2004)

slide23

Aluminum

Copper

MEXICO

slide26

Guadalajara’s Initiative

  • Financial Incentives (high tech sector)
    • Distribution and Consolidation for technology trade
    • HP
    • Sanmina - SCI
    • IBM
    • Trade Zone
  • Communication: Rail, Trucking, Air, and the Port of Manzanillo (3 hrs from Guadalajara)
    • On going investment in Infrastructure – To Improve Competitiveness
    • Shanghai / Manzanillo Preferential Agreement
    • Cosco and China Shipping (Direct Shipping)
  • International Business Development Center (Incubator)
    • On going investment in Education – For Higher Value Added Production
slide27

Primary Goals

  • FOREIGN INVESTMENT - Attract foreign and trade-related businesses via financial incentives and amplifying Guadalajara’s international advantages.
  • TRADE DEVELOPMENT – Assist Guadalajara area businesses in expanding their international trade interests.
  • ADVOCACY - Enhance Guadalajara’s international trade infrastructure and position through advocacy and project development initiatives.
slide28

A View to the Future

  • SHORT TERM:
  • Development of New Freight Corridors = New Opportunities for Guadalajara
    • Logistics/Distribution
    • Value Added Activities
  • Triangulation of Trade China – Mexico – US
  • Growth in China = New Opportunities for Mexican/US Exporters
    • LONG TERM:
  • Attracting Foreign Investment from China
    • Manufacturing Costs will Rise in China = More FDI
some china milestones
Some China Milestones
  • 2000 – largest refrigerator and TV market
  • 2002 - largest mobile phone market
  • 2010 – largest PC market
  • 2030 – largest economy on planet
slide32

Outline

  • TRENDS IN US, MEXICO & CHINA TRADE
  • GUADALAJARA’S INVESTMENT IN THE TECHNOLOGY SECTOR
  • LOOKING AHEAD