The China International Import Expo draws US companies

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Editor's Note: Scott D. Williams is the Co-Founder and Executive Governor of The US-China Investment Council based in Shanghai, and Chairman of BMD Capital Partners. The article was first published by China Plus on November 2, 2018. The article reflects the author's opinion, and not necessarily the views of CGTN.

It is exciting to the world, including in the United States, that China has mobilized more than 60,000 companies to buy imported goods ahead of the China International Import Expo (CIIE) this month, held from November 5 to 10 in Shanghai. It is expected that many exciting announcements will be made leading up to and during the CIIE.

With industries attending included from consumer electronics & appliances, apparel, accessories & consumer goods, auto, high end intelligent equipment, food & agriculture, medical equipment, health care products, and trade in services, major players from the US are registered.

From the manufacturing sector, attending US companies include companies such as A.O. Smith, General Motors, Ford, Tesla, Jeep, Applied Materials, Caterpillar, Deloitte and others. In health care, services and data technology such US companies as Herbalife, Johnson & Johnson, Deloitte, Facebook and Google are attending.

Despite the ongoing trade frictions, and the US midterm elections ahead, the allure of the China market remains strong. In short, US and Chinese companies want to do business and investing here and selling to the Chinese market is critical to diversified trade.

In fact, from the US side, both state- and city-level delegations are coming from multiple locations, these include local US city mayors, state delegations and business associations. Many American visitors and business people are still clamoring for ways to get into the fair even at this late stage.

The CIIE marks China's further opening to the world, and has heavy focus on transactional successes announced from the Expo, as directed by the Chinese government. These positive trade results are highly anticipated and will make China's global trade importance even more alluring and relevant than ever.

Despite the US federal government's current position, American companies, both at local and state levels, cannot afford to be left behind and have made the determination to be at the Expo.

An exhibitor displays a coffee maker during a pre-expo buyer and supplier matchmaking meeting of the 2018 China International Import Expo in Shanghai, China, July 26, 2018. /Xinhua Photo

What do American companies expect from CIIE? Even while trade frictions will exist for at least the medium term, or longer, expectations are high for what can be achieved at the Expo. American companies hire hundreds of thousands of Chinese and expect to establish a long-term business relationship with China. American companies would be unwise not to invest in China.

Recently, Tesla released their major investments in Shanghai Pudong area, showcasing their commitments to China, the importance of being close to the vast consumer market, and Tesla's confidence in China's long-term importance.

For American companies attending the trade fair, it is anticipated that the message brought back to the US will be positive and will intensify American companies' resolve in exporting and investing in China.

It is imperative that the world's two largest trading economies continue to engage in productive trade discussions. US President Donald Trump is scheduled to meet his Chinese counterpart Xi Jinping face-to-face at the upcoming G20 summit in Argentina. Stakeholders in both countries have high hopes that major breakthroughs will occur during the meeting.

Frictions between the two largest economies demonstrate the requirement for new risk-management analysis and new methods in handling the Sino-US ties. The CIIE is an opportunity for China and the US to warm up their relations.

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