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Among the dismal economic news about the housing market, unemployment and consumer confidence, exports have been touted as a bright spot, and the key to economic recovery. Exports are a significant economic driver in the Northwest. Shipments from Oregon were valued at $10.3 billion between January and July of this year, according to data provided by the Portland U.S. Export Assistance Center.
And Washington is the most trade-dependent state in the nation. This is one reason why Washington Governor Chris Gregoire is currently on a trade mission to Asia, talking up cherries, potatoes and other products the Evergreen state sends around the world. Washington and Oregon are now considering exporting coal from other Western states to China to take advantage of that country's seemingly endless energy demands, even as we try to cut down on our own coal consumption here.
Are you a business owner? Do you buy or sell goods in other countries? What have you seen? Is global trade affecting you? What role have exports played in your economic recovery?
GUESTS:
- Dan Newhouse: Director of the Washington Department of Agriculture
- Scott Goddin: Director of the Portland US Export Assistance Center
- Dan Harris: Creator of the China Law Blog and attorney at Harris and Moure
- Richard Morse: Research lead for global coal markets at the Stanford Program on Energy and Sustainable Development
Tagged as: economy · global trade
Photo credit: TW Collins / Creative Commons
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Thanks Penny. They were spam, they're gone now.
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Refusing to sell coal to China is not going to stop China from buying and using coal for its energy needs. China will just buy it elsewhere and we'll get the pollution from Canadian, Russian or Indian coal. And we'll end up with nothing but dirty air an no money to clean it up with. Now that's an even smarter plan!
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When you no longer command unlimited resources and deep bottomless pockets for funding, then you have to use strategy to remain relevant. We can no longer bear any burden and try to liberate the world. We cannot even rebuild one American City, New Orleans, after a natural disaster, let alone a small adjacent country, Haiti, after a quake , or depopulated backwards country in far flung Afganistan or in oil rich Iraq. We have problems in OUR OWN BACKYARD let alone trying to save the continent of Africa every 10 years.
We are privliged to live in historic times to witness change. We have seen the peak of the USA as a Superpower in the American Century. Now we are witnessing an eclipse by China economically, and probably later politically, culturally, technologically and culturally.
And the key is how the transition is handled. I think the clearest example from history was one century ago with the end of the British Empire and the hand off to America. The British stayed relevant by managing and cooperating with a clumsy and inexperienced America. By investing in America, become familiar with the cities, personalities, leaders and exploiting markets that America overlooked. And it payed off when the Empire ws threatened in two World Wars. America saves England.
We are surpisingly ignorant about China. 95% of Oregon students learn Spanish, and it for most it fails to advance their career in international business, finance or trade. In the State of Oregon, less than 100 students are currently studying Mandarin Chinese in college.
China today, is where America was in 1950. Preparing for rockets to the Moon, publishing ground breaking basic science research, building skyscrapers and bridges, setting up satellite offices world wide for international businesses, dominating manufacturing, and becoming the banker of the world.
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Washington State, has embraced a Mandarin language ciriculum. Students have access to Mandarin story time at public libaries, school language programs are being set up in conjunction with the Confucian Institute, student exchanges and trips. WA state business have offices in Shanghai and Beijing, Starbucks has a cafe in the Forbidden City, Amazon is among the top 10 sellers of Internet commerce, Boeing sells more planes to China than domestically, Microsoft's Bill Gates is taking basic Mandarin lessons and ventures to China once a quarter in his private jet. Seattle has more connections to China than any other American city. Oregon can be a major access point to Asia.
Australia is doing well in this recession. They have decoupled from Europe. And recoupled with China and Asia. All students learn an asian language, some Japanese, others Indoesian, but by far most Chinese. Natural resources from Australia have naturally links to Chinese manufacturing, and has made their economy boom.
We can't even build a replacement bridge over the Columbia without fighting for a decade, and taking another 15-20 years to actually build it. The Chinese complete bigger bridges on time and under budget and at the rate of one a month!
We will not leave this recession except through international trade. Changing from a consumption economy to a export economy. China is our fastest growing market. Just as the Atlantic seaboard specializes in trade with Europe, Florida trades with South and Central America, and Texas trades in energy. We have to exploit our proximity to Asia. It begins with language training and leads to trade offices and partnerships.
China will surpass us with or without our help. We can cooperate or become more irrelevant and impoverished. The bilateral Chinese American relationship is the most important diplomatic relationship for world peace, overcoming world poverty and economic health--not terrorism, drug trade or communism. We have to look west of Astoria.
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We have to take a long horizon. And look realistically at how we can fit in a global market. What can we sell to the world in products and services? What are our markets? Where are we uniquely strong? How can we achieve the future we want?
We need to make it easier for entrepreneurs to start a business. Only 2% of Americans own a business that actually employs one employee. We have a paucity of business experience and few really want to work hard and long hours for a remote reward.
Know the difference between NEED and WANT. Think of a business that your community NEEDS. Consider what can turn a profit with $100k seed money and a 1 year time line; I can think of 5 businesses off the top of my head.
Allow movie, video and media companies free access to shooting locations. Forks, WA made itself a tourist destination by its link with the Twilight Movie series...Tourism brought in more money than the actual filming. NOT just Hollywood, Bollywood makes 3 times as many films.
Think of the future. And place bets on it if you are certain. I think world economy is changing, and China will play a larger role. Find out what the vast Chinese nation needs and make it. 1 billion people can have a multitude of hobbies and knick knack collections like Beany Babies.
Perhaps our kids should learn Mandarin; it is a rare skill but may have a critical advantage. Think of exporting unique American goods to China. To them Hamburgers, Fried Chicken and Coca-Cola were exotic enough to be successful. But the Chinese have not tried Mexican Food, Cajun Food or even Pizza. Kettle Corn, Elephant Ears, or Burritos. Introduce Gourmet Dutch Bros coffees to Shanghai. Introduce the natural wonders of Oregon to Chinese tourist: Crater Lake, Mt Hood, the Columbia Gorge. Tillamook cheese and Umpqua Ice Cream.
If you can think creatively, know that Business depend on it as much as hard work.
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exporting seems like shooting ourselves in the foot. why not reduce imports instead and produce what we need closer to home? focusing on actual quality of life instead of economic indicators could do a world of good around here. if economic growth comes at the expense of global and local environmental health - and globalization has done just that - it might not be such a great idea.
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I don't think any businesses are a sure bet. And right now there's not much holding people back from starting a business if they have a great idea-- commercial space is readily available. I just cringe when I see businesses open that don't seem to have any chance from the get go. Solid, quality implementation is no easy feat.
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Exporting coal through the Northwest to China is like selling bullets to a suicide candidiate with a shotgun pointed at his head.
Mankind has used up all the capacity in the global atmoshpere to handle coal's emissions. We have realized that in Washington and Oregon; both states have passed laws forbidding new coal plants and are trying to find ways for an early shutdown of the two existing coal plants.
I cannot think of a more conuterproductive energy strategy than to sell coal to China to burn in their inefficient coal plants.
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It is sad that we export raw materials and import finished goods.
In my buisness we stay as far away from China Inc as we can simply because China Inc produces junk.
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Desolation, could you tell us more about your business?
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I remember in the late 1950s Japan produced junk and then they wised up and beat the US in many things, including autos and pickup trucks, lawn mowers, motorcycles, electronics, cameras, etc. I believe it was Honda that actually asked women what they wanted in a car and then built it for them, as opposed to US automakers who just built what they wanted to build and sell and the hell with the customer.
I wonder if the Chinese will learn the same lessons.
And the Wal-Mart business model as such a huge global retailer is to force manufacturers to make a separate line specifically for Wal-Mart, that is similar in looks to the manufacturers regular line, but of lessor quality and fewer features, so that they can advertise it as lower in price. They cut back dollars in quality but only "Roll Back" pennies in prices. Wal-Mart is a huge part of the "junk from China" problem!
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My small business designs and produces various types of machinery.
I demand the highest quality in my work and that includes the materials. I have the direct experience of scrapped time and materials because the Materials/Components made in China, did not meet the ISO Materials/Component specifications, though they were labeled as complying.
Today, when I specify materials I specify MADE IN USA and I demand the certifications that prove that origin, I happily pay the lower cost for the higher quality materials/products. Made in USA also most often carries a lower carbon footprint.
I also recognize that it is imposable to not buy China Inc’s products just as it is imposable to avoid plastic packaging however it is possible to avoid much of it. -
Tom, you are on the mark I believe the development will be much the same though perhaps faster, will the Intel and HP's of the west play the Deming role?
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Do some exporting of wildfire fighting hand tools to Spain and Portugal. As global warming becomes a more important issue such as huge fires in Russia and Brazil. Trade deligations needs to bring samples of our made in Oregon tools to show them to these fire countries that are making big money these days and can afford our tools. Please have deligations on trade look at our web sites www.dragonslayers.com www.wildfiretools.com
www.homelandterrorism.com thanks troop emonds 503-368-7099 troop.dragonslayers@yahoo.com
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Yes, there really are proposals to export U.S. coal to China. This is a terrible idea. Coal is an extremely dirty source of energy and the burning of coal is Asia is the major source of mercury in Oregon's and Washington's rivers. Because people in the Northwest and other states have worked so hard to reduce usage of coal-fired power plants, the big international coal companies are nervous and looking for new markets. There are currently proposals to expand strip mines in Wyoming and Montana, put on trains to Longview, WA and ship to China from there. More info here: http://www.columbiariverkeeper.org/index.php/headlines/view/76
The Governor's of Oregon and Washington have made strong progress on reducing greenhouse gas emissions, but exporting massive volumes of coal to China really cuts against this. The Northwest should not become the gateway for Chinese coal.
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Thanks for the great show! One way that Portland is preparing for our future interactions with China is the amazing Mandarin Immersion Program that is a part of Portland Public Schools. I have a kindergartener and a 3rd grader in the program and I can't believe how much of the language and culture they are soaking up.
What's really amazing is that by the end of 5th grade, a child in the program will be able to carry on a conversation in Mandarin; be familiar with aspects of Chinese culture, history and geography; and be able to demonstrate an awareness of him or herself as a citizen of the world.
And in 8th grade, the kids do a Residency Program in China where they stay with host families for about two weeks and really soak up the culture. We can't wait and are so proud to be a part of this program!
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your guest just said something along the lines of "If it's making money, it isn't nonsensical." that, to me, is indicative of everything that is wrong with the current global economy.
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Amen, Reverend!
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What about wine? Are Yamhill or Douglas county wineries making a dent in Europe? We make some world-class wine in Oregon. Will the Europeans drink it?
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I used to work for a bicycle wheel company that used a factory in china for it's annodizing. There was an annodizing company a mile away, but they were slow and always screwed up the parts. The shop in Taiwan had about a 50 percent success rate, but it was still cheaper to ship hubs back and forth to Taiwan. Sometimes it was even faster. I think we need to concentrate on trade schools in this country. Teach people how to build things if that is their talent, and teach good business skills.
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"I think we need to concentrate on trade schools in this country. Teach people how to build things if that is their talent, and teach good business skills."
I agree. It is nuts to promote sending everyone to college where a whole lot flunk out and then flounder around trying to figure out what to do. I'd suggest counciling, tests, surveys, and questionaires to help kids figure out their work life, in the middle grades and High School. And something like the European Guilds and US Unions, where people study their craft and learn to be proud of their work and to be well educated in their field and contributing citizens.
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My father was one of those Europeans who went to trade school and was one of the best electricians I've seen and in demand his entire working life... I couldn't agree with you more Mr. Ford.
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Thanks, troop, for such insightful comments. I'm tired of arguing with people who think this is going to create jobs. We don't create jobs by exporting a raw material, that comes from manufacturing and those jobs have already been exported to China. This is wrong on every level, from the mining of our public lands in Montana and Wyoming, to trying to make a buck by exporting a dirty fuel to a developing country. If they want coal, let's see if they want some buffalo chips, too! The global economy is mirrored by the global climate crisis, simply exporting coal doesn't make it any more palatable as a fuel.
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Comments are now closed.
Oh, sure, THAT'S A GREAT IDEA! Let's export all the coal in America to China when we reduce our usage of the dirty rocks for generation of power -- then we will just move the giant cloud of carbon exhaust from one place to another. Yeah, that's a winner of a plan!
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P.S. The first three comments in this discussion appear to be spam; the ones that begin, "This is really a great thing..."