Kentucky beginning a long journey East: Gov

Kentucky Governor Matt Bevin has an unstoppable optimistic outlook about the future business relationship between his state and China.

In early November, Bevin is leading a delegation to visit China for the first time since he took office in 2015 because he holds a long-term view of the relationship.

Bevin believes that while the leaders of the two countries are resolving their differences, business-to-business, state-to-state, person-to-person communication is the way to go to grow Kentucky’s relationship with China and the model for future success.

“We are looking not for a quick victory but long term success. To accomplish that you need to have good relationship. It can’t just be numbers, you have to know the people. There has to be trust and respect, and this is what we are committed to doing,” Bevin told China Daily.

Vivek Sarin, executive officer of the Kentucky Cabinet for Economic Development, echoed Bevin’s optimism.

“We have a tremendous amount of confidence that our two countries are going to work out the current trade issues in a way that’s going to permit China and the United States both to enjoy a future level of business together perhaps that could be historical,” said Sarin.

The trip was in part due to a suggestion from Chinese Ambassador to the US Cui Tiankai.

“In some previous meetings with Ambassador Cui, he recommended to us to make this trip and attend the Shanghai Expo,” Sarin said.

Shanghai Expo will provide an opportunity for the delegation to meet people in volume to promote Kentucky, said Erran Persley, executive director of international business affairs and business development.

“We currently have eight Chinese owned facilities operating in our state. The Chinese companies currently employ about 8,700 employees in Kentucky. Our goal is always to try to increase that footprints,” said Persley.

The delegation will also take a trip inland to Chongqing to explore new relationships, said Sarin.

Bevin, Sarin and other state official were at a US-China Goldman Sachs event in Chicago within the past year. “Standing in the hallway, we had the opportunity to meet some officials from Chongqing,” Sarin said.

The brief hallway exchanges were intriguing enough that on the spot the state officials decided to include Chongqing in their China trip.

As China is poised to open further its equestrian industry, Kentucky sees another opportunity with China.

“The best race horses in the world are bred in Kentucky. Nobody can argue with the fact that the winners of most of the major races — the Kentucky Derby, the Triple Crown, goes to horses raised in Kentucky,” Bevin said.

The China Horse Club owns 25 percent of the Triple Crown winning horse Justify, a fact Bevin is proud of.

“Justify was born and raised here in Kentucky, [and it] still lives here in Kentucky. The winning got them very excited and make other people want to get in on that action. We see this as the very beginning of a tremendous partnership we can establish between Kentucky and China in terms of horse breeding, horse racing, horse training, you name it,” Bevin said.

The state is also working with existing partners to expand business relationships with China. They have scheduled to meet with executives of YUM China and Haier.

Persley said that partnership with YUM China is an important one for the state: “During the meeting we are going to talk about possible expansion of that franchise into Kentucky that’s presently here.”

Haier recently announced it would invest another $200 million in its Louisville-based GE Appliances.

“They are investing significant dollars into that facility. But to create 400 new jobs, we are very excited about that, and grateful. We want to thank them in person and express our appreciation when we meet them in China, but also to understand how we can be a better partner, what can we do to help them to continue to grow in Kentucky,” Bevin said of Haier.

Persley said that under Haier leadership, GE Appliances is performing at some of the best levels in well over a decade, the reason behind its additional investment.

“The Haier chairman is going to introduce us to those who may consider coming to America not only to support manufacturing but specifically entertain opportunities in Kentucky. So this is a wonderful friendship we are developing. Everyone involved, from Haier Group to the State of Kentucky, has a long term perspective on the opportunities that lay ahead,” said Persley.

Kentucky’s business with China is still in its infancy, but Governor Bevin would like to change that.

“There are only eight of them, I believe there could be 18, 80 or 180 in short order. I really believe that there are many good Chinese companies who could find a good home in Kentucky. So the relationship is early, the relationship is still small, but there is great potential. We see this as the beginning of a long journey, but one I think will be very productive for everybody,” Bevin said.