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World / Reporter's Journal

US governors are converging on China, for good reason

By Chris Davis (China Daily USA) Updated: 2015-06-23 10:50

Over the past 18 months, the US' 50 governors have taken or scheduled about 80 trips abroad, mostly focused on boosting exports or recruiting businesses to their states. Here's a rundown of how many of those trips have been - or will be - to China.

In May, Indiana's Mike Pence traveled to China, a trip paid for by private donations to the Indiana Economic Development Foundation, which finances all of the governor's foreign trade missions but costs and sources have not been disclosed.

Last November, Sam Brownback of Kansas went to China with officials from his commerce and agriculture departments, which covered the $21,216 cost. A spokesman said the governor met with government and business leaders "to foster investment and trade" but that the "potential projects are still confidential".

In late June 2014, Maine's Paul LePage traveled to China to meet with representatives of North China Industries about a potential railcar manufacturing operation at a former US Air Force base in Maine. The trip cost the state about $25,000.

Maryland's Larry Hogan, who took office in January, led his first trade trip from May 26 through June 6 to South Korea, China and Japan. The 36-person delegation included his wife, who is Korean, a dozen university officials and 15 business leaders, including several from the energy company Dominion. Their agenda included more than 40 scheduled events. The cost: $140,000 to the state, plus additional unspecified costs paid by businesses.

In November, Michigan's Rick Snyder led a delegation to China, his fourth trip to that country since he took office in 2011. While no details on the cost of the trip have been released, a 2013 trip to China and Japan cost $251,000, nearly $219,000 of which was covered by money the Michigan Economic Development Corp receives from the profits of American Indian casinos. The rest came from the nonprofit Michigan Economic Development Foundation, whose donors include Detroit's big three automakers.

Snyder says his China trips have led to several projects, including a $56 million expansion by YanFeng USA Automotive Trim Systems that could create more than 500 jobs. He is tentatively planning another trip to China later this year.

Montana's Steve Bullock led at 19-person delegation to several Chinese cities last September. Tagging along were business leaders from oil and grain companies, a distillery and a tourism company that brings Chinese travelers to Yellowstone and Glacier national parks. The state costs totaled nearly $50,000, with business delegates paying an additional $86,000 for their expenses.

New York's Andrew Cuomo, who in April became the first US governor to visit Cuba since an easing of relations with the communist country, said he plans to go to China.

US governors are converging on China, for good reason

Oregon's Kate Brown, who took office in February following the resignation of John Kitzhaber, recently announced plans for her first trade trip in October to China.

South Dakota's Dennis Daugaard led a trade delegation to China in May 2014 for the third consecutive year. The total cost for the 19-person delegation was $131,823, with the state paying $108,384. The diverse group included leaders from the sunflower, steel, cheese, auto dealer and cleaning supply industries. Businesses that sent representatives paid 70 percent of their own costs. A survey of businesses that have participated in the China trips showed that about half had either gotten government contracts as a result or had advanced talks with Chinese companies.

Texas' Greg Abbott, who took office in January, has no trips abroad planned yet. But he did say he plans to carry on the tradition of his predecessor, Rick Perry, who traveled widely overseas to recruit businesses to Texas, including visits to China.

Vermont's Peter Shumlin's most recent trade trip was in September 2013, when a resort paid about $50,000 for a small delegation to go to China and Vietnam. Its goal was to find more foreign investors for northern Vermont development projects - including those headed by the resort head - in exchange for immigration privileges. The trip was said to help attract 50 to 70 investors who put a total of $30 million to $40 million into Vermont projects.

Campaigning for governor in back 2010, Shumlin had said: "I don't think the answer to our economic problems is junkets to China."

Virginia's Terry McAuliffe traveled in July 2014 to China, where a paper company had announced plans to build a $2 billion facility in Virginia, employing up to 2,000 people. That trip - along with a stop at the Paris Air Show - cost more than $148,000. McAuliffe returned to China, Japan and South Korea in October on a trip packed with 70 meetings at a cost of more than $250,000. "These trips are the way you close deals," McAuliffe told the Associated Press in Paris.

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