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July 8, 2015

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Business flourishes between Houston and Beijing

DESPITE a distance of 11,623 kilometers, Beijing and Houston have been getting closer these days, with more and more business being done between the two big cities.

Local people have seen an escalating number of Houstonians selling their wares and services in China while a new tide of Chinese doing the same in Houston has begun.

Like thousands of businessmen flying between China and Houston, the US’ fourth-largest city, Austin Zhao, 48, is racking up frequent flier miles.

“Houston used to be undervalued by Chinese businesses, but more and more Chinese businessmen have started to realize the value and potential of Houston, because of the opening of the Beijing-Houston direct flight and the growing Chinese population. This is also the reason that makes more and more Houstonians start to look for business with China,” said Zhao, founder and president of China-US Pathway, a company that serves both US and Chinese clients who want to explore business on the other side.

According to the Greater Houston Chamber of Commerce, trade between Houston and China from 2004 to 2014 grew at a compound annual rate of 15.9 percent and a rate of 22 percent since 2013, or increased in value from US$13.6 billion in 2004 to US$16.6 billion last year. That puts China second among all of Houston’s trading partners.

There are more than 900 Houston companies reporting business or trade ties with China, while at least 10 Chinese firms operate branches in the Houston area.

Data from the Asian Chamber of Commerce in Houston, of which Zhao has been elected as the next chairman, show that there are over 72,000 persons of Chinese origin living in Houston.

Through the 1950s and 1960s, Houston had only a handful of Chinese restaurants. It now boasts several areas with a significant concentration of Chinese grocery stores, restaurants and retail stores offering Chinese goods.

Interest in China grows

As Houston’s Chinese business and population grew, so did its interest in doing business in China. Zhao, a former import-export specialist and Houston resident who was born in the city of Chifeng, north China, was quick to realize there was a need for a facilitator between the two business communities.

“After China joined the World Trade Organization at the end of 2001, more and more US companies approached me and asked me if I can help them explore business with or in China,” Zhao said. “Under suggestions and encouragement from my friends in China and the US, I set up a company to specialize in China business services to help US companies do business with China directly.”

The company, started in 2003, offers such services as market research and feasibility studies, establishing distribution networks in China and explaining the Chinese business culture, Zhao said.

As Zhao expected, the company grew to include Chinese people who wanted to do business with the US.

“My wish has come true, and more and more Chinese people have come to the US to do business in recent years. We have started to add services to help these Chinese people, and now serve both US and Chinese clients,” he said.

According to a new research report by the Greater Houston Partnership and Greater Houston Chamber of Commerce, the top-five import products from China to Houston are industrial equipment and computers, electrical machinery, equipment and parts, iron and steel, footwear, and furniture.

Top export goods from Houston to China include cereals, organic chemicals, mineral fuels, refined products, oils and waxes, industrial equipment and computers, and plastics.

Zhao said he keeps busy promoting trade relations between China and Houston.

“I always promote mutual opportunities, educate people through networking events, speeches or seminars,” he said.




 

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