North Carolina Gov. Bev Perdue is setting her eyes on a new road to state economic recovery—the Far East.
Perdue is scheduled to depart Oct. 15 for an eight-day excursion to China and Japan as part of a governors’ forum to further improve the trade partnership between the United States and major industries in Asia. During her trip, Perdue will visit with Asian trade executives and make a stop at Duke Kunshan University, said Tim Crowley, assistant secretary for communications and external affairs at the N.C. Department of Commerce.
“We are very excited to have [Gov.] Perdue visit Kunshan and the DKU campus,” Michael Schoenfeld, vice president for public affairs and government relations, wrote in an email Thursday. “She will be able to see firsthand the extent of the investment that the city is making in this project. And since Kunshan looks to the Research Triangle as a model for its own development, we expect the visit will stimulate further ideas for partnership with North Carolina.”
The trip was organized by the National Governor’s Association and the Chinese People’s Association for Friendship with Foreign Countries and is meant to help remedy the state’s 10.4 percent unemployment rate, the eighth largest in the nation. Perdue will be accompanied by the state Secretary of Commerce Keith Crisco and five other state and territorial governors representing Washington, Georgia, Hawaii, Guam and the Northern Mariana Islands.
“The main purposes of this trip are economic development and jobs,” Crowley said. “We have 20 or more meetings scheduled with high-powered industries in Asia that correspond with North Carolina industries. There are some companies that are actively seeking expansion in the U.S., particularly in North Carolina.”
The Department of Commerce has budgeted $50,000 for the trip, Crowley said, noting that there will be stops Beijing, Hangzhou, Shanghai, Suzhou and Tokyo.
North Carolina’s economic partnerships with China and Japan are the second and fourth most profitable, respectively, Crowley said. China alone spends $2.2 billion per year on North Carolina exports. He noted that these trade relationships are clearly successful but have the potential to grow and be cultivated further.
“Doing business is about personal relationships, especially in Asia,” he added.
He hopes Perdue will be able to start building many long-term relationships with Asian industrial moguls and encourage them to trade with North Carolina’s companies. These measures would elevate the state’s exports and expand job opportunities.
There remains some doubt, however, whether Perdue’s mission will trigger these positive results. Michelle Connolly, associate professor of the practice of economics, said she does not believe Perdue’s mission will significantly improve job growth.
“It is a waste of time and money,” Connolly said.
There are also concerns whether an eight-day overseas trip can impact trade relations enough to spark new or prolong existing trade partnerships, Connolly said.
“Trade deals are determined nationally” she added. “I don’t see how this will change the conditions that lead to job creation. The environment in North Carolina is what she should be focusing on if her goal is to create jobs in North Carolina. If it is optimal for [Asian companies] to invest in North Carolina, they will. If it is not optimal, they won’t.”
Crowley said, however, that efforts are being made on the North Carolina home front to promote Asian investment.
North Carolina recently received a federal grant that will allow the Department of Commerce to educate small and midsize businesses about Asian commerce and help them begin to export their goods if they are not already, he added.
“We also work with Chinese and Japanese companies with subsidiaries in North Carolina in order to follow up with them, talk about their growth needs, talk about their expansion needs and talk about how the Department of Commerce can partner up with them,” Crowley noted.
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