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Gregoirs, Locke seeking stronger ties with Asia

Sunday, September 25, 2005 12:22 AM PDT

By Associated Press

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OLYMPIA, Wash. -- Gov. Christine Gregoire, joining forces with her Chinese-American predecessor, Gary Locke, is in China looking for trade and tourism opportunities as the economy expands in the world's most populous nation.

Opportunities in China are limitless for Washington farm products, high-tech and software, planes and transportation equipment, pollution equipment and even Starbucks coffee shops, said Gregoire, speaking with home-state reporters by telephone hookup from Beijing at 7 a.m. Saturday local time.

China needs help feeding its population, she said -- and Washington also is positioned to gain a share of the business for the 2008 summer Olympic Games and to help with China's construction boom.

Banking, engineering, architectural services, biomedical equipment and telecommunications also are in demand, said trade Director Juli Wilkerson.

Gregoire, joined by lawmakers and the state trade and agriculture directors, was expansive as she described the state's business opportunities in China. The trade delegation earlier visited Japan, the state's No. 1 trading partner.

"One thought that we in Washington state, all six million of us, need to understand is that we are the door, the window, to China and Japan," the governor said.

As with Japan, China offers some challenges, including trade barriers and tariffs and a huge trade deficit with the United States, she said. In 2004, China received $35 billion in U.S. products, but exported $197 billion.

Washington, led by The Boeing Co., helps the deficit situation and is poised to gain even larger markets in China, Gregoire said.

Due to its quality goods, the state's longstanding economic ties with Beijing and its ideal West Coast location, Washington is clearly on the map with the Chinese leaders and businesses, she said. Governors since John Spellman in the early 1980s have regularly traveled to China, she said, noting that trade ties begin with personal contacts.

Gregoire credited Locke with opening many doors. Locke, the nation's first Chinese-American governor, now works for a Seattle law firm that specializes in Asia trade.

Gregoire remarked on the satisfaction of flying into Beijing on a Boeing airliner, passing a Microsoft skyscraper and having a Starbucks beverage soon after she arrived. The Chinese use Windows software, Weyerhaeuser products and Amazon.com, she said.

"They well know Washington state means quality, quality products," the governor said.

Businesses from other states don't generate the same kind of name recognition and brand loyalty Washington companies have earned over the years, she said.

"Washington is identified as a region in and of itself," with a reputation of impeccable quality and an enviable lifestyle, said state Sen. Jim Kastama, D-Puyallup.

"Washington stands out to them," said state Sen. Cheryl Pflug, R-Maple Valley. "It's not just part of the West Coast."

Agriculture Director Valoria Loveland said Washington already is selling wheat, cherries, apples and other products to China and hopes to open markets for potatoes, processed foods and wine.

Gregoire, Locke and others met with Tang Jiaxuan, China's equivalent of the vice president. Gregoire quoted him as saying, "Washington under your leadership stands out from other states in America."

She said they discussed trade barriers, the possibility of direct flights from Seattle to Beijing, and other issues.

The meeting took place in the same ornate hall where President Nixon made his historic first visit to the Chinese government more than 30 years ago. Gregoire planned to visit the Great Wall before leaving for Shanghai.

"For a little kid from Auburn, Wash., this is pretty exciting," she said.

Two Washington companies signed contracts: United Coatings to help build high-speed rail lines in preparation for the Olympics, and Sharpe Mixers to help provide environmental cleanup for coal-fired plants in Mongolia.

The delegation also met with the head of China Ocean Shipping Co., one of the largest container shipping companies, about expanding business in Washington.

Earlier, the delegation signed a contract in Tokyo for Bates Technical College in Tacoma to provide Tokyu Home Corp. with research and training in western home-construction methods.

The governor also met with executives of Toray Corp., an aerospace supplier with expanding operations in Washington, including a facility in Frederickson, Pierce County, that produces lightweight, strong composite materials for Boeing jetliners.

Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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