New Report Highlights Business Opportunities in China

For Immediate Release: September 6, 2007
Contact: Tony Hozeny, Department of Commerce, 608/267-9661
Carla Vigue, Office of the Governor, 608-261-2162

Governor Doyle to Lead Mission to China and Japan

MADISON - Governor Jim Doyle today released a new report that highlights Wisconsin's relationship with China and details increasing business opportunities for Wisconsin companies. To capitalize on these opportunities, Governor Jim Doyle will lead a delegation of Wisconsin business and government leaders to China and Japan from September 7 to 18, 2007.

"No question, Wisconsin companies have a strong and growing presence in China - one of the largest and fastest growing markets in the world," Governor Doyle said. "This report shows that the Wisconsin economy is well-positioned to export the products China needs to fuel its future growth. My trade mission to Asia will focus on furthering trade relationships for Wisconsin companies, attracting investment, and creating jobs.

The new report from the Department of Commerce found that:

• China's demand for imports aligns with Wisconsin's exporting strengths. In 2005, China imported over $333 billion in machinery, electrical machinery, medical equipment, and vehicle parts - Wisconsin's top four export industries.
• Wisconsin is increasingly capturing the Chinese market. Wisconsin's exports to China in 2006 were up 29 percent over 2005 and experiencing similar growth in 2007.
• Meeting China's import demands and capturing future Chinese investment will grow Wisconsin companies and create new jobs in Wisconsin.

According to the report, China's real growth reached 10.7 percent in 2006, the fastest pace in 11 years, bringing the country's Gross Domestic Product to $2.5 trillion.

Wisconsin's top export industries align with China's fast-growing demand for imports. China tripled its imports in Wisconsin's top four export industries.

In 2006, Wisconsin exports to China exceeded $870 million, a 29 percent increase over 2005. Throughout the past decade, Wisconsin's total exports have grown an average of 23 percent annually. A decade ago, China was Wisconsin's 18th largest export destination; today, it's Wisconsin's third largest trading partner. Exports in the first half of 2007 are also up, especially in key export industries, such as industrial machinery (up 29 percent); scientific and medical equipment (up 116 percent); and electrical machinery (up 30 percent), compared to the first half of 2006.

In addition to increasing imports, China is also increasing its worldwide investment. In 2000, China's investment abroad totaled $25 billion. By 2005, investment had reached $44.8 billion and it is predicted to reach over $60 billion in 2010.

To review this report, visit http://www.wisgov.state.wi.us/docview.asp?docid=11926.

-30-