¡¡¡¡Aquick look at the map shows Kansas and the Chinese Province of Henan to be half-a-world apart, separated by 10 time zones and a 6,600-mile flight across the Pacific.
¡¡¡¡But a quick look at recent trade data shows two states that are closer than ever. Formal sister-state partners since 1981, Kansas and Henan have taken their relationship to new heights in the past three years and initiated an era of unprecedented business exchange and record-setting trade. With Henan among its key contacts, Kansas¡¯ exports to China soared to a record $313 million in 2005, marking a 49 percent increase from 2004 and an 80 percent increase from 2003. The historic total also marks the fifth year since 1997 that Kansas exports to China have increased from the previous year¡¯s mark.
¡¡¡¡When all was said and done, last year¡¯s surge in trade made China the third-leading purchaser of Kansas goods for 2005 and continued a buying frenzy that has carried into 2006. As of June, Kansas had already sold $169 million in goods to China this year, putting the state $24 million ahead of last year¡¯s mid-year total. Moreover, the blistering pace seems likely to continue, as a number of Kansas producers currently find themselves on the verge of major deals with Chinese buyers. With projects like these in the works, all signs point to 2006 being another record-setting year for exports to China.
¡¡¡¡¡°It¡¯s been a remarkable period for trade between China and Kansas,¡± said Kansas Department of Commerce Secretary Howard Fricke, whose agency has been instrumental in facilitating negotiations between Kansas producers and Chinese purchasers. ¡°Our state has established a strong relationship with the largest consumer base on Earth, and that can only mean good things for the Kansas economy.¡±
¡¡¡¡Although trade between Kansas and China has skyrocketed in a short time, the increase has been a long time in the making. The story begins in 1979, when Kansas became the third state following normalization of U.S. relations with China to send a trade mission there. Led by Governor John Carlin, the 25-member delegation met with the central Chinese government and proposed the establishment of a sister-state exchange program. Two years later, Kansas and Henan established a formal partnership that has spanned three decades and is one of the longest-running sister-state relationships of the modern era.
¡¡¡¡While the recent intensification of the Kansas-Henan link stems largely from the efforts of Kansas business leaders, it doesn¡¯t hurt that Governor Kathleen Sebelius has made international trade a focal point of her administration. In July 2005, the governor welcomed Henan Chairman Guangchun Xu and more than 20 Chinese officials to Topeka for business discussions and tours of Kansas facilities. Later that year, the governor led the largest Kansas trade delegation in history to Henan, an effort that subsequently produced a series of agreements between Kansas and Chinese businesses. Global Ground Support of Olathe sealed the largest of the post-mission deals, winning a $4.2 million contract for the supply of 18 mobile de-icing trucks through the China Administration of Civil Aviation.
¡¡¡¡In May of this year, Governor Sebelius again rolled out the welcome mat, this time for Henan Governor Li Chengyu and a 31-member delegation. The group was treated to facility tours in Wichita and a formal banquet, during which the two governors dined together and exchanged gifts on behalf of their governments. The visit also allowed the two leaders to sign a reaffirmation of their states¡¯ 25-year relationship and oversee the signing of a Memorandum of Understanding between the Kansas Soybean Commission and the Henan Cereals, Oils, and Foodstuffs Group, Ltd. regarding the purchase of Kansas foodstuffs. Kansas producers are currently negotiating a large sale of soybeans to Henan ¡ª a project stemming directly from the Memorandum and talks initiated at the banquet.
¡¡¡¡¡°The visit from Governor Li and his delegation was the latest step in a Kansas-Henan relationship that gets stronger every day,¡± Governor Sebelius said. ¡°This administration remains committed to helping Kansas businesses develop ties in Henan and throughout the world. By tapping new markets and trade opportunities, our state can reach its economic potential and make prosperity a reality for all Kansans.¡±
¡¡¡¡For more information on Kansas exports to China, contact the Department of Commerce¡¯s Trade Development Division at (785) 296-4027 or ksintl@kansascommerce.com.
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