Alamo City Firms are looking to connect to Chinese Market
05/04/2009
Carol Schliesinger, San Antonio Business Journal
The expanding opportunities in the Chinese markets for U.S. businesses have spurred many small and medium-sized San Antonio companies to embrace the East Asian giant as a new business partner.
San Antonio’s business with China is brisk and diverse, if the Business China Roundtable held recently at the University of Texas at San Antonio downtown campus is any indication. About a dozen participants, eager to learn about each other’s experiences, plans and advice showed up to talk about the trade gateways between the Alamo City and the world’s busiest manufacturing nation.
The International Trade Center at UTSA created the roundtable series because of increasing requests for information about doing business with China, says Doug Smith, assistant director of the center.
China ranks as the third largest market for Texas exports after Mexico and Canada, according to global trade information from the U.S. Census Bureau.
"There are considerable opportunities for Texas companies in China, but small and medium-size companies have a harder time getting traction there," Smith says.
The roundtable, held last month, spurred a number of questions ranging from "What is the first step for someone wanting to do business in China?" to "Can we find a supplier who will produce our high-end products in China for sports cars?".
It also yielded some trade truths: When doing business with China, volume is key; factories will not event consider small orders. And the place to find niche suppliers? The consensus seems to be Southeast Asian countries like Vietnam and Malaysia.
Local Experience
Grassroots Imports owner Pete Markwardt is just one example of San Antonio business owners beating the trade path to China.
Markwardt buys furniture and decor from China and sells his products all over the U.S. As business picked up all over the years and Chinese imports rose to 50 percent Markwardt needed to streamline shipping logistics.
He tapped Port San Antonio, a state-of-the-art logistics and distribution center, and today Grassroots is transporting its furniture from China through the Port of Lazaro Cardenas in Mexico and then shipping it via Kansas City Rail to San Antonio.
"Port San Antonio opened the route for us," Markwardt says, adding that he saves $800 per container to ship through this new route.
Edgar Kock is a new San Antonio resident ramping up trade with China. Kock is the managing partner of the Merko Group, a company serving food manufacturers in Latin America, the Caribbean, and the southern United States.
Kock has been scoping the Chinese market for food ingredient suppliers. He is hoping to sell the Chinese-made ingredients to his Latin American clients. He talked about his experience at the UTSA China Roundtable.
Kock moved from Miami to San Antonio to be closer to Latin America and to ensure access to shorter flights to cities within Mexico - Merko's biggest market.
Although it is a city without a major airport line hub, San Antonio offers ample travel options to Latin America through Houston or Dallas, Kock says.
The Chamber promotes US-China trade and fosters economic development for its members through consulting services, trainings and communications. And the San Antonio Business Journal recently reported that city officials here have begun the process of identifying and formalizing a sister city deal in China.
"San Antonio manufacturers are clearly participants in this growing market." Smith adds.
CAROL SCHLIESINGER is an editorial intern with the San Antonio Business Journal and a master's of journalism candidate at the University of Texas at Austin.
Health Care in China
John Farr, a San Antonio health care professional with 25 years of experience, founded the Washington Medical Management and Investment Corp. in 2002 to investigate health care opportunities in mainland China. What he found: there are new opportunities for Western health care companies within the wealthy Chinese population. They want more choices other than the government-sponsored health care system currently offers.
Farr is working on two projects he hopes will be completed by 2010, including a cosmetic surgery outpatient hospital and a specialized obstetrics hospital, both in the southeast city of Shenzhen, near Hong Kong.
Shenzhen, a white-collar metropolis with 6.3 million inhabitants, is seeing an increased demand for plastic surgery among both men and women who, according to Farr, want o look Western, so they can compete for jobs.
But opportunity and money alone will not necessarily open doors for Westeners in China.
"The key to China is relations," Farr says. "You still have contracts, but relationships are more important."
There are signs beyond the recent roundtable that San Antonio firms are more comfortable trading with China. Last year, the Chinese Chamber of Commerce opened up its first office in San Antonio.
The chamber promotes U.S.-China trade and fosters economic development for its members through consulting services, trainings and communications. And the San Antonio Business Journal recently reporter that city officials here have begun the process of identifying and formalizing a sister city deal in China.
"San Antonio manufactureres are clearly participants in this growing market," Smith adds.
Upcoming Roundtable
Business China Roundtable
Date: May 28th
Time: 8:30 am to 10:00 am
Location: UTSA Downtown Campus - Frio Building FS 1.402 - 501 W. Durango Blvd., San Antonio, TX
For more information and to RSVP: 210-458-2470
CAROL SCHLIESINGER is an editorial intern with the San Antonio Business Journal and a marter's of journalism candidate at the University of Texas at Austin.
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