After more than three years of building ties with Atlanta, a firm from China's Hubeiprovince that helps other Chinese companies penetrate overseas markets announced July 28 that it will open its headquarters for the Americas here by October.
Chinamex, which has offices inAmsterdam, Netherlands, and Dubai, has helped more than 3,000 Chinese companies “achieve their globalization” goals since 2000 and will bring more than 100 companies through its first U.S. office in Atlanta, Chinamex Chairman Hao Fengtold GlobalAtlanta in an interview.
Through the Chinamex facility, companies will receive financial and promotional assistance that will help them succeed and expand in the U.S., Mr. Hao said.
About 160 Hubei companies will apply for a presence at the facility, called Chinamex Hubei Enterprise Centre America, which will be established in partnership with the Hubei provincial government.
Chinamex will choose among the applicants based on their track records, how actively they've sought to expand overseas, their likelihood of success in the U.S. and the types of products they make, Mr. Hao said during a dinner hosted by the National Association of Chinese-Americans.
The companies will likely have combined assets of 20 billion Chinese yuan, or about $3 billion. Asked which industry sectors would be represented, Mr. Hao said, “Mainly we promote manufacturers.” The Amsterdam office, which opened in June, represents “100 quality (small- to medium-sized enterprises) in lighting, hardware and small household electronics,” according to the company's Web site.
Officials are eyeing a certain Atlanta location for an office and showroom but declined to reveal it because the terms have not been finalized. Citing business reasons, Mr. Hao would not disclose how much the company is investing here, but “I can tell you it's a big amount,” because the Atlanta office will be the conduit for the company's entire Western Hemisphere operations, he said.
Mr. Hao said the global access provided by Hartsfield-Jackson Atlanta International Airport and Georgia's strong ports helped persuade Chinamex to choose Atlanta over other American cities.
“Several states and cities came to us, but we chose Atlanta because we think that the city is better to feed the concept of the project,” Mr. Hao said. “Besides active economic development and multinational companies having headquarters located in Atlanta, the city can also be a portal toSouth America.”
Business considerations aside, government leaders from both sides hailed the friendship developed over the last three years between Atlanta and Wuhan, Hubei's capital, as a main catalyst for the partnership.
In 2006, Atlanta Mayor Shirley Franklin helped lead the Metro Atlanta Chamber's first business mission to China. Wuhan, also the location of the Chinamex headquarters, was one of the main stops.
In remarks at the NACA dinner, Ms. Franklin recalled seeing “stunning” parks in Wuhan. She extolled the city's efforts to reduce pollution, expand green space and improve quality of life for its citizens.
In the wake of that first trip, the Atlanta City Council considered Wuhan as an official sister city for Atlanta. While it eventually recommended the city of Ningbo, the council never voted to confirm that relationship, and now both cities have been named “friendship cities” of Atlanta.
“This is a very big treat for us,” Ms. Franklin said. “We do not take our friendship lightly, and we intend to meet conditions necessary for us to have a successful and fruitful relationship for a long, long time to come.”
That friendship took considerable effort from Atlanta. The Metro Atlanta Chamber has sent official delegations to Wuhan twice since 2006. Lani Wong, the NACA chair, unofficially represented the chamber during an April trip and has visited the city three times in the last four months.
“In today's economy business news is the same word as bad news, and no news is good news. Well, tonight I have good news, very good news,” Ms. Wong said in making the Chinamex announcement at the Canton House Restaurant on Buford Highway.
It was nearly two years ago, in October 2007, that NACA held a dinner at the same restaurant honoring Mr. Hao, who at the time said Chinamex was considering Atlanta for its incubator-like concept. San Francisco also emerged as a contender for the facility, which officials reportedly said could eventually constitute $700 million in investment.
When the worldwide financial crisis began, Chinamex faded from the headlines, but not from Georgia's radar.
"We have been working with Chinamex for over two years to build our relationship,” said Jorge Fernandez, vice president of global commerce for the chamber. “This announcement is an opportunity for Chinese companies to explore the U.S. market, and for Georgia to continue to build their relationship with China."
Chinamex also represents a bright spot for the chamber, which has had no problem sustaining interest from Chinese prospects but has seen a slowdown of Chinese companies willing to “pull the trigger” on deals during the downturn, Mr. Fernandez said during a recent event shedding light on the chamber's China strategy.
During a June trip to Beijing, officials from the Gwinnett Chamber of Commerce had dinner with Mr. Hao and Hubei officials.
Zhou Xianwang, director of the province's commerce department, said Hubei, a central Chinese province of 60 million people, is playing an important role in China's recovery from the worldwide economic downturn. Many multinational companies are setting up operations there, and many companies from there are “eager to go abroad,” he said.
Mr. Zhou appealed to Ms. Franklin in hopes that her administration will continue to help Chinamex “bring a win to our project and allow us to fly higher and higher.”