Superpower Rising in the East is a Growing Market for Kansas and Missouri Companies
 
By Congressman Dennis Moore
 
In 1988, there was a superpower called the Soviet Union, but a year later, the Berlin Wall came down. Russia and other independent nations were left as the Soviet Union dissolved.

Today, it seems increasingly clear that China, with 1.3 billion citizens and a fast-growing economy, will soon join the United States as the next global superpower. This creates both challenges and opportunities for American businesses.

In August, I visited China on a congressional fact-finding mission. The signs of China's growth were evident. Shanghai is a modern city with beautiful architecture and a spectacular skyline. Capitalism is rampant. Our delegation met with business and government leaders who are eager to trade with the United States. Although China is officially a communist country, the reality is that capitalism and trade have served China well as engines of growth.

Already, Kansas and Missouri small businesses are discovering that China is a valuable export destination, not just a source for cheap imports. In 2004, China became the fourth largest export destination for Kansas goods, behind Canada, Mexico and the United Kingdom. According to the Department of Commerce International Trade Administration, exports from Kansas to China totaled $210.5 million in 2004, a 19.7 percent increase from 2003. The largest categories of exports were processed foods ($109.5 million), machinery ($34.5 million) and leather goods ($14.1 million).

China also is the fourth largest destination for Missouri goods, behind Canada, Mexico and Japan. Missouri companies exported $366 million in goods to China in 2004. From 2000 to 2004, Missouri exports to China grew an incredible 382 percent.

Despite these growing exports to China from Kansas, Missouri and other states, the trade deficit between the United States and China is increasing. This deficit was $162 billion last year, or one-quarter of our total trade deficit. There has been a lot of talk recently about the value of China's currency relative to the dollar as a cause of the trade deficit, but that's only part of the story. To the extent that American businesses are unsure of how to sell their products to China, we miss opportunities to close the trade gap. In turn, we miss opportunities to grow small businesses and create jobs here at home.

The federal government provides many resources to help businesses of all sizes sell their products abroad, including to China. The U.S. Government Export Portal (www.export.gov), provides a clear and thorough guide to government programs for exporters, including no-cost trade counseling, a database of trade leads, services to help identify overseas buyers, advocacy services in dealing with foreign governments, export financing and insurance and market research. This information also can be accessed by phone at 1-800-USA-TRADE, or in person at the U.S. Export Assistance Center of Kansas City, Mo., which is operated by the Department of Commerce for the benefit of small to medium-sized businesses.

Fostering economic interdependence is the best way to ensure a stable and profitable relationship between the United States and China in the long run. With every connection formed between American and Chinese businesses, we promote understanding, create more opportunities for cooperation and trade, and lessen the likelihood of military conflict between our two nations in the future.
 
Rep. Dennis Moore represents Kansas' 3rd U.S. Congressional District, which includes Johnson, Wyandotte and Douglas counties. Rep. Moore has offices in Overland Park, Kansas City, Lawrence and Washington, D.C. His Web site is www.house.gov/moore. You can reach his office at (913) 383-2013.