Trade with China: Building Bridges

Written by Mary Welch Thursday, August 05 2010

Snapshot: Olivia (Yin) Wu
Olivia (Yin) Wu is CEO of Chinamex Investment Withholding USA, a platform for the forging of strategic partnerships and business opportunities between China and the United States.

Prior to Chinamex, Wu was relationship manager of commercial lending with East West Bank, which serves the Asian-American community in the United States. In 2007, Wu became the vice president for Heritage Capital Advisers, a corporate advisory and investment firm based in Atlanta. In this capacity, she expanded the new client list and advised Chinese companies investing in the United States.

She has made multiple trips to many cities in China to establish cross-cultural partnerships. She also served as the primary contact for a high profile delegation comprised of 120 enterprise executives and owners led by China’s vice minister of commerce.

With more than seven years of consistent involvement in metro Atlanta, Wu is well connected in the economic development community and the local Asian community and has extensive access to small- and mid-sized local businesses. She is vice president of National Association of Chinese-Americans (NACA) and chairs its public relations and communications committee.

Wu is originally from Hunan province of China. She obtained a bachelor’s in international banking from Hunan University and an MBA in finance from Georgia State University. Following graduation, she interned at the Federal Reserve Bank of Atlanta.

Womenetics: Tell us about yourself.
Olivia Yin Wu: I was born in China but now consider Atlanta my home. I moved to Atlanta more than 10 years ago to attend Georgia State University’s MBA program. I’ve served on various boards for more than five years in my efforts to build bridges between the United States and China.

Womenetics: How are trade relations between China and the United States?
Wu: It is definitely improving. There are still some uncertainties in regard to the breadth of change as a result of China’s recent currency announcement (allowing its currency to rise against the dollar), however the sincerity of communication between United States and China has vastly improved since a recent low point following the Copenhagen (climate) conference.

Womenetics: What are the problems hindering trade and economic development?
Wu: There will always be hot-button issues that overshadow an individual’s perception of business opportunities. Currently, the currency issue and constraints related to China’s push for homegrown innovation seem to be the prominent concerns. However, opportunities still exist not only in FDI [foreign direct investment] markets, but also in attracting Chinese capital investment. In this sense, one of the largest hindrances is perception.

Womenetics: What does Chinamex do?
Wu: Chinamex represents a stable of Chinese companies with concrete intentions to incorporate the U.S. market into their business plans. The needs vary with the company: Some are looking for a U.S. distributor, some are looking for investment opportunities of their own, and some are hoping to attract foreign investment. Essentially this represents a whole host of opportunities for U.S. companies. We are actively trying to find U.S. partners for these companies.

Simultaneously, we are also a resource for U.S. companies looking for opportunities in China. Chinamex’s relationships are expanding into an increasing number of provinces across China.

Womenetics: What should American businessmen and women know about setting up businesses in China
Wu: There is the perception that China’s business environment is weighted too heavily in the need for relationships. I must ask the question: Under what business environment is this not the case?

One of the primary differences is that Western business relies primarily upon business- to-business relationships, whereas Chinese business practices usually rely on business-to-business relationships as well as good relationships with local and provincial officials. At some point, officials will get involved. However, these officials have a very entrepreneurial mind-set and should be viewed as an additional partner, not as a regulatory constraint.

Without question the second part of the allure of China is its enormous population. However, many businesses make the mistake of basing their business plans on reaching this market as a whole. China is a highly diverse place, and in some respects more so than the United States. Therefore business models and expectations should be tempered to succeed in one specific market before taking on all of China.

Womenetics: So much is made about quality control problems with Chinese goods. What is your response to that?
Wu: The recent focus on those high-profile cases is completely warranted. It is important to point out it would be completely unfair to shine this negative light on every manufacturer in China. It is true that regulatory procedures in China are not as developed as they are in the states, however it needs to be stated that China has been providing quality and safe products to global markets for decades.

Womenetics: Do Chinese women face job discrimination?
Wu: In China, much has been made about the negative effects of the one-child policy. And while it is challenging policy, it has contributed to a sense of equality among the sexes. In that families are only allowed to have one child, families greatly value that child – boy or girl. To speak generally, families with girls heap just as much expectation on their child as would families with boys. So this generation of females has grown up with the same expectations and therefore the same opportunities.

Womenetics: In December 2009, Chinamex opened its North American headquarters in Atlanta to serve as the platform for the realization of business partnerships between the United States and China, particularly in China’s second- and third-tier cities. Why those cities?
Wu: These cities represent the lion’s share of future opportunity. One of China's primary goals is to shift the focus of development from the Eastern coastal provinces of China to its more central and western provinces. The government is actively assisting in this project, primarily through the construction of extremely modern transportation infrastructure. These cities possess a potential that is just beginning to be tapped.

Womenetics: Why did you choose to be headquartered in Atlanta?
Wu: Chinamex chose Atlanta over other high-profile cities, including San Francisco, for a number of reasons. It is a tremendous logistics center, with Hartsfield-Jackson International Airport and the Savannah port. Atlanta serves as the headquarters for many prominent Fortune 500 companies. Yet, it maintains relatively low for business and living costs. Those were all compelling reasons that heavily factored in our decision to call Atlanta home.

Mary Welch is a freelance writer for the Atlanta Journal Constitution, Dawson Times, Plan Your Meeting magazine, and Atlanta Business magazine. Previously, she held many positions with Leader Publishing, including editor-in-chief of Atlanta Woman, editor of Business to Business magazine, and editor of Catalyst magazine. As editor of Business to Business, she assigned, edited, and conceptualized a series that was awarded Silver in the 2005 GAMMA Awards for Best Series. Welch was a reporter for the Atlanta Business Chronicle for eight years and freelanced for publications including Glamour, Advertising Age, South, Georgia Trend, and Oz. From 2000 to 2003, she served as vice president of media relations for Bank of America, during which time she authored Forever Green: A History and Hope of the American Forest with Rolling Stones keyboardist Chuck Leavell.