TEXT: DALEY SAYS INFRASTRUCTURE DEVELOPMENT LONG-TERM
(Governments must support such investments)Shanghai -- U.S. Commerce Secretary William Daley says investment in infrastructure -- such as housing, roads, telecommunications and electricity -- has become an essential aspect of the U.S. and Chinese commercial relationship.
The impact of such projects goes far beyond a single company's bottom line because it spills out into the broader economy, Daley said March 31 in Shanghai. He is leading a delegation of U.S. government and private business officials on a presidential infrastructure trade mission to South Korea and China.
During remarks at the Pudong Institute, Daley said the two sides need to look past current frictions in their bilateral relations when they consider developing long-term infrastructure projects that take years to complete and decades to pay for.
Following is the text of Daley's remarks as prepared for delivery:
(begin text)
U.S. Department of Commerce
Remarks by
U.S. Secretary of Commerce William M. Daley
Pudong Institute
March 31, 1999
Shanghai, ChinaI have heard great things about the Institute and the programs you have sponsored at our Commercial Center. Mr. Wang has expressed interest in exploring ways the Commerce Department can cooperate more extensively with you. I look forward to hearing how that develops.
I came to China with 18 American companies interested in doing more infrastructure business.
China will be spending an enormous amount on improving infrastructure. And I was very pleased to hear Premier Zhu tell our delegation on Monday that he expects more foreign companies working on the projects. He thought we were coming at the right time, and with the right firms.
Two aspects of our relationship have come up repeatedly in my meetings this week. The first is the importance of thinking long-term even as we work through the issues of the day.
The second is the importance of finding ways to unlock the immense but largely unrealized potential in our commercial relationship.
The infrastructure investment issue highlights the importance of both. Perhaps more than any other investment, infrastructure is long-term in perspective. Projects often take years to complete. Investments are estimated over decades.
One of the companies with us is ARCO, and it took 17 years from the time they signed up to explore for gas in China, until gas flowed out of the pipeline.
These projects benefit more than a company's bottom line. Their impact spills out into the broader economy. So government should play a key role in creating an environment that is supportive of such investments.
To help with the discussion on what government's role should be, I asked the companies with me two questions.
First, I asked the companies what is the greatest attraction to coming to China. Eight out of 10 of them gave the same answer: market opportunities -- the prospect for domestic sales.
That is very understandable.
Then I asked the companies what was their greatest frustration with doing business in China. And what was striking was they were all over the lot with their answers. No answer dominated.
Some said lack of harmonized standards. Some said a restrictive service market. Some said bribery and corruption. Some said tariff and non-tariff barriers. Some said intellectual property enforcement.
What was interesting to me, was when I have taken trade missions to other parts of the world, and I've asked the question about frustrations, there has been one dominant issue. But not here.
I think in a way it is more worrisome that there were a host of answers. It means that American companies are finding a lot of different kinds of issues they need to deal with.
I think it is part of the reason the negotiations for the World Trade Organization have gone on so long, and been so complicated.
We have different systems and to accommodate them as we grow is challenging. The difficulties are not just political, they are economic and structural.
So, let me end by suggesting that as you hold your discussions today, you ask as reforms proceed, what needs to be done to attract trade and investment?
(end text)
Return to The United States and China.Return to IIP Home Page.