THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, November 26, 1994 TAG: 9411260088
SECTION: BUSINESS PAGE: D01 EDITION: FINAL
SOURCE: BY IDA KAY JORDAN, STAFF WRITER
DATELINE: PORTSMOUTH LENGTH: Medium: 94 lines
A mammoth trade center intended to showcase the goods shipped between China and the United States will open Monday almost empty of merchants but with ambitions intact.
China Market U.S.A., a trade center meant to sidestep Hong Kong's wholesalers, will open with 15 Chinese companies in residence.
Designed to accommodate 300 companies, the trade center was spearheaded by a company called Jing Far, which converted a 144,000-square-foot building on Airline Boulevard, a former Robert Hall Village department store.
Tighter standards for loans and visas have slowed the move of merchants into the trade center, China Market officials said, adding the trade boom between China and the United States should inspire more companies to open shop.
In addition to the 15 companies on hand for the opening, another 25 companies have leased space and about 100 others have signed contracts for space.
Wenson Ge, vice president of China Market USA, said the goal of 300 clients will not be reached for some time.
``The visa process is long term now,'' Ge said. ``Because of the illegal immigrants, the United States tightened up.''
In addition, the Bank of China is ``stringent with money to shrink spending and control inflation,'' he said. The companies, in some instances, have not been able to borrow expansion money, he said.
Ge said his company has spent more than $600,000 on the project, the first of its kind in the United States. The building is divided into office-showroom spaces for manufacturer representatives to display the wares they hope to sell wholesale in the United States.
The companies already in the center sell everything from jade jewelry and welding strips to a $700,000 routing machine. They also buy and resell goods made in the United States.
``One company already has spent half a million on coin-operated video games,'' he said.
Qiang Chen, 31, president of Monkey King Welding Co. USA, said he bought 100 tons of cardboard cartons from a Tennessee manufacturer and expects to order 1,000 tons next year. His parent company already exports about $6 million worth of goods annually to the Middle East and Latin America, he said.
Ping Xu, business manager of SAF (US) Co., markets disposable plastic medical devices. He also buys technically advanced medical machinery not yet available in China.
``Ten years ago, I couldn't imagine this would happen,'' said Ge, who came to the United States in 1985.
Ge said the market for U.S. products in China is important to the survival of China Market USA.
Companies leasing space in the building also will try to sell goods in China, which next year will import $50 billion worth of goods, he said.
``The people in China now have the money to consume,'' Ge said. ``China Market USA is a good idea at a good time.''
China Market officials have invested time and money to make the new business work.
``The distribution network in America is hard to get into,'' said China Market Vice President Ping Ping. ``We are trying to set up our own network to find direct channels for selling.''
Ping spends much time dealing with the slow visa process, and has made three round trips between China and the United States in recent months.
The businesses in China Market have attracted a number of young managers to Portsmouth.
``Most of the people are university graduates and they are very bright,'' business manager Bill Ma said. Ma came to California as an exchange student five years ago and transferred to Old Dominion University to get a degree in degree in international studies.
``We have encouraged the companies to hire representatives who are educated for the job,'' Ma said.
China Market, a subsidiary of Jing Far, was formed in 1992 by W.W. Gilman, an Atlanta developer; Shui Ho Wong, who owns Jing Far Enterprises, and Peter Chu, a Chinese-born Canadian.
The company bought the former Robert Hall Village property last October. Portsmouth was picked because of its port and proximity to a sizable portion of the Eastern population in the United States.
About 10 workers have worked in the second-floor offices to establish the operation. ILLUSTRATION: Graphic
NEW TRADE CENTER
What: China Market U.S.A. provides showroom spaces where
manufacturers can display the wares they hope to sell wholesale.
Who: 15 merchants will be on hand for the opening, and about 125
others will follow.
When: Opens Monday.
Where: Airline Boulevard, Portsmouth
by CNB