Mario Cavolo

Let's give a encouraging nod to the NEI, brought to my attention recently in a timely article by American Chamber Shanghai Chairman Robert Roche. His article in the monthly magazine to AmCham members which I now receive with our decision to move back to Shanghai and wisely join AmCham Shanghai again, points out how getting past politics to economic reality should be alot easier than it is.

"In fact, our exports to China more than doubled between 2004 and 2008 and since China joined the WTO in 2001, American exports have jumped more than 260 percent."

However, American companies are facing stiff competition in China from the EU, Japan, Korea, Canada and other nations that have well-established, aggressive and government-backed trade promotion programs..."

American Products Are Great Products

What do those of us who live in China for many years know? We know that Chinese truly admire and appreciate and want American brands. In Chinese, the word for America is "Mei Guo" which literally means "beautiful country". Indeed in many ways, that is an accurate reflection of a typical Chinese' sentiment toward most things American. Here is not the place to talk about America's issues. The fact is that in our 11 years living here in China, it is easy to see China's love for all brands American, which are infused with the original, classic American values of freedom, wonderful marketing and branding practices, and world class innovation.

Competition is Fierce

While the quote below on China's interest in Japan tells us that competition from other countries is formidable, the more focused and personal interest in American values and American brands remains unique. Chinese cherish great American values, the image and brand of America in their minds is often far above any other country and that is not without cause.

(June 29, 2010, AP) For years, Japanese auto and electronics companies have been expanding in China as its economy boomed to offset slow growth at home. But now, Japan's languishing economy is getting a lift from hundreds of thousands of Chinese tourists who are eager to flaunt their newfound wealth by purchasing brand name goods...Last year, a record 481,696 Chinese tourists visited Japan, up nearly 20 percent from 2007, according to the Japan National Tourism Organization.

Should we be proud of American brands such as KFC, Hersheys, HP or Disney as famous American exports? Of course we should and there are countless other brands which are deeply admired and desired by the new rich of rising China. To say KFC fast food junk food and bad for the world because American's are overweight is one-sided bloviating. When I was a child growing up in NY and our family headed to Orchard beach on the weekends, what did my grandmother cook up? Her amazing fried chicken. And my aunt in upstate New York? Her amazing honey fried chicken. We know about admonishments to eat healthy; don't eat deep-fried foods very often, eat lots of veggies, to have a balanced diet and exercise. Don't blame the Colonel or Pizza Hut or McDonald's or Hershey's chocolate because your own healthy lifestyle lacks discipline and wise choices. Meanwhile, these companies are enjoying unprecedented growth and admirable success in China and Asia.

Mr. Roche goes on to make the step by step case outlining steps to move the NEI program aggressively forward. Amen. America needs to get back on its feet. American innovation and entrepreneurship can create new product export initiatives to help make that happen.