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Issue: 930 Date: 6/19/2008

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Chinese Vice Premier Visits St. Louis to Explore Air Cargo Hub, Commercial Ties

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        Chinese Vice Premier Visits St. Louis to Explore Air Cargo Hub, Commercial Ties

        ST. LOUIS, June 16 -- Chinese Vice Premier Wang Qishan todaybecame the highest Chinese government official yet to visit St. Louis inconnection with the proposal to create an air cargo hub and commercial centerhere to facilitate trade between China and the United States.

        The Vice Premier arrived here yesterday on a flight direct from Beijing.After his meetings here, he went on to Washington, D.C. for discussions withSecretary of the Treasury Henry Paulson.

        "We are extremely pleased to be hosting this visit by Vice Premier Wang,"said Richard C. D. Fleming, President and Chief Executive Officer of the St.Louis Regional Chamber & Growth Association (RCGA). "His presence here speaksvolumes about how seriously the Chinese are exploring the notion of making St.Louis their Midwestern port of entry to the United States."

        While in St. Louis, Vice Premier Wang met this morning with Sens.Christopher S. ("Kit") Bond and Claire McCaskill, as well as with CongressmenRuss Carnahan, William "Lacey" Clay, Todd Akin, and JoAnn Emerson, and withMo. Lt. Gov. Peter Kinder, Missouri House Speaker Rod Jetton, St. Louis MayorFrancis Slay, St. Louis County Executive Charlie Dooley, and others, includingRobert A. Reynolds Jr., RCGA's chairman and chairman, president, and CEO ofGraybar. The meetings took place at the Ritz-Carlton Hotel in Clayton, andwere followed by a luncheon where the Vice Premier made remarks that were opento the media.

        In conjunction with Vice Premier Wang's visit, Chinese governmentofficials signed four agreements with local and state businesses andorganizations. The agreements were with the United Soybean Board, UnitedStates Soybean Export Council, and the American Soybean Association; theMissouri Department of Agriculture; Emerson (NYSE: EMR); and Solutia, Inc.(NYSE: SOA).

        The three soybean organizations were among several U.S. soybean groupsthat helped facilitate contracts between eight U.S. exporters, including ADM,Cargill, and Bunge, and 14 Chinese importers. U.S. soybean organizations areexpecting a $3 billion commitment from the Chinese importing companies thisyear -- a projected 10 percent of total U.S. production and an increase fromabout $2.5 billion last year.

        The agreement the Missouri Department of Agriculture signed was amemorandum of understanding with China's Chamber of Commerce of Import/Exportof Foodstuffs, Native Produce and Animal By-Products (CFNA), and the MissouriDepartment of Agriculture. The memorandum calls for Missouri and CFNA toexpand and promote agricultural and food trade, especially in soybeans.

        Emerson signed contracts recognizing continuing agreements between thecompany and China in two areas. One deals with the delivery of $30 million ofScroll(R) compressors and other equipment used in air conditioning and heatingsystems made by Emerson's Climate Technologies business. The other is a$40 million agreement between Emerson's Network Power business and ChinaMobile, the world's largest mobile network. Emerson Network Power providesthat company with about 35 percent of its power-related products and services,from backup power to precision cooling, in support of its telecommunicationsnetwork.

        Solutia signed memorandums of understanding with three companies for thepurchase of Solutia's Vydyne(R) nylon resin, which is used by Chinesemanufacturers of automotive, electrical, consumer, and industrial products.The three companies, and the size of the respective contracts, are GuangzhouKingfa Science and Technology Co. Ltd. - $84 million; Hangzhou Yongchang NylonCo. Ltd. - $56 million; and Liaoning Yinzhu Chem-Tex Group Co. - $42 million.

        Concurrent with the Vice Premier Wang's St. Louis trip here, more than 100Chinese entrepreneurs, investors, and business executives also visited todayin a trip sponsored by China's Ministry of Commerce. At a seminar Mondaymorning, conducted jointly by RCGA and the Ministry of Commerce, they receivedbriefings on the local and state economy by several St. Louis companies andorganizations. At a second seminar Monday afternoon, many of them were briefedon specific investment opportunities in the St. Louis region in the areas oflife sciences, high technology, venture capital, and real estate.

        Many of the entrepreneurs and business people were here at the behest ofthe China Investment Promotion Agency (CIPA), which signed an agreement withSt. Louis officials last March during a visit they made to Beijing. Thatagreement called for exactly this kind of exploration of stronger commercialties between the St. Louis area and China.

        Mr. Wang's visit marks the third visit here by a high-ranking Chinesegovernment official since February. The first visit took place Feb. 19-20,when China's Ambassador to the United States, Zhou Wenzhong, was hosted hereby the RCGA at the invitation of Sens. Bond and McCaskill. During that visit,he met with government and business officials about the air cargo andcommercial hub proposal. In March, a large delegation of St. Louis andMissouri government and business leaders visited Beijing to pursue the St.Louis proposal with Chinese government officials. Li Zhaoxing, who heads theforeign affairs committee of the National People's Congress, visited here fortwo days in April and also met with business, government, and universityleaders.

        About the St. Louis Regional Chamber & Growth Association (RCGA)

        The St. Louis RCGA is the chamber of commerce and economic developmentorganization for the 16-county, bi-state region. With nearly 4,000 membercompanies, RCGA members constitute 40% of the regional work force. The missionof the RCGA is to unite the region's business community, and to engage dynamicbusiness and civic leadership to develop and sustain a world-class economy andcommunity.

        SOURCE St. Louis Regional Chamber & Growth Association (RCGA)
 
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