China consulting firm looks to bridge U.S. and China business gap for local companies
China is fast becoming a land of significant business opportunities for U.S. companies. However, many lack the expertise to break into the market or even know what the opportunities are. And Clark County businesses probably don’t realize there is a resource at their doorstep that can navigate the barriers for them.
Likewise, Jin Lan’s Vancouver-based China consulting business Octaxias Co. does half of its work outside of the region, and much of the rest is done with Oregon businesses and organizations. Octaxias facilitates contact between U.S. companies and China and provides everything from marketing and supply chain management to government affairs and public relations services in China. His clients include small businesses to the White House, and he would like to get more involved with local businesses.
"Most American business people don’t feel like they have direct access to China," said Lan, "particularly because of language and cultural aspects."
Lan came to the United States from China in 1983 to attend Portland State University. After graduating he began working at Powell’s Books as its international marketing director. In 1997, he founded his own firm. Lan runs the U.S. side of Octaxias out of his Vancouver home, and he has a staff of eight employees working in a Beijing office. Lan splits his time between the two countries, traveling about every other month.
China’s economy has grown an average of 9.5 percent each year for the past 20 years, said Lan.
"The situation changes daily," he said. "You need someone who knows what is really going on there." His deep connections and frequent travel to China give Lan’s company an edge.
"It gives me the advantage of providing clients with the most up-to-date market trends, information and opportunities," said Lan.
Michael Piersol, CEO of Offshore Ports, has worked with Lan to present its products to potential Chinese customers. Vancouver-based Offshore Ports is marketing a technology that allows for large floating structures to be built on the ocean. Over the past 18 months, Lan has helped Piersol establish relationships in China.
"We’re getting connections going in Chinese markets," said Piersol. "Jin brings the right people to the table."
With its new technology, Offshore Ports is interested in marketing its product anywhere it can, and Piersol said it made sense to tap into the fastest growing economy in the world.
"The Chinese enhance American developed products," he said. "It’s a good marriage for businesses."
Doing business in China doesn’t have to lead to loss of jobs in the United States, said Lan. This and other fears keep businesses here from exploring opportunities in China.
"It is very typical for a lot of business people to have apprehensions and uncertainties in terms of doing business in China," said Lan.
Lan finds that most U.S. companies are more competitive and better managed than Chinese companies. The United States and China are becoming more interdependent, said Lan, and companies can participate in China’s booming economy and take advantage of competitive pricing there without reducing jobs and the tax base here.
"There is great untapped potential here," said Lan about Clark County’s business community. "People just need to have a better understanding of what is going on in China."
Lan helped Portland company Learning.com land a deal to distribute its computer skills educational software to Chinese schools and consumers. Lan organized a meeting between Learning.com and the Chinese Ministry of Commerce in Portland, and Learning.com executives traveled to China to meet with the Ministry of Education.
Navigating social and political barriers in China can make it difficult to do business there. Lan warns that there are risks and dangers that can stop a deal in its tracks.
Intellectual protection is a very serious issue, he said. Lan advises clients to register patents and trademarks in China before jumping into the market. And undercapitalized companies and those that do not complete appropriate market research can see deals fall through, leaving a bad taste in their mouth.
"I can play a constructive role to make doing business in China profitable and pleasant," said Lan.
Lan has worked with local manufacturing consultant Steve Rosvold, principal of KRM Business Solutions, to become better acquainted with Clark County manufacturing firms.
Rosvold agrees that China shouldn’t be seen just as a place to outsource U.S. jobs, but as a potential partner for businesses. And he sees Lan as a link in many different ways.
"Understanding what China is all about is a better strategy than having them beat us up," said Rosvold. China can fit in the manufacturing process, he said, and U.S. companies can transition better if they know the situation.
"It’s difficult to find a resource like Jin," said Rosvold.
Lan is also involved in getting Chinese companies to invest in the United States. He was instrumental in bringing Air China Cargo’s nonstop air cargo service to Portland International Airport. Lan sees significant import opportunities at the Port of Vancouver with Chinese automobiles. The port’s Columbia Gateway project is planned as a potential hub for automobile imports, and China is gearing up to begin its first auto exports to the United States.
Octaxias recently formed a partnership with the North American Representative Office of Shenzhen, China. The Chinese city of Shenzhen established the office to support North American companies doing business in the city. The partnership will specifically promote investment, outsourcing and trade between Shenzhen and the Pacific Northwest.
Lan notes that Washington State trade with China is very active. Companies such as Boeing and Microsoft are doing a lot of business with China.
Larry Williams, assistant director of the Washington State Department of Community, Trade and Economic Development, points out that Washington is the only U.S. state to be visited by the current president of China.
"Washington is uniquely positioned for direct benefit from Chinese business," he said. "Our companies, large and small, are successfully selling in the Chinese market. As our partnership with China grows, so will the economic opportunities."
China currently enjoys an almost $200 billion trade surplus with the United States, but U.S. exports to China are growing 23 percent per year, said Lan.
"The outlook is positive," said Lan. "China and the U.S. are becoming interdependent. They have frictions, but are working hard." He sees the countries as dual economic growth engines. One can pick up where the other drops off.
"Southwest Washington busi-nesses need to look at the Chinese market," said Lan, "because if the market slows down here, they have revenue they can count on."
