The IALP class outside the US Embassy Residence

The class started the week off at the residence of the US ambassador to China.    Ralph Gifford, senior trade policy advisor for the office of agricultural affairs, represented the embassy.  Phil Laney was also there representing the American Soybean Association.  Our discussions centered on the tremendous increase in soybean exports to China over the recent years and the importance of settling the current issue with obtaining “safety” certificates for Genetically Modified Soybeans.  It was pointed out that this certificate requirement affects imports regardless of origin.  The United States will bear the blunt of this new regulation since this issue will probably be resolved by the time South America goes into full harvest.  The class rewarded the speakers with a box of Girl Scout cookies containing soybean oil.

The rest of the morning was spent practicing negotiating on skills in “Silk Alley” where we observed and purchased several “knock-off” and authentic Chinese products.

Ron Tombaugh and Gary Shupe wheelin’ and dealin’ on the streets of Beijing

Patrick Powers, Director of China Operations for the United States – China Business Council, addressed the class in the afternoon on investing and doing business in China.  Mr. Powers stressed the importance of due diligence and knowing your product.  This includes all the traditional financial analysis along with researching gossip, rumors, current customers, and payment records for proposed partners or associates.  You have to know your competition and understand that the lack of “Rule of Law” and a central legal system make contracts unenforceable.

Our afternoon sessions included a panel discussion on Chinese Agricultural Policy. 

Dr. Qian, Dr. Wang, Dr. Li, Dr. Huang of major Chinese universities and Ralph Gifford of the U.S. Embassy in Beijing presented major issues facing Chinese agriculture.  There appear to be many similarities between the U.S. and China from the agricultural perspective.  Most notable would be the lack of sufficient income being generated by farmers in both countries.  The government of China is concentrating its efforts in helping farmer’s incomes become more than just subsistent.  Another parallel to the U.S. is the effort to remove damaged croplands from production opting for establishment of pasture grasses and reforestation. 

The day ended with a cocktail reception sponsored by Caterpillar with representatives from their Beijing, Singapore, and Peoria offices.  Following the reception, two IALF participants, Mary Christine Ludwig and Bill Leigh shared our international experiences with Orion Samuelson on his morning WGN farm show.

Chairpersons:  Phil Donahoe, Gary Shupe, Matt Hughes