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Our first full day in amazing Shanghai
– the “New York City” of China. We were impressed by the
incredible development and modern architecture. We are
staying in the Pudong region which six years ago was mostly
rice paddys and today is a modern city; including the third
highest building in the world. |
Representatives of CNH China |
We
started the day with a briefing from the U.S. Consulate,
LaVerne Brabant. He updated us on the rapid growth of
consumer purchasing power in China. He said there are
currently about 300 million “middle class” consumers in China
and will grow to 575 million by 2005. He also stated that
Kentucky Fried Chicken is one of the most successful American
food businesses in China with approximately 850 restaurants in
the China.
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Our next
session was a visit with Jean-Marc Perrier, Chief
Representative and General Manager of CNH China Agricultural
Operations and Henry Wu, General Manager of Case Machinery
(Shanghai) Company, Ltd. Mr. Perrier spoke about the small
farm size in China, and that replacing labor with equipment
might make sense in some regions. He also stated that CNH’s
primary competition in China isn’t John Deere, but local
manufacturers.
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We then
boarded a bus for the Shanghai Stock Exchange for a tour and
briefing. The exchange is strikingly different than the New
York Stock Exchange that we saw last March. The trading floor
is a very large room, but filled mostly with computers and
just a relatively few “order takers” and virtually no noise.
About 98% of the companies traded on the Exchange are
government owned.
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IALP class of 2002 at Shanghai Stock Exchange |
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We then
returned to the hotel for a luncheon with the American Chamber
of Commerce. It is the fastest growing Chamber in the Asia
Pacific region with about 2000 members and adding
approximately 500 new members each year.
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Young
Chinese girl at local supermarket |
After
lunch we boarded the bus again for a stop at the Nong Gong
Shang Grocery Superstore visit. This was a Chinese version of
a Super Walmart, but some of food products were far different
than those which we are accustomed to finding in an American
supermarket. Chicken feet, pigs feet, eel, and donkey were
among the delicacies available for purchase.
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We then
proceeded to the Dongling Trading Company for a briefing.
Dongling is a Joint Venture with Cargill and we spoke with J.
Norwell Coquillard, President of Cargill Investments (China),
Inc. Ken Morrison of Renessen also spoke with us about
biotech developments and their focus on creating value-added
“output” traits for end-users. |
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We ended
the day with an authentic Chinese dinner sponsored by Cargill,
Inc.
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Shanghai skyline |
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Chairpersons: Norm Larson,
Bill Leigh, and Doug Childers |
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