Home Back Issues April 2010 Exporters follow the money to China

Exporters follow the money to China

| Print |  Email
Articles - April 2010
Thursday, March 25, 2010
china
ILLUSTRATION BY MARTIN GEE

Oregon is the ninth-most trade dependent state in the country, so it took a significant hit when exports plummeted by 23% statewide in 2009.

But not all exports have suffered equally. While European markets have struggled with the Greek debt crisis of late, Asian economies have bounced back powerfully. That’s good news for Oregon because five of the state’s top six export markets are Asian nations.

The opportunity is richest in China, which shot past Japan and Canada last year to become Oregon’s most important trading partner. Exports from Oregon to China grew by 20% in 2009 while shrinking by 32% to Canada.

All of this has happened in spite of China’s notoriously undervalued currency, to the benefit of Nike, Intel and Schnitzer Steel, to name a few. Specialty manufacturers such as TriQuint Semiconductor of Hillsboro, which builds chips for handheld devices including the iPhone, have also targeted China with success. TriQuint saw its sales in China leap from $137 million in 2008 to $225.5 million in 2009.

With gains like that it’s not surprising that state officials recently traveled to Washington, D.C., to support the Obama Administration’s initiative to increase financing for small- and medium-sized exporters. Obama hopes to double exports and has singled out China as the market with the most potential. Policy-makers are also weighing how best to convince China to boost its currency to lessen the trade imbalance between China and the West.

Meanwhile, the rise of China as a global consumer as well as producer has compelled Northwest timber companies to boost exports of raw logs to China in unprecedented volumes. The Port of Astoria is negotiating a lease with Westerlund Log Handlers to develop a log exporting operation on the waterfront focusing on the Chinese market.

But while exporting raw logs to China may be a growing business, it creates few jobs in Oregon when compared to milling logs into lumber and then shipping them. In addition, many of the state’s top exporters have shifted manufacturing to China to capitalize on cheap labor. Oregon has lost about 60,000 manufacturing jobs over the past decade. An initiative to boost exports to China won’t necessarily bring those jobs back, but it may create different ones.

BEN JACKLET
 

More Articles

South Waterfront's revenge

News
Thursday, July 24, 2014
MoodyAveBY LINDA BAKER | OB EDITOR

Remember the naysayers?  Those who called the South Waterfront aerial tram a boondoggle?  Those who rejoiced at the massive sell off of luxury condos at the John Ross and Atwater Place?


Read more...

Community colleges and sustainability

Contributed Blogs
Thursday, July 31, 2014
sustainabilityBY MARY SPILDE | OB GUEST CONTRIBUTOR

Faced with the aftermath of the “great recession,” increasing concern about the environment and dwindling family wage jobs, we have some very important choices to make about our future.


Read more...

Why I became an Oregon angel investor

Guest Blog
Monday, July 14, 2014
AngelInvestBY TERRY "STARBUCKER" ST. MARIE

I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.


Read more...

A Taste of Heaven

September 2014
Tuesday, August 26, 2014
BY VIVIAN MCINERNY

Craft beer comes to Mount Angel.


Read more...

Tight and Loose

September 2014
Wednesday, August 27, 2014
BY JENNIFER MARGULIS

As schools implement more rigorous academic standards, holistic and flexible approaches to K-12 education flourish.


Read more...

Two sides of the coin

Contributed Blogs
Monday, August 25, 2014
0825 thumb moneyBY JASON NORRIS | OB GUEST BLOGGER

Ferguson Wellman’s investment views on the economy and capital markets.


Read more...

Report Card

September 2014
Tuesday, August 26, 2014

Strong public schools shore up the economy, survey respondents say. But local schools demonstrate lackluster performance.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS