China and Los Angeles County: Growing Together

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Marcus Mosley
5 years ago
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Ferdinando Nando Guerra International Economist,

1 China and Los Angeles County: Growing Together LAEDC International Trade Outlook June 5, 2014 Ferdinando Nando Guerra International Economist, Los Angeles County Economic Development Corporation (LAEDC)

2 China & Los Angeles County Overview of the Report Key Findings Executive Summary Introduction Historical Ties Personal Ties The Chinese Economy Trade Ties Investment Ties Business Ties The Future of the Relationship Conclusions

3 China and the U.S. No Other Relationship Will Be As Critical as the American-Sino Relationship in the 21 st Century -- President Barack Obama

4 China and Los Angeles County Los Angeles is the Epicenter of the U.S.-China Relationship -- President Xi Jinping

5 Key Economic Findings Investment from China has doubled in the last 5 years Tourism has nearly quadrupled over the past 4 years LACD handles nearly 45% of trade between China-U.S. China accounts for nearly 60% of all activity at the ports LACD Exports have increased by over 50% since 2009

6 Los Angeles County Largest Chinese Population Largest Number of Chinese Students Largest Number of Chinese Companies Largest Recipient of Chinese Tourists Largest Recipient of Chinese Investment

7 Chinese Investment into the U.S., CA and L.A. Area Investment into the U.S. was $14 billion in 2013 Private Chinese companies are leading the way Accounted for more than 70,000 full-time jobs California has attracted about 1/3 of U.S. investment L.A. Metro Area is the top destination in California Source: Rhodium Group

8 Chinese Investment into L.A. County Investment has increased from 127 establishments to 254 in the past 5 years China is now approaching the top 5 ranking Over 40 cities have received investment Largest investment includes the Greenland Group s $1 billion property development near L.A. Live The Metropolis Project Upwards of $36 billion at stake for the L.A. Metro Area by 2020 Source: LAEDC Database, Chinese Enterprise Council and Rhodium Group

40 35 2013 LACD Top 10 Export Destinations Billions of $ $35.4 30 25 20 15 10 5 $15.2 $11.1 $7.8 $7.

9 LACD Top 10 Export Destinations Billions of $ $ $15.2 $11.1 $7.8 $7.1 $5.1 $4.2 $3.0 $2.9 $2.5 0 *China includes the Mainland, Hong Kong and Macau Source: USA Trade Online

40 35 30 25 20 15 10 5 Billions of $ 14.1 16.

10 Billions of $ LACD Exports to China* ( ) *Includes the Mainland, Hong Kong and Macau Source: USA Trade Online, US Department of Commerce

11 Top 5 L.A. Metro Area Exports to China 1. Computers and Electronics (Precision Instruments and Semiconductors) 2. Transportation Equipment (Aircraft Products and Parts) 3. Chemicals (Pharma/Medicine) 4. Royalties (Motion Pictures) 5. Tourism Source: Brookings Institution

12 Chinese Tourists and Spending Number of Visitors (000's) Spending (Millions of $) 800 est Source: LA Tourism and Convention Board

13 18,000 16,000 14,000 China s Real GDP Growth Average Annual Growth Rate: 10% Billions of CNY/RMB in 1990 Prices After Joining the WTO 12,000 10,000 8,000 6,000 4,000 2, Source: International Monetary Fund (IMF)

14 China and the Global Economy Largest Trading Nation in the world Largest Exporter in the world The 1st or 2nd largest trading partner of roughly 80 countries, which account for nearly 60% of global GDP China s share of global GDP has increased from 8% to 15% in just the past decade Source: International Monetary Fund (IMF) and Financial Times

16.0 14.0 12.0 10.0 Percentage 10.0 10.1 11.3 China Real GDP Growth (2003-2018) 12.7 14.2 9.6 9.2 10.4 9.

15 Percentage China Real GDP Growth ( ) Forecast Source: IMF World Economic Outlook, April 2014

16 China s 12 th 5-Year Plan ( ) Key Objectives Western Regions Environment Energy Efficiency Domestic Consumption Reduce Inequality Scientific Development Source: KPMG

17 The Future of the Chinese Economy Third Plenum of the Central Committee Economic Free Trade Zone of Shanghai Increased Open Markets Financial Reforms Consumer Spending Income Growth not GDP Growth

18 The Future of the China-L.A. County Relationship Key Sectors Clean Tech, Entertainment, Aerospace, E-Commerce, Real Estate/Property Development, Tourism, Logistics, and Electronics Key Challenges Key Opportunities Recommendations Personal Ties, Investment, Trade, Tourism, etc. THE BEST DAYS ARE AHEAD!!

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