Journal Staff and Associated Press Reports
Gov. C.L. “Buch” Otter led a delegation of Idaho business leaders to China in November 2016, building opportunities for exports.
(Photo Courtesy of The Governor’s Office.)
SEOUL, South Korea (AP) — Asian stock markets were mostly lower on Tuesday after disappointing U.S. car sales data contributed to a bleak day on Wall Street. Investors are cautiously awaiting President Donald Trump’s meeting with the Chinese president later this week.
Japan’s Nikkei 225 fell 0.6 percent to 18,866.99 as the yen gained against the U.S. dollar. South Korea’s Kospi slipped 0.1 percent to 2,164.38. Australia’s S&P/ASX 200 fell 0.2 percent to 5,860.30. Southeast Asian shares were mixed. Markets in Hong Kong and Shanghai were closed for public holidays.
Trump and Chinese President Xi, leaders of the world’s two largest economies, are expected to discuss North Korea, trade, U.S. jobs and other geopolitical and economic issues when they meet for the first time for a two-day bilateral meeting on Thursday and Friday. Trump’s past comments have raised concern over the potential for conflict, though some analysts see room for compromise and positive outcomes.
“We head into Tuesday trade with a distinct risk-off vibe, although the moves in equities are probably best described as a ‘drift,’ rather than a ‘spike’ lower,” Chris Weston, chief market strategist at IG, said in a commentary.
Late last year, a group of business leaders from Idaho travelled to China to forge trade relationships.
Following his recent trade mission to China, Governor C.L. “Butch” Otter reported positive preliminary feedback from participating Idaho companies and organizations.
“Our recent mission to China was one of the best we’ve had,” Otter said in a press statement. “The interest we received in Beijing, Shanghai and Guangzhou was a reflection of the great products and services we were promoting, along with the tremendous market potential that remains in China.”
Idaho’s exports to China totaled $560 million in 2015 – up more than 16 percent from 2014 and making China the second-largest export market for Idaho. Year-to-date exports to China for 2016 are up more than 18 percent.
The value of exports significantly contributes to Idaho industries and the state’s economy. Nearly 20 percent of all Idaho agricultural commodities are exported, for a total export value of more than $2 billion in 2015.
However, it can be difficult to seize foreign market opportunities. Governor-led trade missions are a proven tool to accelerate market access for Idaho companies.
“Personal relationships are an essential part of doing business in the Chinese market,” Governor Otter said. “We identified some excellent opportunities, and I look forward to seeing their future successes.”
Company participants had positive insights from the trip.
“Governor Otter and the Idaho Commerce Department were able to open doors for us we would not have been able to open on our own,” said Kirk Hansen, Founder and Chairman of the Board for Kyäni. “They helped arrange and participate in high level government meetings in Beijing and Shanghai that will open doors for current and future success in the China market.”
Kyäni is a nutritional drink and supplement company based in Idaho Falls. The wellness company exports a drink and supplements created with the wild Alaskan blueberry.
Other Idaho companies represented on the trip included Kingston Fresh, PakSense, RVEEPRO, the Idaho Potato Commission, the Idaho Wheat Commission and Catalyst, a division of Dynamite.
“While fresh Idaho potatoes are not currently permitted into China from the U.S., we need to continue to push for their acceptance, and we did that,” said Nick Proia, Vice President of Business Development, Kingston Fresh. “Our goals for gaining a deeper understanding of the market, engaging with potential importers, and evaluating opportunities for the products we currently export to other parts of the world were met. We are currently following up with each contact made, in excess of 20, and are finalizing plans to return for additional meetings in the near future.”
Chinese investment in the U.S. reached a record $15 billion in 2015 and could climb to $30 billion in 2016. About one-quarter of that investment is from state-owned companies.
