Seminar extols virtues of China Hub
St. Louis Globe-Democrat
February 18, 2010
by Steve Birmingham
Mike Jones, senior policy advisor to St. Louis County Executive Charlie A. Dooley and chairman of the Midwest China Hub Commission (MCHC), said there was no reason to come to St. Louis in the 19th Century.
Until the Eads Bridge was built in 1874 and opened commerce to the eastern half of the United States with Missouri and beyond. And the same holds true for increasing commerce between China and St. Louis, he said.
Implementing a China Hub, or the "Big Idea," a phrase coined by the Chinese, for import and export between the two countries will only happen when St. Louis establishes itself as an air hub for the transfer of goods.
A seminar Wednesday on the "Big Idea" drew business leaders from across the region to St. Louis University's School of Business and Economics to hear some of the players extol the virtues of the China Hub effort.
The MCHC's aim is to turn the Midwest in general, and St. Louis in particular, into China's primary gateway to the Midwest through "dedicated cargo flights" connecting St. Louis, China and Shanghai.
Among its members are Richard Fleming, CEO of the St. Louis Regional Chamber and Growth Association (RCGA), Daniel Mehan, president of the Missouri Chamber of Commerce and Industry, and St. Louis County Economic Council CEO Denny Coleman.
Jones said the "Big Idea" began in 2007 when developer Paul McKee was trying to find a way to develop the NorthPark industrial area near Lambert St. Louis International Airport. That effort eventually evolved into a trade missions to China led by Sens. Christopher "Kit" Bond and a Claire McCaskill.
Many trade missions later, the MCHC's goal is to establish the Big Idea by late 2010 with cargo flights to and from the Far East.
"The MCHC is a broad-based coalition made up of political, civic and business interest and the best description I have heard for the commission is it represents this communities' collective political will to get this idea executed," Jones said. "And in my 25 to 30 years of public work in the St. Louis area I have never been involved in an effort that had this broad of support and this much enthusiastic support by so many critical players of the St. Louis regional community."
Steven S. Johnson, senior vice-president of Economic Development for the St. Louis Regional Chamber of Commerce & Growth Association, called the St. Louis area "a market to big to ignore" for trade with China.
He also said over the years that St. Louis business leaders and politicians have been able to "achieve access to the highest levels of China's government" and that the Chinese leaders have been very receptive to the "Big Idea."
"St. Louis offers China the opportunity to be the 'first in,' an opportunity to strategically dominate a market," he said.
According to Johnson, China wants to buy more U.S. goods, plans to raise the value of its exports, is building a U.S. financial services base and may move the air freight share of U.S.-China trade to Chinese air freight companies.
He added that currently 80 percent of the international air freight that goes between China and the U.S. is carried by non-Chinese carriers.
"There will come a point in time when they say 'thanks, we'll take it from here' and put a lot of that freight on Chinese carriers," Johnson said. "It's now our turn now to say here are some recommendations from our side that we think can help you make those objectives."
In previous recent visits to St. Louis, Bond has said the Chinese "are all for this (China Hub). It has the full support of the Chinese National People's Congress. The CAAC, the Chinese equivalent to our Federal Aviation Administration, says it will be on its preferential list. The only question is whether it's commercially viable. All the parties are looking at the fourth quarter of this year as a start date."
Bond has also said the China Hub's impact on the St. Louis region will be significant.
"In the short term there will be a lot more construction at Lambert-St. Louis International Airport," Bond said. "Immediately there will be more jobs, transportation, distribution and freight handling. I hope at the same time we will see more export opportunities. I know several St. Louis area businesses now export and they're looking to use more readily available air transport for their products. I hope more businesses will be involved."
Bond added the export of locally and Midwest grown agricultural products is also high on the China Hub's list.
