Governor Nixon signs trade agreement in Hebei Province
JEFFERSON CITY - This morning Governor Nixon signed a two part trade agreement with Missouri's sister province of China. The first part is a $100 million deal to increase Missouri exports to the Hebei Province, over the course of three years. The second part, is a $100 million deal for Chinese businesses to invest in Missouri.
Currently China imports about $986,685,131 worth from Missouri. This makes China the third largest buyer of Missouri goods, after Canada and Mexico, respectively. Mexico buys about $1.3 million and Canada buys almost $4 billion in goods from Missouri, yearly. Click here to see the report from the Missouri Research and Information Center with more facts.
With this new trade agreement, Missouri exports to Hebei will increase by a little more than $33 million each year, until 2014. That means, China will be closer to importing as many goods from Missouri as Mexico does, but not quite there.
Two St. Louis companies signed agreements with customers in Hebei. Yie-Hwa Chang is the founder of Mediomics, a biomedical research firm. He said he was " invited to travel to Hebei with Governor Jay Nixon to sign a preliminary letter of intent to hopefully lay foundations for a possible future collaboration with a biotechnology company in China.
Arcturis, an architectural design firm did talk to KOMU, but business officials were unsure of the nature of the agreement signed this morning. This is due to communication and time difference difficulties between Missouri and China.
However, when this new trade agreement, is coupled with the trade deal Nixon made October 24th China may well become the second biggest buyer of Missouri goods, replacing Mexico. The agreement was made between the China Council for the Promotion of International Trade and the Missouri Department of Economic Development. This agreement will increase the amount China buys from Missouri by approximately 50%.