Gov. Schwarzenegger Witnesses MOUs Increasing Shanghai, California Business Collaboration

Press Release

Governor Arnold Schwarzenegger today participated in a one-on-one conversation with Bay Area Council President and Chief Executive Officer Jim Wunderman at the Century of the Pacific Breakfast hosted by the American Chamber of Commerce in Shanghai and the Bay Area Council. Afterwards he witnessed the signing of four Memorandums of Understanding (MOUs) to increase collaboration among Chinese and California businesses, reduce greenhouse gas emissions and spur venture capital and investment growth. Spearheaded by the Bay Area Council, these agreements will play an integral role in increasing California's presence in China, specifically Shanghai -- increasing bilateral investment as well as California's access to Chinese markets. All of which will help create jobs for Californians and increase revenues for the state.

"These MOUs signal doors opening to a dynamic cross-Pacific collaboration between Shanghai and California. Thanks to the great work of the Bay Area Council, California companies will soon be working closer with Chinese companies and new frontiers in technology exchange and venture capital investment will be realized," said Governor Schwarzenegger. "Because of these forward-thinking agreements, more California companies will sell their products and services to China for the first time -- increasing export and job opportunities for California."

The Bay Area Council signed an MOU with the Private Equity Association of Shanghai to cultivate Shanghai's venture capital market. As a leader in new business formation, technology and finance, as well as having well-developed transportation, communication and educational systems, Shanghai has all the raw ingredients to build a thriving venture capital market. This MOU enables members of the Council to share their experience and expertise in venture capital as Shanghai enters into a new economic era. Cultivating a venture capital market doesn't just help small businesses grow; it allows good ideas to become reality and new innovations and technology to take hold.

"Our companies on this mission, whose combined revenue is more than $179 billion a year, and our Chinese partners share a strong interest in building an innovation economy in China, and generating big trade between California and China," said Jim Wunderman, President and CEO of the Bay Area Council. "That is why we are here. Our vision is to build what we call a Century of the Pacific, where global trade is dominated by China and California. It is a difficult mission, but days like today help quite a bit."

The US-China Cultural Association and the China-Shanghai International Business Partnership Organization also signed an MOU to build channels for U.S. and Chinese business deals to flow, especially in tourism, wine and agriculture. Increasing understanding between cultures is vital to increasing collaboration and improving communication between China and the United States.

Cradle to Cradle Green Products Innovation Institute, a non-profit organization based in California, and Shanghai Yangpu District Government signed an MOU to work together to promote an innovation-oriented model for eliminating toxic chemicals and other negative environmental impacts in products. This agreement will help improve the safety of products and the health of people.

The Shanghai Environment & Energy Exchange, a Chinese entity backed by the Shanghai Municipal Government, and Pacific Carbon Exchange, headquartered in the Bay Area also signed an MOU. The agreement establishes a business relationship that will promote China/U.S. technology partnerships in green technologies and environmental markets with the goal of mitigating climate change. The two parties will share information to ultimately create a bilateral market for Certified Emissions Reductions between the U.S. and China markets, as well as globally.

China is the second largest economy in the world and is California's fourth largest trading partner. Shanghai in particular is an important economic and financial center. It is the most populous city in the People's Republic of China and is a major gateway to China from the Western coast of the Pacific. Shanghai's $218 billion economy makes it a critical hub for multi-national corporations, and as China's major commercial and financial center, is rapidly becoming a center of the global innovation economy -- making strengthening ties with the Shanghai government and businesses particularly important to California's economy. The MOUs signed today represent a vital roadmap to continued collaboration with China.

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