Paving your members' way to the Pacific.

The economies represented by the Chinese Economic Area and the Association of Southeast Asian Nations are on the select list of the most lucrative markets anticipated for U.S. exports during the next two decades. Here's how to help your members gain access.

Guanxi may not get you everywhere, but it will pry open doors in China. Chinese for "carefully cultivated connections or relationships, "guanxi refers to one of the multitude of cultural norms that U.S. association executives must master to help their members do business in China. Learning the culture of one of the most enormous markets in the world today can be worth the time at study. China, Hong Kong, and Taiwan make up the Chinese Economic Area (CEA), the biggest of the 10 "Big Emerging Markets" designated by the U.S. Department of Commerce. BEMs are the geographic areas believed to hold the greatest potential for dramatic increases in U.S. exports during the next two decades.

According to the Commerce Department's BEM Internet home page, the CEA is the world's seventh-largest economy, with a combined gross national product (GNP) of $809.8 billion, and is the fourth-largest export market for the United States. Exports to China alone have risen dramatically in recent years [ILLUSTRATION FOR CHART OMITTED]. Developing infrastructure is a top priority in the CEA. Big emerging sectors there include energy, transportation, aerospace, information technology, metallurgy, factory renovations, environmental technology, and consumer goods.

Not far from the Chinese Economic Area is another BEM: the group of countries that make up the Association of Southeast Asian Nations - Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. ASEAN is currently the third-largest overseas market for U.S. products. U.S. exports to this region grew from approximately $20 billion in 1991 to approximately $31 billion in 1994 (not including exports to Vietnam). ASEAN is one of the fastest-growing and most lucrative economic areas in the world (see table, "ASEAN Economy at a Glance"). Commerce projects that by 2010 the ASEAN market will have a population of more than 685 million and a combined gross domestic product (GDP) of more than $1.1 trillion. The big emerging sectors are energy, environmental technology, health care technology, transportation, information technology, and aerospace.

Associations assisting with access. Beyond the big emerging sectors identified by Commerce are many other product and service areas that are developing at a good pace in the Chinese Economic Area and the ASEAN countries. There is hardly an American industry that isn't looking toward this region, which signals the need for involvement by U.S. trade associations. The Washington, D.C.-based Health Industry Manufacturers Association, for example, opened an office in Bangkok, Thailand, in 1994, after research revealed that U.S. exports of medical technology were not keeping up with the growing demand in Asian markets. A case study in Kimberly A. Svevo-Cianci's book Associations and the Global Marketplace, published by ASAE last year, describes how HIMA determined that the best way to assist its industry in taking advantage of opportunities in Asia was to establish [TABULAR DATA OMITTED] a presence in the area.

Many professional associations, too, are finding that the services performed by their members - and by their staff - are in demand in the Asia-Pacific region.

The role of government. The late Commerce Secretary Ron Brown was a true defendant of "commercial diplomacy," breaking down old barriers to government-business partnerships and promoting business interests overseas, particularly in Asia. It appears that the Commerce Department, under the direction of new Secretary Mickey Kantor, will continue the strong export-promotion strategy advanced by Brown. However, one cannot ignore the tensions that continue in relations between the United States and China - disagreement concerning Taiwan's status and concerning copyright protection of U.S. intellectual property in China, to name only two. Associations must stay on top of the dynamic current events in this area and U.S. trade policies. Up-to-date reports on the political, economic, and business climate of various countries and on U.S. policies are available from the Commerce Department, private membership organizations, and consultants (see "Resources" box).

Beyond guanxi

The resources noted in this article, as well as your public library, can provide you with a range of information about the cultural do's and don'ts of various countries. In addition to the concept of relationships, which applies throughout Asia, three cultural norms are worth highlighting.

Commitment. You need to think long term in the Asia-Pacific region as a whole - particularly in the case of China and in developing nations like Vietnam. Investing not only money but time will demonstrate a commitment to establishing and maintaining relationships.

Form versus substance. The way in which you conduct business is as important as the substance of the business itself. What Americans may consider niceties, such as presenting a gift to a Chinese businessperson upon introduction, the Chinese consider necessities to doing business.

Face. In the CEA and ASEAN countries, the concept of "face" cannot be overstated. In rudimentary terms, "face" is a person's dignity. You cannot make someone "lose face" - look bad to his or her peers, boss, employees, or you - even if that person has done something that is incorrect or that displeases you. You must address the matter without creating a win-lose situation. (Losing your temper, by the way, makes you "lose face.")

Your association can be of enormous help to Asia-Pacific-bound members even if you never set foot on foreign soil. If the "only" thing you do is serve as a clearinghouse for all the different types of information that your members need for their business research, you'll have gone a long way toward helping them succeed.

RELATED ARTICLE: Resources

U.S. Department of Commerce. Commerce tops the list of excellent sources of information about international trade. However, because of the recent turmoil at Commerce owing to severe budget cuts and the death of Secretary Ron Brown, the department has reduced services, especially over-the-phone delivery of information. The best way to quickly obtain data collected by Commerce is to access the National Trade Data Bank, which includes comprehensive reports about countries around the world. Access the data bank by visiting any federal depository library (found at most major universities). To find the library closest to you, call (800) USA-TRADE.

U.S. Chamber of Commerce. The chamber can provide contact information for the American Chambers of Commerce found in China and most ASEA countries. Contact the U.S. Chamber of Commerce International Division, Asian Affairs: [phone].

Business and trade councils. Following is a list of bilateral and multilateral country councils, which can be valuable sources of information:

* US-ASEAN Council: [phone]

* US-Vietnam Trade Council: [phone]

* US-China Business Council: [phone]

* USA-ROC (Taiwan) Economic Council: (202) 3318966

* Pacific Basin Economic Council (PBEC) - US Member Committee: [phone]

* Pacific Economic Cooperation Council (PECC) - US National Committee: [phone]

Two additional resources on Hong Kong and China:

* Hong Kong Economic and Trade Office: (202) 3318940

* Hong Kong Trade Development Council: (212) 8388688

ASAE International Section. This section publishes the International Section Peer Networking and Resource Directory, which includes many sources of assistance with international trade. Listed in the directory is the only SAE in an ASEAN country: the Philippines Society of Association Executives. Phone and fax: [phone].

For more information about the International Section, contact Carolyn Lugbill at [phone] or via e-mail: [e-mail].

Web sites. For the Internet-savvy, the Web holds a host of information concerning international trade. Try these destinations.

* ASEAN Information Superhighway Home Page, http://www.gil.com.au/[integral of]bchana/asean.html

* Asia, Inc. Online Home Page, http://www.asia-inc.com

* Asia/Pacific Home Page, http://www.ita.doc.gov/region/asia/pacific

* Big Emerging Markets Home Page, http://www.stat-usa.gov/itabems.html

* PBEC - U.S. Member committee' Home Page, http://www.econstrat.com/econstrat/pbec.htm

* Trade Compass Home Page, http://www.tradecompass.com

Karen Kullgren Juh is a cross-cultural communication consultant and writer, currently based in Tianjin, China. Juh served as deputy director general of the U.S. Member Committee of the Pacific Basin Economic Council, Washington, D.C., from 1995 to 1996, and as vice president, U.S.-China Business Council, Washington, D.C., from 1992 to 1995.