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Ports, shippers, even students part of China-U.S. Trade.


Trade with China is booming, spurting growth for a broad spectrum of businesses throughout Los Angeles - ports, shipping lines, financiers and importers and exporters of Chinese goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. .

Some of the players are not even commercial enterprises, such as local universities. Many Southern California colleges attract Chinese students, who pay for educational services - a form of trade - and later start up businesses. And many of those businesses establish ties back to China.

Perhaps the most visible participant is the Port of Long Beach, which handles 32.8 percent of all trade between the two nations (based on dollar value), more than any other U.S. port, according to Global Trade Information Inc.

A close second to Long Beach is the Port of Los Angeles The Port of Los Angeles is located on San Pedro Bay in the San Pedro neighborhood of Los Angeles, approximately 20 miles (30 km) south of downtown. Also called Los Angeles Harbor and WORLDPORT LA , owned and operated by the city of Los Angeles
For the city, see Los Angeles, California.
The City of Los Angeles was a streamlined passenger train jointly operated by the Chicago and North Western Railway and the Union Pacific Railroad.
. It handles 31.5 percent of trade between China and the United States (meaning that nearly two-thirds of all goods moving between China and the United States come through local ports).

(The figures do not include air freight, but the vast majority of trade between China and the United States is by sea, said trade experts.)

Big shipping lines steaming between China and the United States are, of course, huge players in the process. They include Singapore-based APL (A Programming Language) A high-level mathematical programming language noted for its brevity and matrix generation capabilities. Developed by Kenneth Iverson in the mid-1960s, it runs on micros to mainframes and is often used to develop mathematical models.  Ltd., Taiwanese giant Evergreen Line and Japan-based NYK NYK New York Knicks
NYK Nippon Yusen Kaisha (shipping company)
NYK Not Yet Known
 Line, said Barbara Yamamoto, Port of L.A. spokeswoman.

There is one way in which China-U.S. trade is vastly different from commerce within the United States - all goods crossing the U.S. border must get a green light from the U.S. Customs Service. Customs has its Southern California headquarters at the Port of Los Angeles. The agency also keeps officers at the Long Beach port, Los Angeles International Airport “LAX” redirects here. For other uses, see LAX (disambiguation).

“KLAX” redirects here. For other uses, see KLAX (disambiguation).

Los Angeles International Airport (IATA: LAX, ICAO: KLAX, FAA LID: LAX
, Port Hueneme, and Las Vegas Airport.

In all, customs employs 800 officers at the five ports of entry. It is the job of customs to collect tariffs where appropriate, and make sure countries are not exceeding their trade quotas, said Ed Webb, customs director of compliance, in charge of the Port of Los Angeles and Long Beach.

"There are 600 laws which apply to imports, and it is our task to make sure imports are in compliance with applicable laws and regulations," said Webb.

His office also checks exports, usually to make sure shipments comply with laws that restrict the transfer of high technology to certain nations. It is illegal to export some technologies to China, including those that have military applications.

In the event the U.S. cracked down on imports from China for violations of U.S. copyright laws, or for human rights violations, it would be customs that would halt or impound impound v. 1) to collect funds, in addition to installment payments, from a person who owes a debt secured by property, and place them in a special account to pay property taxes and insurance when due.  goods at the port of entry, said Webb.

On the American side, one major importer of Chinese goods - buying everything from hammers and pliers pliers,
n a tool of pincer design with jaws of varying shapes; used for holding, bending, stretching, contouring, and cutting.

pliers, contouring,
n
, to bath mats and plastic pails - is Los Angeles-based Concord Enterprises Inc., which maintains a Web site replete with a 200-page catalog of imported goods, primarily from China.

The company, which employs more than 50 people, is a wholesale supplier to discount stores, drugstore chains, closeout stores, and other retailers looking for relatively inexpensive goods.

One of the more prominent importers of Chinese products is El Segundo-based Mattel Inc., the house that Barbie built. Many Barbie dolls are made in China, although Mattel is tight-lipped tight·lipped also tight-lipped  
adj.
1. Having the lips pressed together.

2. Loath to speak; close-mouthed. See Synonyms at silent.
 about actual production levels. Mattel has been embarrassed by press reports that described very low pay and harsh on-site living conditions at Barbie-doll plants in China. The company has issued press releases stating that the problems have been cleaned up.

Another large importer is Megatoys Inc., near downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or , which brings in about $30 million worth of toys a year from China. "I came here 19 years ago, to get my Ph.D in physics from UCLA UCLA University of California at Los Angeles
UCLA University Center for Learning Assistance (Illinois State University)
UCLA University of Carrollton, TX and Lower Addison, TX
," said Megatoys' owner Charles Woo. But family exigencies required him to seek income, and he wanted to avoid going into traditional immigrant activities of retailing or restaurants.

"Importing is something you can do that is not 24 hours a day," he said.

Woo's story is repeated hundreds of times over, if not always on such a grand scale. "An often unrecognized, but very important part of U.S.-China trade is the large number of Chinese students that are here, at USC An abbreviation for U.S. Code. , at UCLA and at many other schools here," said Richard Drobnick, USC trade expert and professor at the Marshall School of Business The Marshall School of Business (also known as USC Marshall School of Business) is the business school at the University of Southern California. It is the largest of USC's 17 professional schools. The current Dean is James G. Ellis. . "Not only do they pay tuition, rent housing, buy clothes and food, they often stay here and start businesses, and act as links back to the mother country."

At USC alone, there are more than 1,000 students who either come directly from China or are ethnic Chinese from other Far East nations, and who are candidates to try their hand at importing or exporting goods and services in the future.

The lifeblood of importers is financing, as accepting receivables from overseas - and the risk of non-payment - is often great.

Woo goes to San Marino-based East-West Bank, but other banks such as Cathay Bancorp in downtown L.A.'s Chinatown district and GBC GBC Game Boy Color
GBC Global Business Coalition
GBC Green Building Council
GBC George Brown College
GBC Great Basin College (Nevada)
GBC General Binding Corporation
GBC Greater Baltimore Committee
GBC Goldey-Beacom College
 Bancorp in downtown are also very active in China-U.S. trade.

The Trade Bank is joint venture between San Francisco-based Wells Fargo Bank and Hong Kong Shanghai Bank, one of the world's largest banking groups. Downtown Los Angeles-based Sanwa Bank California also maintains a 75-employee office geared to Pacific Rim trade, according to Keith Karpe, Sanwa spokesman.

While hard figures are not at hand, William Snyder, vice president of international finance at Sanwa, said the bank's volume of business with Chinese importers and exporters has been growing rapidly.
COPYRIGHT 1998 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Title Annotation:L.A.'s China Connection
Author:Cole, Benjamin Mark
Publication:Los Angeles Business Journal
Date:Feb 23, 1998
Words:938
Previous Article:City of L.A. looks to tighten standards on contractors.
Next Article:L.A., Long Beach lining up to woo Cosco to ports. (China Ocean Shipping Co.)(L.A.'s China Connection)
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