ROAD TO CHINA ENTREPRENEUR SEES GROWTH OPPORTUNITY FOLLOWING BEIJING'S WTO MEMBERSHIP.

Byline: Evan Pondel Staff Writer

ENCINO - Max Sun feels tingly these days, attempting to conceal his gushing enthusiasm about the World Trade Organization.

As the chairman of Celestial Based Communications in Encino, the 37- year-old Malaysian-born entrepreneur appears he's about to embark on an expedition to a prosperous land, especially now that China is a member of the WTO.

``Excited, yes, of course,'' said Sun, confidently leaning back in his leather arm chair.

For Sun, China's WTO membership doesn't necessarily provide any sort of immediate reward, yet psychologically it has made all the difference.

``It's an important step, but to really understand the implications you have to go to China, smell it and feel it,'' Sun said. Since 1997, Sun has been laying the foundation for an Internet service provider in China that acquires smaller companies to bolster its own infrastructure. And while the technology sector in the U.S. seems saturated like a bowl of soggy cereal, the market Sun's tapping in China is crackling with potential.

With offices in Shanghai and Beijing, Sun often finds himself jumping 16 hours ahead of his alarm clock at home in West Los Angeles. Though his eyes grow heavy in the afternoon, the flicker of his computer monitor reminds him it's nearly dawn in Asia.

``As soon as I go home from work out here (in Los Angeles), I'm looking at my clock, ready to start my day in China,'' he said.

A quick run or bike ride, and Sun is on his way to his office in the Valley. Sun said his life isn't excessively lavish, reminding himself of a time when he and his sister rented a flat in Beijing just to woo the social elite.

``That was an interesting time. We were trying to figure out a way to get in, a way to enter the business world in China,'' he said.

In Sun's conference room, several scrolls line the walls, with Chinese characters extending from the floor to the ceiling. Sun said the characters reflect the beauty of China's landscape during the Ch'ing dynasty.

``It shows the potential of what China could be, what is key to its destiny,'' he said.

For most Chinese businessmen, the WTO could once again unlock the country's potential.

And as Sun has already entered China's business arena, the former investment banker is relying on capitalism to deepen his footprint.

Last summer, CBcom began trading over the counter in the U.S., enticing Chinese companies to ink deals with the ISP because of the potentially lucrative investment. Sun said going public is a great asset when attracting new business in China because of the U.S. dollar's strength.

Among CBcom's more flattering features to foreign investment: its autonomy from the Chinese government.

Although censorship is still very much a part of China's political landscape, Sun said the country's telecommunications sector is no longer completely dominated by the government. With trade relations normalizing with the U.S., China decided to dismantle China Telecommunications, a government-run monopoly.

``That was a major step for all us, opening the door for the smaller telecommunications companies,'' Sun said.

Currently, Sun has around 400,000 subscribers in China, not nearly enough for his company to turn a profit. Sun projects that if he reaches 1 million subscriptions, he'll at least break even.

``In China things are just getting started, and there's very little doubt we'll be able reach a million,'' Sun said.

Despite its meager subscription base, the company continues to forge ahead in snapping up partnerships with Chinese companies.

A couple of weeks ago, CBcom announced that its strategic partner, Beijing Chinet Information Technology, entered a partnership with Shanghai Orient Data Broadcasting Co. Ltd.

Regardless of partnerships, though, opening China's trading doors wider than ever may pose stiffer competition for CBcom as other companies attempt to tap Asian markets.

``With the WTO, there's definitely more competition, at least for our company,'' said S.R. Nair, president of Thousand Oaks-based International Technologies Network Inc. ``Obviously, there are also positives, such as giving more recognition to China, bringing about more education, but the competition for businesses still increases.''

Nair, who has been traveling to Asia for a couple of decades, sells circuit boards. While Nair and Sun don't pose direct competition for each other, it's the mass migration of U.S. companies to China that threatens some industries.

Even so, the country has a voracious appetite for U.S. products. China is now more flexible in terms of opening up markets that have been virtually inert due to economic barriers.

Roosevelt Roby, chief executive officer of The World Business Exchange Network, said companies like CBcom need to take advantage of China's emerging markets.

``This company (CBcom) is in an excellent position,'' Roby said. ``And if you can be a service provider in China then you are already doing great stuff.''

Roby's Los Angeles-based company trains entrepreneurs about forming business relationship with China. He said ever since China's WTO membership, his business has become progressively more busy.

``These people want to buy everything we have here in America, and we give them an opportunity to deal with home-based entrepreneurs,'' Roby said.

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Photo:

(color) Max Sun, chairman of Celestial Based Communications, stands in the conference room of his Encino office, where hanging Chinese scrolls illustrate his Internet service provider company's connections to the People's Republic.

Gus Ruelas/Staff Photographer