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 BEIJING, Nanjing, China, March 18 /PRNewswire/ -- A private 40- minute audience with Vice Premier Zhu Rongji on Feb. 17 in the Great Hall of the People in Beijing, set the stage for the People's Republic of China's Minister of Textile Industry, Madame Wu Wenying, and Ilene R. Moses, a U.S. citizen, to announce a series of precedent-setting agreements. The stated intention of the agreements is to bring China's textile, apparel and related industries in Jiangsu Province to the highest level of international standards of competitiveness and quality over the next five years. These agreements were signed the following day, Feb. 18, at a signing ceremony and press briefing in Beijing, in the Ministry of Textile Building, covered by China's national television.
 During the audience in the Great Hall of the People, Zhu assured Moses and her team of international specialists, "China was open and committed to socialist market reform." He confirmed to Moses his support and that of Wu for projects, not only in Jiangsu Province but for the whole oChina.
 At the press briefing on Feb. 19, Wu said, "The joint ventures will not only upgrade the production and management of China's textile enterprises but will also help these enterprises to compete in the international market."
 Previously, two precedent-setting joint venture contracts had been signed in Nanjing, the capital of China's textile heartland in Jiangsu Province. The province's vice governor, Yang Xiaotang, presided at this ceremony, which was covered by local TV, and told the audience, "This is a significant day for Jiangsu and for China." The vice governor said that the province would give a portion of its stock ownership in Su Hong and Su Lei to the Ministry of Textile Industry. It is the intention of all parties that Su Hong and Su Lei prepare for listing as public companies on the Stock Exchange in China in the near future.
 These two joint ventures, Su Hong and Su Lei, represent a landmark commitment toward reform for China and its textile industry. It is the first time that a Chinese province has pledged to put cash in joint ventures with foreigners -- Americans -- for investment not only in China, but specifically in the United States and thereafter worldwide.
 It is a unique gesture and honor that the Chinese have given Moses, since in essence, it is the mandate to establish China's international standards. These agreements also grant a Westerner the exclusive right to become the marketing arm for the PRC's major textile province. With the modernization and revitalization afforded by these contracts, China's textile and apparel industry in Jiangsu Province (pop. 70,000,000) will be on the cutting edge of global competition.
 The two Western contracting parties for Su Hong and Su Lei are Cherry Pickers Ltd. and Belvoir Ltd., a U.S.-based company. These companies will be entrusted with the reformation of selected state-owned enterprises by establishing international standards for the factories, implementing quality control and achieving production efficiency oriented toward "market economy."
 The four state-owned enterprises chosen by the ministry and province will be developed as a "Group of Model Factories" for Jiangsu Province and China. At the invitation of Wu, these factories will operate under Western Management and control, while training their Chinese counterparts for eventual succession. These agreements will result in a substantial number of selected Chinese specialist and managers being trained in the United States by Belvoir and in Europe and Asia by Cherry Pickers.
 This group of model factories and Su Hong/Su Lei will operate with an international advisory board of which Wu will be the honorary chairman, and Moses the chairman. Other board members will be Ji Jun, the director of International Corporation for Textile Ministry; Lin Qing Sheng, the director of the Jiangsu Province Textile Industry Bureau; Michael B. Berlin, vice chairman of Cherry Pickers Ltd. and Robert J. Matura, chairman of Belvoir Ltd. Other outstanding Chinese, American and Western business and political individuals will be invited to serve on the board.
 Cherry Pickers Limited negotiated the Su Hong agreement with the ministry and province and is an international textile and apparel management company. Cherry Pickers provides market research, product development and design, factory operations and systems management, global sales and marketing (excluding North America), and a broad array of investment funds services designed to reform factories or provide growth financing. Moses is chairman.
 Belvoir Ltd., a U.S.-based company, negotiated the Su Lei agreement, and will act as the marketing arm for Jiangsu Province in North America. They will also provide research and design, and training functions for Chinese specialists and managers to meet international standards. Matura is chairman.
 The scope of agreements with Jiangsu Province (Su Hong/Su Lei) is not merely limited to the textile industry, since another significant aspect of this union is China's commitment to make reciprocal investments in the United States and other Western countries in all areas of the industry including retail, commercial and real estate.
 The American partners intend to employ an integrated approach to bring China and the world markets closer together. The partnership aims to open China to international research, design, technology and the proper exchange of intellectual property rights. A major focus for the American partners is to establish world class trademarks and trade names for international consumer recognitions. Training and management information systems, along with direct marketing, will enable China to become a full global partner.
 The need for China to retain "value added" on their products, particularly in the dyeing and finishing process, caused Wu to hand-pick the first group of factories to be in this model group. Three factories in Yangzhou and the Suzhou silk print factory were the first to sign agreements in Beijing. Five other state-owned factories plus new factories in Special Economic Zones, including a micro-fiber plant, and real estate development are currently under negotiations. The monetary investment, as quoted by Ji Jun, director of Textile Ministry's Department of International Cooperation, in the China Daily in January 1993, will be in the range of $314,000,000 USD, excluding real estate.
 Commenting on the new ventures, Lin Qing Sheng, director of the Jiangsu Textile Bureau, said, "The professional assistance of our American friends will enhance the 'value added' of the products made by our Chinese craftsmen and support our desire to participate in the international community. This joint effort will result in improving the quality of life for our workers."
 Lin will lead a five-member Chinese delegation on a two-week visit to the United States from March 14-28. This delegation, under the auspices of Wu and Jiangsu Vice Governor Yang, will review the American market and explore investment opportunities in the United States, in the textile, retail-related industries and real estate development.
 This precedent-setting Chinese/American partnership, endorsed by Vice Premier Zhu, Minister Wu and Jiangsu's Vice Governor Yang, demonstrates China's commitment to socialist market reform and establishes a new dimension and urgency for China to emerge as a major force in the global textile industry before the 21st century.
 -0- 3/18/93
 /EDITOR'S NOTE: Photography of the meeting between Vice Premier Zhu Rongji, Minister Madame Wu Wenying and Ilene Moses is available upon request/
 /CONTACT: R.J. Matura, chairman and CEO, Belvoir Ltd., 203-329-2405; or Michael Berlin, Cherry Pickers Ltd., 310-576-1222/

CO: Belvoir Ltd. ST: Connecticut IN: TEX SU: JVN

KK -- CL012 -- 7604 03/18/93 16:02 EST
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Date:Mar 18, 1993

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