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June 4, 2012

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Nevada, China to strike deal with goal of more jobs

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Friday, Sept. 4, 2009 | 6 p.m.

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Nevada and China will strike a deal Tuesday in Phoenix that will pave the way for the Chinese government and its private sector to make investments in Nevada that will create jobs, state officials said.

The signing of a memorandum of understanding between the state and China comes one day before a Chinese delegation appears in Reno to talk about investing in Nevada, said Alan Di Stefano, director of global trade and investment with the Nevada Economic Development Commission.

Tuesday’s event will feature Lt. Gov. Brian Krolicki and Chairman Wu Bangguo of the Standing Committee of the National People’s Congress. A similar agreement will be signed with Arizona.

The memorandum is a tacit commitment to work with the states to get Chinese investment in renewable energy, such as solar wind and geothermal; mining; manufacturing; and tourism infrastructure, Di Stefano said.

“We are looking at creating jobs,” he said. “This could be huge. It won’t be next week or month, but over a period of time it will be. Our trade with China has grown fast with nothing official … People may not think a memorandum of understanding means much, but in China that’s like a contract that they are committing to do things, and the expectation is that this is going to happen. That’s the intent of the parties.”

Chinese companies need the permission of the government to invest abroad, and having this agreement in places makes that much easier, Di Stefano said. It opens a lot of doors for investment, he said.

There will be discussions about the Chinese opening a trade center in Las Vegas, he said.

China is the No. 3 export market for Nevada with $479 million in sales, Di Stefano said. In 2000, China was No. 24 with about $40 million in sales.

Another of the agenda items to discuss is establishing air service between Nevada and China, both passenger and freight, he said.

China Air has already agreed to use Reno as a backup from shipping in freight that may not be able to get in at San Francisco, Di Stefano said. There is talk of expanding that and starting passenger service at McCarran International Airport where freight could also be brought in on the jets, he said.

Also on the agenda is buying mining claims in Pershing County for copper ore that China needs. About $200 million to $300 million in investment is needed for the extraction, including railroad improvements, Di Stefano said.

As for tourism, Di Stefano said the most likely scenario is investing in proposed nongaming hotels.

Talks about increased commercial relations between China and Nevada have gone on for years, Di Stefano said, adding the Chinese government is interested in Nevada, as are American companies, because of its business-friendly environment and tax policy.

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