Nevada, China to strike deal with goal of more jobs

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.

Discussion: 14 comments so far…

By Krases

9/4/09 at 6:48 p.m.

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An interesting article. The Ivanpah valley proposed airport might be a good idea now because it could handle a lot of freight as opposed to McCarren which is already close to capacity. Vegas needs to diversify and becoming a trading center for the southwest isn't a bad idea. Northern Nevada could also benefit from the new mining activities (though mining is more of a mid-term money maker and the economy shouldn't be built up around it too much in the long term).

Now lets watch as the discussion section turns into an anti-china parade.
By stevem

9/4/09 at 7:03 p.m.

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lead paint for EVERYONE!

woo hoo!
By rejco100

9/4/09 at 7:20 p.m.

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So China can buy copper mining claims in the US; why can't a US company mine the copper and sell it to China?
By mred

9/4/09 at 7:38 p.m.

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wallboard
By paplikaplik

9/4/09 at 8:38 p.m.

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Anyone who has a passing awareness of 19th Century American & European involvement in the third world will appreciate the irony of this situation.
By DTJ

9/4/09 at 10:07 p.m.

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Folks, this is about China's unquenchable thirst for raw materials, and their inexorable export machine. What they want is our copper, and our airports to send freight IN to the U.S. Carefully read the passage from the article: "...use Reno...(for freight) not able to get in at San Francisco... ...at McCarran International Airport where freight could also be brought in on the jets."

Any incidental jobs for unloading cargo at the airport or digging copper out of a mine, will be well offset by ever more U.S. consumer dollars and American jobs flowing to China. Di Stefano is either a patsy, or doesn't give a damn.

Get back to me when China invests in a factory providing well-paying manufacturing jobs in Nevada. I won't hold my breath.
By LasVegas2009

9/4/09 at 10:51 p.m.

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China? I mean we can't find anyone else in the world but China? I can still remember tanks rolling over students like it was yesterday. I have managed not to buy a product made in China ever since that happened. And now Nevada wants to partner up with these communist bastards. I just can't help but wonder who is behind all this. One day we will have to fight these bastards to the death and I see no reason to be in business with them now. I will vote against ANY politician that promotes this ANY!!!

http://www.cbsnews.com/video/watch/?id=5...
By neiman1

9/4/09 at 10:56 p.m.

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China is going to build solar generation in Nevada and sell us the power all built with equipment made in China.. Way to go harry, you keep amazing us.
By Joe_Vegas

9/4/09 at 11:18 p.m.

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Why not...??? Half our U.S. debt is owed to them! In other words...the pinko's own half of America!
By KillerB

9/5/09 at 12:31 a.m.

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"So China can buy copper mining claims in the US; why can't a US company mine the copper and sell it to China?"

rejco100 -- because China is the creditor for most of the federal debt. Mining claims will likely be handed to them to pay down some of the billions (maybe trillions) owed.

LasVegas2009 -- boy, you are WAY behind. Try to keep up. President Clinton arranged to give China favored trade status, including first peek at all new patents.

Joe Vegas -- don't have anything to back it up, but I think half is way too low.
By PaulRupp

9/6/09 at 1:33 p.m.

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Is this why Mrs Clinton rushed to China early this year? Just how short sighted are Nevada Officials that are looking out for. . . who's interest? Well i guess this is ok with comrade Obama so it must be in Nevada's best interest as well? Lets just see how many jobs are created and if they are all in the growing Gov sector. We need more folks to give away our resources and put any competing manufacturing out of business in Nevada so we all can enjoy the fruits of Walmart.
By Harley

9/6/09 at 2:01 p.m.

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I think we're turning cominese, I think we're turning cominese, I really think so.

: )
By PaulRupp

9/6/09 at 3:16 p.m.

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"That's the intent of the parties." I take that to mean communist parties in Washington D.C. and Nevada's Communist party, i.e., Obama and his Radicals in congress, and Peking, China. . . correct? Talk about a left wing Terrorist extremist group. Time for Americans to wake up and send the left wing extremists packing while we still have a few jobs here in Nevada that benefit Nevadan's!!!

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