Hartcourt Companies (fka HRCT)

[Minddoc7]

SCMP Article: http://www.scmp.com/ads/scmppromo/proB.htm

Thursday, February 7, 2002
TELECOMS
US-based Chinese set for mainland invasion



MICHAEL CHUGANI in Seattle



Mainland Chinese entrepreneurs who found success in Silicon Valley are rushing to stake a claim in China's burgeoning high technology sector, and they believe language and culture give them an edge over competitors.
The entrepreneurs, who started out as immigrants but now run or own companies in the hi-tech hub of the United States, see China as the next logical frontier.


Four groups in Silicon Valley and Seattle have teamed up to help members secure a piece of the lucrative mainland pie. Discussions are under way with mainland officials on access for Chinese-owned businesses in the US and a delegation of Silicon Valley Chinese chiefs will travel to the mainland in the spring.

Zhao Yan, chairwoman of the Silicon Valley Chinese Engineers Association, said: "This is not just an ordinary delegation. It is made up of high-powered executives."

The association, which spearheads the drive into China's market, has linked with the Chinese Software Professionals Association, Silicon Valley Chinese Wireless Technology Association and the Seattle-based Chinese Business and Technology Association to form an alliance they hope will more easily open mainland doors.

The delegation will visit several cities, including Shenzhen, Beijing and Shanghai, targeting the telecommunications market.

"We have an advantage over other companies because our association members are mostly from China. They know the language and they know the system," Ms Zhao said.

"China's telecommunications market is booming. The wireless penetration is less than 10 per cent right now. There are big opportunities for us."

To ensure the trip results in business deals and not just talk, only those who meet strict requirements will be allowed to go. Participants must have solid business plans or products they hope to sell. Only about 20 will be selected for the trip.

Ma Xian, who heads Seattle's Chinese Business and Technology Association, said: "They must be executives who have the power to make decisions."

Mr Ma said Chinese in the US should not expect automatic deals just because of their ethnicity.

Ms Zhao conceded that big US telecoms firms would fight for a slice of the market - made more lucrative with the country's entry to the World Trade Organisation - but said smaller Chinese-owned firms would still be able to get their share.