Branstad talks with Chinese leader; soybean deals eyed
A large delegation of Chinese businesspeople will be in Des Moines on Thursday to sign more than a dozen contracts after a productive meeting between Gov. Terry Branstad and Chinese President Xi Jinping
Branstad told The Des Moines Register his meeting this week with Xi went well and builds upon a relationship that is spurring millions of dollars worth of trade deals between the two countries. The contracts signed Thursday will be for Iowa soybeans and health products.
"This builds upon a long line of experience that we have had together," Branstad said in a phone interview Wednesday from Seattle. "China is the biggest country in the world and has the second-largest economy. While their economy has slowed down, it is still growing at over 7 percent a year, and we would love to have that."
Last year, China represented Iowa’s fourth-largest export market with exports of manufactured and valued goods exceeding $946 million, according to state officials. Overall exports to China for the first six months of 2015 are up more than 63 percent compared to a year ago, making China the state’s third-largest export market.
Branstad met with Xi on Tuesday when they attended the Third Annual U.S.-China Governors’ Forum and Dialogue, which was arranged by the Chinese Association for Friendship with Foreign Countries and Washington state. Five Chinese provinces and five U.S. states participated.
Branstad said he invited Xi to visit Iowa again and he believes there is a good chance of that happening within the next few years. While Xi was vice president of China, he was honored at a formal welcome dinner at the Iowa Capitol in 2012.
U.S.-China meetings offer access for agriculture
Iowa has had a sister-state relationship with Hebei province in China since 1983, and Branstad said it has helped Iowans to develop a friendship with Chinese leaders. Those officials include Xi, whom first met Branstad in 1985 while he was a provincial party official and director of the Feed Association of Shijiazhuang Prefecture.
Branstad’s latest meeting with Xi comes at a time of increasing tensions between the U.S. and China, particularly over cyber-security, economic and trade issues, the South China Sea and human rights.
Jim Webb, a former U.S. Senator and a former U.S. Navy secretary who is seeking the Democratic nomination for president, issued a statement Wednesday warning of “China’s gathering storm.”
“China’s dangerous military expansion in the South China Sea and its ongoing cyber-war against millions of American people here at home must be addressed now,” Webb said.
Branstad said Tuesday he is working to improve relations with China, and he believes Xi is interested and open to that possibility.
“I respect the fact that those issues have to be resolved at the national level,” Branstad added. “My role as governor is to build those relationships, increase trade, and create more jobs in Iowa, those kinds of things."
'Friendship House' links Iowa, China
James McCormick, an Iowa State University political scientist, said the U.S. supports a peaceful rise of China, so keeping lines of communication open between the two countries and having interactions on trade issues is probably a wise strategy to pursue.
But U.S. officials dealing with China also need to keep their eyes wide open, McCormick said. “I think cyber-security is really the threat, even with some of these trade issues. If they can get access to our technology or somehow steal our technology, that is the real danger.”
Iowa State University agricultural economist Chad Hart said he doesn’t think Branstad is making a mistake by promoting a strong trade relationship with China.
“You need to have a nuanced approach here. This is not necessarily something where you overturn the apple cart when a few things change. There are always going to be issues where the U.S. and China have tensions. I would argue that you can have those tensions and still have normalized relations in other areas, especially if you are talking business and agricultural trade,” Hart said.
Lt. Gov. Kim Reynolds is scheduled to participate in Thursday’s contract signing event with Chinese business officials in Des Moines. The event will be held at The Embassy Club in downtown Des Moines.
Besides Branstad, the Seattle forum included the governors of Washington, California, Michigan and Oregon, along with Chinese leaders from the provinces of Sichuan, Chongqing, Zhejiang, Shandong, and Shaaxi. Xi was introduced by former U.S. Secretary of State Henry Kissinger and gave what was described as a major policy speech.
Interactive: Feeding China | DesMoinesRegister.com
Branstad said he used his own speaking time to highlight Iowa’s role in agriculture, advanced manufacturing, renewable energy and financial services. He also talked about the importance of having stability and predictability in government regulations.
The state and provincial officials at the event signed an accord on clean energy and economic development, which Branstad said is consistent with what’s happened in Iowa in recent years by focusing on renewable energy, energy efficiency and reducing transportation emissions.
Branstad used the occasion in Seattle to present Xi with a photo taken in 1985 when Xi was part of a Chinese agriculture delegation that visited the Iowa Capitol and the governor’s office. At the time, Branstad was serving his first term.
Xi smiled upon receiving the photo, Branstad said. “He was very happy about that and in his remarks, he mentioned that in his first trip to America he came to Iowa. He calls us old friends because he was treated so well when he came the first time, and so it was a very positive thing.”
Sarah Lande, who initially welcomed Xi to Muscatine in 1985, and Luca Berrone, who chauffeured Xi and his delegation around Iowa in a van during the same trip, both attended a reception with Xi in Seattle. While there wasn’t a lot of time, Xi spoke fondly of Iowa and gave Lande a big hug, Branstad said.