From Deseret News archives:

China foray pleases Huntsman

He says participation will help Utah firms in nuanced society

Published: Saturday, Oct. 21, 2006 9:57 p.m. MDT
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"We learned a lot from the visit in terms of the understanding the time frame it will take to develop relationships and understand business protocols in China," Duncan said. "I am optimistic we will see new business and potential distribution established in China in the latter half of 2007. It was clear there is a real market for Zero's expertise and products in China, which appears largely untapped."

Utah's leading nutraceutical firms not only participated in the trade mission but also banded together to meet with regulatory officials in Beijing. Only Provo-based Nu Skin Enterprises has a direct sales license, for Shanghai. The other companies are only able to market their products through retail outlets.

For Nature's Sunshine Products, also headquartered in Provo, the trade mission represented some progress in a process that can take years. "We got a lot of resources and information that will help us in the future," said John Warr, the company's international regional controller.

What the companies gained, Huntsman said, is something the Chinese call lao pengyou, "the old friend" factor. Establishing relationships here can give Utah the edge over other states vying for economic development opportunities. In the past year, governors of 10 states, including California's Arnold Schwarzenegger, have led trade missions to China.

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"You can be from a larger state in terms of size, and economic prowess and might, but they will defer in favor of those relationships that have made the effort, made the attempt to understand them and to enter the market the right way. That's exactly what we have done," Huntsman said.

The governor has plenty of "old friends" here, including Madame Ma Xiuhong, vice minister of China's Ministry of Commerce. The pair, who faced off in trade negotiations, met again last week in Beijing. This time, though, the topic was boosting trade with Utah.

Huntsman's connections in this part of the world also helped line up difficult-to-get meetings with the vice chairman of the National People's Congress, Cheng Si-wei, at the Great Hall of the People in Beijing, and with Shanghai Mayor Han Zheng.

Even that, though, isn't enough to seal a deal in the land known as the Middle Kingdom. There's also an element the Chinese describe as "guan xi," the ability to build relationships.

"Typically someone who does business successfully is both an 'old friend,' and someone who has what they call guan xi, the clout, the ability to get things done," the governor said, noting participants in the trade mission will be able to show they had the guan xi to meet with high-level leaders.

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