While this is Snyder's third trade mission to China, Friday marked his first time in Chongqing.
CHONGQING, CHINA — Gov. Rick Snyder met with Chinese automotive executives on Friday, urging them to consider Michigan as they expand and invest internationally.
"As companies go global and look to expand from China to North America, we believe Michigan is the place to go, that 'Made in Michigan' is something we're proud of that goes back well over 100 years to be at the center of the auto industry," he said.
Snyder lobbied the Chinese during a formal, white-glove lunch featuring several courses and many more toasts. It's Chinese custom to toast many times during a meal.
While this is Snyder's third trade mission to China, Friday marked his first time in Chongqing. The major metropolitan area is home to roughly 30 million people along with several automotive companies, including Ford Motor Co.'s largest global manufacturing presence outside Michigan.
Snyder remarked that he enjoyed riding to the hotel in a Chinese-made Ford Fusion, which is marketed as the Mondeo in China.
He was joined at lunch by Xu Liuping, chairman of China Changan Automobile Group. The Chinese automaker has a joint venture with Ford and Mazda Motor Corp.
Liuping said through an interpreter that he knows from the media that "Detroit is going broke," but was pleasantly surprised to hear state officials say the city is working to solve its problems and is "thriving" along with Michigan.
He also noted that Changan's facilities in Italy are suffering because of increasing taxes due to the country's debt problems, so he was happy to hear Michigan is decreasing its business taxes.
Most of the Chinese investment in Michigan comes from automotive suppliers who want to locate near their customers — the Big Three auto companies. They typically start with sales and distribution offices and research and development operations in Michigan.
Manufacturing facilities appear to be a tougher sell. Those deals depend on several factors, such as labor costs and business incentives. One Chinese automotive investment executive said he's looking at Mexico for its low labor costs, but that he might consider Michigan if it offers the right assistance and incentives.
Another auto supplier executive, Wang Bin, said his decision on where to locate a manufacturing facility depends on where he can find a partner company. Bin, president of Ningbo Tuopu Group Co., said he's in the process of opening a research and development center in Madison Heights with a handful of Michigan employees.
Snyder also met with the mayor Chongqing during his one-day visit to the city. On Saturday, he'll head to Tokyo, Japan, to attend the Midwest U.S.-Japan Association Conference along with the governors of Wisconsin, Illinois, Indiana and Iowa.
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