Peter Theut of Butzel Long, one of America’s leading law firms, spoke at TechTown’s quarterly China Business Forum Feb. 10 about the increasing Chinese interest in Michigan as a landing site for start-up businesses in the United States.
“Together with the Confucius Institute, we’re heavily focused on building bridges to China,” said Randal Charlton, executive director of TechTown. “The issue is getting prepared for when the wheels start moving again.”
According to Theut, Michigan has a great opportunity to make money on outsourcing, specifically with Chongching, an important industrial area of western China.
“Chongching isn’t pretty; Detroit isn’t pretty,” Theut said. “They get along beautifully!”
The forum is a collaboration between TechTown and WSU’s Confucius Institute. It’s open to the public and is an information seminar on potential business opportunities between China and Southeastern Michigan.
According to Theut, China is very interested in Michigan because Detroit and GM are icons there and the Chinese see a great potential in Michigan’s restructuring automotive industry.
Other key incentives to invest in Michigan are the quality of life, the existing labor pool, research and development resources — which Michigan is noted for — and its education system.
“There are not many states in this country that have better education facilities than Michigan,” Theut said. “That’s a beacon to the Chinese.
“[The Chinese] would especially be interested in a school like Wayne State because ... Wayne State is a very grassroots sort of school.”
He promised that by the end of the year, there will be a bridge between Chongching and Detroit, with sister offices in both cities.
The plan is not without some difficulty, however. “I think that the unfortunate reputation that the city of Detroit has is something that, in all honesty, would be a concern to the Chinese,” Theut said.
Others are optimistic. Charles Holmes, a senior business development representative for Oakland County, has seen plenty of success in his career. He specializes in companies headquartered in the Asia/Pacific area.
“When there are some Chinese names that go up on buildings, we’ll have to see what people think about that,” Holmes said. “There will be a little bit of a shock to the system.”
According to Theut, there will be a concern among Michiganders that the Chinese will “cannibalize the automotive industry.”
“My feeling about this is … the Chinese are more willing to buy a business and keep it on the ground here, to keep the management,” Theut said.
“The auto industry is so big and it becomes the lifeblood of the people,” said Liang Downey, the director of digital applications at Nextek Power. “We want to preserve it.”
TechTown is prepared to welcome foreign entrepreneurs. The research park’s SmartStart program gives businesses the assistance other areas of Michigan might not offer, such as one-on-one guidance and a business plan.
“The state is not too helpful because I tried to get my reseller’s certificate,” said Julie Chin of Toner Supplies and Beyond. “It’s like pulling teeth.
“When you start up, you don’t know a lot. A seminar like this is very helpful.”
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