By Lydia Dishman
SCBIZ Daily Contributing Writer

GREENVILLE -- Hal Johnson is still on China time. But even though he rubs his eyes, the face behind the fingers is smiling. And no wonder.

For the past two weeks, the president and CEO of the Upstate Alliance, along with a delegation that included Vivian Wong, founder of the Global Trade Consortium; Thomas Wong and Stan Vincent, both GTC board members; Knox White, Greenville’s mayor; and Frank Davis of the Greenville law firm of Haynesworth Sinkler Boyd, toured seven Chinese cities, held numerous meetings with business officials, attended a trade show, conducted a seminar and drummed up potential interest in Chinese investment in the Upstate.

“The idea is to develop relationships,” Johnson explained, noting that Chinese investors are more likely to do business with those they know and trust. Johnson said that through meetings and presentations he believes the Chinese executives achieved a better understanding of how to do business in the U.S.

According to the South Carolina Department of Commerce, Chinese companies have invested more than $280 million in South Carolina and have created more than 1,400 jobs in the state. In 2007, China purchased more than $700 million worth of goods from South Carolina. South Carolina's exports to mainland China were up 28% year-over-year in the first quarter of 2008.

Now, Johnson said, “They are most are interested in developing a marketplace to distribute their products and set up assembly plants.” The delegation met with many types of businesses from LCD manufacturers to chemical companies.

Johnson estimated that of about 40 such companies the delegation saw, there were six strong contenders.

“One is looking for a U.S. location now. We will see activity this year from several of them,” Johnson asserted, noting that these prospective investors were planning to visit the Upstate in the immediate future, now that they had a formal invitation to allow them to apply for visas.

Johnson’s conversation was peppered with references to the visible impact of the country’s tremendous growth that he witnessed since his last visit just a year and a half ago, including “45,000-acre office parks, hundreds of facilities that exceed 500,000 square feet.”

He also cited statistics from a Wharton School of Business study that suggested 300 million Chinese had $100,000-$500,000 in savings. “Imagine that type of growth,” said Johnson, stressing the tremendous economic potential for both South Carolina and China.

Commending the efforts of John X. Ling, who represents the S.C. Department of Commerce in Shanghai Johnson did add, “We ought to be establishing multiple offices there, as a region. It is a goal of mine for the Upstate Alliance to be the first to have offices overseas to work in concert with state efforts,” he said.

The S.C. Department of Commerce will lead another trade and investment mission to China from September 4-13 for companies looking for export sales opportunities.

Johnson said, “If we are constantly mining it, we can be successful. We will have the first shot.”