Rob: Few understand the intricacies of working with the Chinese more than
James Lilley.
The U S ambassador to China from 1989 to 1991, he also served 25 years in
the state department throughout Asia.
More recently, Ambassador Lilley has made headlines for his tough stances on
everything from trade to China's military buildup.
Earlier, I visited with the Ambassador at the international programs
center at the University of Oklahoma.
Rob: Ambassador Lilley, with everything that is going on currently in the
Middle East, do you think sometimes U S policymakers may be putting Asia on a
back burner?
Ambassador Lilley: I think tactically sometimes this preoccupation with the
Middle East gets in the way, but we do spend a lot of time on Asia, because I
think American policymakers know that
Asia is the land of the future.
Rob: Explain that to me.
Lilley: Mid East, well, because of economic development, because of
trade, this is the fastest growing area in the world.
More of our exports go to Asia than any other area of the world.
It's all about finance, economy, money, commerce.
Asia's the big actor on the block, China, Japan, Southeast Asia.
So, we've got our eye fixed on that, and we also are aware that the second
most important military power in the world is in Asia; it's China.
It's not the Soviet Union, Russia, anymore.
It's China.
And, they are far behind us, but nevertheless, we watch it very closely,
because it's building up; it's increasing; it's improving, and it's aimed
at us.
So, we have to pay attention to it.
Rob: Many see China as this huge economic threat.
Could it also be an economic opportunity for the U S?
Lilley: Oh, I think, definitely.
No question about it.
Our exports to China have increased exponentially, in the last five years.
They've gone way, way up.
It's the fastest growing export market for the United States,
in the world.
They begin to buy our stuff, and as they get the middle class rising,
they'll buy more.
Yeah, they're a challenge, sure they are.
They're going after energy resources that challenge us, competitively.
We've got to be smart.
We've got to be tough.
We've got to take them on, but this is not a reason
for war or anything like this.
We both are trying to get oil to fuel our economies.
Their demands have increased a great deal, and they've gone after
places like Iran, Sudan, countries we don't touch.
They share Nigeria with us.
They share Venezuela with us.
We can work it out.
We can work it out.
So, as a challenge, yes; as a threat, no; I don't think so.
Rob: What do we need to know, as American business people, what do we need to
know as American business; how do we work with China; how do we take, for lack
of a better term, take advantage of what's going on in China?
Lilley: Well, we've got, probably one of the largest chambers of
commerce in the world is in Shanghai, probably two-to-three thousand
members, increasing at one-hundred a month, most of them making profit,
tough market, hard-sell, market research, due diligence has to be done.
American businessmen can make it; their profits are good; but they've got to
be tough and smart, and they've got to get into a very competitive market.
There's a demand for American goods.
They like our consumer items.
Wal-Mart is very big in China.
They like these outlets that give them everything, they'll buy the products.
They are a huge telecommunications market.
They're producing a lot, but they aren't keeping up with the modernization.
So, there's a lot to be done.
I think American business can do a lot in China, and the way our exports are
going up is encouraging.
Businessmen are going in there and finding the Chinese, in the service
industries, we've really pushed in there.
Insurance, hotels, banks, that is where we are very competitive, and the
Chinese have begun to open these markets to us.
We also are going to have our own distribution networks in China; that is
helping us.
So, I think there are a number of positive things happening.
Rob: I've heard some people, or actually had people say to me in China,
that Americans were late to the game.
Do you think we're late to the game in China?
Lilley: No. We've been there all along.
I think this is, this is one-upmanship.
We were the first ones to go in there on offshore oil.
We broke the ground on that.
We sold them the first real advanced aircraft, Boeing.
We built fertilizer camps way back in the 70s in China.
We have huge Motorola plants in China.
We're moved in.
We're in there.
We're the biggest chamber of commerce in China.
We've got more Americans living in Shanghai, a huge school, Beijing, moving
into other cities, Tenjin.
We're big.
We're part of the act.
We were there right at the beginning; we weren't there in the 50s.
But the Chinese went through the culture revolution, the great leap
forward, they tore themselves to bits.
We came in at the end of the culture revolution when they were just
opening up, and we were right there to help them.
Rob: When you mentioned some of the strengths that the U S has there, you
mentioned oil, aerospace, and then electronics, but you also mentioned
something to do with agriculture, fertilizer.
Those are our three biggies here in Oklahoma,
so are there opportunities?
Lilley: Oh, yeah.
I think Oklahoma is going in there, and strong.
You have an aerospace industry here.
You have agriculture.
You have oil equipment.
You have the things that they want.
And, I would encourage Oklahoma to go in there and sell.
You've just had a delegation over there.
And I gather they had some pretty good experiences.
And I think you've got a couple hundred Chinese students here at OU.
My sense is, you're on a roll.
Rob: Ambassador Lilley, thank you very much.
Lilley: Thank you for asking me.