
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, February 17, 1994                   TAG: 9402170068
SECTION: BUSINESS                    PAGE: B-10   EDITION: METRO 
SOURCE: LON WAGNER
DATELINE:                                 LENGTH: Medium

CHINA'S OPEN, BUT GETTING PAID CAN BE TRICKY

Chinese companies and localities are hankering for American-made goods and services, but U.S. suppliers are learning that getting paid for those products may be tricky.

Carter Waddell, vice president of Crestar Bank's international division, issued the warning Wednesday to the International Trade Association of Western Virginia, meeting in Roanoke.

He said China needs Virginia companies to help improve its road, rail and telephone systems and reduce the pollution in its factories. But he said the country's banking system is shaky, and companies working there should be careful to set up a reliable payment system.

Waddell, of Richmond, said he has worked with American companies selling products or services to China since 1985, yet has never confirmed a letter of credit from a Chinese bank.

That aside, he said, now is the time for Virginia companies to look to China. When the International Monetary Fund adjusted its method of calculating gross domestic product last year, China's economy became the third largest in the world - behind the United States and Japan.

China's economy is estimated to be growing at 10 to 12 percent per year.

"Ten or 15 years from now, growing at not nearly the rate they're growing now, the Chinese economy will replace the U.S. as the largest in the world," Waddell said. "We need to make the connections now."

China bought $95 million worth of Virginia products in 1992, primarily chemicals, industrial machinery and tobacco. Waddell said foreign companies are scrambling to sell their products in the three main metropolitan areas in China, but suggested companies would be wise to look elsewhere.

"You can be a big fish," he said, "rather than one of so many."

Pearl Fu, a Chinese immigrant and Roanoke's Citizen of the Year, offered trade association members some practical advice for establishing personal relationships with Chinese business people.

Eating is an integral part of business relations in China, Fu said, but do not ask a lot of questions about the content of the meals.

"Be very gracious, accept what is served, chew very slowly, swallow very fast and don't ask," she said to laughter. "Sometimes it's better not to know what's being served you."

by CNB