Shenzhen, Los Angeles explore business links

They are on opposite sides of the Pacific Ocean, but the dynamic economic hubs of Shenzhen and Los Angeles share many similarities.

"Both are vibrant global cities, have large ports, which are among the busiest in the world, and possess a strong atmosphere for innovation and entrepreneurship," Peng Jing, the Chinese commercial counselor in Los Angeles, told business leaders and officials from the two cities on Friday.

Peng spoke at the 2024 Shenzhen-Los Angeles Economic and Trade Exchange Meeting in the City of Industry in San Gabriel Valley, California, at which collaborative opportunities, mutual growth strategies and innovative partnerships for the two cities were explored.

She noted that despite a lackluster global economic recovery and geopolitical tensions, the international community continues to share a common desire for peace, cooperation and development.

"The impact of the pandemic on the global economy, supply chains and businesses has not yet been fully overcome. However, globalization persists, and stakeholders in the supply chain — including enterprises from Shenzhen, Los Angeles, and other regions — have made significant contributions to China-US trade cooperation," Peng said.

China and Los Angeles have maintained a robust economic and trade relationship for many years, Peng said.

In 2023, China remained Los Angeles' largest trading partner, with a trade volume exceeding $147 billion, accounting for nearly 30 percent of the city's total international trade. Last year saw 246 Chinese enterprises invest in Los Angeles, creating more than 3,000 jobs and contributing an estimated $370 million in payroll.

Los Angeles-based companies also have seen significant success in China. Amgen, a global biotechnology pioneer, now operates in more than 100 Chinese cities and has had seven innovative therapies approved in the country.

Similarly, the footwear company Skechers, founded in Manhattan Beach, California, has grown into a widely recognized brand with more than 3,500 stores across China.

"We hope that both sides can further strengthen communication and collaboration, leveraging their respective advantages to deepen practical cooperation in areas such as green ports, clean energy, cross-border logistics, culture, education and tourism to make a greater contribution to local exchanges between the two regions," Peng said.

Liu Junlin, executive vice-president of the Shenzhen General Chamber of Commerce, highlighted Shenzhen's status as one of China's most innovative and economically significant cities.

In the first half of 2024, Shenzhen's regional GDP reached 1.73 trillion yuan ($139.6 billion), marking a 5.9 percent increase over the same period in 2023 and placing the city at the top among China's first-tier cities.

Shenzhen now has 2.6 million households, and the number of domestic and foreign-listed companies there exceeds 560, ranking it among the leading large and medium-sized cities in the country, she said.

Back in 2010, Shenzhen and Los Angeles signed a memorandum of cooperation, establishing a friendly exchange-city relationship. Over the years, the two cities have had frequent official visits and close people-to-people exchanges, serving as vibrant examples of friendly interactions between China and the US.

"We both have unique charm and value, contributing to the diversity and richness of the world," Liu said. "I hope that our two cities will further strengthen communication, enhance cooperation in areas such as economy, trade, investment, culture, sports and tourism, and build even closer ties through these exchanges."

The Los Angeles business community has shown strong interest in Shenzhen and anticipates future collaboration.

Joanne McClaskey, executive director of the Industry Business Council, welcomed guests to the City of Industry, emphasizing its business-friendly environment and resources.

"Our city is home to over 3,000 businesses, employing more than 70,000 people. We hope to see more Chinese companies come here and thrive," she said.

Luis Portillo, president and CEO of the San Gabriel Valley Economic Partnership, noted the number of Chinese businesses in the region and the significance of the area's diversity in relation to its economic potential.

"The San Gabriel Valley, which is located in eastern Los Angeles County, is home to 31 cities," Portillo said. "We actually have eight out of the top 10 cities, with the largest percentage of Chinese Americans … located in the San Gabriel Valley. That's something that we really value."

Paul Thomas, deputy-president and CEO of SGVEP, who lived in Guangzhou for more than five years, expressed his desire to foster greater business exchanges between the San Gabriel Valley and Shenzhen.

"We collaborate closely with many small businesses, and much of our trade activity involves Shenzhen and Guangzhou," Thomas told China Daily. "I hope to bring more businesses from San Gabriel Valley to Shenzhen, and vice versa."

Both sides underscored a continued commitment to strengthening economic ties across the Pacific. The meeting was followed by a series of signing ceremonies formalizing cooperation between Chinese and American enterprises.