Colorado Companies Welcome Chinese Premier with Open Arms

Strategic Insights -

Chinese Premier Zhu Rongji's visit to Storage Technology Corp. and Encore Media International is a testament to the growing relationship between the United States and China. Colorado companies, in particular, are leveraging their expertise to tap into China's growing market for digital technology. Encore Media International is the largest official provider of Western programming to China, delivering movies and programming to 250 million households through the National Digital Television Center in Littleton. Meanwhile, Storage Technology Corp. is showcasing its high-tech manufacturing capabilities to Zhu Rongji, highlighting its fastest-selling product, the 9840 Tape Drive.

Key Takeaways:

  • Encore Media International is the largest official provider of Western programming to China, delivering movies and programming to 250 million households through the National Digital Television Center in Littleton.
  • Storage Technology Corp. is showcasing its high-tech manufacturing capabilities to Chinese Premier Zhu Rongji, highlighting its fastest-selling product, the 9840 Tape Drive.
  • Colorado companies, including StorageTek and Encore, are among the largest U.S. companies doing business in China.
  • Despite challenges, Colorado companies are finding attractive deals in Taiwan, such as CH2M Hill's environmental cleanup projects.
  • Colorado exports to Taiwan and Hong Kong reached $336 million, more than double the $145 million in exports to mainland China.
  • China's information technology is expected to grow at a rate of 25% per year through 2002, compared to 10% in the United States.
  • The safety of trade secrets and regulatory barriers have proven to be the largest barrier to U.S. investment in China.
  • Colorado companies are developing a marketing subsidiary in China to tap into the country's potentially huge growth in the information technology sector.

Statistics:

  • 250 million: Number of households receiving Western programming from Encore Media International through the National Digital Television Center in Littleton.
  • 9840 Tape Drive: Storage Technology Corp.'s fastest-selling product, capable of spanning a variety of computer environments.
  • 25%: Projected annual growth rate of China's information technology sector through 2002.
  • 10%: Projected annual growth rate of the U.S. information technology sector.
  • $336 million: Total value of Colorado exports to Taiwan and Hong Kong in 1999.
  • $145 million: Total value of Colorado exports to mainland China in 1999.
  • 45 minutes: Duration of tour of Encore Media's digital command center guided by Chief Executive John Sie.

Sources:

  • "Stock Watch," by Richard Williamson, News Staff Writer, THE DENVER POST, [undated]
  • Uncredited interview, "Chinese Premier Sees High-Tech Hubs in Colorado," THE DENVER POST, [undated]
  • Nancy Charles-Parker, director of the U.S. Export Assistance Center in Denver, [undated]
  • Storage Technology Corp. press release, [undated]
  • "Taiwan: A Growing Market for U.S. Companies," U.S. Department of Commerce, [undated]