After landing PC maker Lenovo, N.C. chases more deals with China

(Last of three reports)

To see the future of China, take Interstate 40 to Morrisville.

Around a turn in Perimeter Park, twin buildings rise from a treeless expanse. They will become the headquarters of Lenovo, the best-known computer company in China.

Lenovo put down roots in the Triangle last year after buying IBM's personal computer division for $1.75 billion. It was a landmark deal that bridged East and West and brought a new mind-set to North Carolina. Where the state's old guard feared threats, a new generation seeks fortune.

The office buildings in Morrisville are a symbol of what North Carolina is chasing -- Chinese wealth.

"Markets always follow the money," said Tony Copeland, who directs North Carolina's efforts to recruit new businesses. "And when you're looking at the size of global economies, China ... is one that we should prioritize."

The state's political and economic leaders are working aggressively to ingratiate themselves with China's business and government elite. Wake County and state Department of Commerce officials plan to visit in October. The Carolina Ballet at the same time will tour seven Chinese cities, serving as cultural ambassadors for the state. A new trade office in Shanghai is under consideration to help businesses build stronger links in China.

The efforts could be critical to the state's future.

China has almost $1 trillion in foreign capital reserves, money collected as payment for the goods it exports. Much of the cash is parked in conservative investments. But as Chinese companies agitate to take bigger roles in the world, the money spent by Wal-Mart and other giants likely will be recycled. As Toyota and other Japanese companies showed decades ago, that ambition could bring opportunity, and money, to North Carolina.

Foreign-controlled companies in 2003 employed 204,600 people in this state, according to the most recent federal data. That was the 10th largest number of such jobs among the 50 states. The more Chinese capital North Carolina can lure, the more opportunity for residents.

Wilmington could get more business if Chinese companies build distribution centers near its port. Research Triangle Park could benefit from the expansion of technology companies. Rural areas could be reborn if Chinese automakers set up assembly plants.

But it might be years before substantial amounts of money start pouring out of China, state Commerce Secretary Jim Fain said.

"That said ... it's hard to ignore this nation and this economy."

At least 23 states are jockeying for attention in China, operating offices to build deeper ties. The mayors of major cities such as Atlanta and Milwaukee have jumped into the fray, leading trade missions to cities such as Beijing and Shanghai to stoke interest in their communities.

North Carolina got an early start in the region, opening an office in Hong Kong two decades ago. And it has had success; 18 Chinese companies operate in the state. Two Chinese companies last year worked together to buy a company in Granville County: Dill Air Controls Products, which makes automotive air valves and tire repair accessories.

N.C. China Center

With greater competition from other states, leaders are stepping up outreach and marketing.

The privately funded N.C. China Center in Raleigh is a main conduit for their efforts. It opened in February to strengthen connections between North Carolina and China. Last week, the organization hosted delegations from the cities of Suzhou and Jinan.

In a large conference room Wednesday morning, Duane Long, chairman of the China Center, detailed the attributes of the region for representatives from Jinan in eastern China. He highlighted the high-tech nature of the Triangle, the concentration of drug and medical companies and the presence of leading universities.