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Business overtures to China start to bear fruit - 2 companies set up centers in Dallas; more may be comingt

Efforts by Dallas economic development officials to attract Chinese companies to the area are beginning to pay off.

Galaxy Powersports LLC, which sells all-terrain vehicles and dirt bikes, recently opened its U.S. headquarters and a distribution center in Dallas. A similar company with Chinese ties, Goldenvale Inc., opened a distribution center here in February.

Both companies employ only a few people. But other firms, including a Chinese portable power generator company, have their sights set on the city. And Dallas officials hope to attract more businesses as they develop relationships with Chinese companies and government officials.

To be successful, the effort must overcome a major obstacle. "People in China don't know Dallas," said Jennifer Li, assistant director of international business for the city's Office of Economic Development.

Ms. Li, who speaks Mandarin, has been trying to change that. She and other officials visited China twice this year, meeting with companies and government leaders in 14 cities.

Their goal: attract leading companies from China's smaller cities such as Qingdao, Nanjing and Shenyang.

Next year, Ms. Li plans to make three visits to China. She will hold workshops about the benefits of doing business in Dallas, advertising the events in local financial newspapers.

"China has tons of good companies, but they don't understand what Dallas has," Ms. Li said. "We just need to have a strategy and passion and hard work."

China is one of three countries Ms. Li has identified as key sources of foreign investment for Dallas. The other two are Mexico and Canada.

Much of her focus so far has been on China because many of its companies are trying to break into the U.S. market and are eager to establish offices and other facilities here. China is already the Dallas-Fort Worth area's biggest trading partner.

Galaxy Powersports chose Dallas for its headquarters because of the city's central location and low costs.

It's leasing an 80,000-square-foot warehouse northwest of downtown, near Farmers Branch.

"The rent compared to other places is pretty affordable," said Leo Su, Galaxy's president.

The company has hired 10 employees and plans to use a temporary agency to add two more sales assistants, he said.

Manufacturers like Galaxy are turning Dallas into a hub for the distribution of low-cost Chinese-made dirt bikes, ATVs and motorcycles. Nearly all of these companies are building their own dealer networks.

Goldenvale, which sells motorcycles, motor scooters, ATVs and dirt bikes under the Roketa brand, currently operates with six employees at its Dallas distribution center. It hopes to eventually employ 25 to 30 workers, said Mike Hillman, the company's general manager.

"Dallas is becoming a key point for distributors in our industry," he said.

To attract other types of companies, Ms. Li and her colleagues are touting the city's low costs, strong transportation network and pleasant weather. Southern Dallas County also offers generous tax incentives to companies willing to add jobs there.

However, Ms. Li has received a few complaints this year from foreign companies about delays and difficulties in clearing customs in Dallas compared with other cities. That's an issue she plans to look into, she said.

A spokeswoman for the U.S. Customs and Border Protection agency would only say that she's never heard those complaints.

 

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