Logistics, mining, renewables likely links for China trade

Compressed profit margins for Chinese manufacturers may hold opportunity for northern Nevada, says the state's new trade representative in Shanghai.

Tighter margins during the global recession have led manufacturers to bring more of their logistics functions in-house, says Jeffrey Bernstein, and many look to launch West Coast distribution to serve markets in the United States, Mexico and Canada.

Given northern Nevada's proximity to West Coast markets, as well as good transportation links with ports at Oakland and Long Beach, some of those Chinese manufacturers may land in northern Nevada, says Bernstein.

In fact, he says logistics links between Chinese manufacturers and Nevada distribution points are one of the three highest priorities that he's identified for increased trade between China and the Silver State.

Another strong possibility, he says, is increased Chinese investment in northern Nevada mining properties particularly in the industrial minerals sector.

A Chinese company is pursuing a $745 million equity-and-debt investment in General Moly's planned molybdenum mine near Eureka, and state officials have been pitching a deposit of iron ore in Pershing County to Chinese investors.

More investment may be on the way, Bernstein says, as Chinese companies scout the world to nail down supplies of industrial minerals.

Nevada's renewable energy industry also holds promise for Chinese trade and investment, Bernstein said. Both regions of the world are actively developing renewable-energy equipment and projects, and the trade representative said a flow of a capital and hardware between the two is a likely outcome.

In the near term, Bernstein said manufacturers of aircraft components several of them in Carson City may find markets as Commercial Aircraft Corporation of China Ltd. develops a new family of passenger aircraft.

Many components of the aircraft, Bernstein said, are likely to come from American suppliers who have earned certification from the Federal Aviation Administration.

Bernstein has worked in the logistics and trading sectors in China since 1997, and his company, Emerge Logistics, has added consulting services that led to his selection as Nevada's trade representative in Shanghai.

After landing a contract with the Nevada Commission on Economic Development as a trade representative, Bernstein said he's impressed with the unified approach of state officials.

"Everyone is working on the same team in Nevada," he said. "That's makes a big difference to a foreign investor."

As trade representative, he'll promote Nevada companies and investments in Nevada to Chinese businessman, and he'll scout potential business opportunities for Nevada exporters.