Comstock's magazine 0320 - March 2020 | Page 37

Tell me about your background. All of my businesses are related to doing business in China. I started in 1985, and that’s the year I moved to Sacramento, and I started with lighting, and I still have the lighting business (called McWong International). We manufacture in China and export a lot of know-how and technology from the United States, and we supply to the U.S., mainly advanced lighting components. … Twenty-five years ago, I started a company in environmental engineering (called McWong Environmental and En- ergy Group); I saw great opportunity in China. We introduced U.S. technology and equipment and the regulations and all of these compliance requirements to China — 25 years ago, it was a blank page. We were able to create a lot of opportunity in China by providing the water-treatment solution for mainly in- dustrial applications because in the last 2-3 decades, China has been building up so much manufacturing, and environ- mental engineering is one of the biggest headaches they have. You can’t keep doing manufacturing and polluting the water. … Four years ago, I sold the com- pany to a public company in China. (In terms of the California Center), I started to see a lot of good opportu- nities in China about the emerging middle class and the consumer needs and (hunger) for the American lifestyle, (hunger) for California lifestyle, in food, education, entertainment, hospitality, tourism, sports. … I was the first one to bring the NBA competition to China in 2004, because I (saw) that China is so enthused about basketball, especially when Yao Ming joined Houston. I was the one who proposed to the (Sacra- mento) Kings — it was the Maloofs (as the owners) at that time — that you guys should start playing basketball in China. … We said, “Houston just (got) Yao Ming. If Kings played with Rockets in China, I’m sure a lot of Chinese would The due diligence effort on knowing China — from what they want and how they want (it) and what the government requirements are — that is a moving target. Americans sometimes take for granted that what we’re selling in America can work for China. No, not necessarily. watch it.” The first (exhibition) game was Sacramento Kings and Houston Rock- ets. It was a blast. … We (also) do a lot of programs in entertainment. I’m on the board of Themed Entertainment Asso- ciation Asia Pacific (division), because Disney, Universal, all of these entertain- ment theme parks are going to China. There are at least 50 of them today on the drawing boards. … We also partner with the Culinary Institute of America. … We are their partner in China; they are introducing a lot of pro chef training, nu- tritional programs, plant-forward pro- grams, because they provide hospitality to existing clients, including Disney, including Marriott (hotels). Marriott is building one hotel per week in China. So you can imagine how much need (there is) for hospitality. You have connections with business and government leaders in China. What’s the importance of this insider knowledge to a California business trying to enter the China market? Doing business in China is easy, but it’s not that easy. Of course, 35 years ago, when we first started, it was like im- possible. Today, there is so much trade between the two countries, you can get opportunities in many different ways. I think it is easy because China has a lot of demand, a big market, and (the) U.S. needs to export to the China market. For big companies, it’s easy … to launch in China because they have the manpower, they have the money to be able to make the investment. For some of these small- er or middle-sized companies, they’re having difficulty, but (there are) three things I would advise them. No. 1 is (you) always want to know your buyers or your market. The due dil- igence effort on knowing China — from what they want and how they want (it) and what the government requirements are — that is a moving target. Ameri- cans sometimes take for granted that what we’re selling in America can work for China. No, not necessarily. (China is) still a very much government- controlled market, so you’ve got to study, and it will make your work a lot easier. No. 2 is whether it’s import or export, it’s a partnership. So we have to be very open-minded in terms of how to make it work. There are times that … to keep the costs down, there are March 2020 | comstocksmag.com 37