Targeted Industries Growth Report

China's Making Waves. Can Hawaii Catch One?

Eddie Flores and Kwock Yum Kam have made a business of franchising their popular eatery L&L Hawaiian Barbecue up and down the Island chain and all throughout the United States, stretching as far east as New York City. But perhaps they aren't thinking far east enough. Ted C. Fishman, veteran journalist and author of the intriguing book, China Inc., says food service is a perfect example of an industry for which Hawaii (having already perfected and standardized it) could market its expertise to the Chinese.

GAINING GROUND: China Inc. author Ted Fishman discussed the country s economic momentum while on Oahu this October. photo: Cory Lum

"As fast as China is growing, they still need legitimacy in a global marketplace and, in order to do that, they need to certify the quality of their goods," explains Fishman, who spoke with Hawaii Business while in town to address delegates at an executive summit organized by virtual law firm Vantage Counsel. "If factories require frequent inspection or some sort of certification based on defined criteria, that's an industry that can be developed in Hawaii. Particularly because the food here is kind of Western-flavored food with an Asian flavor that Chinese love."

Fishman, whose book attempts to alert Americans to China's dynamic evolution into a major superpower, says Hawaii is in an especially favorable position to benefit from that boom. And, he says, we don't need to be experts at everything to reap rewards. "Look at the scale of the economy here, and what that means when you're trying to capture some of the fortunes of an economy that's at the scale of China's," says Fishman. "You don't have to think that big in order to have a huge impact on the local economy. Serving a couple niches would go very far for Hawaiians."

So what, besides a knack for pumping out ono fast-food-style plate lunches, are Hawaii's biggest strengths, when looking to serve the Chinese market? Pacific Rim expertise, for starters. Fishman cites the East-West Center (an internationally recognized education and research think tank) as a prime example. And then there's tourism, and our ability to teach the Chinese everything we know about the industry, from online reservations to marketing. It's an area in which many local leaders and government officials have already made headway.

One other area for which Fishman suggests Hawaii might be perfectly suited is architecture and design. He says one project in particular comes to mind: Hainan Island. "China is building Hainan Island into what it hopes will be a premier resort destination often likened to Hawaii," says Fishman. "Only it will have gambling. So it will be like Hawaii and Vegas put together."

Hawaii and Vegas combined? Now that could be the start of a lasting partnership.

>> THE RED GIANT AWAKES

" On average, American companies make a 42 percent return on their China operations. " China uses 40 percent of the world's concrete and 25 percent of its steel. " China has 320 million people under the age of 14, more than the entire population of the U.S. " In 2003, the Chinese sold the United States $152 billion more in goods than they bought. " China makes 40 percent of all furniture sold in the U.S. " Shanghai's real estate market rose between 20 percent and 50 percent a year for the past five years. " Apparel workers in the U.S. make $9.56 an hour, while in China they make between 68 cents and 88 cents. " China has more speakers of English as a second language than America has native English speakers. Source: China, Inc.

Do you like what you read? Subscribe to Hawaii Business Magazine »