Gov. Jim Doyle signed a trade agreement with a central Chinese province Tuesday as part of his week-long trade mission in China, according to the governor’s spokesperson.
The “Memorandum of Understanding” between Wisconsin and Shaanxi Province in the People’s Republic of China is intended to strengthen the bond between the parties to establish greater friendship, cooperation and investment opportunities, according to the document.
Doyle’s trip to China and the memorandum are an effort to continue the growth and expansion that Doyle has brought to Wisconsin through trade with China throughout the past seven and a half years, said Doyle spokesperson Adam Collins.
Collins added the agreement is expected to have the greatest amount of impact on businesses in Wisconsin and Shaanxi.
“Obviously, the agreement will bring about new opportunities for companies that are located and based in Wisconsin,” Collins said.
The trade agreement is meant to create social and economic reform for both Wisconsin and China, according to the memorandum.
China is and has been an important trade partner for Wisconsin that has continuously created new opportunities for businesses throughout the state, Collins said.
“This is certainly a part of a very important effort that is ongoing in this administration,” Collins added.
The memorandum may be based on the fact that Wisconsin and central China have similar economies.
Wisconsin’s economy is based largely on manufacturing, particularly export manufacturing, similar to a country like China that is growing and expanding its market, said Andrew Reschovsky, political science professor at the University of Wisconsin.
Reschovsky said Doyle, or any other public official, should want to promote Chinese investment in Wisconsin.
The trade agreement comes on the heels of UW Chancellor Biddy Martin’s trip to China last spring, aimed at increasing cooperation with Chinese universities and raising UW’s visibility abroad.
As part of Martin’s partnership with Beijing University of Sport, 11 Chinese student athletes have come to study at UW for the semester.
The length of Doyle’s agreement is indefinite and will therefore continue into the next governor’s term.
While Democratic gubernatorial candidate Tom Barrett is not currently committed to future trade agreements with China, spokesperson Phil Walzak said Barrett will still look for as many opportunities as he can to provide economic growth and opportunities for business in Wisconsin if elected.
The agreement also encourages a mutual exchange of faculties, students and researchers.