Its economy rebounding, the District is placing a $200,000-a-year bet on China that city leaders say they hope will help D.C. weather future downturns.
“We feel very comfortable that this is a solid investment by the District, and we think we’re going to get a tremendous return,” said David Zipper, a senior aide to the deputy mayor for economic development. “It’s certainly a way to grow the economy.”
The centerpiece of the District’s efforts is the D.C. China Center, an office Mayor Vincent Gray opened last month during a visit to Shanghai, China’s financial hub. Officials expect the office, at an annual cost of $200,00, will work to secure investments in District companies and projects while helping other D.C. businesses sell their goods and services to China.
Three full-time employees are running the office, which is housed in one of Shanghai’s most prominent skyscrapers. The employees are all Chinese speakers, and one grew up in the District’s suburbs.
The office is the District’s first abroad and is a part of a growing trend of states and cities seeking to connect directly with prospective investors.
Maryland, Virginia, California, Georgia and Iowa are among the states with presences — or planned offices — in China, and other jurisdictions have representatives stationed throughout the world to promote trade and development.
“If it goes well — and we certainly expect that it will — we’re certainly interested in expanding to other countries,” Zipper said. He declined to say how quickly the city might choose to open other offices.
Though the District won a $40 million investment for the O Street Market before the D.C. China Center opened, Gray has said he anticipates the office will facilitate similar deals.
“We see it as part of a broadly based economic development program,” Gray said in a June interview. “I think the failure to recognize the chances to have investors elsewhere is really a lost opportunity.”
Jim Dinegar, the president and CEO of the Greater Washington Board of Trade, said he expects the District will be able to capitalize on its proximity to potential investors.
“We’re the hottest real estate market in the country, and we become a safer haven than most investments. I think the Chinese realize that,” Dinegar said. “This is absolutely a very strong signal that the District is open for business.”
The office is taking its first steps as the District’s economy continues to recover from a recession that forced its unemployment rate as high as 10.5 percent, above the downturn’s national peak of 10 percent.
The Labor Department said Friday, though, that the District’s jobless figure had fallen to 9.1 percent.
