Brett Heimburger, director for Asia in the Governor's Office of Economic Development, said four Utah businesses operating in the energy and natural products industries took that important step earlier this month during a state-sponsored trade mission to China.
"Understanding the Chinese system and business processes are critical in the development of a trading strategy between Utah and Chinese companies," Heimburger said. "And establishing relationships is one of the most important things a company can do."
Two Utah companies - Ceramatec and International Automated Systems - sent representatives from Utah to China, while two others - NuSkin and Tahitian Noni - sent their Chinese representatives to meet with that country's government trade officials.
Ceramatec Chief Executive Ashok Joshi said he did not go to China expecting to immediately sign any business deals. Rather, he went to China to see what that country had to offer and if there was interest in his company's fuel-cell and "syngas" technology.
"It is far too early to tell if the mission will result in new business for us," Joshi said. "But they (the GOED) did come through in helping us make the right contacts and meet the right people."
China is Utah's fifth-largest trading partner. Last year, Utah companies exported $325 million in goods and services to China, up from $123 million in 2004.
Heimburger said much of the increase was the result of Utah companies exporting raw materials - copper, chemicals and gold - to China for use in the development of that country's infrastructure.
International Automated Systems, a Utah-based penny stock company that during its 20-year history has generated about $143,000 in revenue, said it made contacts that it hopes might eventually result in future business opportunities. "We made some important inroads," IAS's spokesman Randy Johnson said.
NuSkin and Tahitian Noni met with representatives of China's Direct Selling Regulation Bureau of the State Administration for Industry and Commerce, and the Chinese Food and Drug Administration.
"The meeting with the Direct Selling Regulation Bureau was significant, because direct selling is key to many of Utah's natural products companies. Utah companies are keenly interested in establishing contacts with this relatively new bureau," Heimburger said.
Heimburger noted that the trade delegation was hosted by the China Council for the Promotion of International Trade, which sent a delegation to Utah in October 2005. That organization previously met with Gov. Jon Huntsman Jr. while in Utah and had offered to help Utah business arrange key government meetings in China.
At the conclusion of the trade mission meetings in Beijing and Shanghai, Heimburger continued on to Chengdu in Sichuan Province to follow upon on a recently signed cooperative agreement between the Utah Department of Health and the Chinese Department of Health to review the potential significance of traditional Chinese medicine in the natural products industry, GOED spokesman Michael Sullivan said.
steve@sltrib.com


