Ties That Bind - Bay Area Council Economic Institute

Building Bridges, Leveraging Assets
To preserve those jobs, capture a larger share of Asian trade, and strengthen the Bay Area’s
position as an international trade center, state and Bay Area leaders need to address several
issues, among them: the capacity and efficiency of port operations; highway access to and
from the port; intermodal rail capacity from Oakland to distribution centers in the Central
Valley; and rail capacity across the Sierra to major Rocky Mountain, Midwest and East
Coast markets.
While not an immediate problem, all three of the Bay Area’s international airports are nearing
capacity. Consideration therefore needs to be given, and long range planning undertaken,
for how the region will accommodate growing numbers of Asian and other travelers, and increasing
volumes of air freight. Like the region’s ports, logistical access to and from Bay
Area highways is a concern.
10. Promote the Bay Area as a destination for Chinese students and leisure travelers. The Bay Area, with its
many institutions of higher learning, has long been a destination for students from Greater
China. In turn, they make a major contribution to the Bay Area’s culture and economy. New
means should be found to market the Bay Area to Chinese students, including high school,
English-as-a-second-language, university and advanced degree programs. As personal income
in China grows and more Chinese travel abroad, the Bay Area should also be aggressively
promoted as a culturally welcoming, language-friendly destination for Chinese tourists,
and facilities developed to support them.
11. Support cultural activities that strengthen Bay Area-China linkages. The proposed development of a
classical Chinese garden in San Francisco is just one example of the kind of cultural exchange
that can raise the Bay Area’s profile, strengthen its identity with China, and attract
U.S., Chinese and other visitors.
Most of these proposals would not entail large or extraordinary public expenditures, or require a
major government initiative. Many represent a simple reordering or extension of existing public
priorities, but require improved regional coordination.
It is the conclusion of this report that—apart from seaborne freight moving through the Los
Angeles/Long Beach area and capital market activity in New York—the Bay Area has become
the premier portal in the United States for U.S.-China exchanges. This is attributable to its
unique history; its educational infrastructure; its financial and technological assets; its ability to
develop and export new business models; and the extraordinary resources of market intelligence
and expertise on China that exist here. As China’s economy continues to expand, the Bay Area is
in a strong position to participate in, shape and benefit from China’s economic growth, and consolidate
its role as the nation’s leading gateway with China.
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