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Thursday, Mar 28, 2024

…But Smaller Firms Learn Costs Can Be Prohibitive

…But Smaller Firms Learn Costs Can Be Prohibitive By JACQUELINE FOX Staff Reporter OK. So China’s the hot new spot for anyone serious about taking their company global. And, some of the San Fernando Valley’s big players Diodes Inc., Nomadix Inc., Warner Bros. are already there. Those companies had the resources early on to send exploratory teams into China to track changing economic and social trends and, at the first sign that China was working on a kinder, friendlier set of trade rules, they were right on board. But what about the little guy? “That’s a tough one,” said Peter Antoniou, co-founder of Toluca Lake-based Pomegranate International, an exhibitor at the Nov. 15 International Trade Conference in Universal City. Launched in 1986, Pomegranate specializes in providing consulting services for businesses interested in setting up operations in China. About a decade ago, Antoniou and partner Katherine Whitman established the Mid-Valley Chamber of Commerce/International Trade Committee. But, as Antoniou put it, things haven’t gone so well. “We’ve never been able to convince one Valley company to go over,” he said. “And it’s such a shame. Because the mid-Valley is home to so many small manufacturing firms that provide goods and services that are perfectly compatible with companies in China.” Although several larger manufacturing firms have left the Valley over the last decade, according to Antoniou, there are still roughly 10,000 smaller companies here, all with the potential to market their services internationally. So, what’s the problem? “Money,” says Antoniou. “Start-up costs can be daunting.” It also takes dough to leave a small business for a trip to China to explore options and establish connections. And, as many who attended the trade conference learned, you just don’t run in and run out of Asia. “That’s one of the first things you have to know about Asia, particularly China, which is just opening up its doors full force,” said Christopher Pak, president of Archeon, an L.A.-based architecture firm and speaker at the trade conference. “Doing business in Asia is about building relationships as much as it is about the bottom line. You have to be prepared to spend some time there.” The fear factor weighs in heavily too. Despite a growing Chinese middle class yearning for Western products, many Valley small business owners tend to think of Mexico or Central America when it comes to going global. “When we first started doing our international trade committee full force, the first time around we focused on Mexico because that seemed to be where the interest was,” said Nancy Hoffman-Vanyek, CEO of the Mid-Valley chamber, which has about 400 members. “Then we started to go into China, but that just wasn’t very successful. People just had a lot of fear about China and remain insecure here still.

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