FORT MITCHELL — Kentucky and China are officially doing business, and it's about coal and cattle.

        Wearing traditional Chinese ceremonial robes, Lt. Gov. Steve Henry and Vice Gov. Wang Li Min of the Heilongjiang Province in China entered an economic development agreement between the two governments at a popular Northern Kentucky Chinese restaurant Tuesday.

Lt. Gov. Steve Henry gets a hand with the buttons on a ceremonial Chinese robe from Wang Li Min, vice governor of Heilongjiang province in China. (Patrick Reddy photo) | ZOOM |

        Under the deal, Kentucky companies will provide beef cattle and state-of-the-art coal mining equipment to the province, a part of Manchuria in northern China, near Inner Mongolia and the Russian border.

        Joe Flynn, 54, of Lexington, owner of Flynnco International, a business consulting firm in China representing American businesses and Chinese provincial leaders seeking business opportunities, set up the deal. Mr. Flynn has been involved in China affairs for six years. A University of Kentucky graduate, he was a highway engineer for about 20 years.

        “This province is very similar to Kentucky,” he said. “They're strong in agricultural products (soy, grain, rice, potatoes and corn), and they aspire to be the leading cattle producing province in China. One of the major projects we'll have with Kentucky will be the formation of their dairy industry and beef cattle industry.”

        Kentucky beat out other states vying for the business, including Missouri, Illinois and New York. Twenty-one states, including Ohio, have business development offices in China now.

        Kentucky's Addington Coal is part of the deal. The powerful coal company wants to have all its coal equipment manufactured in China and get into the Chinese and Russian equipment markets, Mr. Flynn said.

        “We're also very active in establishing the horse industry in China,” he said.

        Mr. Flynn praised Mr. Henry's negotiations with the Chinese, saying he was instrumental and “very aggressive in negotiating with this group.”

        Mr. Henry, his wife (former Miss America Heather French Henry) and their daughter were at the ceremony, something that signifies a special importance to the Chinese.

        Gov. Paul Patton's son, Chris Patton, represented Kentucky with Mr. Flynn on a trip and promoted Kentucky. Gov. Patton visited Beijing last year.

        The Chinese delegation that visited Tuesday flew to Kentucky from Germany, where it was negotiating with Shell Oil for the world's longest oil pipeline, planned to run from Russia across North China to the Sea of Japan.

        The province that signed the bid today has put in a bid to host the Winter Olympics in 2010 and is famous for its ice sculpture festival and for its ski resort, one of only a few in China. About 38 million people live on a land area about the size of Minnesota with a similar climate.

        “It's a rich province, resources in coal, oil and agriculture. Very aggressive economic development leaders,” Mr. Flynn said. “This is one of eight provinces I represent in China, so we will probably bring the other seven to Kentucky at one time or another.”

        Flynnco represents Convergys in China, where the Cincinnati company will be involved in telecom and wireless there, he said. His company is currently selecting partners globally for a steel plant in China.

        China's four-month-old membership in the World Trade Organization is one protection for businesses entering deals with China.

        “Not only with WTO, but now that China has the Olympic bid, there are now more regulations,” Mr. Flynn said. “That's a great safeguard for businesses right now.”

        The Oriental Wok was a natural site for international business. Mr. Flynn always brings his Chinese guests there.

        “Mike Wong owns the best Chinese restaurant in five states,” he said. “He's entertained many prominent business leaders from China.”

        The agreement will include more than business exchange. It will be an opportunity for many Kentucky businesses in manufacturing, agriculture, tourism, student exchanges, medical research exchange and pharmaceutical industry, said Mr. Flynn, who declined to be specific about dollar — or yuan — figures.

        “What we want is for Kentucky to get into China right now on the ground level and explore the opportunities that are there.”
       

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