Matt Bevin confident that tensions can be ironed out

Matt Bevin, governor of the US state of Kentucky, who has just returned from his administration's first economic development and trade mission to China, is still excited by the journey.

"It was an excellent visit. I was very impressed by all of it. It was incredible," the Republican said at his office in Frankfort, the state capital.

Bevin was pleasantly surprised to learn that Kentucky has such a good name in China "because of Kentucky Fried Chicken". "So many people know the name, and they have a good connection to the name. It reminds them of something that makes them smile. It has consistency, it has quality," he said.

"And so we need to do a good job in Kentucky of leveraging that - not just Kentucky chicken but Kentucky goods and services," said Bevin, who is eager to show China that his state's economy is also playing a prominent role in nonagricultural areas, particularly auto manufacturing and medical facilities.

During the weeklong trip, Bevin attended the China International Import Expo in Shanghai with Kentucky Cabinet for Economic Development Executive Officer Vivek Sarin and Erran Persley, the cabinet's executive director for international affairs and business development.

Last year, Kentucky's exports to China hit record levels, with more than $2.8 billion in products and services shipped.

According to the governor's website, Kentucky exported about $1.5 billion in goods and services to China in the first eight months of this year, making the country the state's sixth-largest export destination by dollar value.

However, last year, Kentucky imported more than $8.09 billion in goods and services from China, creating a $5.28 billion trade deficit.

According to the website, Chinese-owned companies are "substantial employers" in Kentucky. Eight Chinese-owned ones operate facilities in the state, employing about 8,700 people.

They include some of Kentucky's most recognizable employers, such as GE Appliances (owned by Haier Group), which employs more than 6,000 people in Louisville, and Lexmark (owned by Apex Technology, which is headquartered in Lexington, and has about 1,600 employees.

In August, Chinese-owned paper products manufacturer Global Win Wickliffe said it planned to reopen the former Verso Corp paper mill in Ballard County with a $150 million investment, which is expected to create 500 full-time jobs.

Bevin and his group visited five of the eight companies on their trip to China. The tour took in Beijing, Chongqing, and Qingdao in Shandong province, with the aim of strengthening relationships with Chinese companies that are operating in Kentucky as well as developing new business and government connections to fuel growth.