cate a Medical City next to the new
airport, and they would like the Texas
Medical Center to be the partner.
There is a lot of detail to be worked
out. There were several conversa-
tions prior to, during and since the
trip, about how to build such a part-
nership. It is complex. The fact that
the people in China are looking to
partner with our Medical Center is a
major investment and commitment.
Many conversations have taken place
between the key parties. It has not yet
progressed beyond discussions.
When you are operating at the level
of the NDRC, you know you are
dealing with the highest levels of the
China government. Often in dealing
with China, we are trying to figure
out whether the party we are talking
with has the full support of the gov-
ernment. Someone made the com-
ment years ago when the Air China
flight Houston to Beijing was created
that this was of major significance.
Beyond just adding another interna-
tional flight, Air China goes where
the government of China wants
them to go. It was strategic. The dia-
logue between Houston and China
has since increased many folds.
Let me mention one more thing.
One of the last visits in Beijing, the
third city of the trip, was with the
National Energy Administration
(NEA). It is their senior energy gov-
ernment body. They spoke about the
evolution of China and needing to
use more clean fuel or natural gas.
China sees Houston and Texas as a
major supplier of LNG (Liquified
Natural Gas). This was not a part
of the discussion in 2013. We were
having discussions about LNG with
other Asian countries; but not, with
China. Now, it is very much a part
of the China discussion, because they
made a commitment to clean up
their air. Clean air means converting
coal to natural gas.
They realized this would be largely
an import phenomenon. China also
wanted to talk to Houston compa-
nies about helping them develop the
shale drilling, that they have in Chi-
na. This would be a long-term op-
portunity, because it would involve
building a lot of infrastructure.
Hence, this was a two-part conversa-
tion-- LNG export from Texas, and
the capability of U. S. companies, in-
cluding Texas, to help China develop
their shale plane.
This is a major change; they have
frankly not welcomed U.S. energy
companies onto the mainland of Chi-
na. For the most part, they reserved
that market for the Chinese oil com-
panies. That has really developed a lot
of their skills. Then those companies
went global and international, and
several of them are in Houston. This
idea that they’re welcoming Houston
companies back onto the mainland of
China is a major shift. The opportu-
nity is still early but it’s like the con-
versations we had in Mexico when
they first started talking about energy
reform. I think Houston companies
are now looking at China and trying
to decide whether the opportunities
are real. How difficult or complex
will they be? How many years will
it take to generate revenue and build
a presence. This is a major shift from
where we were three years ago.
Q: Some of the most pressing issues
in Houston, according to regional
leaders, McKinsey & Company and
GHP are to develop, attract and retain
talent, to make Houston an even bet-
ter place to live. What is being done,
and how can Houstonians help?
A: You just described the priorities
we put forth back in 2013. We are re-
viewing them to determine whether
they should continue to be the pri-
orities. Nevertheless, they are still our
current priorities.
Houston relies heavily on bringing
talent to Houston. We do not pro-
duce the number of baccalaureate
degrees in this Metropolis that we
should. Look at the top 10 cities in
the U.S. We produce fewer baccalau-
reate degrees per capita than any of
the other top ten cities. We just do
not have as well-developed or the
same scale of higher education in
Houston. Now that might change
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