If you see a company that shares a similar blueprint with yours, it's better to make it a partner than a competitor. That's the philosophy of Li Xuecheng, chairman of Jihua Group Co Ltd.
Beijing-headquartered Jihua and New York City-based Waitex Group entered a strategic partnership after Li and his counterpart Howard H. Li expressed interest to work together on a real estate development in Xi'an, Shaanxi province.
The two signed an agreement on Monday at the Waitex Tower in midtown Manhattan.
"This partnership is a collaboration between a state-owned firm and a private firm, a cooperation between the US and China," said Zhou Shanqing, commercial counselor of China's Consulate General in New York.
Jihua Group is one of the two main subsidiaries of Xinxing Cathay International Group. Founded in 2009, the group has recently turned to real estate development and retail.
Waitex has expertise in logistics, trading and real estate. Established in 1981 in New York, it is now a conglomerate of companies consisting of Waitex Supply Chain Solutions, Waitex Apparel Group and Waitex Global Investments, employing more than 1,000 workers worldwide.
Both companies have been developing large-scale commercial real estate projects in China. Jihua Group's Jihua Park is an ambitious scheme to create dozens of new retail, sport and leisure resorts across China.
"The project is a response to the rampant growth of Chinese domestic tourism," said Li Xuecheng. "As the country's middle class grows, there is an increasing need for shopping, sport and traveling options."
The partners are considering working together on the Jihua Park in Xi'an, home of the Terracotta Warriors.
The resort will include a boutique hotel, shopping street, racetrack, paintball area, amusement park, football academy and retail village. Li Xuecheng said construction on the project will start later this year.
Waitex was named the developer for Harbor Station South, part of the former Military Ocean Terminal in Bayonne, New Jersey outside Manhattan.
The companies are also discussing a potential collaboration on the project.
As Jihua nurtures its fashion brand JH1912, Li Xuecheng said that Waitex can be a great help to its design, logistics and international branding.