There is enormous latent supply of equipment and machinery in China across a wide range of industries. The amount of arbitrage happening in the China-to-US machinery and equipment space seems almost too significant to not be disintermediated. Why has no one been able to tap into it, especially the marketplace giants, Amazon and Alibaba?

High-Touch or Low-Touch?

One reason is the unique high-touch service needs of equipment and machinery industries. High-touch means that customer service issues are often more complex, but the business involves high value customers. In contrast, most consumer goods follow a low-touch customer model.

From operating call centers trained in technical advice and troubleshooting, to providing adequate after-sales maintenance and repair, the need for high-touch customer service from end to end is unavoidable in the world of big-ticket machinery and equipment purchases. Few Chinese manufacturers can afford to operate a dedicated US-based team to fulfill this for US customers.

If traditional cross-border intermediaries such as trading companies and OEM buyers can fill this need and profit handsomely, why couldn’t a horizontal marketplace platform step in and steal their thunder (along with billions of dollars of profit)?

As Alibaba and Amazon's marketplace platforms have been built out around consumer goods, these incumbent players follow highly entrenched low-touch service models. This because the relatively low value of consumer purchases prevent a high-touch model from ever being profitable. However, conversely, a low-touch model greatly limits these platforms’ ability to accommodate Chinese direct-selling of industrial equipment and machinery the same way they have – to an extent – for Chinese consumer goods.

One Man's "Innovator's Dilemma" is Another's...

It would go against Alibaba or Amazon’s core business models if they were to establish a dedicated after-sales service team to answer customers’ various technical industry-specific questions, much less provide on-site maintenance services. But that is exactly what is needed by Chinese industrial sellers in order to sell to the US.

A platform that provides high-touch English-language service is the very key that will unlock an enormous volume of latent supply. It is a key that may not seem intuitive at first due to the consumer models proven out by the giants, Amazon and Alibaba. But it’s one whose numbers make complete sense if you take a look at the US market from a buyer perspective, in conjunction with understanding the challenges and incentives from a Chinese seller perspective.

SHENYANG, Liaoning-September 24, 2017 – Toolots CEO Jason Fu and Executive Advisor Peter Wei met with local leaders in Shenyang last Friday to discuss mutually beneficial opportunities to grow the global manufacturing community. 

Toolots was warmly received by the local officials, who hoped to offer their support for Toolots doing business in their region as well as examine what efforts could be made to increase and strengthen cross-border commerce. 

Jason Fu (middle) and Dr. Peter Wei (left) of Toolots pictured with Vice Mayor Zhang Jinghui.

Once at the forefront of China's industrial revolution, Shenyang is still the most important city for manufacturing in Northeast China. But like other cities in China's rust belt, the local government is making every effort to modernize industry and revitalize the region. This includes supporting private sector industries as well as creating an international business environment in accordance with World Bank criteria. Viewing Toolots' business model as beneficial to industry as well as trade, Shenyang is interested in promoting Toolots' unique platform to SMEs seeking to expand their distribution network or sell in a new market. 

"Industrial equipment manufacturing plays a pivotal role in Shenyang's economy. Toolots is a global marketplace specializing in industrial equipment, so I am particularly interested [in the company] for that reason," said Vice Mayor Zhang Jinghui. "Shenyang's industrial suppliers have a substantial domestic customer base, but they haven't broken that much ground internationally. We will actively support getting an initial 'batch' of industrial supply vendors to conduct cross-border sales on your platform." 

Toolots CEO Jason Fu expressed his gratitude for the city's help in promoting the platform. He assured, "Our product specialist teams will work with several initial Shenyang suppliers to bring their products onboard that are suitable for the U.S. market. These initial suppliers will be 'model enterprises' to demonstrate that Toolots really is the fastest and most effective method for suppliers to expand their business overseas." 

Zhang also expressed his interest in bilateral trade. "Toolots can also help us attract American SMEs to do business here – indeed, what our manufacturing needs is bilateral international cooperation. What Toolots wants to do in terms of business development is precisely what Shenyang needs right now," said Zhang. "Shenyang is working hard to build an international business environment. We even invited third party organizations to assess, in order to better compel progress. Shenyang government will offer Toolots comprehensive support in expanding its business here, as soon as possible." 

Toolots' CEO Jason Fu agreed that the focus would not only be on getting Chinese vendors on the platform, but also on getting U.S. vendors to sell to China: "Toolots is a services platform for industrial suppliers, primarily SMEs in the U.S. and China. SMEs in China and the U.S. have similar needs and challenges. Although large U.S. manufacturers have had a lot of success expanding sales into China, U.S. SMEs haven't necessarily been able to. We have signed a cooperation agreement with the U.S. Department of Commerce to help U.S. SMEs enter the Chinese market. In doing so, we actually garnered both U.S. federal and state government support as well." 

Like many other cities in China, Shenyang has invested substantially in the creation of free enterprise zones and industrial parks in order to attract foreign businesses. For example, the China-German Equipment Manufacturing Industrial Park in Shenyang was introduced in late 2015 to attract advanced production in automotive components and other industrial sectors. It currently hosts 30 German companies, including one of BMW's biggest manufacturing plants. Now cities in Liaoning, including Shenyang, are seeking to bring businesses into their U.S.-focused industrial parks. They hope that companies like Toolots will help bridge the way for U.S. companies interested in expanding to China. 

Shenyang municipal leaders and Toolots gather for a group photo after the meeting.

A Chinese version of this article, can be found here.

SHENGYANG, Liaoning-September 21, 2017 -Toolots CEO Jason Fu met with Bi Chunguang, the president of Liaoning Chunguang Pharmaceutical Equipment Co., Ltd., at Qibaoshan Hotel in Sheyang Province on Thursday, to discuss business opportunities.  

Liaoning Chunguang Pharmaceutical Equipment Co., Ltd. is an award-winning manufacturer of packaging machinery, pharmaceutical machinery, and other equipment in Liaoning Province. They are a trusted brand of equipment used widely among manufacturers in the pharmaceutical, food, cosmetic, and household chemical industries. The company has five main product lines: liquid blowing potting automatic molding filling machinery, blister packaging machinery, automatic cartoning machinery, and automatic production line equipment, totaling more than 20 models overall. In addition to being a leading packaging machinery company in China, the company also exports to more than 60 countries in Southeast Asia and Europe. Customers include many well-known pharmaceutical companies in China, including Yunnan Baiyao, Tongrentang, Harbin Pharmaceutical Group, and Tasly Pharmaceutical. 

Chunguang mentioned that the pharmaceutical packaging industry in the US lags behind that of several other top economies like Germany, but that means room for improvement and therefore great opportunity. 

Toolots CEO Jason Fu (right) with Bi Chunguang of Liaoning Chunguang Pharmaceutical Equipment Co., one of the industrial suppliers slated to expand into U.S. exports using Toolots.

"To me this represents a collaborative effort, not only in regards to sales, but also in terms of development strategy for mutual growth," said Chunguang during the meeting. He also embraced Toolots' product display center concept in California, where flagship products are shown to prospective U.S. customers hoping to familiarize themselves with various product lines. Chunguang will be the first vendor to sell pharmaceutical packaging machinery on the platform. The machines manufactured by Chunguang will be vital to U.S. SMEs seeking to seal and protect their products from contamination or exposure during processes such as distribution, storage, and sale prior to their use. However, Chunguang's packaging machines also allow businesses to reduce their labor, improve productivity, and protect their workers from handling materials that may be hazardous or adversely affect their health.  

Toolots will hold its Second Annual China-US Manufacturing Exchange Summit in China from November 12-14, 2017, to which Chunguang is invited, along with several other medical equipment manufacturing companies from China and the U.S. For additional information on the Summit, or to RSVP, visit our Eventbrite page here. 

To view a Chinese version of this article, please click here.

CHANGCHUN, Jilin-September 22, 2017- Toolots CEO Jason Fu and board member Dr. Peter Wei attended a business roundtable Wednesday in Jilin Province to discuss how Toolots can play a role in creating export opportunities for Jilin's industrial equipment manufacturers.  

Toolots attends a business roundtable with top industrial supply business leaders in Jilin.

Director of the European and American Affairs Office of Jilin Province Liu Zhijian speaks at the exchange.

Toolots CEO Jason Fu describes the company's business model at the exchange.

The exchange featured a panel of 18 manufacturing executives, including several top industrial supply companies in Jilin. Several heads of the Jilin Provincial Government were also in attendance, including Liu Zhijian, the Director of European and American Affairs Office of Jilin Province. Changchun City Foreign Affairs Office Deputy Director Ou Shuo, Changchun Bureau of Commerce International Market Development Director Suo Tie, Deputy Director Jiang Xutang, Siping City Economic and Trade Bureau deputy director Liu Dongyu were among the officials in attendance.  

The 18 top manufacturing executives represented companies producing a wide range of industrial products, including automobile manufacturing, transformers, industrial automation, valves, power generation equipment, and other equipment. 

Toolots was given the opportunity to speak about its business model and how its platform makes it possible for industrial equipment SMEs in Jilin to become export-ready, particularly as US manufacturing heats up and its demand for equipment grows. 

"Toolots coming to Jilin is a win-win situation," said the Changchun Deputy Director of Foreign Affairs during the roundtable discussion. "It is always our goal to facilitate and build bridges when it comes to global trade, so we will do everything we can to support Toolots in helping Changchun industry explore export opportunities."  

Deputy Director of Foreign Affairs Office of Changchun City Ou Shuo speaks at the exchange.

After Toolots spoke about their platform, the Siping Economic Cooperation Bureau said that he was optimistic about the company's impact on industrial exports, and looked forward to spreading the word.  

Deputy Director of Changchun Bureau of Industry and Information Technology Jian Xutong also expressed his full support of Toolots's business model, noting an interest in helping bring more companies onboard.  

"The U.S. is bringing back manufacturing to the States, but Toolots has turned this trend into opportunity. China's industrial industry has accumulated a degree of excess capacity, yet there is a prevailing lack of know-how in terms of how to export it to U.S. manufacturers. Fortunately, this is precisely Toolots's area of expertise."  

Deputy Director of Changchun Bureau of Industry and Information Technology speaks at the exchange.

Toolots CEO Jason Fu spoke about Toolots's plans for the future:

"Before October of next year, we will have onboarded 300 industrial equipment companies which will serve as business model validation, showing investors, local governments, and business leaders our platform's potential for incredible growth." 

Toolots CEO Jason Fu speaks at the exchange.

A Chinese translated version of this article can be found here.

Xiuzhou Economic Development Delegation from Jiaxing, China visits Toolots and local SMEs

Tenghui Guo, Executive Deputy Governor of Jiaxing, giving open remarks to attendees.

CERRITOS, Calif – August 17, 2017 – Toolots was honored to receive over 40 prestigious guests Tuesday for an exclusive US-China Manufacturing Delegation held at its’ headquarters. The event aimed to gather US and Chinese government officials with expertise and experience in the manufacturing industry with local US manufacturers to discuss the importance of bridging the gap between the Pacific, how to improve trade relations, and the future of the industry as a whole. Attendees were given the unique opportunity to ask delegates questions regarding the industry and the importance of California and the Xiuzhou District.

The event began with with remarks by Toolots Founder Jason Fu and the Executive Deputy Governor of Jiaxing Tengui Guo, who stressed the importance of strong trade relations to streamline industrial commerce between the United States and China. Cerritos Mayor Grace Hu then delivered a proclamation certificate to Guo, to thank the delegation for choosing the city of Cerritos and its’ businesses to begin strengthening relations.

“California is open for business [and happy to] support our residents here within the district” Adam Galia, a District Representative for California State Senator Tony Mendoza, stated. Galia then presented the delegation with a certificate on behalf of the Senator for the 32nd District. “[We] commend your contributions to this form of helping  American businesses in advancing and improving relations between our two countries” Galia read, verbatim, from the certificate.

Lisa Zhou, President of the Chinese CEO Organization, followed Galia by presenting a certificate of recognition for contributions to the development of the Chinese-American business community, noting the Xiuzhou Economic Development Delegation’s commitment to improving trade relations. Desmond E. Thompson, Vice Chairman of the Board for the Cerritos Regional Chamber of Commerce, then discussed China’s role in international trade with the US. With over $600 billion in total trade with China in 2016, the Vice Chairman was thrilled that Toolots and the Delegation chose Cerritos as their headquarters and event location. “Toolots [is] helping expand the local opportunities for all businesses to play a role in this significant source of trade,” said Thompson.

Vice Chairman of the Board for the Cerritos Regional Chamber of Commerce, Desmond E. Thompson, discusses US-Chinese trade and the potential benefits for local SMEs.

Toolots Chief Technology Officer, Bill Andreozzi then took the stage to provide guests an introduction to Toolots’ unique platform. Briefly, Andreozzi explained Toolots’ vertical approach to the market, and how after-sale services can disrupt traditional eCommerce models. The event concluded with an industrial equipment cross-border eCommerce platform signing ceremony, a group photo, and a networking luncheon.

Representatives from the Xiuzhou Economic Development Delegation from Jiaxing, China (嘉兴市秀洲区经贸考察团) included:

• Tenghui Guo: Executive Deputy Governor, People's Government of Xiuzhou District, Jiaxing City
• Chunfu Dong: Deputy Director, People's Republic of Xiuzhou District, Jiaxing City
• Xihua Xu: Director, Jiaxing Xiuzhou Bureau of Economy & Commerce
• Jianzhong Du: Deputy Director, Development and Reform Bureau of Xiuzhou District, Jiaxing City
• Yong Qian: Director, Bureau of Economic Development & Statistics, Jiaxing Xiuzhou National Industrial Development Zone
• Yanqin Ma: Project Manager of Service Investment Bureau, Jiaxing Xiuzhou National Industrial Development Zone (interpreter)

According to the Chinese government officials who attended, California’s role in global commerce is imperative. International contributions through trade and investment will provide significant benefits to the manufacturing community,extending beyond American businesses and their employees to assist the communities they operate in as a whole.  

Group photo of attendees of the US-China Manufacturing Delegation hosted by Toolots at their Cerritos, CA headquarters.

“Xiuzhou can help American companies to develop their businesses,” said Guo, Executive Deputy Government for the People’s Government of Xiuzhou in Jiaxing City. Guo was one of six members of the delegation who traveled to Toolots Cerritos headquarters for the event. He further added that the Chinese government wants to reinforce its national manufacturing reach by solidifying strategic partnerships with esteemed foreign manufacturers, like those located throughout the state of California. During a brief presentation, Xihua Xu, Director of the Jiaxing Xiuzhou Bureau of Economy and Commerce, discussed the manufacturing resources, potential partnerships, and investment or partnership opportunities in his city. While these partnerships are valuable to Chinese government officials, it’s also an opportunity for American manufacturers to broaden their market, invigorate production, and spark increased localized growth. “We think Toolots will become a bridge between companies in China and California, and elsewhere in the United States.”

The US-China Manufacturing Delegation is one example of Toolots’ ongoing ambition to increase engagement between the US and Chinese industrial communities to help promote localized economic growth in Southern California while also educating US SMEs on how to effectively export their products to the overseas market. Additionally, the Company’s streamlined global eCommerce platform makes it easy for manufacturers to sell their products to long-tail, or niche, markets.

Toolots differentiates itself from the competition by providing the logistical, financial, and personnel support to get new products in the hands of new customers in addition to comprehensive after-sales services. This affords small to medium sized enterprises the ability to focus on the quality of their products, while Toolots handles the heavy lifting. To learn more or to list your company’s products on our eCommerce platform, sign up at www.toolots.com.

Toolots has announced its 2nd Annual US-China Manufacturing Exchange Summit will take place Sept. 24-26, 2017 at the historic Grand Pacific Hotel in Yuyao, China.

Join Medical Device Manufacturers, Trade Associations, Government Officials and More in Yuyao, China

CERRITOS, Calif. – July 3, 2017 –With the 2nd Annual US-China Manufacturing Exchange Summit, Toolots, Inc. continues to cultivate fruitful relationships between American and Chinese advanced manufacturing communities. Hosted by the China Chamber of Commerce for Import & Export of Medicines & Health Products (CCCHMPIE) and the Sino-Italy Ningbo Eco Park, involving high-level industry professionals, regulators and government officials, the Summit provides a platform to accelerate international expansion and expand your global network. Take advantage of this rare opportunity to experience China, learning first-hand what it takes to effectively sell innovative medical devices, health-related products and more on the Asian marketplace, directly from venture capitalists, investors, and executives who take advantage of a unified cross-border strategy to succeed globally.

The 2nd Annual US-China Manufacturing Exchange Summit, centering on the medical device industry and related regulations, logistics and more, will take place Sept. 24-26, 2017, as part of Toolots’ yearly initiative to promote improved relations between both countries and simplify global commerce within the advanced manufacturing community. The event will be hosted at the historic Grand Pacific Hotel in Yuyao, China, part of the eastern Zhejiang Province close to the busiest port in the world, based on shipping volumes, the Ningbo Zhoushan Port.

Some participating companies in the medical device and health product industry include China MEHECO Corporation, Shanghai Medicines & Health Products Import & Export Co., Zhejiang Medicines & Health Products Import & Export Co., Tianjin Medicines & Health Products Import & Export Co., Jiangsu High Hope International Group, China National Scientific Instruments and Materials Corporation.  In addition to a host of large, influential Chinese companies, Toolots and its partners have arranged for a significant presence of venture capitalist firms interested in investing in innovative American companies and products. Some of the principal firms attending the Summit include Sequoia Capital, Cybernaut, Histtone Capital, Hill House Capital, TusPark Ventures and Yangming Capital.

Panel discussions on how to succeed in the global marketplace, protecting intellectual property, and industry developments, among other topics, will help to inform attendees from the U.S. and China, and serve as an educational tool to guide their businesses and organizations. Scheduled discussions will involve officials from the Ministry of Commerce of the People’s Republic of China, the China Chamber of Commerce for Import & Export of Medicines & Health Products, a wide range of executives from both U.S. and China-based medical device companies, and others.

Attendees have the rare opportunity to connect directly with authorities and other professionals in China who can provide logistical or capital assistance, whether you are seeking to register a medical device or other innovative health product, or wish to expand your business operations and network. Space is limited to 30 medical device companies in total, so secure your place today. To sign up, please register via our Eventbrite page here or send us an email at summit@toolots.com. To stay up to date with the latest event information, be sure to visit http://www.toolots.com/summit2017.

Benefits:

• Enjoy personalized matchmaking of U.S and Chinese manufacturers for more meaningful and productive networking.

• Roundtable dialogues between international trade experts, manufacturers, and government leaders will help inform and guide real-world business decisions.

• Tour advanced manufacturing facilities in Ningbo, an industrial stronghold, to see first-hand what China and its industrial capabilities are truly like.

Co-Hosts:

The China Chamber of Commerce for Import & Export of Medicines & Health Products is the leading national trade association in China, aiming to improve international trade and relationships within the biomedical and healthcare industries. With over 2,400 companies in the association, including major manufacturers in the pharmaceutical and medical product sectors, the CCCMHPIE has the most extensive network of any organization in the industry. As a guest at the Summit, you will have an incredible opportunity to connect with these industry professionals who routinely market and sell the products you, as a US-based manufacturer, develop and distribute.

The Sino-Italy Ningbo Eco Park, a collaborative effort between the Chinese and Italian governments for a new industrial development focusing on advanced manufacturing, is planning for a new 18-square-mile manufacturing district, a residential/commercial district and an ecological park to guide sustainable industrialization. The goal is for the area to become a hub for innovative research and development involving cooperation between Chinese, American, and European companies.

Panels will be held on topics including:

•         Protecting Intellectual Property Rights
•         Land, Labor and Capital in China
•         Navigating Customs and Globalized Logistics
•         Effective Marketing and Sales in China

What: 2nd Annual US-China Manufacturing Exchange Summit

When: Sept. 24-26, 2017

Where: Grand Pacific Hotel, 168 S Binjiang Rd, Yuyao, Zhejiang, China, 315400

Interested in breaking into the Chinese marketplace? Toolots can help

Join us on March 31, 2017 for a no-cost informational online seminar on the market conditions and outlook for innovative American products within China. The event will take place from 12:00pm PST to 1:00pm PST during the lunch hour for attendees' convenience. Additional webinars will be announced in the coming weeks. Toolots invites any interested companies to participate, or contact Director of Public Affairs Chris Foy at cfoy@toolots.com for a private consultation on how we can help you break into the lucrative Chinese market and elsewhere in the region.

Toolots Inaugural Manufacturing Exchange Summit brings together key individuals from the U.S. and China for open, honest and productive dialogues

CERRITOS, Calif. – Aug. 29, 2016 – Monday was the first of the three-day Inaugural Manufacturing Exchange Summit, involving key discussions between industry, government and thought leaders from both the United States and China. The Summit was hosted at Toolots, Inc. headquarters in Cerritos, California, and served as a bridge to connect leaders in both countries through open, honest and productive dialogues.

The panel on Protecting Intellectual Property included Bill Mongelluzzo, senior editor of the Journal of Commerce; Vice-Mayor of Yuyao, China, Han Baishun; Frank Cullen Jr. with the GIPC; Gu Liquin, deputy chief of the Ningbo Economic and Technological Development Zone; Jason Yu and Jonathan Jaech, partners and attorneys at law with Los Angeles-based Snell & Wilmer

The first topic addressed was intellectual property protections, and ways manufacturers can ensure their innovative technologies remain out of the hands of counterfeiters or those who seek to illegally replicate the products through patent or trademark infringement. Crediting the strides China has made in recent years was Frank Cullen Jr., executive director of intellectual property policy with the U.S. Chamber of Commerce’s Global Intellectual Property Center (GIPC), who pointed to China’s rising through the ranks of the GIPC’s Global Intellectual Property Index. It analyzes the strength of intellectual property (IP) laws in trading countries around the world, enforcement efforts and other considerations.

Cullen recognized recent enforcement actions by Chinese authorities to stifle the proliferation of counterfeit products from not only trade ports and factory floors, but also the online stores where illegitimate products are sold in the first place. Preserving brand integrity and protecting innovation are protected is critical to IP worldwide, he said.

“Great progress has been made and I’m seeing openness relating to intellectual property, but there is still room for improvement” Cullen said, describing the increased attention Chinese authorities are paying to illegal efforts by counterfeiters and increased domestic enforcement efforts against others who seek to tilt the playing field. “You know, the U.S. used to be a leader in enforcement (based on the Global IP Index). We’re No. 5. So we need to do a little bit of a better job ourselves, and certainly improvement can go around.”

Vice Mayor of Yuyao, China, Han Baishun, also acknowledged a shared responsibility to protect intellectual property originating from international businesses. He added that there is an intellectual property protection association based in China that investigates and follows up on related complaints, in addition to a wide range of government agencies that do the same.

“We need to be the ones protecting intellectual property, not just you,” Baishun said, addressing U.S. leaders also involved in the panel discussion. “We need to include everybody (in these dialogues), follow statewide law and have overarching laws around our country. It’s important to pay attention to the international points of view; we can learn from the others.”

Chinese government officials report complaints of intellectual property theft to enforcement hubs in Beijing and other key areas, Baishun explained.

Deputy Chief Gu Liquin of the Ningbo Economic and Technological Development Zone, a Chinese governmental organization, added, “I believe that to protect intellectual property is to protect our collective future.”

He pointed to an example in December where a Chinese company was discovered to have violated existing trademarks. “We asked them to remove the products immediately,” Liquin said. “We do and we will always try our best to protect intellectual property rights.”

The country’s circuit court provides individuals and corporations with a “comprehensive process that provides you with the rights you should have,” Liquin said.

The discussion was moderated by veteran journalist Bill Mongelluzzo, senior editor of the Journal of Commerce, which provides leading coverage of trade and transportation around the world.

Attorneys Jason Yu and Jonathan Jaech, partners with Los Angeles-based Snell & Wilmer, contributed their expertise on intellectual property and patent law, describing how the legal process differs in China and the United States. Generally speaking, it costs less to file a lawsuit compared to the United States, and the process is much quicker.

Yu said the average lawsuit in the state of California takes about 20 to 24 months from start to finish, while the process can take only a matter of weeks in China and fees are much lower. However, lawsuits in the U.S. allow for greater discovery to take place, a legal term to describe the process where evidence is shared between the prosecution and the defense.

“I’m where the rubber meets the road, as a litigator,” Yu said, adding that patents are of great value in protecting intellectual property beforehand. Yu and Jaech explained that patents are a critical piece of the intellectual property puzzle, whether that is in the United States, China or in both countries.

If a patent is worth money in the United States, Jaech said it is also worth money in China and worth investigating to add a new layer of infringement protections.

Vice Mayor Baishun elaborated, stating that there are no regional differences between patents across all of China. If it is valid in one Chinese province, it is valid statewide, according to Baishun.

Describing what could help drive increased foreign investments into the Chinese marketplace, Cullen with the U.S. Chamber’s Global Intellectual Property Center said removing the uncertainty some companies have is essential.

“When you have IP systems that are strong and create protections for companies, you will see a direct link to investment. Access to capital comes when you (companies) say, ‘I’m able to secure this product in the marketplace,’” he said.

Following the panel, founder and chief executive officer of Toolots, Jason Fu, remarked, “I’ve learned a lot through these discussions and speeches given by our distinguished guests.”

Fu described how he came to the United States as a Chinese immigrant in the 1990s, dreaming of coming to the country and starting a business since he was young. The successful business owner has owned and operating a wide range of companies throughout his career, but said it all came together when he created an online marketplace for industrial tools through the Bolton Group shortly after emigrating from China. Capitalizing on the Internet as a sales platform early on, Fu said the introduction of Google AdWords was “revolutionary” in helping connect directly with customers in need of equipment.

“We are feeling the magic of the Internet, and its power,” Fu said of Toolots, a company he launched to provide industrial machinery from A to Z all around the world, similar to Amazon’s online marketplace where consumers are directly connected with manufacturers. Toolots is headquartered in Cerritos, California, and has locations in mainland China, Taiwan, Hong Kong and Houston, Texas.

The Toolots Inaugural Manufacturing Exchange Summit will continue through Aug. 31, 2016.