Chinese business investment has come to America and it’s only going to keep growing. According to a report by Bloomberg on Sunday, Chinese companies invested $12 billion in the U.S. in 2014, and currently employ 80,000 Americans.
Below is a brief list of some of the companies already operating on U.S. soil:
Golden Dragon Precise Copper Tube – $120 million invested in Wilcox Co. (southwestern), AL. Pay starts at $11 per hour.
Continental Motors – subsidiary of AVIC International, owned by the Chinese government; produces airplane engines in Mobile.
Shandong Swan USA – makes saws for cotton gins in Montgomery, AL.
Sany Group – $60 million invested in heavy equipment factory in Peachtree City, GA; 500 jobs.
Wanxiang Group – largest auto-parts manufacturer in China; owns 28 factories in 14 U.S. states.
Anbang Insurance Group – bought New York City’s famous Waldorf Astoria hotel for $1.95 billion.
Fosun International – bought One Chase Manhattan Plaza (skyscraper in downtown Financial District) for $750 million.
In late September, Chinese President Xi Jinping is expected to visit with President Obama in Washington, D.C. One of the items on their agenda will be to discuss a potential trade deal which will open up continued foreign investment in both countries.
According to Bloomberg, as part of the deal U.S. banks would be permitted to own Chinese subsidiaries outright, retailers could run their own distribution retailers there and manufacturers could build without a local partner.
If all goes according to plan and a trade agreement is ratified, Chinese investment in the U.S. may increase by $90 billion within five years according to the American Enterprise Institute, a center-right public policy research institute in D.C.
While continued foreign investment may be good for the U.S. jobs market, especially in currently neglected rural areas, a trust-gap still exists between China and the U.S.
The former’s foray of the U.S. market is dependent on state and local governments to provide public services that are sometimes promised by politicians to attract their business, and usually necessary to sustain their investments. The latter is still leery of an opaque government which has complete control over public policy (i.e., currency manipulation), its people (i.e., lack of human rights), and its supposed spying on and hacking of U.S. government and industrial computer networks.
Chen Mingxu, manager of Golden Dragon’s facility in Wilcox, Co., summed it up when he said, “The best way to beat the enemy is probably to go to their homeland.”