AmCham Shanghai Report Finds U.S. Job Creation, Economic Growth and Increased American Exports as ‘Win-Win’ Outcomes of Chinese Foreign Direct Investment (FDI)
provides important new sources of capital, develops infrastructure and
ultimately serves to strengthen U.S.-
Shanghai’s latest Viewpoint – Chinese FDI in the US: Causes, Case Studies and
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As the U.S. recovers from the toughest economic downturn since the Great
economy. Estimates place
billion to US$6.4 billion
“As the Chinese economy expands and becomes further integrated into the
global economy, Chinese FDI will naturally increase,” says
president of the AmCham Shanghai. “Like other foreign investment in
increase U.S. exports.”
At the launch of AmCham Shanghai’s Chinese FDI in the US on
Four Seasons Hotel Shanghai,
“We expect Chinese outbound investment in the U.S. to continue to increase.
While investments may be relatively small in scale they will be diverse with a
focus on resources, clean energy, technology, agribusiness and biotechnology.”
Chinese investment in the U.S. is being encouraged at the local level as
U.S. states and cities emerge from the economic downturn. Tasked to attract
Chinese investment to their home state,
offices than any other country; more than 30 were registered in 2010.
Chinese FDI has the potential to result in “win-win” outcomes for both
Chinese companies and American communities. State trade offices estimate that
In 1998, Wanxiang America Corporation, a subsidiary of Wanxiang Group
Corporation located in
partnership with troubled U.S. axle manufacturer Driveline Systems LLC which
preserved at least 50 on-site jobs and returned the company to profitability.
manufacturer Universal Automotive Industries Inc. for
assembly plant and manufacturing facility in
the deal is expected to create at least 60 new jobs that will eventually
increase to more than 200. The
automotive parts manufacturers in
more than 4,100 people in the U.S. alone.
Recommendations to Leverage Chinese Investment in
Although sensitivities exist with respect to foreign investment in
America’s most strategic sectors, overall, Chinese investment is good for both
the American and Chinese economies and for the state of the U.S.-
AmCham Shanghai and the AmCham Shanghai Financial Services Committee have
developed the following recommendations that federal, state and local
governments and their corporate constituents can take to invite, prepare for
and capture a greater share of Chinese FDI:
-- Support U.S.-China bilateral investment treaty (BIT) talks. BITs are regarded as crucial to boosting confidence in cross-border investments and have the potential to increase trade volume, especially during the signing and implementation stages. -- Make efforts to depoliticize the U.S. regulatory process in which the Committee of Foreign Investment to the United States (CFIUS) identifies foreign investment deals chosen for review. Chinese investors are increasingly concerned that its investments may be hampered by U.S. national security restrictions and may serve to drive much needed investment to Canada, Mexico and other countries. -- Balance and negotiate stakeholder involvement in investment deals to develop "win-win" outcomes for Chinese investors and U.S. companies and the local community. -- Bridge the gap between different cultural business practices. Hire Chinese-proficient staff at relevant governmental and quasi- governmental bodies to guide investments through the right channels. Understand who the investors are, the concerns of the community and how to bridge the business gap.
About the American Chamber of Commerce in
The American Chamber of Commerce in
American Business” in
Chamber in the
third American Chamber established outside
non-partisan business organization, AmCham Shanghai is committed to the
principals of free trade, open markets, private enterprise and the
unrestricted flow of information.
AmCham Shanghai’s mission is to support the success of our members by
promoting a healthy business environment in
commercial ties and providing high-quality business information and resources.
Visit http://www.amcham-shanghai.org for more information about AmCham
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SOURCE American Chamber of Commerce in