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Escalated Chinese Investments in U.S. Businesses

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Published on : May 20, 2015

About 15 years ago, Chinese investments in businesses I the U.S. were non-existent. Today it is worth US$50 billion and is expected to reach US$200 billion in the next ten years, as per a study tracking the escalating trend.

In China, increasing energy and labor costs has pushed trend for direct investments in the U.S. by Chinese companies and individuals in the last five years, as found by a study conducted by global market research company Rhodium Group and nonprofit group National Committee on U.S.-China Relations.

Chinese investors have fabricated or bought 1583 U.S. companies in the last 15 years until December, which employs 80,600 workers on a full time basis post a fivefold expansion in the last five years. 
The fast-growing investments compared to three decades of much greater inflow of U.S. capital into manufacturing in China, and direct investment from Chinese companies in the U.S. is way behind made by some other countries.

Even then, Chinese start-ups should strengthen ties in a manner that mere purchasing of foreign products should not work, as commented by president of National Committee.

Investment is a medium to bring people together, less the trade, he further added.

The argument is an easy one if made to California governor, or a mayor in Alabama over many politicians in Washington, as commented by president of Rhodium.

In this week itself, the mayor of Thomasville is going to describe in New York, how Golden Dragon Precise Copper Tube Group worked to revive the depressed region of pine forests, muddy roads, and closed furniture and textile units. The Company that is based in Henan Province of China developed a US$100 million manufacturing unit employing 300 workers.