Chinese manufacturing companies invest in the United States to heat up

Not long ago, the China CRRC Corporation's manufacturing base invested and built in the United States broke ground in Springfield, Massachusetts. The factory covers an area of ​​40 acres and is expected to invest 60 million U.S. dollars, which will provide 150 jobs for the local people.

CRRC said that the company’s manufacturing goal at its factory in Chuntian City is not limited to this, but it is aimed at the huge US railway market. At present, the United States has planned at least ten high-speed rail lines in New York-Boston, New York-Washington, and so on. These are great opportunities for the Chunda Plant of Sinotruck.

Chinese enterprises’ investment in the United States has become a new trend in “going global” in recent years. Reporters found in Fujian, Zhejiang, and Guangdong that the current investment from Chinese companies in the United States has rapidly increased, with manufacturing companies becoming the group most valued and welcomed by the United States.

According to statistics from the Ministry of Commerce of the People's Republic of China, in 2014, China’s direct investment flow to the United States reached 7.596 billion U.S. dollars, and achieved net output of capital under direct investment in the United States. China's investment in the United States covers 18 major industries. Investment in the four areas of finance, manufacturing, mining, and real estate accounts for nearly 80% of all types of investment.

Since the beginning of this year, investment by Chinese companies in the United States has accelerated. Take Hangzhou as an example. According to statistics of the Hangzhou Municipal Commission of Commerce, from January to August, Hangzhou City has newly approved 26 U.S. projects for investment. The total investment of overseas enterprises is 677 million U.S. dollars, and the investment volume of overseas enterprises is 754 million U.S. dollars, an increase of 698.57 percent year-on-year. %, accounting for 61.64% of the foreign investment in Hangzhou.

Li Mingjie, deputy director of the Department of Investment Promotion and Foreign Economic Cooperation at the Department of Commerce of Guangdong Province, said that investment in the United States and Europe has seen a significant increase, and some of these funds have been transferred to the United States and other places through Hong Kong.

As a representative of more than 1,000 foreign-invested enterprises in China, Harry Sialdin, president of the American Chamber of Commerce in South China, personally felt this trend. He said that compared with the more recent introduction of U.S. companies’ investment in China, the Chamber of Commerce is now turning more attention to helping Chinese companies invest in the United States.

In order to attract investment in China's manufacturing industry, some U.S. government agencies and private institutions have taken measures to create an investment environment and a social atmosphere suitable for the development of manufacturing industries, allowing Chinese manufacturing companies to settle in peace.

Fuyao Glass Group is the largest auto glass manufacturer in China. Since 1995, it has invested in the United States to set up a subsidiary to be responsible for sales in the United States. Cao Dewang, chairman of Fuyao Glass Group, said: "The U.S. investment environment is changing."

Wan Guanqiu, chairman of Wanxiang Group’s Board of Directors, also stated that although there are still many problems with Chinese companies investing in the United States, the overall environment is constantly improving and is welcomed by the local community. Wanxiang Group has become one of the largest Chinese investors in the US electric vehicle industry.

In addition to the improvement of the soft environment, investment in Chinese manufacturing companies in the United States places great emphasis on the improvement of the hard environment of production cost advantage. Some of the investment companies in the United States reported that the price advantage of U.S. capital goods has been highlighted and is offsetting the high cost of human resources.

The rapid growth of Chinese companies’ investment in the United States will increase the competitive relationship between China and the United States in manufacturing. Entrepreneurs interviewed by reporters believe that the realization of U.S. investment advantages has a reference value for China's policy formulation. China can learn from U.S. experience and improve the global competitiveness of Chinese manufacturing companies.

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