Trans­parency key to bi­lat­eral in­vest­ment: panel

China Daily (Canada) - - ACROSS AMERICAS - By JACK FREIFELDER in New York jack­freifelder@chi­nadai­lyusa. com

The di­rect in­vest­ment re­la­tion­ship be­tween China and the United States is ex­pected to forge ahead in 2016 de­spite eco­nomic head­winds, but busi­ness ex­perts would like to see more trans­parency.

Those were some of the ob­ser­va­tions by pan­elists in a dis­cus­sion— Chi­nese In­vestors in the US: Part­ners or Com­peti­tors? — or­ga­nized by the China Gen­eral Cham­ber of Com­merce - USA (CGCC) at the Wal­dorf As­to­ria New York ho­tel.

The CGCC also re­leased a white pa­per on Chi­nese in­vest­ment in the US on Tues­day.

Ni Pin, pres­i­dent of Wanx­i­ang Amer­ica, the US sub­sidiary of Wanx­i­ang Group, the largest auto parts man­u­fac­turer in China, said that Chi­nese com­pa­nies and their US coun­ter­parts can be part­ners and com­peti­tors in the US, dur­ing his key­note speech.

Glob­al­iza­tion

and com­pe­ti­tion are trends that ex­pand across in­dus­tries and coun­try bound­aries, said Xiao Yuqiang, chair­man of the US Man­age­ment Com­mit­tee of the In­dus­trial and Com­mer­cial Bank of China, who is part of the panel.

“China and the US need to work to­ward a more trans­par­ent reg­u­la­tory en­vi­ron­ment to de­crease ar­bi­trage,” said Xiao.

Liu Ming­wei, an as­so­ciate pro­fes­sor at the School of Man­age­ment and La­bor Re­la­tions at Rut­gers Univer­sity, said there are many part­ner­ship op­por­tu­ni­ties for Amer­i­can and Chi­nese com­pa­nies.

“The lo­cal­iza­tion of man­age­ment for Chi­nese com­pa­nies in the US is quite high,” Liu said. “Most Chi­nese com­pa­nies are aware of the do­mes­tic dif­fer­ences, so [they] have high aware­ness of ad­her­ing to lo­cal rules and man­age­ment styles.

“In the long term, with the growth and de­vel­op­ment of Chi­nese com­pa­nies, there might be more chal­lenges or com­pe­ti­tion in the eye of Amer­i­can com­pa­nies, like the so­lar panel in­dus­try,” Liu said.

“Com­pe­ti­tion or co­op­er­a­tion is re­ally a func­tion of a few vari­ables, like the type or struc­ture of a trans­ac­tion and whether it’s a com­pet­i­tive play or not,” said Mitchell Silk, a part­ner with global law firm Allen & Overy LLP. “One of the things to also look at is the strat­egy of an in­vestor.”

Xiao, Silk and Liu were joined by Li Ji, an as­so­ciate pro­fes­sor at Rut­gers Law School; Zhang Jun, vice-chair­man of the CGCC and gen­eral man­ager of the New York branch of China Con­struc­tion Bank; and Alexandra Bryant, a man­ag­ing di­rec­tor at global com­mer­cial real es­tate firm Jones Lang LaSalle.

The re­port con­cludes that the United States is still a ma­jor over­seas in­vest­ment cen­ter for Chi­nese com­pa­nies. But US govern­ment regulation con­tin­ues to con­cern Chi­nese in­vestors, as do re­views by the Com­mit­tee on For­eign In­vest­ment in the United States (CFIUS) and the de­pre­ci­a­tion of the yuan.

On Tues­day, the In­ter­na­tional Mon­e­tary Fund cut its global growth fore­casts for the third time in less than a year, cit­ing a sharp slow­down in China.

Xu Chen, chair­man of China Gen­eral Cham­ber of Com­merce USA, launches 2015 White Pa­per on Chi­nese in­vest­ment in the US on Tues­day in New York.

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