US woos in­dus­trial cap­i­tal

China Daily (Canada) - - LIFE -

Un­der the “Amer­ica First” pol­icy of US Pres­i­dent Don­ald Trump, the flow of cap­i­tal to real in­dus­try in the United States seems to be a long-term trend. The sud­den switch from the for­mer pres­i­dent’s em­brac­ing of free trade, re­gional at least, to the in­cum­bent’s pro­tec­tion­ist prac­tice will def­i­nitely in­flu­ence the in­vest­ment de­ci­sions of many en­ter­prises. The US re­mains the most im­por­tant mar­ket, given its size and con­sump­tion level, and few­multi­na­tional cor­po­ra­tions can af­ford to ig­nore the coun­try.

Masayoshi Son, founder and pres­i­dent of Softbank Group, a multi­na­tional telecom­mu­ni­ca­tions and in­ter­net cor­po­ra­tion head­quar­tered in Tokyo, Ja­pan, and Terry Guo, founder and chair­man of Fox­conn Tech­nol­ogy Group, a multi­na­tional elec­tron­ics con­tract man­u­fac­tur­ing com­pany head­quar­tered in NewTaipei City of Tai­wan, China, said re­cently the two cor­po­ra­tions will jointly in­vest a to­tal of $57 bil­lion in the US. Guo said the newin­vest­ment will prob­a­bly cre­ate 30,000 to 50,000 jobs.

The ad­vance­ment of smart and au­to­mated in­dus­trial tech­nolo­gies, to some ex­tent, has eased the con­cerns of en­ter­prises such as Fox­conn about the high cost of la­bor in the US, as in­dus­trial robots are re­plac­ing hu­mans in more and more jobs. Also, the low cost of en­ergy, re­sources and land in the US, as well as the com­par­a­tively ma­ture busi­ness en­vi­ron­ment can help off­set the high la­bor costs.

Re-in­dus­tri­al­iza­tion is an in­evitable choice for the US as it seeks to re­cover from the fi­nan­cial cri­sis in 2008. It is al­ready a con­sen­sus in the US that in­dus­try, es­pe­cially high-end man­u­fac­tur­ing, is a nec­es­sary sup­port­ing pil­lar of a strong coun­try and ex­actly what the US needs to re­gain its lost eco­nomic sta­tus.

It is pre­dictable that the Trump ad­min­is­tra­tion will roll out more sup­port­ive poli­cies as car­rots to at­tract cap­i­tal, tech­nol­ogy and ta­lent from around the world.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.