China en­ter­ing new era of for­eign trade

China Daily (USA) - - ACROSS AMERICAS - By CHINA DAILY and DONG LESHUO in Wash­ing­ton Yuan Yuan in Wash­ing­ton con­trib­uted to the story.

More and more Chi­nese com­pa­nies are now look­ing for­ward to mak­ing in­vest­ment here in the US, in­clud­ing the del­e­ga­tion we have here with us to­day.”

Chi­nese di­rect in­vest­ment in the US has come a long way since the es­tab­lish­ment of diplo­matic re­la­tions be­tween the two coun­tries.

Dur­ing the first 20 years af­ter the es­tab­lish­ment of Sino-US diplo­matic re­la­tions in 1979, Chi­nese in­vest­ment in the US was al­most neg­li­gi­ble com­pared to US in­vest­ment in China, ac­cord­ing to Zhao Zhenge, gen­eral rep­re­sen­ta­tive of the China Coun­cil of Pro­mo­tion for In­ter­na­tional Trade (CPPIT) USA.

“But in re­cent years, there has been con­sid­er­able at­ten­tion to a new wave of Chi­nese di­rect in­vest­ment en­ter­ing the United States.”

Zhao spoke as Chi­nese del­e­gates to the Sino-US Joint Com­mis­sion on Com­merce and Trade (JCCT) gath­ered at the Busi­ness Di­a­logue on In­vest­ment in Amer­ica con­fer­ence on Mon­day in Wash­ing­ton.

“China is en­ter­ing a new era em­pha­siz­ing the role of for­eign trade,” Zhao said. “We

Zhao Zhenge, gen­eral rep­re­sen­ta­tive of China Coun­cil for the Pro­mo­tion of In­ter­na­tional Trade (CCPIT) USA

hope to serve as a win­dow or a plat­form to es­tab­lish the busi­ness ties be­tween the two coun­tries.”

CPPIT, along with the China Cham­ber of In­ter­na­tional Com­merce and Greater Wash­ing­ton China In­vest­ment Cen­ter, hosted the con­fer­ence to pro­vide in­for­ma­tion about US reg­u­la­tions, law en­force­ment, in­vest­ment risks and of­fered a few case stud­ies for po­ten­tial in­vestors to think through be­fore putting their money into the US mar­ket.

The di­rect Chi­nese in­vest­ment in the US ex­ceeded the US in­vest­ment in China for the first time in 2015. By the end of 2015, Chi­nese in­vest­ment has reached $46.6 bil­lion and cre­ated more than 100,000 jobs in the US, Zhao said.

“And ac­cord­ing to the fore­cast, Chi­nese in­vest­ment in the US will ex­ceed $30 bil­lion in 2016,” he said.

“More and more Chi­nese com­pa­nies are now look­ing for­ward to mak­ing in­vest­ment here in the US, in­clud­ing the del­e­ga­tion we have here with us to­day.”

Case stud­ies of Tran­lin Inc, known as Vastly in the US mar­ket, and were pre­sented dur­ing the sec­ond panel, themed Suc­cess Sto­ries and Out­look.

Tran­lin Inc, a pa­per-man­u­fac­tur­ing com­pany based in East China’s Shan­dong prov­ince, broke ground on its first US op­er­a­tion, a $2 bil­lion plant in Ch­ester­field County, Vir­ginia, last year. The com­pany plans to em­ploy about 2,000 peo­ple by the end of 2020.

“We came up with our in­ter­na­tion­al­iza­tion strat­egy af­ter more than a half year’s re­search and de­cided to make the US our first over­seas stop,” said Jerry Peng, CEO of Vastly.

“The logic is sim­ple: The US is the world’s largest con­sumer mar­ket. It’s a bet­ter choice in terms of both mar­ket size and profit mar­gin.”

The lower en­ergy and land costs in the US also ap­peal to Chi­nese in­vestors, espe­cially for a man­u­fac­tur­ing com­pany like Vastly, Peng said.

“I be­lieve Select USA is not only about com­ing to the US to in­vest, but also about se­lect­ing US prod­ucts and ser­vices and bring­ing them back to China,” said Jian­rong Ma, global vice-pres­i­dent of

Ma said the com­pany hopes to open a chan­nel for US brands to en­ter the Chi­nese mar­ket, he said.

“Busi­ness ac­tiv­i­ties be­tween the United States and China, the two largest economies in the world, in­flu­ence trade pat­terns and eco­nomic ac­tiv­ity across the globe and con­sti­tute a ma­jor com­po­nent of global ac­tiv­ity,” Zhao said.

“The US is a rather big coun­try,” said US Depart­ment of Com­merce Select USA Pro­gram Of­fi­cer John McKiel, “which makes the in­vest­ment en­vi­ron­ment com­pli­cated for the in­vestors espe­cially for­eign in­vestors”.

“We are here to help you un­der­stand the US be­fore mak­ing any in­vest­ments here. Since the laws, reg­u­la­tions and poli­cies vary from state to state, we of­fer you rep­re­sen­ta­tives spe­cial­ized in dif­fer­ent states whom you may con­tact,” he said.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.