Chicago means business when it comes to FDI

Chicago has become one of the US’ most popular destinations for foreign investment.

The city on Lake Michigan has one of the world’s largest and most diversified economies, with more than 4 million employees who generate an annual gross regional product (GRP) above $561 billion. The $561 billion GRP is more than countries like Norway, Austria and the United Arab Emirates.

The Windy City is home to more than 400 major corporate headquarters, including 31 in the Fortune 500.

“We have dozens of Chinese mainland companies here; we also have more than 18,000 foreign-based companies in the Chicago area by estimate,” said Tom Bartkoski, director of international business development for nonprofit World Business Chicago.

Chaired by Chicago Mayor Rahm Emanuel, World Business Chicago (WBC) collaborates with the city to create jobs, cultivate talent and drive regional economic growth.

As a liaison between the public and private sectors, WBC works closely with the mayor’s office, the city’s Department of Business Affairs and Consumer Protection, the Illinois Department of Commerce and Economic Opportunity, and many other partners throughout the region.

WBC helps navigate the site-selection process for both domestic and overseas companies by providing economic and industry data, state and local incentive information, and bringing together key parties to spur economic growth.

According to the 2015 IBM Global Location Trends report release this year, the Chicago metropolitan area led the US in foreign direct investment (FDI) for the third year in a row.

Tom Bartkoski is responsible for attracting FDI and general business development; he assists foreign-based companies and works closely with the large foreign-based business, consular and foreign economic development communities in Chicago.

He said the reason that the Illinois city is so attractive and becoming more so among foreign companies to invest or build branches in is access.

Located at the nexus of the European and Asian markets and the North American Free Trade zone, Chicago has long been considered the continent’s global business center.

“Access to the US and Canada is very strong here, very easy to reach the market,” he said.

Bartkoski said the US, like China a large country landwise, can be difficult to cover for business. That’s why Chicago’s location is pivotal, he said.

The convenient transportation supports the city as an FDI destination.

Access to the US and Canada is very strong here, very easy to reach the market.”

Tom Bartkoski, director of international business development for nonprofit World Business Chicago

There are more than 1,400 daily departures out of Chicago’s O’Hare and Midway airports, to more than 230 cities worldwide.

O’Hare International was rated as the Best Connected Airport in the US by MIT’s Airport Connectivity Quality Index.

In July, the mayor announced that major airlines have agreed to build up to nine new gates at O’Hare and continue negotiations on a plan that could yield far more spots for passengers to board and deplane.

Earlier this year, the Chicago Transit Authority (CTA) awarded a major contract to China’s CRRC Corp to supply cars for the metro transit system.

In terms of investment, CRRC is planning to open a railcar-assembly factory on the South Side of Chicago that will employ more than 150 people.

Bartkoski said another advantage of the city is its large and diversified talent pool.

Some 158,000 students graduate annually from the more than 130 Chicago-area colleges and universities. There are more than 508,000 residents with bachelor’s degrees or higher in the city, he said.

The area boasts two top business schools: the Booth School of Business at the University of Chicago and the Kellogg School of Management at Northwestern University in nearby Evanston.

Bartkoski said Chicago is experiencing strong growth in sectors of the economy that require young, talented people, “so when we are talking about all of our business services, information technology, medical technology, advanced manufacturing and financial technology, all of those kind of areas, which are growing economic areas, they require talented people, educated people, especially educated young people; we are very strong in that,” he said.

Chicago’s mix of industries most closely matches the nation’s, with no single industry employing more than 14 percent of the workforce.

“We are the most diverse big-city economy in the United States,” he said.

Chicago is a key player in every sector from risk management innovation to manufacturing, to information technology to health services.

In an interview with China Daily, Bartkoski mentioned another factor: the strong commitment of Chicago’s government to foreign investment

In 2013, Emanuel signed the Gateway Cities Agreement with the Chinese Ministry of Commerce and eight Chinese cities, which Bartkoski said was the first of its kind.

The memorandum of understanding fortifies Chicago’s place as a gateway for Chinese investment in partnership with Beijing, Shanghai, Tianjin, Qingdao, Shenyang, Hangzhou, Wuhan and Chengdu.

The two sides have decided to establish the US Chicago and China Gateway Cities Joint Working Group on Trade and Investment Cooperation through friendly consultation.

WBC has always made efforts in strengthening Chicago’s business relationship with China, Bartkoski said.

In 2015, WBC coordinated visits to four Chinese cities with Deputy Mayor Steve Koch (including celebrating the 30th anniversary of sister-city partnerships with Shanghai and Shenyang).

WBC also organized the mayor’s visit for the 26th US-China Joint Commission on Commerce and Trade. While there, the Chicago delegation met with more than 100 companies.

The 2016 IBM report noted that significant FDI projects in Chicago created 4,400 direct jobs, the most of any US metropolitan area, and that Chicago had more significant FDI projects than any metropolitan area in North America.

“We have a broad range of industries, and what we have seen is the number of projects from China has continued to increase every year. That is considered partly (due to) the good work that has been done by both sides,” he said.

In 2015, direct investment by China in the US reached $15.3 billion, with almost 13,000 jobs created.