Understanding the great potential of Chinese investment in the U.S.

Updated 2017-05-22 09:31:33 Xinhua
File photo taken on Nov. 23, 2016 shows the national flags of the United States and China during the 27th Session of the China-U.S. Joint Commission on Commerce and Trade (JCCT) in Washington D.C., capital of the United States. (Xinhua/Yin Bogu)

File photo taken on Nov. 23, 2016 shows the national flags of the United States and China during the 27th Session of the China-U.S. Joint Commission on Commerce and Trade (JCCT) in Washington D.C., capital of the United States. (Xinhua/Yin Bogu)

Record high Chinese investment in the United States in 2016 demonstrates that Beijing's economic agenda is compatible with the U.S. economic goals, not the other way around.

A report co-authored by the Rhodium Group and the National Committee on U.S.-China Relations shows Chinese companies invested 46 billion dollars in the United States last year, tripling the amount seen in 2015, sending two-way direct investment to a record high.

The report characterized past two-way investment as a "one-way street," with money flowing predominantly from the United States to China. But now, investment is a "two-way highway" with tens of billions of dollars in annual FDI flowing in each direction.

While the U.S. administration worried Chinese manufacturing could threaten U.S. jobs and its economy, Chinese companies are bolstering the U.S. economy by creating jobs and paying taxes.

In the last seven years, employment by Chinese-owned firms in the United States had jumped ninefold to 140,000 jobs last year. By the end of 2016, all 50 states and 98 percent of congressional districts hosted operations of Chinese companies.

According to John Ling, president of the Council of American States in China, more and more U.S. states are increasing recruitment efforts to help land the next Chinese manufacturing project. He believes this will "give more leg" to a healthier bilateral economic relationship.

While notable progress been made, there is huge room for expanding the footprint of Chinese investors in the United States.

With China transitioning away from an export-driven economy to one led by consumer spending and services, Chinese investors have begun to shift their target industries in the United States away from traditional energy and real estate industries to consumer services and the high-tech sector.

According to the joint report, more than 90 percent of Chinese FDI in the United States in 2016 focused on services and advanced manufacturing.

Chinese drugmaker Qilu Pharmaceutical offers the latest example. It invested over 40 million U.S. dollars to open an innovation hub and expand its business presence in Boston, the pharmaceutical innovation hub in the United States.

Boston mayor Martin Walsh has lauded Qilu's partnership, which helps reinforce the city's reputation as a global champion of life science research and development.

While Qilu could capitalize on Boston's rich R&D resources to upgrade its product mix, it also helps turn state-of-the-art ideas into reality in the world's largest consumer market.

The great rebalancing of the Chinese economy offers a historic chance to expand Chinese investment in the United States. Understanding this great potential will also help build constructive U.S.-China relations in the 21st century.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58October 23 2017 21:31:51

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16October 23 2017 21:31:51

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18October 23 2017 21:31:51

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords