Chinese firms still open to investment in US

Chinese companies are still committed to growing their businesses in the United States, and are waiting for a thaw in the trade dispute between the two countries, according to a survey report released on Monday.

While Chinese investment in the US has seen a large drop recently, Chinese companies have created thousands of jobs, contributed to the US economy and have helped revitalize many local communities.

For the majority of the 240 Chinese companies that participated in the survey, conducted by the Chinese General Chamber of Commerce - USA(CGCC), the prime organization representing Chinese companies in the US, the country remains a key investment target, with 55 percent of respondents saying it is among their top three market priorities.

According to CGCC, its Chinese member companies have invested more than $120 billion in the US, directly employ more than 200,000 people, and indirectly support more than 1 million jobs in the US.

The annual report, now in its sixth year, shows that most Chinese companies reinvest the majority of their profits into the US, with 58 percent indicating that all of their profits are reinvested. The percentage of those respondents grew by 7 percent compared with last year's survey.

The survey, conducted earlier this year, however, also suggests that the ongoing trade dispute and the overall less amicable relations have become Chinese companies' top concern while investing in the US, with 75 percent of respondents citing the complex relationship as one of the key challenges they are facing now.

Seventy-seven percent of respondents state that they had been adversely impacted by the tariff policy. Among those, 45 percent say they will delay future investment in the US until the two countries reach a deal. Thirty-eight percent intend to adjust their supply chains to avoid tariffs.

For Justin Kocher, senior manager of business development at Jobs-Ohio, the state's economic development arm, the survey's data related to tariffs reflects a holding pattern.

"People are very cautious and they want to see how the trade war plays out. The (investment) activities have been strongly diminished," said Kocher.

Investment from China in 2018 and early 2019 declined nearly 90 percent compared to the same periods in 2017, according to the report. Chinese investment had experienced a decade of steady growth since 2007, which reached its peak in 2016 with $56 billion landing in the US in that single year.

On top of tariffs, the US has been taking a more strict approach when it comes to reviewing foreign investment, especially Chinese investment. The Committee on Foreign Investment in the US, or CFIUS, a US federal agency overseeing foreign investment as it pertains to national security, has expanded its review scope to include many sectors.

In August 2018, the US Congress passed a new law, titled the Foreign Investment Risk Review Modernization Act, further expanding CFIUS' authority.

For Jeff Liu, president of Fuyao Glass America, the US subsidiary of the largest auto glass manufacturer in the world, tariffs pose a problem, but his main goal is to strengthen Fuyao in the US, even more amid uncertain times. He especially aims to build a good company culture that can earn employees' trust.

"Tariffs are not something you can do something about, but there are some things you can always do by yourself," said Liu.

"When the good time comes, you are stronger and you can grow better," Liu said.

Fuyao's main factory in Moraine, Ohio, employs more than 2,400 US citizens.

Fuyao opened a second factory in South Carolina in 2018, after the trade dispute erupted.

"Our clients wanted us to be close to them, so we made the move. We are committed to the US market," Liu said.

charlenecai@chinadailyusa.com

(China Daily 06/12/2019 page12)