Chinese investment in US 'to surge'
Updated: 2012-09-08 07:46
By Li Jiabao in Xiamen, Fujian(HK Edition)
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Harley Seyedin (right), president of the American Chamber of Commerce in South China, attends a news conference ahead of the 16th China International Fair for Investment and Trade in Xiamen, Fujian province. Zou Zhongpin / China Daily |
Chinese investment in the United States is likely to double this year, which shows Chinese investors that the US market has great potential for them, US business leaders said on Friday.
"Chinese investment in the US will be double this year what it was last year, and will be doubled again for some time to come," Harley Seyedin, president of the American Chamber of Commerce in South China, told China Daily.
"Certainly, I think, especially now, there are tremendous opportunities for Chinese investors in fields of resources, energy ... and acquisition of companies with advanced technology. Right now, US companies need cash and investment.
"Chinese companies can learn from their partners ... and invest in the US product companies and bring the products to China to meet the huge market," he said.
Chinese investment in the US surged 38.5 percent from a year earlier in 2011 to $1.81 billion as the country's outbound direct investment stood at $74.65 billion in 2011, according to a report jointly released last month by the Ministry of Commerce, the National Bureau of Statistics and the State Administration of Foreign Exchange.
"Chinese investment in the US is likely to reach $3 billion or $4 billion in 2012, and the potential is $10 billion in the future," Seyedin said.
"Several substantial Chinese companies are now in talks to invest in coal mining in Montana with an initial investment of $2 billion to $3 billion, and export the coal to China," he said.
Jennifer Zimdahl Galt, consul-general of the American consulate-general in Guangzhou, echoed Seyedin's optimism.
Galt told a news conference during the 16th China International Fair for Investment and Trade that the US will be a very attractive investment destination for Chinese investors because of its favorable economic environment, its mature and open market, and the efforts of Select USA, established by US President Barack Obama in 2011 to promote business investment in the country.
The chamber's delegation to the 16th CIFIT is expected to reach more than $3 billion deals during the four-day fair. The deals include the US companies' reinvestment in China and Chinese companies' investment in the US.
Seyedin dismissed fears by some about the growing Chinese investment in the US. "We are wide open to Chinese investment, and there is no way for China to have all our products and there is no way for China to have all our technology because Chinese economy and innovation is only about 20 years old," he said.
He added that less than 1 percent of the 30 million US companies are in China, implying great scope for China to invest in the US and acquire the technology.
Seyedin did not see hurdles for Chinese investment in the US.
"The problem is to understand the market, the culture, the tax structure and the legal system. The first and the most important step for Chinese companies is to hire an accountant, a lawyer, and people understanding both cultures. If they do all these things, most of them will succeed."
Some US companies plan to move some of their production from China to the US.
"As the US makes breakthroughs in the use of shale gas and cuts its energy costs to one-fourth of that in China, companies related to these sectors will be likely to pull back to the US homeland in the near future," said Mao Zhaomin, vice-president of Air Products China Co Ltd.
However, Seyedin added that the pullback is good news for China, as value-added US manufacturers with better technology stayed in China, along with the country' industrial upgrading and economic restructuring.
(HK Edition 09/08/2012 page6)