Chinese investors weigh US economic promise amid geopolitical hurdles
Most local government officials in the US still welcome Chinese-invested projects despite a rise in trade tensions this year, a Chinese chamber of commerce leader said this week as potential investors weigh up economic benefits and geopolitical risks.
City leaders want Chinese investment to help stimulate their local economies, especially in manufacturing projects that are hard to source elsewhere, said Ni Pin, chairman of the China General Chamber of Commerce branch in Chicago.
'There are a lot of people who want to come over here,' he said. 'They are more concerned about geopolitics. The question is, 'are you welcome here?'' Chinese manufacturers see the potential to make money in the wealthy United States market, he said, and US President Donald Trump's tariffs on Chinese imports have increased the urgency for companies to produce in the US for domestic sales.
Ni said that 'yelling and screaming' by national-level political leaders had deterred some investors from applying for investment permits because they feared that American officials at the local level would also prefer they stay away.
In the Midwestern states of Illinois and Wisconsin, mayors are 'very receptive' to Chinese investment, said Ker Gibbs, a partner at American business advisory Foresight Restructuring, citing personal contacts in the region.
The mayor of Wausau, a city in Wisconsin with a population of 40,000, is explicitly looking for Chinese investments linked to agriculture and possibly the automotive sector, given that industry's prominence in surrounding parts of the Midwest, Kerr said.
California and New York state have 'historically been happy' for Chinese to buy real estate or invest in tech start-ups, said Denny Roy, a senior fellow at the East-West Centre think tank in Hawaii.
Most voters in those states did not favour Trump's Republican Party, Roy said, meaning they were less influenced by its 'hawkish' views towards China.Chicago Deputy Mayor Kenya Merritt sent the chamber a letter in December saying she was 'eager to work with Chinese businesses to create jobs, promote innovation, and enhance cultural exchanges'. She offered the city's help in talent development, tax incentives and a streamlined permitting process.
Ni said American carmakers would find it hard to get certain made-in-China parts from other sources, raising the appeal of projects that would produce such components. His company, Wanxiang American, makes some of them.
Gibbs said pragmatists in local and state government 'still see Chinese investment as a positive thing that creates jobs and opportunities'.
'Everyone has heightened awareness for national security, so the sectors would have to be clearly benign,' he said. 'Consumer products and appliances are fairly safe.' But a Chinese firm's welcome in the US depends on how Americans near a proposed project see China's role in geopolitical issues such as the South China Sea dispute, which involves US allies, Gibbs said.
Roy said American local governments were also on the alert now for any 'siphoning' of innovation by US tech companies, Chinese control over 'crucial' US infrastructure or ownership of land near US military installations.
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Chinese investors weigh US economic promise amid geopolitical hurdles
Agencies Most local government officials in the US still welcome Chinese-invested projects despite a rise in trade tensions this year, a Chinese chamber of commerce leader said this week as potential investors weigh up economic benefits and geopolitical risks. City leaders want Chinese investment to help stimulate their local economies, especially in manufacturing projects that are hard to source elsewhere, said Ni Pin, chairman of the China General Chamber of Commerce branch in Chicago. 'There are a lot of people who want to come over here,' he said. 'They are more concerned about geopolitics. The question is, 'are you welcome here?'' Chinese manufacturers see the potential to make money in the wealthy United States market, he said, and US President Donald Trump's tariffs on Chinese imports have increased the urgency for companies to produce in the US for domestic sales. Ni said that 'yelling and screaming' by national-level political leaders had deterred some investors from applying for investment permits because they feared that American officials at the local level would also prefer they stay away. In the Midwestern states of Illinois and Wisconsin, mayors are 'very receptive' to Chinese investment, said Ker Gibbs, a partner at American business advisory Foresight Restructuring, citing personal contacts in the region. The mayor of Wausau, a city in Wisconsin with a population of 40,000, is explicitly looking for Chinese investments linked to agriculture and possibly the automotive sector, given that industry's prominence in surrounding parts of the Midwest, Kerr said. California and New York state have 'historically been happy' for Chinese to buy real estate or invest in tech start-ups, said Denny Roy, a senior fellow at the East-West Centre think tank in Hawaii. Most voters in those states did not favour Trump's Republican Party, Roy said, meaning they were less influenced by its 'hawkish' views towards Deputy Mayor Kenya Merritt sent the chamber a letter in December saying she was 'eager to work with Chinese businesses to create jobs, promote innovation, and enhance cultural exchanges'. She offered the city's help in talent development, tax incentives and a streamlined permitting process. Ni said American carmakers would find it hard to get certain made-in-China parts from other sources, raising the appeal of projects that would produce such components. His company, Wanxiang American, makes some of them. Gibbs said pragmatists in local and state government 'still see Chinese investment as a positive thing that creates jobs and opportunities'. 'Everyone has heightened awareness for national security, so the sectors would have to be clearly benign,' he said. 'Consumer products and appliances are fairly safe.' But a Chinese firm's welcome in the US depends on how Americans near a proposed project see China's role in geopolitical issues such as the South China Sea dispute, which involves US allies, Gibbs said. Roy said American local governments were also on the alert now for any 'siphoning' of innovation by US tech companies, Chinese control over 'crucial' US infrastructure or ownership of land near US military installations.
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