Inspiring the path forward for Chinese business and investments in the U.S.
The business operations and investments of Chinese companies in the United States were severely challenged in 2020, which was an unusually volatile year amid COVID-related disruptions and uncertainties in U.S.-China relations. It’s also encouraging to see that Chinese companies have generally responded well to the pandemic’s dual role as an accelerator of transformation and amplifier of disruptive forces.
Beyond capital and production investments, Chinese companies are seeking to strengthen their long-term competitiveness in the U.S. market through effective legal compliance, stronger brand recognition, better use of technology, and streamlining business operations. Compared to previous years, the Chinese companies surveyed expressed their greater optimism about the direction of the bilateral relationship and economic cooperation going forward, anticipating a more predictable and stable U.S. business environment.
In total, 183 companies responded to the survey. These respondents operate across a broad range of sectors; 12 companies operate in multiple sectors. The majority (59%) of respondents are not owned by publicly traded companies; of those that are listed (41%), they are mainly listed in Asian markets. Only a small minority (9%) of companies operating in the U.S. are already listed or planning on going public in the U.S. soon.
In reflecting on their experiences of operating in the U.S. in recent years, surveyed company executives identified the following key points to share with other Chinese companies, including:
Invest in industries that you are the most familiar with and fully analyze the feasibility of each project, including resources, industry, U.S. policy, etc.
- JN Fibers
Strengthen management’s awareness of risks and mitigations, be aware of the U.S. regulatory environment and be ready to respond.
Be aware of the abundance of resources in the U.S.
Compliance should be a top priority; seek the right internal and external resources and constantly enhance compliance capabilities.
- Bank of China U.S.A.
Understanding the U.S. consumer market is key, because consumer tastes vary greatly from state-to-state.
- Karma Automotive
Continue to be a proactive and responsible community member.
- Bank of China U.S.A.