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Chinese companies have invested nearly $60 billion in the US since 2000. This includes more than $10 billion in foreign direct investment (FDI) in each of the last three years, with a record $15 billion invested in 2015. This investment continues to expand, with $30 billion in Chinese FDI already in pending deals and projects. For Chinese companies in the US, 60% reported growth in their annual revenue from US operations last year, while just 3% reported a decline in their business activities in the US.
In 2015, Chinese companies completed 171 transactions in the US, resulting in 327 new operations. The number of American employed at Chinese companies in the US increased by 10,000.
Investment in US Midwest
The US Midwest is increasingly becoming a hub for Chinese investment in the country, especially for manufacturing. Among the leading manufacturers in the region:
-Wanxiang America Corporation has manufacturing facilities in Illinois, Indiana, Colorado, Michigan, and Minnesota.
-SAIC Motor Corporation, China’s largest automotive enterprise, has manufacturing facilities in Michigan.
- Ingersoll Production Systems, Indiana, is owned by Dalian Machine Tool Group
-Nanshan Aluminum Co has a large aluminum casting and extrusion facility in Indiana.
-Aviation Industry Corporation of China has 5000 employees at its facilities in Michigan, and 700 at facilities in Minnesota, and is planning to add to that number.
Many more Chinese companies are likely to join these existing companies in the coming years in producing valuable goods and services in the Midwest and investing in high-paying American jobs.
In the past, Chinese investment tended to be confined to the East and West Coasts, but it has been gravitating increasingly toward the Midwest. Indeed, the trend shows now the Midwest is receiving more FDI from Chinese investors than either the East or West Coast regions *.
China General Chamber of Commerce-USA
The China General Chamber-USA (CGCC) is the largest non-profit organization in the US representing Chinese enterprises. Its mission is to promote Chinese investment in the US.
CGCC-USA’s membership consists of more than 1500 Chinese companies, including 40 Fortune 500 Companies. These companies have created or retained more than 200,000 American jobs in just the past ten years alone.
CGCC’s Chicago Chapter covers nine states in the Midwest—Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, and Wisconsin—and represents close to 200 Chinese companies. From 2000 to 2015, Chinese companies have invested $12.8 billion in those nine states, creating 28,400 local jobs. Nearly 3000 of these jobs were created just last year.
*Note: from US-China Relationship National Committee recent report.