I work for a Chinese owned American company. The penetration of Chinese enterprises into American company ownership is staggering. Trump started putting the brakes on Chinese ownership as POTUS.
Surge in US workers employed by Chinese companies
Fivefold increase in 5 years to 80,000 jobs, US study finds
Jamil Anderlini in Beijing
May 22, 2015 Print this page
Chinese investments now support about 80,000 full-time jobs in the US, a fivefold increase in the past five years and an apparent reversal following decades of American complaints over manufacturing jobs being outsourced to China.
Chinese companies have invested $46bn in the US since 2000, most of it in the past five years, according to a study this week by US research company Rhodium Group, sponsored by the National Committee on US-China Relations.
The study predicts Chinese investment in the US could increase to between $100bn and $200bn by 2020, creating 200,000-400,000 jobs.
Chinese investment has been controversial in some sectors, including those with potential military applications, and many US politicians have warned that Chinese investors would take advantage of far cheaper labour in China and transfer jobs back there.
But the report found many investments saved target companies from bankruptcy, most acquisitions led to expansion and examples of downsizing were rare.
It also found a significant acceleration in Chinese investments in US manufacturing and service sector projects in the past 18 months.
“While [80,000 jobs] is still modest compared with the total number of jobs provided by foreign firms, it is significant growth from less than 15,000 jobs five years ago,” the report said. “Fears that Chinese acquirers could systematically move acquired assets and related jobs back to China have not materialised.”
The study provided a detailed analysis of Chinese investment by congressional district and found Chinese investors had established nearly 1,600 businesses across the country by the end of last year.
By state, the biggest recipients of Chinese investment were California, Texas, Illinois, New York and North Carolina, where Chinese investment accounted for 15,000 jobs.
North Carolina is home to Smithfield Foods, which was bought in 2013 by Chinese meat producer Shuanghui Group, and the state also serves as a US base for Beijing-headquartered computer group Lenovo, which bought IBM’s personal computer business in 2005.
The current level of Chinese direct investment in the US is roughly on a par with that of Japanese companies in the 1980s, the report says.
When Japan faced rising opposition to its imports and investment it ordered its giant car companies to localise production in the US in order to create jobs and neutralise political opposition to soaring Japanese imports.
Some influential voices are calling for greater Chinese investment in the US economy.
In an article in the June edition of The Atlantic magazine, former US Treasury Secretaries Henry Paulson and Robert Rubin argue that Chinese investment in America’s creaking infrastructure should be welcomed and facilitated.