Chinese Investment in America

CHINESE INVESTMENT IN AMERICA
By www.ProfitableInvestingTips.com

http://profitableinvestingtips.com/stock-investing/chinese-investment-in-america
Who would have thought? Chinese
companies are starting up cotton mills
in America.

Chinese investment in America makes
sense to these businesses because
for every dollar required to
manufacture in the USA, it costs 96
cents to manufacture in China.

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Before We Continue…

The New York Times reports on
how Chinese textile mills are setting
up shop in the USA.

Once the epitome of cheap mass
manufacturing, textile producers from
formerly low-cost nations are starting
to set up shop in America.

It is part of a blurring of once
seemingly clear-cut boundaries
between high- and low-cost
manufacturing nations that few would
have predicted a decade ago.

Textile production in China is
becoming increasingly unprofitable
after years of rising wages, higher
energy bills and mounting logistical
costs, as well as new government
quotas on the import of cotton.

At the same time, manufacturing
costs in the United States are
becoming more competitive.

In Lancaster County, where Indian
Land is located, Keer has found
residents desperate for work, even at
depressed wages, as well as access
to cheap and abundant land and
energy and heavily subsidized cotton.

The end result of higher wages and
other manufacturing costs in China is
Chinese investment in America.

How can US investors take advantage
of this trend?

Skilled Labor and Chinese
Direct Investment

We have written about direct foreign
investment by US investors.

The same principles apply whether
one is moving money into or out of the
USA to invest.

Foreign direct investment is done by
folks with lots of money and the
intention to stay a course and make a
profit.

If you are looking for offshore
investment ideas, take a look at
where foreign direct investment goes
year after year after year.

There have been changes afoot
regarding where foreign direct
investment is going.

A very useful reference in this regard
is the just published United Nations
study, World Investment Report 2013.

The interesting thing today for
investors is the amount of money
flowing out of China now that the
miraculous growth period is over.

The Center of American
Progress writes about Chinese direct
investment in the clean energy
business in the USA.

When China first joined the global
economy in the 1980s, it did so as a
low-cost export manufacturer.

Consumers in the United States
benefitted from access to low-cost
goods from China, but some U.S.
workers suffered from the loss of
manufacturing jobs as factories
relocated to China to take advantage
of cheap labor costs.

Now, Chinese labor costs are rising;
export manufacturing is not as
profitable as it once was; and Chinese
firms are beginning to come to the
United States, not for cheap labor

average U.S. wages are still much
higher than those in China

but for access to other comparative
advantages such as the highly skilled
U.S. labor force and a growing U.S.
consumer base for clean energy
products.

Chinese companies are now making
direct investments in the U.S. energy
economy that support American
workers, build new clean energy
infrastructure, and, in the case of
clean energy projects, lower climate
pollution.

Many governors and city mayors
across the United States view these
projects as a boon for economic
growth.

The article lists Chinese companies
making forays into renewable energy
in the USA.

US investors will do well to follow
Chinese investment in America to see
what supplies, financing and technical
support they need.

Chinese Investment in America

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