Chinese Investment in American Manufacturing on the Rise

photo - China invests in mfg. by Christina XuIt’s been well documented that many manufacturing jobs in the U.S. have been lost to foreign competition, especially to China. But we’ve come to a point where more and more Chinese companies are investing in the U.S. and creating jobs here, according to Marketplace. It reports that last year Chinese companies invested more than $12 billion in projects here, up from practically nothing in the mid-2000’s.

Dayton, Ohio is one city where a Chinese manufacturer is making a major impact on the local economy. Fuyao Glass America, a subsidiary of one of China’s biggest auto glass makers, has taken over a former General Motors plant that closed in 2008 and is expecting to hire about 1,500 people. The company plans to have almost twenty manufacturing lines shaping and finishing glass for the major auto makers by 2018.

The company has received about 1,800 applications for temp jobs that may become permanent, full-time jobs with benefits after 90 days. John Gauthier, president of Fuyao Glass America, is quoted as saying, “It means something to us here, to be able to come here and reoccupy this [and] bring this factory back to life.” He moved from Illinois where he managed a glass plant that’s also been acquired by Fuyao and will stay open as a supplier to this plant.

Marketplace reports that Chinese companies are opening up businesses across the country and more are on the way. The trend is believed to be based on,

  • Rising wages in China and steadily declining real wages for U.S. manufacturing workers, especially those working in the auto parts business.
  • Chinese manufacturers are moving from low to high value goods which require highly skilled labor available in the U.S.
  • Chinese companies want to be close to their customers (in Fuyao’s case, U.S. automakers).
  • In the long run Chinese companies can cut costs by setting up manufacturing here.

If you’re a business owner who involved with an investor or business overseas, especially in Taiwan or China, we can help you through the process and make a new partnership or sales work for both of you. Contact our office so we can talk about your plans, how the law impacts your new venture and the best way to move forward.