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Look for China to buy more U.S. companies
2012-07-03
Brief:Chinese investments in the U.S. only adds up to $6 billion, is good for the U.S. labor market and creat jobs opportunities.
China will be the big Asian investor buying up pieces of America’s landscape, natural resources and companies.  It’s a good thing.

"Although the current stock of Chinese investments in the U.S. only adds up to $6 billion, we see the potential for a significant increase in that amount,” said Steven Olson, executive director of SelectUSA, a program under the Department of Commerce aimed at attracting foreign investment.

China is the fastest growing source of foreign investment in the U.S. The country’s direct investment in the U.S. grew at an average annual rate of 53 percent from 2005 to 2010. According to the Ministry of Commerce, China was the fifth-largest investor globally in 2010, with outbound direct investment of $68.8 billion. But growth in investment in the U.S., at 44 percent, was much slower than that in Europe (101 percent) or Japan (302 percent).

President Barack Obama’s meetings in February 2012 with Xi Jinping, China’s vice president and soon-to-be leader, provide an opportunity to address this issue of China investments in the U.S.  China’s outward investment has substantial room to grow, and the United States has the potential to capture a larger share of it, noted David M. Marchick, Managing Director, Carlyle Group, in an op-ed on the Council on Foreign Relations’ website.

Moreover, more China investments here could boost U.S. exports to China, as Chinese companies look to their U.S. operations to export back home. The jobs created by additional Chinese investment in the U.S. would help generate greater American support for Chinese investment and were good for the U.S. labor market.

Forbes
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