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Investment from China in US reaches record high
2012-10-25
Brief:According to a report released on Thursday by New York-based Rhodium Group, Chinese businesses invested $6.3 billion in the US during this year's first three quarters.
China's direct investment in the United States hit a record high through the first nine months of 2012. During this year's first three quarters, Chinese businesses invested $6.3 billion in the US, according to a report released on Thursday by New York-based Rhodium Group, which tracks Chinese investments.

"While energy and advanced manufacturing continue to land the most investment dollars, 2012 deal flow suggests that Chinese investors are increasingly interested in US service firms, including entertainment, hospitality, finance and information technology," .said by Thilo Hanemann, Rhodium Group's research director.

During the third quarter, Chinese enterprises spent $2.7 billion on 10 direct investments in the US. While the number of projects is smaller than in previous quarters, the average size of transactions this year was unprecedented.

While a Rhodium report last month said 600 Chinese investment transactions made between 2000 and 2012 had created 27,000 jobs by the end of the second quarter, the new study said another 1,000 jobs were created during the recently ended three-month period. This doesn't include US companies with minority Chinese investment or indirect jobs, such as those in construction for Chinese facilities and those at suppliers. It also excludes hourly workers, which in the case of AMC alone total 18,000.

Both the US and China should make more of an effort to tell Americans about the benefits of Chinese investment, Sauvant said, pointing out that many states have welcomed Chinese investors.

Viking Weiqiong Tao of Dallas law firm Kane Russell Coleman & Logan said the upward trend in Chinese investment in the US will continue. "So far, Chinese investment in the US is just a peanut. It's very little. I would expect it to grow rapidly in the future," he said.

China Daily

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