(Ecns.cn)--The United States is now seeing a surge of outward direct investment (ODI) from China in various fields such as construction, household appliances and telecommunications, as Chinese enterprises learn how to navigate American politics and play by its business rules.
According to a report released by the Asia Society's Center on U.S.-China Relations, China made 244 direct investments in the U.S. from 2003 to 2010, worth $11.6 billion. In 2010 alone, China's investment in the U.S. surpassed $5 billion. Currently, Chinese enterprises have taken hold across 37 U.S. states, creating more than 10,000 jobs in local areas.
Lin Xinwei is managing director of the State of South Carolina's Asia Office, who has been dealing with Chinese ODI in the U.S. for 14 years. He revealed that Chinese investment in the U.S. is increasing rapidly both in quantity and scale. As early as 1999, Lin achieved success by attracting Haier to set up a branch in South Carolina. Regarding the figure released by the Asia Society, Lin believes it to be conservative, saying that Chinese investment has long been underestimated by the U.S.
As a chief China representative of the States of Pennsylvania and Maryland , Shao Ning holds the same viewpoint. Shao has worked for nearly 18 years appraising the environment for Chinese investment in the U.S., which he believes is open and transparent. He said that Chinese are not only visiting relatives and friends there, but also planning investments with clear aims and thorough business know-how.
Chinese products 'made in USA'
For three decades, wealthy nations have invested hundreds of billions of dollars in China, helping drive one of the most remarkable economic booms in history. Now, China is poised to return the favor.
If China invests in Africa, Australia and South America mainly for the resources, its activity in the U.S. is different story. The U.S. market is a major stimulant for Chinese enterprises, and with the development of the national economy, many Chinese enterprises are now remapping their territory.
According to Wang Zhile, director of the Center on Transnational Corporations at the Research Institute of the Ministry of Commerce, when tapping into the U.S. market, enterprises usually aim to avoid trade barriers, purchase advanced technology and recruit talent – but there is undoubtedly a long and tough road before winning over American consumers.
In June 2011, Tasly Group Co Ltd, one of China's leading biopharmaceutical companies whose products are based on Traditional Chinese Medicine (TCM), announced that it would invest $40 million in Maryland to establish a 430,000-square-meter industrial base, including facilities for pharmaceutical production, demonstration and training.
The idea had been brewing in the head of Yan Xijun, president of Tasly, for nearly 15 years. Compared to other industries, it may be difficult for Americans to accept TCM, but Yan believes that the return will be beyond calculation.
Yan revealed that after three phases of clinical trials conducted by the Food and Drug Administration (FDA), the Compound Danshen Dripping Pills (CDDP), a product mainly for the treatment and prevention of coronary disease, would enter the U.S. market.
CDDP has already passed Phase II of the clinical studies, making it the first Chinese combination medicine to go that far. If all goes well with the Phase III trial, it is expected to be formally launched as early as 2014, and would be a product "made in USA."
