Chinese Investment in USA

Chinese companies are increasingly looking to invest in the US and state and local governments are scrambling to win a share of the money.  But Chinese companies' go-slow approach and a longstanding preference for investing in Asia may leave governments disappointed. On occasion, large deals such as China's Geely Automotive buying Ford Motor Co.'s Volvo for $1.8 billion grab headlines, though many smaller mergers and acquisitions and 'greenfield investments' involving Chinese companies are taking place across the country.

George is home to a half-dozen Chinese ventures including a soy sauce plant. Texas has a handful of Chinese telecommunications and industrial manufacturers. In Milwaukee, Beijing's Toward Group has bought a shopping mall. The trend stems in part from Beijing's move to ease restrictions on overseas investments as it seeks to nurture homegrown multinationals.

Many Chinese firms, flush with cash or squeezed by competition are casting abroad for new markets, technology and product lines. China's direct investment in the US increased more than threefold to $1.24 billion in 2008 from 2002 according to the US Bureau of Economic Analysis. Still, China accounts for only a small portion of foreign direct investment in the US from Asian countries: 2008 Direct Investment in US from Asia/Pacific Region in Billions

• Japan                $259.57
• Australia             $64.32
• South Korea       $15.63
• India                     $4.53
• China                    $1.54

(WSJ April 2010)