News / Asia

    China Eyes US for Investment Opportunities

    China has been investing throughout the world in recent years, and the United States is an especially attractive destination for Chinese companies.

    As part of a VOA series on China’s economic role in the world, Elizabeth Lee reports from Los Angeles.

    The second largest city in the United States and home to Hollywood is an ideal place for companies and entrepreneurs from China to invest their money.

    Daniel Teng manages the Marriott Hotel in downtown Los Angeles.

    “Number one is the entry point from China into the west and number two there’s a lot of Chinese population in California and Southern California,” he said. 

    It is one of two hotels in Los Angeles that Shenzhen New World has bought in the past year. Teng says the southern Chinese company plans to buy more hotels in the United States.

    “We are currently looking at all the major gateway cities. Basically we are very interested in the Washington, D.C., market, New York market and San Francisco," said Teng.

    Many investors from China see the U.S. as a stable place to put their money.

    A truck pulls a trailer loaded with a China Shipping container at the Port of Oakland August 16, 2010 in Oakland, California. (AFP)

    One industry of interest is green technology.

    Last year, Balqon Corporation, a Los Angeles maker of drive systems for electric buses and trucks, formed a partnership with a Chinese company that makes lithium batteries for electric vehicles.

    Balqon President Balwinder Samra says the partner in China has ordered 300 Balqon electric drive systems. Balqon expects the deal, worth nearly $16 million, to create about 150 new jobs in the company, and Samra says the head of the Chinese company has helped Balqon grow.

    “The knowledge he brings to the company related to battery technology, charging technology and the experience and the footprint he has in China is extremely valuable,” said Samra.

    An Asia Society report says that Chinese companies have invested more than $11 billion in the U.S. in recent years, although the amount is a small part of the $1.7 trillion in total foreign investment the U.S. government reported over the past decade.

    China Eyes US for Investment Opportunities
    China Eyes US for Investment Opportunities
    Orville Schell is the director of the society’s Center on U.S.-China Relations.

    “Now we need it because we’ve had a financial collapse, our own capital market is not what it used to be. The new money is going to come from China,” Schell said.

    But China experts say some Chinese investments may pose a national security risk for the United States.  Clayton Dube is with the U.S. China Institute at the University of Southern California.

    “Everybody understands that the Chinese government has an extensive espionage operation in the United States, trying to acquire technology, trying to acquire key information,” Dube said.

    Gordon Chang, who has written extensively about China, says the U.S. should be especially careful when dealing with companies owned by the Chinese government.

    “We have to be concerned about China’s political considerations, its national security motivations for these types of purchases.”

    The Committee on Foreign Investment in the United States investigates transactions for national security risks before allowing a foreign company to invest in the U.S.

    The Asia Society’s Orville Schell says that system is very "functional."

    But Shu Luomeii, the commercial officer at the Chinese Consulate in Los Angeles, says many Chinese investors think the committee is too strict.

    “America can be more open to welcome Chinese investment; to some extent some of the business or sectors are still very sensitive. So some of the big companies, when they think of investments in the United States, they’re still afraid of. Because they are still afraid of being, you know, denied," he said.

    Companies fear the committee will block their investments.

    However, University of California economics professor Peter Navarro says the committee is not strict enough.

    “It has a rather high threshold for what it constitutes a threat to national security. Secondly, it doesn’t do a very good job distinguishing threats that come from dual-use technologies meaning you can have a civilian company, seemingly civilian technology that can be bought by the Chinese, which actually turns out to have dual uses in terms of having significant military applications," said Navarro.

    While views on investments from China may be split in the United States, the Asia Society estimates Chinese businesses will invest $1 to $2 trillion worldwide in the next 10 years, and will continue to invest in the United States.  

    You May Like

    Top US General: Turkish Media Report ‘Absurd'

    General Dunford rejects ‘irresponsible' claims of coup involvement by former four-star Army General Campbell, who led NATO forces in Afghanistan before retiring earlier this year

    Video Saving Ethiopian Children Thought to Be Cursed

    'Omo Child' looks at efforts of one African man to stop killings of ‘mingi’ children

    Protests Over Western Troops Threaten Libyan 'Unity' Government

    Fears mount that Islamist foes of ‘unity' government plan to declare a revolutionaries' council in Tripoli

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    London’s Financial Crown at Risk as Rivals Eye Brexit Opportunitiesi
    X
    VOA News
    July 25, 2016 5:09 PM
    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Calm the Waters: US Doubles Down Diplomatic Efforts in ASEAN Meetings

    The United States is redoubling diplomatic efforts and looking to upcoming regional meetings to calm the waters after an international tribunal invalidated the legal basis of Beijing's extensive claims in the South China Sea. VOA State Department correspondent Nike Ching has the story.
    Video

    Video Four Brother Goats Arrive in Brooklyn on a Mission

    While it's unusual to see farm animals in cities, it's become familiar for residents of Brooklyn, New York, to see a little herd of goats. Unlike gas-powered mowing equipment, goats remove invasive weeds quietly and without adding more pollution to the air. As Faiza Elmasry tells us, this is a pilot program and if it proves to be successful, the goat gardener program will be extended to other areas of New York. Faith Lapidus narrates.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.

    Special Report

    Adrift The Invisible African Diaspora