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China Owned Plants Growing in U.S.

Posted by Chelsea Craven on Friday, January 28, 2011 No Comments »

With so much talk about the United States outsourcing production to foreign countries like China and Mexico, there is little coverage on China’s move to the U.S. A recent article in Bloomberg Businessweek suggests Chinese companies are expanding manufacturing facilities in the U.S. and experiencing a plethora of benefits.

China’s Suntech Power Holdings has been manufacturing solar panels in an 117,000 square foot factory- not based in China, rather located on domestic turf in Goodyear, Arizona. According to the article in Bloomberg Businessweek, “Chinese companies increasingly are setting up shop in the U.S. to escape trade barriers, capitalize on the U.S. government’s alternative energy push, and learn lessons that would help them in their home market.” In addition, the high unemployment in the U.S. is a favorable factor to Chinese companies looking for U.S. workers.

Does this mean U.S. imports from China are decreasing? Not likely in the near future. In 2010, U.S. imports originating in China rose 16% over 2009 and decreased 2% over 2008. The graph below illustrates this three year trend of imports from China. Many factors, including the economic state as well as trade negotiations, will contribute to the presence of Chinese owned companies in the U.S.


 
Category: General

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