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.