Latest News:  
Beijing   Overcast/Cloudy    28 / 22 ℃  City Forecast

Home>>China Business

China, US sign $3.4b bilateral deals

By Chen Yang (Global Times)

08:00, June 25, 2012

Companies from China and the US signed a host of bilateral investments totaling $3.4 billion over the weekend, indicating the world's largest two economies are increasing cooperation to tackle the economic slowdown.

The 42 projects, mostly invested by US companies and spreading across 21 sectors such as manufacturing and environmental protection, were signed during a China-US economic cooperation and investment forum held Saturday in Nanjing, capital of East China's Jiangsu Province, the Ministry of Finance said in a statement.

The $3.4-billion agreements included investments by four Chinese companies in the US amounting to $70 million, the ministry said, without giving details of the companies.

"We hope that the investment from China will boost the US economy," US Department of the Treasury's Assistant Secretary Marisa Lago said at the forum.

"The economic slowdown in the US and Europe has offered Chinese companies opportunities to acquire cash-trapped local companies with relatively lower costs, but Chinese buyers still face legal barriers and some resistance from local labor unions," Feng Pengcheng, a professor at University of International Business and Economics in Beijing, told the Global Times yesterday.

"Local governments in the US are eager to attract investment from China to revitalize the economy, so Chinese companies can strengthen cooperation with them to break through investment barriers such as national security concerns set by the US federal government," Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, told the Global Times.

"The US economy is slightly recovering, and Chinese companies can get good return on investment in sectors such as agriculture, especially if the products of the sector are sold in the Chinese market," Mei said, noting that former NBA star Yao Ming's investment in a US winery is a good example.

China has also become a safe haven and main source of income for many multinational companies during the global financial crisis, Vice Commerce Minister Gao Hucheng said at a meeting held Friday in Beijing, noting that so far 490 out of the world's top 500 companies have invested in China and established more than 1,600 research and development centers as well as regional headquarters.

For example, Japanese enterprises' investment value in China rose by 49.6 percent in 2011 from a year earlier, according to a white paper published Wednesday by the Japanese Chamber of Commerce and Industry in China.

China's huge market potential and greater purchasing power of the yuan have encouraged Japanese companies to increase investment here, according to the paper.

But the paper said Japanese companies are facing increasing costs such as labor, raw materials and taxes, as well as shrinking profit margins in their Chinese businesses.

"Foreign labor-intensive companies will gradually move their factories from China to low-cost countries such as Vietnam and Cambodia, while high-tech enterprises are likely to increase their investment in China," Feng noted.

Email|Print|Comments(Editor:厉振羽、张洪宇)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Manual docking between Shenzhou-9 and Tiangong-1 completed

  2. Breathtaking sceneries on camera: incredibly beautiful

  3. Activities held across China to celebrate Dragon Boat Festival

  4. Traditional Han costume seen at ceremony to honor Qu Yuan

Most Popular

Opinions

  1. Chinese banks must go global
  2. Trade is tool to fix global economy
  3. Skyscraper frenzy brings loan risks to new heights
  4. China to 'maintain 8% growth for over 20 years'
  5. Larger labor force not a panacea for pension woes
  6. "China Containment theory" has no market
  7. Benefits of direct yen-yuan may be few, far between
  8. Keeping up appearances online proves tough job
  9. Why China's export growth rebounds robustly
  10. Don’t hate the trader, hate the securities game

What's happening in China

Bathe in "dragon water" at Sanya beach, China's Hainan

  1. 5 killed, 36 injured in N China crash
  2. Rain to hit more areas in China
  3. 400 mln yuan to be invested for Tibet's tourism
  4. China's cement output growth rate drops sharply
  5. Shanghai tightens restrictions on home purchase

China Features

  1. Left-behind kids have 'dream house'
  2. China's Olympic history: The road to success
  3. Eight systems of Shenzhou-9 manned spacecraft
  4. The thousand-year-old Tibetan paper
  5. Beijing Summit features five new aspects

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai