|Daniel H. Rosen, founder of the Rhodium group, says at the forum in San Francisco. (Han Shasha/ People's Daily Online)|
San Francisco, April 3, (People’s Daily Online)----The United States is seeing rising Chinese investment in its technology and innovation industries during the past years and 2014 is expected to be a breakthrough year with transactions of almost 6 billion U.S. dollars in the first quarter,
According to the report released recently by Rhodium Group, Chinese high-tech investment in the US is on the rise and the driving force of the investment goes beyond the existing perception of merely getting foreign technology.
Many observers assume that the surge in China’s outward foreign direct investment since the mid-2000 is attributable to a government campaign to promote overseas investment. The report says that it’s undeniable that political drives are an important part of China’s foreign direct investment boom, and some government policies are crucial in setting incentives for firms to internationalize. However, “we believe the recent growth in Chinese OFDI has been driven mostly by changing commercial realities in the Chinese marketplace, which are forcing firms to expand beyond China’s borders.”
Seeking market is the major motivation for Chinese firms to invest in U.S. High-tech industries. The Chinese investing companies aim to increase their local market share or find new markets for produces and services. The second important driver of overall Chinese investment in the United States is access to national resources. And the third one is grabbing long-term financial returns.
Daniel H. Rosen, founder of the Rhodium group, said, “Successful investments will make Americans recognize the benefits of greater economic integration with China and remind Chinese leaders that openness and convergence with a market-oriented innovation approach is in China’s own interest.”
The report also finds that Chinese investments, both greenfield project and acquisitions, have created or sustained more than 25,000 jobs in the United States.