WSJ: “Looking to ease the way for Chinese investment in the U.S., the U.S. Chamber of Commerce is advising Chinese businesses not to count on “personal relationships” with government officials as a key to success.
The advice came in a report prepared by the U.S. Chamber for an investment forum Tuesday in Beijing. The event, co-hosted by the China Center for International Economic Exchanges, a Chinese government think tank, was expected to draw about 400 business executives and government officials, current and past.
A subsidiary of Aviation Industry Group of China last year bought Cirrus Industries, a Minnesota maker of propeller aircraft.
The U.S. Chamber said it was acting on its own initiative, though the U.S. government, seeking to lift economic growth, also has been trying to encourage Chinese investment. Chinese business leaders regularly say they are interested in investing in the U.S. but fear political opposition.
“We’re trying to showcase Chinese investment in the U.S.,” said Myron Brilliant, a senior vice president at the U.S. Chamber. “In a lot of areas there aren’t a lot of hurdles to investment.”
The 38-page report is based on interviews with Chinese business officials who have invested in the U.S. Some of its suggestions are obvious: “win-win cooperation can create great opportunities,” said advice attributed to Cirrus Industries Inc., a Duluth, Minn., propeller-aircraft maker purchased last year by a subsidiary of Aviation Industry Group of China.
But other advice reflects important differences between how business is done in the U.S. and in China. “Unlike in China, personal relations with officials play a very small part in the enforcement of laws and regulation,” said the report’s introduction.
Another tidbit for would-be Chinese investors: “The U.S. media [are] completely independent of the government, so even if some local officials welcome your investment, others might voice opposition in the media. Do not be discouraged by this.”
Chinese direct investment in the U.S. last year totaled $4.5 billion, according to New York market research firm Rhodium Group, a tiny portion of the foreign-direct investment in the U.S. The Commerce Department, which uses a different methodology from Rhodium, said FDI in the U.S. reached $227 billion in 2011.
via Chinese Businesses Get Advice on U.S. Investment – WSJ.com.
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