American Politicians Woo the Chinese

Even as politicians in Washington erect barriers to prevent Chinese telecommunications companies from expanding in the U.S., mayors and governors are courting businesses on the mainland. Shanghai alone has entertained trade and investment delegations from at least 14 states since March, according to the U.S. Consulate. One visitor, Michigan Governor Rick Snyder, embarked in September on a 10-day China tour. The purpose: “Make the case that Michigan provides the most strategic location in North America for Chinese companies to expand,” he said on the eve of the trip.

While politically sensitive investments by Huawei and ZTE have grabbed headlines, Chinese capital is streaming into the U.S. with little fanfare. Sinopec is shelling out $2.5 billion for stakes in U.S. oil and gas fields, while Chinese investors have inked a deal to buy cinema chain AMC Entertainment and are negotiating to acquire jetmaker Hawker Beechcraft. Chinese direct investment in the U.S. should almost double to $8 billion in 2012, an annual record, says Thilo Hanemann, research director at Rhodium Group, a China-focused consultant. At least 37 states and most major cities now host Chinese enterprises operating in industries such as auto parts, aluminum production, and financial services. Rhodium estimates Chinese companies support close to 30,000 jobs in the U.S.