Total Chinese foreign direct investment in the U.S. is on pace to reach at least $8 billion this year, according to the report from research firm Rhodium Group.
That would top the previous record of $5.7 billion reached in 2010, said Thilo Hanemann, research director with Rhodium Group, which tracks all acquisitions and investments in manufacturing facilities, warehouses, labs and offices by foreign companies in the United States valued at $1 million or higher.
In manufacturing, the biggest investments are being made by Chinese firms with products that have been slapped with hefty anti-dumping tariffs, Hanemann said.
Opening up a plant in the United States allows Chinese firms such as Golden Dragon Precise Copper Tube Group, Inc. — which broke ground this year on a $100 million plant in Thomasville, Ala. — to avoid these tariffs.
But there are both risk and benefits to the United States from increased Chinese investment, said Hanemann.
The risks include national security and transparency concerns, he said. He also expects American companies will put more pressure on policymakers to push for a level playing field for them in China.
Full article: Chinese buying of U.S. business at record pace (CNN Money)