Chinese companies were investing in the U.S. before tariffs were imposed | Wilnesh News
The escalation of tensions between China and the United States has sent a signal to Chinese companies: No matter who wins the White House, overseas investment is the only way to go. Public filings by mainland Chinese listed companies over the past few weeks show that some are already investing in the United States. Trump said further tariffs were possible. Marko Papic, chief strategist at BCA Research, and his team said in an August 15 report that Trump will use tariffs on China to reach a deal, including “inducing Beijing to flood the United States with (Foreign Direct Investment)”. They point to Trump’s limited mention of tariffs in his July acceptance speech for the Republican nomination. According to NBC News records, Trump said: “The way they sell products in the United States is they are made in the United States and only made in the United States. This will create a lot of jobs and wealth in our country.” The BCA said Trump has been selling products in the United States over the past six The same sentiment has been expressed throughout the months of campaigning. The report said: “Trump has been saying loud and clear to anyone who wants to listen that he intends to force China to build factories in the United States and hire Americans.” Analysts pointed out that in the 1980s, trade tensions between the United States and Japan did not Not through tariffs, but through some trade restrictions and increased direct investment in the United States, Shenzhen-listed Vital New Materials said in a filing on Thursday that it had completed the registration of its U.S. subsidiary in Austin, Texas. The document states that Vital New Material (USA) LLC has a registered capital of US$2 million and will engage in the research, development and sales of welding materials. On August 7, Shandong Yuma Sunshade announced that it would invest US$1.2 million to establish a U.S. subsidiary, “Yuma Texas”, and build a 2,200-square-meter warehouse. Shanghai-listed Xinquan Automotive Trim Co. said it will invest US$4 million in Xinquan American Holdings through a Singapore subsidiary. The company said in a June 7 filing that it had established a subsidiary in Texas to be responsible for the research and development, design, manufacturing and sales of auto parts. Yotrio announced on July 26 that its subsidiary Lausaint Industrial has established a company in the United States to sell outdoor furniture. The entity, called Remode Living, was formed in June in Chino, Calif., with capital of $1,000, the filing said. In late May, Shanghai-based Hanbell said it would spend US$100 million to set up a subsidiary in Georgia to sell vacuum pump products in the United States. These are just a few of the more than 30 such filings filed by overseas companies with U.S. ties so far this year, according to a screen of mainland China-listed stocks shown through Wind information on the Hong Kong, Shenzhen and Shanghai stock exchanges. In 2023, there will be just over 50 such applications. “Should investors buy or sell anything? No. Not yet. Wait until Trump returns to power and the trade war hysteria kicks in, and all trade war-related ‘Trump trades’ will disappear,” the report said. “In particular, We’re going to weaken the appreciation in small stocks and the U.S. dollar from the resumption of the trade war.” According to NBC News, Harris will speak at the Democratic National Convention on Wednesday night and Tim Walz will speak on Wednesday. Studies of Chinese companies also show a preference for U.S. investment. Nearly 60% of companies are committed to keeping investments stable, the report said. Since the outbreak, Chinese companies’ interest in overseas expansion has accelerated as domestic economic growth has slowed. As the European Union and the United States raise import tariffs on Chinese electric vehicles, electric vehicle companies such as BYD are also opening factories in Europe and Southeast Asia. Oxford Economics said in a report on August 12 that more than 80% of Chinese companies surveyed by the China Council for the Promotion of International Trade chose to maintain or increase foreign investment in 2023, nearly 10 percentage points higher than in 2022. The report stated that “the main industries receiving Chinese investment have shifted from the tertiary industry to manufacturing.” “Interestingly, although Chinese companies are more active in expanding their business in ASEAN countries, they tend to maintain a presence in the West, suggesting that the ‘ASEAN + 1’ strategy may have strengthened.” The report said that even with new investments in China In the United States, which has seen a sharp decline, “Chinese companies have not actually withdrawn from the U.S. market.” —CNBC’s Michael Bloom contributed to this report.
