Investment prospects still bright

Recent media reports about failed Chinese attempts to invest in the United States might have slowed the overseas expansion of many enthusiastic investors, but, with a good business platform and proper business strategies, investment potential in the United States is still very promising, experts said at the Southern Governors' Association (SGA) annual meeting.

Zhou Wenzhong, China's former ambassador to the US and now secretary-general of Boao Forum for Asia, is trying to build a link between China and local US businesses.

"For Chinese investors, it is difficult to deal with 50 individual states and so we need to set up multi-state cooperation, such as with the American South," he told China Daily.

Many Chinese investors, especially small- and medium-sized enterprises, are "very keen" on overseas investment but lack enough resources and access to business opportunities, he said.

For instance, business data, market analysis and legal services are very much needed for Chinese investors as many of them are not familiar with the complicated US investment environment and legal system.

"In the US, about 95 percent of the investment areas do not need the review from the administration and Chinese investors should try to avoid investing in the 5 percent that is sensitive," he said.

"If they do invest in sensitive areas, they should do more homework and consult with experts. I believe where there is a will, there is a way."

But the former ambassador noted that as the mid-term elections are approaching in November, US' pressure on the Chinese currency and increased trade protectionism may affect Chinese investment in the nation.

"I hope the governors can work together with us to improve this important bilateral trade relationship," he said.

Most participants in the meeting were surprised to know that there already is "Invest in America", an established platform to promote investment in the US.

"It is the best kept secret so far," Suresh Kumar, assistant secretary for Trade Promotion and director-general of the US & Foreign Commercial Service with International Trade Administration of US Department of Commerce, told the meeting.

The program is the primary US government mechanism to manage foreign direct investment promotion.

It focuses its efforts on facilitating investor inquiries, conducting outreach to foreign investors, providing support for state and local governments' investment promotion efforts, addressing business climate concerns by serving as ombudsman in Washington, DC for the international investment community, and offering policy guidance.

It has its biggest overseas network in China, with about 100 trade professionals in five offices in Beijing, Shanghai, Chengdu, Guangzhou and Shenyang, he said.

Erin Ennis, vice-president of the US-China Business Council, offered several pieces of practical advice for Chinese investors who often have difficulties doing business in the US.

She said it is critical to have qualified advisors before considering investing in the US as there are many hurdles in acquisitions, such as taxes, human resources and corporate relations.

Source:China Daily