Posts Tagged ‘China’

China outsources to the US

May 22, 2008

This was posted on BoingBoing a few days ago, but I came up with a better title for the post . The article describes a Chinese entrepreneur who is building a factory outside of Spartanburg, SC. South Carolina may be the destination of choice for Chinese companies, since Haier built an applianceĀ plant in Camden, SC a few years ago. South Carolina has cheap land (even compared to China apparently!), tax incentives, and (relatively) cheap labor. Then there’s the US dollar and the trade deficit.

"They don’t want to miss this opportunity to bottom-fish in the U.S.," said Mei Xinyu, an economist at China’s Ministry of Commerce, referring to the depressed asset prices in a sluggish American economy.

Flush with cash, many Chinese companies want to compete globally. Others feel they’ve hit a wall in the domestic market and need to go out to expand sales. And the Chinese government is urging them on by loosening previously cumbersome restrictions, in part to help Beijing reduce a lopsided trade balance with the U.S. and make the most of its massive foreign reserves.