Foreign Investment Supports Job Growth

| 28 Jan 2013 | 0 Comments

A growing number of Chinese firms are choosing the US market as a place to operate their businesses from, resulting in the creation of new jobs for Americans. Foreign direct investment in the USA supports millions of jobs across the state, therefore implementing effective measures is crucial in keeping Chinese investors in the country.

A recent report carried out found that Chinese investment is fundamental to job creation and the future growth of the US economy.

It has however become apparent that the USA needs to implement clearer and more transparent guidelines regarding national security concerns in relation to Chinese investment in the USA.

Throughout 2012, America received investments of US $6.5 billion from Chinese firms, though in comparison with other foreign investors, this figure has the potential to be far higher.

Foreign direct investments (FDI) are essential to the country’s economic growth; therefore Chinese companies need to be granted greater autonomy with regards to investing in America, as current policies are relatively stringent.

It is reported that FDI in the USA supports around 2 million manufacturing jobs; so it is necessary for US policy makers to push for freer markets to help more Chinese businesses establish operations in the US.

China’s investment climate

China’s investment climate has changed dramatically in recent years, as investments from China to the USA have become a strategic part of many Chinese companies’ business schemes.

Chinese policy makers have since adopted far more sophisticated measures when dealing with foreign investors, forcing US policymakers to make changes to the international investment climate to ensure that FDI is fairer and more compliant with US accounting and disclosure rules.

An improvement on commercial relations between the two nations is required to help America maintain its current levels of economic growth, making the country richer, stronger and in a better position to compete in market trades.

Despite the relatively stringent rules in place with regards to FDI, experts reveal 2013 is set to be a record year with regards to Chinese investment in the USA.


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