Relations pay rich dividends

US job creation

Chinese companies' contribution to US job creation didn't just begin in the aftermath of the 2008 financial crisis: It dates back a decade, when State-owned China Ocean Shipping Group Co, or COSCO, launched a transit route between its home country and the Port of Boston. The venture preserved 9,000 maritime and shipping-related jobs in its first year alone.

"We never thought of stopping the service, even during the difficult [economic] times," said COSCO Chairman Wei Jiafu.

About 500 residents in Monroeville, Alabama, gathered to shoot a welcome film for the Alabama-China Partnership Symposium which was held on Sept 26-27. About 150 Chinese business leaders attended the event to gain better understanding of the investment opportunities in the southern state. Provided to China Daily

In Chicago, Wanxiang America has hired more than 5,000 people, "almost all Americans, with only a dozen Chinese in supporting functions", said Ni Pin, president of the US subsidiary of the auto-parts supplier Wanxiang Group Corp.

Earlier this year, Wanxiang agreed to pay $465 million for up to 80 percent of Massachusetts-based A123 Systems Inc, which makes lithium-ion batteries for electric vehicles. However, the US company filed for bankruptcy protection on Oct 16, leaving Wanxiang sidelined, at least temporarily, by a $125 million offer for A123 from Johnson Controls Inc.

China Construction America, an arm of China State Construction Engineering Corp, drew the ire of some US politicians and construction industry insiders after it won government contracts that included the renovation of New York City's Alexander Hamilton Bridge.

Yuan Ning, head of the US subsidiary, which supports about 1,000 local jobs, said China Construction America follows bidding and contract rules. The bridge project, which cost $407 million and is scheduled for completion by December 2013, will provide around 10,000 jobs for construction companies, suppliers and subcontractors.

Lenovo Group Ltd, the world's top-selling PC maker, which has co-headquarters in Beijing and North Carolina, announced in early October that it will add 115 computer manufacturing jobs in Raleigh. The news drew swift bipartisan praise.

"This is an opportunity for North Carolina to keep some manufacturing force, not just in the United States but globally," said North Carolina Senator Richard Burr, a Republican.

The state's Democratic Governor, Bev Perdue, called Lenovo's move "a tremendous vote of confidence in the great skills and productivity" of North Carolina, where the unemployment rate of 9.7 percent is above the national average.

Perdue, who led trade missions to China in 2009 and 2011, expressed the hope that Lenovo's move would yield further opportunities to boost the state's economy.

"Chinese investments are important around the world, and we are honored there are those [investors] from China who are continuing to not just look at North Carolina, but to plant seeds and flags here in our state," she said.

Major deals pending

Despite turbulence in the global economy, Chinese investment in the US remained strong through the first three quarters of 2012. Rhodium Group estimated that Chinese companies have put $6.3 billion in foreign direct investments in the US so far this year, with major deals pending in the aviation, auto parts and energy sectors.

Still, the positive activity seems to be disconnected from much of what the presidential candidates have had to say.

In September, Obama cited national security concerns to block Ralls Corp, owned by executives of China's Sany Heavy Industry Co, from buying four wind farms near a US navy test site in Oregon. It was the first time in more than two decades that a US president had barred a foreign investment.

Meanwhile, at a campaign stop in Ohio, also last month, Obama announced his administration's trade complaint against Chinese automakers and auto-parts suppliers. The move was widely seen as an attempt to appeal to voters in a crucial "swing" state before the Nov 6 election.

Michael Bell, mayor of Toldeo, Ohio, hosted 150 Chinese investors in late September, in the hope of attracting Chinese capital to the former manufacturing hub on Lake Erie, even as Obama and Romney were in town campaigning.

Bell, an independent, told local media that he wished the candidates had come at a different time and that their campaigns were "hindering" his city.

"The presidential debates and campaigns are about winning votes, not telling the truth to the less sophisticated," said Ann Lee, an economics professor at New York University and author of What the US Can Learn from China.

"The politicians know it is more convenient to blame China for the loss of jobs than to explain to the average American that the American elites have pursued their own interests through outsourcing, and failed the broader American public," she added.

Gentler tone

Romney, despite his gentler tone regarding China in Monday's debate in Boca Raton, Florida, still upbraided the country for the low valuation of the yuan, which enables Chinese exports to be sold cheaply. The Republican, a former governor of Massachusetts, has said repeatedly that he would label China a "currency manipulator" on his first day as president.

However, some supporters said that if elected, Romney would deal with China in a pragmatic way, simply because he "understands business".

"He understands the value of job creation in China and job creation in America," said Heineman, the Nebraska governor. "I know they are focused on one part of the tough talk, but the fact of the matter is that I know Mitt Romney and we've worked together on a number of issues. And I will do everything I can to help Governor Romney understand the value of that China-America relationship."

Carlos Gutierrez, Romney's trade adviser and a US commerce secretary under Obama's predecessor George W Bush, said in a recent interview that "eventually there is going to have to be a face-to-face dialogue".

"The most important thing is to recognize that there are issues and problems," he said.

The two economic superpowers should hold talks to increase "transparency" and resolve their trade differences, regardless of which candidate is elected president next month, he added.

Contact the author at yuweizhang@chinadailyusa.com

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