China’s Investment in Carolinas 2017 Global Carolina Connections
A Rising FDI Sourcing Country 2
China Outward FDI China Annual Outward FDI (Million $) $200,000
35
$180,000
30
$160,000 25
$140,000 $120,000
20
$100,000
15
$80,000 $60,000
10
$40,000 5
$20,000
OFDI
Data Source: Annex Tables, World Investment Report 2017
Rank
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0
1990
$-
China Investment in the US China Investment in the US (Million $) $50,000.0 $45,000.0 $40,000.0 $35,000.0 $30,000.0 $25,000.0 $20,000.0 $15,000.0 $10,000.0 $5,000.0 $2000
Source: Rhodium Group
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
China Investment in the US New Investment into the US, 2010 to 2016 ďźˆBillion $) China
37.0
UK
30.6
Canada
26.8
Germany
26.3
France
22.4
Japan
22.0
South Africa
18.9
Italy
17.3
Spain
14.9
S. Korea
9.7
Switzerland
8.5
Australia
7.9
Austria Sweden Israel Other
Data Source: fDiIntelligence
7.1 6.2 4.9 57.9
Chinese Investment in the US by Industry MANUFACTURING BREAKDOWN
INVESTMENT BY SECTORS Retail Trade 1%
Real Estate 39%
Software & IT services Other 2% 1% Alternative Energy 10% Business Services 0% Communications 4%
Manufacturing 37%
Data Source: fDiIntelligence
Financial Hotels & Services 1% Tourism 5%
Ceramics & Glass 5%
Rubber 4%
Engines & Turbines Other 3% 12%
Metals 6% Industrial Machinery, Equipment & Tools 10% Automotive 16%
Electronic Components 3%
Biotechnology & Pharm 5%
Paper, Printing & Packaging 22%
Chemicals 14%
Top Location for Chinese Greenfield Investment Top 10 US States for Greenfield Projects from China (Million $) $2,300
$1,200
$1,100
$512
California
Texas
Data Source: Rhodium Group
New York
Louisinana
$460
Michigan
$443
South Carolina
$400
Washington
$348
$302
$278
Illinois
Virginia
North Carolina
Top Location for Chinese M&A Investment Top 10 US States for Greenfield Projects from China (Million $) $23,400
$14,600
$9,100
$8,700 $5,900 $4,500
California
New York
Data Source: Rhodium Group
Illinois
Virginia
Texas
North Carolina
$3,900
Kentucky
$3,700
$3,600
Oklahoma
Michigan
$2,700
Kansas
Type of Investment SC vs NC
SOUTH CAROLINA M&A
Greenfield
NORTH CAROLINA M&A
Greenfield
6%
35%
65%
94%
Data Source: Rhodium Group
Chinese Investment by Industry Sectors SC vs NC
SOUTH CAROLINA 1%
9%
3%
NORTH CAROLINA 10%
10% 34%
1% 10%
90%
32%
Automotive Consumer Prod. & Serv. ICT
Data Source: Rhodium Group
Basic Materials Entertainment Ind. Machinery & Equip.
ICT
Other
South Carolina and China South Carolina’s largest trade partner since 2013. South Carolina export $6.4 billion to China in 2016.
South Carolina’s 4th largest FDI sourcing country. 33 Chinese companies located in SC. Total investment from China from 2008 to 2016 is nearly $1.1 billion, creating more than 3,300 jobs.
Chinese Companies in South Carolina
Recent Major Success Company
Industry
Investment Jobs (Million $)
Jiangnan MPT
Automotive
45
150
Jushi Group
Advanced Material
300
400
Yanfeng
Automotive
71
35
Techtronic Industries Machinery/Tools
75
250
Haier
Home Appliance
72
410
Keer America
Textile
218
501
Sun Fiber
Textile
45
318
Reasons to Invest •
Access to US Market
•
Create International Brand
•
Obtain Advanced Technology
•
Corporate Image
•
Better Serve Existing Customers
•
Government Incentive
•
Local Production to Supply China Market
•
Reduce Cost of Trade
•
Reduce Dependence to China Market
•
Executive Preference
•
Raw Materials or Parts
•
Reduce Cost of Production
•
Investment Diversification
•
Avoid Trade Barriers
•
Reduce Tax Burden
•
Investor or Executive Immigration
•
Other
Source: 2017 Annual Business Survey Report, Chinese General Chamber of Commerce Image downloaded from https://pinebase.com/post/chinacompanyinusa access date: 8/7/2017
Outlook-Continuous Growth •
Chinese Companies’ Positive Feedback in Investing the US •
•
•
•
Profitability: •
39% Respondents: Increase
•
48% Respondents: Flat
Market Share: •
45% Respondents: Increase
•
50% Respondents: Flat
Operating Income: •
Over 55% Respondents: Increase
•
30% Respondents: Flat
71% Plan to Increase Employment
Source: 2017 Annual Business Survey Report, Chinese General Chamber of Commerce Image downloaded from https://pinebase.com/post/chinacompanyinusa access date: 8/7/2017
Outlook-Continuous Growth •
China’s Go Global Strategy •
Long Term Strategy
•
One Belt and One Road
43% 32% 29% 17%
14%
13%
19%
17%
16%
2013
2014
2015
11%
9%
3%
2005
2006
2007
2008
2009
2010
Data Source: China Global Investment Tracker
2011
2012
2016
Outlook-Continuous Growth •
China’s Economy Slows Down but Growing Moderately
10.6
10.6
9.5 7.8
7.7
7.3
6.9
6.7
6.5
6.3
6.3
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
10.6
9.5 7.8
2010
2011
2012
7.7
7.3
6.9
6.7
6.5
6.5
2013
2014
2015
2016
2017
2018
9.5 7.8 7.7 7.3 6.9 6.7 6.58 6.17 6
5.9 5.8 5.7
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Outlook-Continuous Growth •
China’s Trade Balance
Outlook-Continuous Growth •
Low Outbound FDI/GDP Ratio OFDI/GDP Ratios by Major FDI Sourcing Countries 45.0% 40.0% 35.0%
OFDI/GDP Ratio
Singapore
Luxembourg
Canada Switzerland
Denmark
Finland
30.0%
Hong Kong, China
Belgium
France
Spain
25.0%
Korea
20.0%
Ireland Norway
15.0%
China Russia
Sweden
10.0%
Netherlands
United Kingdom Germany
5.0%
Japan
United States
0.0% $-
$50,000
$100,000
$150,000
$200,000
OFDI
Data Source: OECD, World Bank
$250,000
$300,000
$350,000
Thank You… Wally Wang
Senior Project Manager Office: 803-737-3165 Cell: 803-530-7384 WeChat ID: +18038734524 or +18035307384 Email: wwang@sccommerce.com