Sigma International - The US-China Bridge to conscious Business

China investment in US

600 Chinese enterprises to invest in the United States

As more and more foreign enterprises enter China, more and more Chinese enterprises embark on the road overseas. The United States is at the commanding lead of the international market place, so establishing US branding has become one of the Chinese enterprises’ priorities. World Economic Forum Asia’s Officer Richter predicted: "In the near future, not only will it be more 'Made in China' label goods to enter the American market, but also more Chinese enterprises will come to establish in the United States and infuse sizable investments."

Chinese enterprises entering the United States have gone through three phases

There is a historical process of Chinese enterprises entering the United States. The Chinese Consulate General in New York, and the Economic and Commercial Office are the first to reach the United States. Then came the World Trade policies based in New York, more than 30 ministries and companies concentrate on the creation of this central office. Along with the right of foreign trade, and exports gradually opening up, Chinese enterprises are moving toward phase 3 development. The first step being simply to sell their goods to the United States; the second step is obtaining capital through the stock market listing; the third is that Chinese enterprises gradually began to focus on direct investment, setting up factories in the United States. Some companies, such as scientific research centers have started to establish in strategic locations such as the Silicon Valley, opening up branch offices of research and development institutions.

The United States must keep up with this new trend of china’s influx of capital. We should rely on strong networking service companies to link Chinese enterprises to the United States: establish marketing network's brand management, cultural management and mutual understanding. The New York Consulate stresses that China's enterprises will not hesitate to spend huge sums of money for the employment of the US domestic sales personnel, therefore strengthening healthy employment of the US work force.

In joining the United States market economy, with sound advice in the legal and business arenas through service companies such as Sigma International to guide mutually beneficial relationships, Chinese enterprises have tremendous room for growth in the US for years to come. This phenomenon has caught the attention of US and China Chambers of Commerce to link up their resources to help businesses on both sides to strengthen and accelerate the ease of enterprise expansions, cultural exchanges in the learning of focused strategies and business negotiations.

Five arenas of China's interest in foreign investments

China's Ministry of Commerce has identified five characteristics that indicate favorable national conditions to promote “outflow” policy systems.

Starting in the 1980s, investments were concentrated in developed countries such as the United States and Europe, Hong Kong, Macao regions and the neighboring countries of Asia; Africa, Latin America, Eastern Europe. Trade includes: processing and manufacturing, resource utilization, project contracting, construction fields, agricultural cooperation and research.

The Second interest is offshore resource development. By the end of 2003, China has participated in 58 oil and gas projects world-wide. The actual investment from China is over 6 billion US dollars. There is also participation in major offshore mineral and ocean fishery projects as well as maritime vessels development/improvement.

The Third area is business trade development. By the end of 2003, the Ministry of Commerce had approved record setting trade enterprises in the US mostly in: textiles, household electrical appliances, mechanical, chemical and pharmaceutical products.

The fourth arena is clearly the role of large enterprises. At present, China is engaged in over 3,000 transnational investments and operations of various types of enterprises. Foreign contracted projects and labor service cooperation with foreign enterprises are accelerating.

Lastly, China is increasingly focused in diversified investments, including transnational mergers and acquisitions.

Chinese enterprises are very astute and visionary about the competitive edge of China face to face with global economy. They are giving focused attention to leap to a prominent world-wide position.

Sigma International is proactively bridging to China the 21^stcentury’s responsible vision of conscious investments in sustainable environmental projects in the US.