Booming investment in US a sign of China's economic upgrade

WASHINGTON - Bourgeoning Chinese investment in the United States has now extended beyond real estate, with more companies eyeing sectors closely related to Chinese domestic demand.

In recent years, more Chinese companies have been investing in the United States irregardless of size, industry and ownership, Shau Zhang, a partner at the Ernst & Young America, told Xinhua.

Data from the US Commerce Department showed that Chinese investment was the fastest-growing source of foreign direct investment in the United States in 2014.

Chinese investment in the United States not only created jobs for local economies but also contributed millions of dollars in reinvestment to the US market. The Commerce Department said that U.S. affiliates of Chinese-owned firms employed over 37,000 US workers and invested 449 million US dollars in research and development in 2013.

Chinese investment in the United States has moved beyond real estate, although that sector still accounted for a large portion, said Zhang. More companies are investing in IT, logistics, culture, sports, and the auto industry.

The top six industry sectors in the United States favored by Chinese investors are IT services, electronics, industry machinery, communications, business services, and auto components, according to data from the consulting firm fDi Markets.

These investments were much in line with China's transformation from an export and investment driven economy toward one focusing on services and domestic demand.

Chinese companies were diversifying their investments around the globe in order to enjoy the benefits of globalization and to meet a growing demand at home to consume, Zhang said.

China's rising domestic demand has already been felt at home in the US.

"Chinese companies have strong interests in our fresh water treatment technology and diary projects," Katy Sinnott, vice president of Wisconsin Economic Development Corporation, told Xinhua.

Wisconsin, the sister state to China's Heilongjiang province, has extensive exchanges with its Chinese counterparts in agriculture and clean technology, said Sinnott.

As China outpaced the United States to become the world's largest auto market, the auto industry has become one of the hottest areas for Chinese investment.

The greatest interests among Chinese companies looking for investment in the U.S. state of Ohio were automotive manufacturing, Kristi Tanner, senior managing director of JobsOhio, told Xinhua. These companies were big enough and were ready to expand, she said.