Michigan moves for still more FDI

Apples and craft beer were among the topics that Michigan Governor Rick Snyder and other state officials raised on Snyder's fifth trade mission to China, which included finalizing a $26 million deal for a new US headquarters for a Chinese company that makes bearings for cars.

CW Bearing, USA, Inc plans to build a US headquarters and an engineering and technical center in the Detroit suburb of Northville Township, creating about 125 jobs. Northville has offered support to the project in the form of property tax abatement.

The company is a subsidiary of privately owned Cixing Group Co, headquartered in China's Zhejiang province. CW Bearing was founded in 1984 and has locations in California, North Carolina and Michigan.

"CW Bearing's decision to locate its US headquarters in southeast Michigan signals to corporate leaders across the globe that the state offers great opportunities for their business expansion," Snyder said in a statement. He met with CW executives in Shanghai on Aug 29 and returned on Aug 31 from the eight-day investment mission to China.

While Michigan is best known for its automobile industry, agriculture is also an important part of the state's economy. Jamie Clover Adams, director of Michigan's department of agriculture and rural development, accompanied Snyder on the trip.

"Opportunities for Michigan's food and agriculture sector could include dried fruit both as an ingredient and consumer item, fresh fruits like Michigan-specific apple varieties and blueberries, dried milk powder as a bakery ingredient, cherry juice as a unique and healthful item, dry edible beans, wines and craft beer," said Clover Adams. "There will also continue to be a market for soybeans and corn in China."

Clover Adams' department said agriculture has a $101 billion impact on the state's economy and accounts for about 22 percent of its workforce.

Clover Adams said she met primarily with Chinese companies and presented an overview of Michigan's 300 commercial commodities as well as of Michigan's natural resource sustainability and logistics.

"They were very interested in those items. I will be sharing their interests with Michigan companies in an effort to match Chinese needs with Michigan companies who can supply those needs," Clover Adams said.

She said food safety was not raised nearly as much as it was on her previous two trips to China. "I know it continues to be a concern for Chinese consumers. In my overview of Michigan's food and agriculture sector, I stressed the regulatory mechanisms in place in Michigan to ensure the production of safe and healthful products," she added.

Snyder's trip took him to Beijing, Guangzhou, Shenzhen, Hangzhou and Shanghai. He met with automotive organizations, including the Chinese Association of Automotive Manufacturers, and encouraged investment or export opportunities for Michigan's automotive industry.

Snyder believes that his trade missions to China and other Asian countries such as Japan and South Korea, which started in 2011, have resulted in over $1 billion in investments in Michigan. His office said that in 2014, Michigan exports to China totaled $3.4 billion, a 26.5 percent increase since 2011.

Concurrent with the governor's investment mission, the Michigan Economic Development Corporation led business leaders from seven Michigan companies to China to meet with prospective business partners, distributors and buyers to increase export opportunities from Michigan to China.

paulwelitzkin@chinadailyusa.com