U.S. Firms Gets a Second Boost From China
The U.S. government has taken the first step to encourage Chinese businesses to invest more in the U.S. and is now considering further steps that will boost Chinese investment in the United States. In November of 2020, President Bush signed an executive order creating a U.S. Investment Strategy for China. Under this plan, the U.S. government plans to create “Chinese Entrepreneur-Led Small Business Development” programs in order to encourage Chinese business interests to invest in the U.S. These programs aim to attract more private sector investment to the U.S. by developing new opportunities for Chinese entrepreneurs to start a small business in America, which is a popular destination for investment from foreign nations.
The goals of the Small Business Development Program (SBDC) include encouraging entrepreneurs to start new businesses through increased access to capital, training, and intellectual property rights. It also seeks to encourage entrepreneurs to expand existing companies through improved access to finance, business connections, and reduced cost of production. SBDC aims to increase the number of Chinese businesses and reduce trade barriers in the U.S.
For example, SBDC is planning to train Chinese businessmen on how to create successful business proposals and market their products and services. SBDC hopes that Chinese entrepreneurs will be interested in investing in America if it is easier to obtain funding for business ventures with favorable tax treatment.
To facilitate the Small Business Development Center, the United States Trade Representative has established offices in Beijing and Guangzhou. U.S. businesses are urged to establish direct business contacts with Chinese entrepreneurs so that they can discuss details and goals of the program.
There are also efforts in the U.S. Congress to help American companies get another boost from Chinese companies. One bill calls for making China one of the first stop countries in the Americas for American companies who are looking for cheap labor or equipment. This proposal was first proposed by Senator Joe Biden.
Some of the U.S. businesses that are already benefiting from the growing popularity of China are the giant American auto makers such as Ford and GM, as well as large U.S. technology corporations. In fact, many American companies are expanding operations in China, where labor costs have dropped to attract more Chinese investment. While these are just a few of the many examples of foreign businesses benefiting from China’s growing economic prowess, there are many other factors that will make the U.S. economy a more vibrant place.