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There are many articles to condemn that Chinese companies in the United States stole Americans' High-techs, jobs and so on, I feel there is something to say.
Indeed, for such arguments, the US government itself has gave a positive answer with a systematic investigation.
May 2015, the U.S. National Committee on US-China Relations issued investigation report New Neighbors: Chinese Investment in the US by Congressional District:
"The recent wave of Chinese FDI has brought new Chinese neighbors to towns across America: From 2000 to 2014, Chinese firms spent nearly $46 billion on new establishments and acquisitions in the US, most of it in the past five years. As of the end of 2014, we count 1,583 establishments by Chinese firms in the US, stretching across all regions of the country."
"Chinese-affiliated companies now directly employ more than 80,000 Americans: The recent US expansion of Chinese companies means more than 80,000 Americans are on Chinese company payrolls, up from fewer than 15,000 five years ago. These figures do not include indirect employment during construction or at suppliers, which would add tens of thousands of additional jobs."
"Chinese companies are contributors to American innovation and competitiveness: There is no evidence that Chinese investors are moving high value-added activities back to China."
“The United States is competing with dozens of other attractive economies including Europe, Australia, Canada, and Brazil for these new capital flows. Recent years have seen greatly stepped-up local-level effort by mayors, governors, and other local officials to attract these new investors to the neighborhood.”
Clearly, the facts show that, this time, in terms of attracting the investment of China, the United States is wised up and won.
The criticism and suspicion for China's companies' investment in the United States do not meet the actual situation at all. It indicates that some people are mental immaturity with childish and irrational. They can not systematically and comprehensively look at the issue, with suspicious mind to look at the serious socioeconomic problems.
I on
My purpose is on
We should not just blindly criticize the social polarization of wealth, we must rationally view that, from the perspective of organizing and manufacturing of material wealth for humans survival, the wealth of entrepreneurs or the majority of the Rich is socially shared and in playing the role as public wealth.
In the article Canada's economy is faced at vital crossroads, I indicate that:
Manufacturer (Company or Enterprise) is the basic cell and main driving force of the economy by integrating the intelligence, Capital, Knowledge, Technology, and Market together and playing the role as protagonists of scientific and technological innovation.
Manufacturer is the organizer of large-scale socialized production, it organizing and training social members to create material wealth with providing jobs for social members make living and tax revenue for social governing, thus to create a stable community, by which that people can work and live to enjoy a prosperous life.
Manufacturer is the cornerstone of social stability and sustained progress.
In the article My view on Entrepreneur and Enterprise inspired by Peter Shoore, I indicate that:
Enterprises are the imp
From this point of view, the Entrepreneurs are the best civil servants, and the communists in reality.
However, historically, in worldwide, it has been lacking of concerning and supporting for Entrepreneurs, even, until now, there great many people are with hostile attitude toward them. The law seems to have ignored this group also, but tended to protect employees without updating of the outdated traditional concept of ideology from the times of Industrial Revolution with ignoring that modern society has provided thoughtful social welfare and comprehensive legal protection.
The outdated ideology and practice has badly affected the work ethic of employees and to have made Enterprises difficult for managing, even, encouraging some mindless employees' pranks boldly in the workplace without the fear of being punished. It is not on
Feb. 9 2014 Management is the Art of Playing Human Nature, I indicate that:
Human behaviors are determined by dual natures: The culture nature of those acquired qualities, and the animal nature of those inborn instincts.
The Management is to finish purposeful tasks with the culture nature driven by meeting the animal nature with payment under the enforcement of regulations.
Therefore, the Management is the Art of playing human natures.
The failure of the socialist practice was not fully due to the Autocracy Governance and the Planned Economy, but essentially was due to that it over relied on the human culture nature by madly suppressing the exertion of human animal nature under the enforcement of State Apparatus.
The success of the capitalist practice is not fully due to the Democracy Governance, but due to the Market Economy that benefits society by meeting the greedy of human animal nature through gaining profit according to the needs of the society in the marketplace.
There were a lot of researches on the economic success of China, and most of them attributed the success to the magic of the Invisible Hand. But, that was not fully true with ignored the essence - it was that China has broken the egalitarian wage system, that implemented for decades in the socialist period, to have largely increased the share of work performance-related payment.
In consideration of market competing, Adam Smith's Invisible Hand is mainly driven by human animal nature - selfish and greedy.
In the article My View on the Argument of Social Polarization, I indicate that:
Adam Smith, in his famous book he Wealth of Nations, suggests that benefits society by playing selfish and greedy of human animal nature with free competing in the marketplace under the control of invisible hand. Whether you prefer or not, the fact is clear, that market economy has stimulated the prosperity of the material wealth to have ensured the basic needs of human survival.
World Economic Forum Annual Meeting 2012 has specially debated on Capitalism. Some people said that Capitalism was dead. I say that suppose Capitalism was dead, the world would be dead, too. Because of, currently, we have no proper social system or any alternative can well organize the production of social material wealth driving by human animal nature.
Whether the socialism or the capitalism they are both the comprehensive social system, but in essential, in consideration of human survival, they are both the social production model of the material wealth.
Human needs a social model to maintain the production of material wealth for survival. The practice has showed that socialism was not work, whether you prefer or not, the capitalism is a on
The society urgently needs to establish a clear ideology that most of those Rich are the good organizer of the production of social materials wealth with their money. They are playing the role as civil servants. They are the communists in reality.
Social Polarization is unreasonable, in consideration of Universal Value; it should be or must be eliminated. However, in consideration of the need of human survival and human unchangeable nature of animal, its presence should be or say that it must be, or even say that it has to be, because of Capitalism – the market economy is the on
We can assume that if we launch communist movement again, depriving the property of those Rich, to equally distribute to the public, to implement the vision of Karl Marx:”From each according to his ability, to each according to his need.” “Jeder nach seinen Fhigkeiten, jedem nach seinen Bedürfnissen!” Critique of the Gotha Programme 1875. Then see that what will happen.
More than 100 years of the communist movement, and more than 70 years of practice of socialist society, has clearly proved that is impossible. Although the vision of Karl Marx is perfect for human beings, but practice proved that it did not work. However, as striking contrast, the successful social practice is that of following the vision of Adam Smith, by meeting selfish and greed of human animal nature with free competing in the marketplace, to achieve the goal of benefiting humankind, 〈The Wealth of Nations) 1776.
The argument of Social Polarization has been greatly promoting the hostile attitude of Employees toward Employers, to psychologically blow the work enthusiasm of the Employees, and to reduce the efficiency of production of material wealth. Thus, it is playing the role of destruction of the human society.
Facing the unequally of Social Polarization, human has two choices:
Firstly, to tolerate social unequally, people have jobs to earn living, thereby, to live in a prosperous life as that of those who are living in developed countries.
Secondly, to enjoy social fair, people have no jobs to earn living, thereby, to have to live in a needy life as that of those who are living in socialist countries.
Answer is clear. The argument of Social Polarization must be stopped immediately.
Forbes makes the World's Billionaires List every year, I think that they may be ignored the nature of the Rich and their money. The List has been playing a role to arouse public aware of Social Polarization from time to time. It may easily cause misunderstanding and to induce public hatred mentality toward the Entrepreneurs.
The concept of Social Polarization is worth serious reflection. It is playing a bad role to harm the society in many ways.
Since, the greedy brain defectives in Wall Street foolishly triggered the financial crisis 2008, in the United States, as same as that of most other countries, the business failures have caused the sharp decline in job opportunities, people began to question the on
Now, China's entrepreneurs invest the wealth that created by industrious people of China in the United States, to create jobe for the American people making a living. In this way, to rebuild the confidence of the American dream.
Please recall the history of Railway construction in the United States, as well as that of in Canada, if there was no industrious work of the Chinese people, the railway would not be completed. There would be no prosperity in the United States and Canada today.
Please frankly ask yourself, to look around the world, untill today, besides China and Germany, there few countries are able to effectively organize the construction of large public projects.
Now, I reproduce some articles to show that how the manufacturers from China to help Americans rebuild their American dream.
COSCO Chairman Wei Jiafu says that the US should create a more favorable business environment for Chinese investors. [Dale De La Rey / Bloomberg]
Chinese shipping boss wins accolades, friends in the US for improving better business relations
At a time of slow recovery and high unemployment, China's role in helping to boost the United States economy has become more obvious. This is more recognized in states where Chinese companies have left good footprints with its investment records. China Ocean Shipping (Group) Co (COSCO) is on
In 2002 the Port of Boston was facing a shutdown when the shipping giant Moeller-Maersk Group canceled its services to the port. The Massachusetts state government invited COSCO, on
"COSCO offered a helping hand then and the (Massachusetts) state and people there really appreciated it," recalls Wei, 61, who has more than 10 years' sailing experience as a commercial shipping captain.
Wei is a familiar figure in the US. In 2009 BusinessWeek listed him among the 40 Most Influential People in China, and he has received a number of awards in the US, including the honor of Guardian of American Workers from the International Longshoremen's Association and Honorary Chief Commander with Four Star rank of Massport Police from the Association of American Port Authorities security committee and Massachusetts Port Authority.
As president of COSCO from 1998 to 2008, Wei built the shipping company into on
COSCO has more than 15 regular container services covering both the west and east coasts of the US. Over the years the company has created more than 16,000 jobs in the country.
On March 2nd 2012, Capt. Wei Jiafu, the Chairman of COSCO Group, Capt. Wei and COSCO delegation participated in the "Massport-COSCO Luncheon Speaking Event" as invited, which is hosted by the Massachusetts state government, the Massachusetts Port Authority (MASSPORT), the International Longshoremen Union (ILA) and the Coalition of New England Companies for Trade (CONECT).
On the Luncheon, Mr. David S. Mackey, the acting CEO of Massport makes a speech. He expressed his gratitude and appreciation for more than 35,000 jobs created since COSCO's first call at the Boston Port. And Mr. Mackey released his expects and wishes, and invited COSCO continue to promote the cooperation.
Then, Mr. William McNamara, vice president of International Longshoremen Association (ILA), the association of U.S. East Coast port workers, presented a plaque of "Best Friend of American Worker" for Chinese Premier Wen Jiabao, to appreciate Premier Wen made a special trip to Boston Harbor Conley terminal to visit the local workers on Dec. 2003, and Premier's supports for COSCO development in Boston. Chinese Ambassador to the U.S., Mr. Zhang Yesui, on behalf of the Primier, accepted the plaque. Ambassador Zhang also delivered a brief speech, said the cooperation between COSCO and Massport is a microcosm of the Sino-US relationships. China and the United States should continue to strengthen cooperation in all aspects and to realize win-win.
Subsequently, Mr. Rick Bridges, President of the Board of the Coalition of New England Companies for Trade (CONECT), presented to Capt. Wei "International Business Leader Award", with recognition of COSCO's contribution to the economy of the six states in the New England region of the northeastern United States.
Capt. Wei, chairman of COSCO Group published a warm speech, reviewed the history of the story. He pointed out that, after COSCO called at the Port, the imp
http://rhg.com/wp-content/uploads/2015/05/NewNeighborsExSum.pdf
--- A Report by the National Committee on US-China Relations and Rhodium Group
May 2015
Download the Full Report [PDF]
Foreign direct investment (FDI) is a vital component of the United States economy today and has been throughout the nation’s history. Investors from abroad are a source of growth, employment, competitiveness, and innovation, and their presence is living proof of America’s commitment to openness, market competition, and putting the interests of consumers above the welfare of corporations.
Companies from China have not historically played a direct role in the US economy, and FDI was largely a on
This report details – for the first time – Chinese commercial investment in the US down to the congressional district level, using a unique da
The key findings are:
(1) The recent wave of Chinese FDI has brought new Chinese neighbors to towns across America: From 2000 to 2014, Chinese firms spent nearly $46 billion on new establishments and acquisitions in the US, most of it in the past five years. As of the end of 2014, we count 1,583 establishments by Chinese firms in the US, stretching across all regions of the country. Imp
The benefits of Chinese capital are distributed nationwide, not just in high-income parts of the country.
(2) Local economies benefit from greater levels of investment: The biggest recipients in terms of cumulative investment from 2000-2014 were districts in North Carolina, Illinois, New York, Virginia, and Texas.
While acquisitions (which account for the majority of investment) mostly represent change in ownership, many Chinese takeovers have generated local investment as the new owners have saved firms from bankruptcy and provided new financing lines. In most cases, acquisitions have led to expansions, and examples of downsizing are rare. Greenfield projects have already generated billions in local investment and investments in big manufacturing and service sector projects have accelerated significantly in the past 18 months.
(3) Chinese-affiliated companies now directly employ more than 80,000 Americans: The recent US expansion of Chinese companies means more than 80,000 Americans are on Chinese company payrolls, up from fewer than 15,000 five years ago. These figures do not include indirect employment during construction or at suppliers, which would add tens of thousands of additional jobs. The top districts in terms of jobs are home to Chinese-affiliated companies in manufacturing and services sectors, which have higher employment intensity than energy or real estate investments. Fears that Chinese acquirers could systematically move acquired assets and related jobs back to China have not materialized. Instead, new Chinese owners have, in most cases, sustained and expanded local employment after they acquired US assets. Job creation through greenfield FDI is approaching the 10,000 mark, with significant further growth imminent from projects already in the pipeline.
(4) Chinese companies are contributors to American innovation and competitiveness: There is no evidence that Chinese investors are moving high value-added activities back to China. Instead, US innovation clusters, strong protection of intellectual property rights, and the talent pool are major draws for Chinese companies, which now spend hundreds of millions of dollars every year on research and development activities in the US. Chinese companies also contribute to the training of local workers, and technology investors such as Tencent and Alibaba have emerged as imp
(5) FDI can be a catalyst for greater exports of “Made in the US” goods and services to China: Growing investment creates imp
(6) Much is still to come: Chinese FDI is on
billion of investment by 2020. Based on past employment intensity, this would increase the number of full-time US jobs provided by Chinese US affiliates to somewhere between 200,000 and 400,000.
(7) Greater Chinese FDI marks a new chapter in USChina economic relations: Growing outbound FDI is a major channel through which the changes in the Chinese economic model will be felt in the US economy. Higher levels of investment mark the beginning of an era of USChina economic engagement that brings a wider array of mutual benefits rather than a limited set of winners and losers, as arose from the deepening of goods trade of the past two decades.
(8) From local impacts to national interest: The United States is competing with dozens of other attractive economies including Europe, Australia, Canada, and Brazil for these new capital flows. Recent years have seen greatly stepped-up local-level effort by mayors, governors, and other local officials to attract these new
investors to the neighborhood. Greater awareness of the local benefits from Chinese investment should help to sustain recent progress in aligning local opportunities and national interests so the US will be successful in that competition.
In 2014, Chinese companies invested more than 12 billion dollars in projects in the U.S., including a handful of big investments in manufacturing. That’s up from about zero in the mid-2000s.
This shift is obvious in Dayton, where a Chinese auto glass maker is taking over a notorious former G.M. plant., a cavernous building that was left behind when G.M. closed up manufacturing operations at its Moraine plant in 2008. Fuyao Glass America Inc., a new subsidiary of on
Rebecca Ruan-O’Shaughnessy, on
“We didn’t know where to come in,” she says. “We just see this big building had no idea how to get in.”
Just a few years ago Dayton’s economy was in shards, and the G.M. Moraine plant stood as a sometimes painful symbol of the past. Now, a mix of Chinese and American workers are set up at tables and chairs Fuyao scrapped from G.M.’s leftovers.
Ruan-O’Shaughnessy opens the door to a classroom of dozens of attentive workers in safety vests—it’s the first day for the first 40 production workers, who were hired through a temp agency. She says the company’s already had 1800 applications just for temp jobs here that could turn into permanent, full-time jobs with benefits after 90 days.
Sitting in a bare office, John Gauthier, the president of Fuyao Glass America, says the symbolism is clear: the Recession is in the rearview for this company town.
“It means something to us here, to be able to come here and reoccupy this [and] bring this factory back to life,” Gauthier says. He moved from Mt. Zion, Illinois, where he was the manager of a glass plant that’s also been acquired by Fuyao and will remain open as a supplier to this plant.
Gauthier says entry-level workers can expect to be paid in the range of $12 to $14 an hour, which he says is similar to prevailing wages for area manufacturers, although he wouldn’t offer up a specific figure. Past experience in the auto industry is helpful for applicants, but isn’t required.
But this Midwestern story also reflects a trend: Chinese companies are opening up shops from Texas to Indiana, with more on the way. Experts say that’s partly because wages are on the rise in China, but in the U.S., real wages for manufacturing workers have been in steady decline,particularly in the case of auto parts workers. In Ohio, auto parts workers saw a wage decline of 9.4 percent from 2003 to 2013.
Thilo Hanemann is the research director at the Rhodium Group, a research firm in New York. He says China is also less dependent on cheap labor in general.
“The growth model in China is changing very rapidly and so companies are moving from low value-added goods, socks and underwear, towards more advanced goods and services,” he says.
So Chinese companies need more of the kinds of skilled labor available in the U.S. Plus, they want to be close to their customers—in this case, U.S. automakers. Between that and changes in U.S. and Chinese policy, companies like Fuyao calculate they can actually cut costs in the long-run by setting up here.
Mike Fullenkamp, a supervisor at Fuyao, says he loves what he’s heard about the head of the company, Chairman Cao. He’s got a reputation as a charitable guy.
“He’s very positive, very humble,” he says. “I mean he’s a man of wealth, but he earned it himself.”
The state of Ohio offered close to $14 million in grants and tax incentives to get the company here. The total number of jobs could top 1500, and Sinclair Community College is partnering with the company to recruit workers for the positions.
Fullenkamp takes me outside the plant on a golf cart. He says not long ago, this place looked bad, a parking lot with cracked cement, overgrown with weeds.
“The guards said they used to see a buncha coyotes running across and all that,” he says. “We’ll probably still see that, but we’re trying to tame them down a little bit. Let ‘em know it’s our home now instead of theirs.”
Fullenkamp says the company hopes to have nearly 20 lines up and running, shaping and finishing glass for almost all the major auto makers, by 2018. At five o’clock, the workers on their first day file out to their trucks and SUVs and drive off—looking ahead through glass that could, soon enough, be made in Dayton.
Lewis Wallace is WYSO's managing editor, substitute host and economics reporter. Follow him @lewispants.
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