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China’s Investment in Carolinas 2017 Global Carolina Connections


A Rising FDI Sourcing Country 2


China Outward FDI China Annual Outward FDI (Million $) $200,000

35

$180,000

30

$160,000 25

$140,000 $120,000

20

$100,000

15

$80,000 $60,000

10

$40,000 5

$20,000

OFDI

Data Source: Annex Tables, World Investment Report 2017

Rank

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

0

1990

$-


China Investment in the US China Investment in the US (Million $) $50,000.0 $45,000.0 $40,000.0 $35,000.0 $30,000.0 $25,000.0 $20,000.0 $15,000.0 $10,000.0 $5,000.0 $2000

Source: Rhodium Group

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016


China Investment in the US New Investment into the US, 2010 to 2016 ďźˆBillion $) China

37.0

UK

30.6

Canada

26.8

Germany

26.3

France

22.4

Japan

22.0

South Africa

18.9

Italy

17.3

Spain

14.9

S. Korea

9.7

Switzerland

8.5

Australia

7.9

Austria Sweden Israel Other

Data Source: fDiIntelligence

7.1 6.2 4.9 57.9


Chinese Investment in the US by Industry MANUFACTURING BREAKDOWN

INVESTMENT BY SECTORS Retail Trade 1%

Real Estate 39%

Software & IT services Other 2% 1% Alternative Energy 10% Business Services 0% Communications 4%

Manufacturing 37%

Data Source: fDiIntelligence

Financial Hotels & Services 1% Tourism 5%

Ceramics & Glass 5%

Rubber 4%

Engines & Turbines Other 3% 12%

Metals 6% Industrial Machinery, Equipment & Tools 10% Automotive 16%

Electronic Components 3%

Biotechnology & Pharm 5%

Paper, Printing & Packaging 22%

Chemicals 14%


Top Location for Chinese Greenfield Investment Top 10 US States for Greenfield Projects from China (Million $) $2,300

$1,200

$1,100

$512

California

Texas

Data Source: Rhodium Group

New York

Louisinana

$460

Michigan

$443

South Carolina

$400

Washington

$348

$302

$278

Illinois

Virginia

North Carolina


Top Location for Chinese M&A Investment Top 10 US States for Greenfield Projects from China (Million $) $23,400

$14,600

$9,100

$8,700 $5,900 $4,500

California

New York

Data Source: Rhodium Group

Illinois

Virginia

Texas

North Carolina

$3,900

Kentucky

$3,700

$3,600

Oklahoma

Michigan

$2,700

Kansas


Type of Investment SC vs NC

SOUTH CAROLINA M&A

Greenfield

NORTH CAROLINA M&A

Greenfield

6%

35%

65%

94%

Data Source: Rhodium Group


Chinese Investment by Industry Sectors SC vs NC

SOUTH CAROLINA 1%

9%

3%

NORTH CAROLINA 10%

10% 34%

1% 10%

90%

32%

Automotive Consumer Prod. & Serv. ICT

Data Source: Rhodium Group

Basic Materials Entertainment Ind. Machinery & Equip.

ICT

Other


South Carolina and China South Carolina’s largest trade partner since 2013. South Carolina export $6.4 billion to China in 2016.

South Carolina’s 4th largest FDI sourcing country. 33 Chinese companies located in SC. Total investment from China from 2008 to 2016 is nearly $1.1 billion, creating more than 3,300 jobs.


Chinese Companies in South Carolina


Recent Major Success Company

Industry

Investment Jobs (Million $)

Jiangnan MPT

Automotive

45

150

Jushi Group

Advanced Material

300

400

Yanfeng

Automotive

71

35

Techtronic Industries Machinery/Tools

75

250

Haier

Home Appliance

72

410

Keer America

Textile

218

501

Sun Fiber

Textile

45

318


Reasons to Invest •

Access to US Market

Create International Brand

Obtain Advanced Technology

Corporate Image

Better Serve Existing Customers

Government Incentive

Local Production to Supply China Market

Reduce Cost of Trade

Reduce Dependence to China Market

Executive Preference

Raw Materials or Parts

Reduce Cost of Production

Investment Diversification

Avoid Trade Barriers

Reduce Tax Burden

Investor or Executive Immigration

Other

Source: 2017 Annual Business Survey Report, Chinese General Chamber of Commerce Image downloaded from https://pinebase.com/post/chinacompanyinusa access date: 8/7/2017


Outlook-Continuous Growth •

Chinese Companies’ Positive Feedback in Investing the US •

Profitability: •

39% Respondents: Increase

48% Respondents: Flat

Market Share: •

45% Respondents: Increase

50% Respondents: Flat

Operating Income: •

Over 55% Respondents: Increase

30% Respondents: Flat

71% Plan to Increase Employment

Source: 2017 Annual Business Survey Report, Chinese General Chamber of Commerce Image downloaded from https://pinebase.com/post/chinacompanyinusa access date: 8/7/2017


Outlook-Continuous Growth •

China’s Go Global Strategy •

Long Term Strategy

One Belt and One Road

43% 32% 29% 17%

14%

13%

19%

17%

16%

2013

2014

2015

11%

9%

3%

2005

2006

2007

2008

2009

2010

Data Source: China Global Investment Tracker

2011

2012

2016


Outlook-Continuous Growth •

China’s Economy Slows Down but Growing Moderately

10.6

10.6

9.5 7.8

7.7

7.3

6.9

6.7

6.5

6.3

6.3

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

10.6

9.5 7.8

2010

2011

2012

7.7

7.3

6.9

6.7

6.5

6.5

2013

2014

2015

2016

2017

2018

9.5 7.8 7.7 7.3 6.9 6.7 6.58 6.17 6

5.9 5.8 5.7

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022


Outlook-Continuous Growth •

China’s Trade Balance


Outlook-Continuous Growth •

Low Outbound FDI/GDP Ratio OFDI/GDP Ratios by Major FDI Sourcing Countries 45.0% 40.0% 35.0%

OFDI/GDP Ratio

Singapore

Luxembourg

Canada Switzerland

Denmark

Finland

30.0%

Hong Kong, China

Belgium

France

Spain

25.0%

Korea

20.0%

Ireland Norway

15.0%

China Russia

Sweden

10.0%

Netherlands

United Kingdom Germany

5.0%

Japan

United States

0.0% $-

$50,000

$100,000

$150,000

$200,000

OFDI

Data Source: OECD, World Bank

$250,000

$300,000

$350,000


Thank You… Wally Wang

Senior Project Manager Office: 803-737-3165 Cell: 803-530-7384 WeChat ID: +18038734524 or +18035307384 Email: wwang@sccommerce.com

7 chinese investment global carolina connections wally wang