AmCham urges FDI reforms in US
AmCham urges FDI reforms in US
By Wang Yanlin | 2010-6-28
THE American Chamber of Commerce in Shanghai has urged the United States to depoliticize its regulatory process of identifying investment deals chosen for review, to boost Chinese outbound investment in the US.
"Chinese investors are increasingly concerned that investments may be hampered by US national security restrictions and may serve to drive much needed investment to Canada, Mexico and other countries," said AmCham Shanghai’s report on Chinese FDI in the US.
To invite, prepare for and capture a greater share of Chinese FDI, AmCham Shanghai said the US federal, state and local governments and their corporate constituents should make efforts to depoliticize the regulatory process.
Also, it recommended that US authorities support the US-China bilateral investment treaty (BIT) talks.
The BITs are regarded as crucial to boosting confidence in cross-border investments and have the potential to increase trade volume, especially during the signing and implementation stage, the report said.
Another suggestion was to bridge the gap between different cultural business practices.
"Hire Chinese-proficient staff members at relevant governmental and quasi-governmental bodies to guide investments through the right channels," the report said. "Understand who the investors are, the concerns of the community and how to narrow the business gap."
It was estimated China’s outbound FDI in the US more than tripled from the 2008 level to between US$3.9 billion to US$6.4 billion last year.
AmCham Shanghai said Chinese outbound FDI in the US has created new American jobs, maintained existing ones, provided important new sources of capital, developed infrastructure and ultimately served to strengthen US-China commercial ties.
