Two major state-owned companies in China are exploring new business opportunities in the U.S. Midwest but have concerns about political relations between the economic powers, according to the head of a Chinese chamber of commerce.
Cofco Group, a Beijing-based food processor and transporter, wants to become more involved in U.S. agriculture, “but hopes the geopolitical environment will become easier,” said Ni Pin, chairman of the Chinese Chamber of Commerce in Chicago.
He said the food processor had explored the possibility of increasing shipments of food from the United States through its international port network.
And CRRC Corp, a railcar maker based in Beijing, “would like to expand its presence in the U.S.,” where it already has operations in Chicago and Boston, Ni told the Washington Post. Its American subsidiary, CRRC Sifang Rolling Stock, opened a Chicago office six years ago.
“The US has been talking about high-speed rail and we wanted to bring their facilities here,” Ni said. However, he said the company is skeptical about existing bills in the US Congress, but did not say what they are.
A delegation from the 200-member chamber met with representatives of both state-owned companies during a week-long trip to China in June, Ni said.
Representatives of other Chinese companies who met with the delegation expressed interest in investing in the Midwest, a region of about 69 million people that has long relied on agriculture and manufacturing.
The trade war between the US and China, which began in 2018, has affected over $380 billion worth of US agricultural and other exports, as well as goods and services made in China. US tariffs during the trade war have hit about $550 billion worth of goods from China.
Individual Chinese investors could help allay broader concerns about the United States, Ni said.
“We are not outsiders who should sit on the sidelines and wait for the environment to change,” he said. “In fact, we are all stakeholders in a better U.S.-China relationship, so each company should be its own ambassador to convey the logic of why this could benefit people on both sides.”
To achieve this, companies could demonstrate that they employ more locals, “pay fair taxes to support the local economy” and “demonstrate good corporate citizenship.”
Some of the Chinese businesspeople who met the Chamber of Commerce delegation in June are planning follow-up visits to potential U.S. locations, Ni said.
