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Chinese firms bargain hunting in U.S.

Chinese firms bargain hunting in U.S.

With the collapse in the value of the US dollar and introduction of state’s subsidies for foreign investment the normal direction of Globalisation has pulled a reversal and the Chinese are starting to outsource to the US.

DONGGUAN, CHINA — Liu Keli couldn’t tell you much about South Carolina, not even where it is in the United States. It’s as obscure to him as his home region, Shanxi province, is to most Americans.

But Liu is investing $10 million in the Palmetto State, building a printing-plate factory that will open this fall and hire 120 workers. His main aim is to tap the large American market, but when his finance staff penciled out the costs, he was stunned to learn how they compared with those in China.

Liu spent about $500,000 for seven acres in Spartanburg — less than one-fourth what it would cost to buy the same amount of land in Dongguan, a city in southeast China where he runs three plants. U.S. electricity rates are about 75% lower, and in South Carolina, Liu doesn’t have to put up with frequent blackouts.

This is an interesting turn of events and is likely to be a continuing trend.

By Matt Wharton

Matt Wharton is a dad, vlogger and IT Infrastructure Consultant. He was also in a former life a cinema manager.

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