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Hey there need some help please read article on China investment into the U.S. “Chinese Owned, American Made”, and then in the text box provided acknowledge that you have viewed it. more or less half of page i did not understand the articleAmerican made … Chinese owned: FullversionBy Sheridan Prasso, contributing editor May 7, 2010: 9:35 AM ET(Fortune) — About a mile past the Bountiful Blessings Church on the outskirts of Spartanburg,S.C., make a right turn. There, tucked into an industrial court behind a row of sapling cherrytrees not much taller than I am, past a company that makes rubber stamps and another thatstitches logos onto caps and bags, is a brand-new factory: the state-of-the-art AmericanYuncheng Gravure Cylinder plant. Due to open any day now, it will make cylinders used to printlabels like the ones around plastic soda bottles. But unlike its neighbors in Spartanburg,Yuncheng is a Chinese company. It has come to South Carolina because by Chinese standards,America is darn cheap.Yes, you read that right. The land Yuncheng purchased in Spartanburg, at $350,000 for 6.5 acres,cost one-fourth the price of land back in Shanghai or Dongguan, a gritty city near Hong Kongwhere the company already runs three plants. Electricity is cheaper too: Yungcheng pays up to14¢ per kilowatt-hour in China at peak usage, and just 4¢ in South Carolina. And no brownoutseither, a sporadic problem in China. It’s true that American workers are much more expensive, ofcourse, and the overall cost of making a widget in China remains lower, and perhaps always will.But for hundreds of Chinese companies like Yuncheng, the U.S. has become a better, lessexpensive place to set up shop. It could be the biggest role reversal since, well … when Nixonwent to China. "The gap between manufacturing costs in the U.S. and China is shrinking,"explains John Ling, a naturalized American from China who runs the South Carolina Departmentof Commerce’s business recruitment office in Shanghai. Ling recruited Yuncheng to Spartanburg, and others too: Chinese companies have invested $280 million and created morethan 1,200 jobs in South Carolina alone.Today some 33 American states, ports, and municipalities have sent representatives like Ling toChina to lure jobs once lost to China back to the U.S.: Besides affordable land and reliablepower, states and cities are offering tax credits and other incentives to woo Chinesemanufacturers. Beijing, meanwhile, which has mandated that Chinese companies globalize byexpanding to key markets around the world, is chipping in by offering to finance up to 30% ofthe initial investment costs, according to Chinese business sources.The enticements are working. Chinese companies announced new direct investments in the U.S.of close to $5 billion in 2009 alone, according to New York City-based economic consultancythe Rhodium Group, which tallied the numbers for Fortune. That’s well below Japaneseinvestment in the U.S., which peaked at $148 billion in 1991, but a big jump from China’sprevious investments, which had been averaging around $500 million a year. Chinese firms lastyear acquired or announced they were starting more than 50 U.S. companies. And when Chinafinally allows the value of its currency, the yuan, to appreciate — and it’s just a question of when– Americans can expect to see Chinese projects, small today, really take off and have an impacton the U.S. economy. This could be a good thing for relations between the two countries. "It willtake many years to balance out the flow of U.S. investment into China," says Dan Rosen, aprincipal at the Rhodium Group. But, he says, China’s aggressive interest in U.S. investmentsuddenly gives Washington some leverage as it seeks to negotiate with Beijing on tariffs, tradeissues, and economic policy.None of that matters much in Spartanburg. Skilled workers at American Yuncheng will earn $25to $30 an hour, line operators $10 to $12. That’s a lot more than the $2 an hour that unskilledlabor costs in China, but the company can qualify for a state payroll tax credit of $1,500 perworker (for any company creating more than 10 jobs). And by being closer to companies likeCoca-Cola, Yuncheng can respond more quickly when they need new labels designed to showthat a product has reduced its fat content or added more flavor. If business goes well, companypresident Li Wenchun expects to double the size of his operation, maybe in five to 10 years, andemploy up to 120 Americans. "I’d like it to be next month, but it depends on how fast we developthe market here," he tells me through a Mandarin interpreter.So far there’s little sign of anti-Chinese sentiment among South Carolinians, who watched theirstate lose its cotton-based textile-manufacturing industry to low-cost countries like China.Fortune asked Sen. Jim DeMint, a Republican torchbearer for conservative causes, what hethinks of communists creating work in his home state. "South Carolina is one of the best placesin the world to do business, and that’s why so many international companies are moving jobs intoour state" is his only reply.Brenda Missouri, a 43-year-old leaks tester who works for appliance maker Haier, speaks abouther employer in glowing terms. Haier was the first Chinese company to build a factory in theU.S. — a refrigerator plant in Camden, S.C., in 2000. "They’re good business folks; they get thejob done," she says. As for communism? "Doesn’t matter," she shrugs. "It’s money that makesthe difference." Last December the National Committee on U.S.-China Relations dispatched me to CorpusChristi to give a speech about the Chinese and their economy. Why? Because, they told me, theregion is about to become home to the largest-ever Chinese-built factory in the U.S., a $1 billionplant by Tianjin Pipe Group to manufacture seamless pipe for oil drilling. If everything proceedsas planned — the company received its air-quality permit on April 14 and hopes to break groundby fall — Tianjin Pipe expects to employ 600 Texans by 2012 and to provide an estimated $2.7billion to the local economy over the next decade. Corpus Christians, it turned out, wanted toknow more about their new neighbors who are expected to relocate 40 to 50 families to Texas.Upon arrival, I find it impossible not to notice the resemblance of Corpus Christi’s long, curvingcoastline on the Gulf of Mexico to the one near Tianjin on the Bohai Sea between northern Chinaand Korea. Some 75 U.S. locales competed for the factory, but when Chinese delegations fromTianjin Pipe visited Corpus Christi, the townspeople made them feel at home by welcoming thevisitors to backyard barbecues. They even enlisted the Taiwan-born former owner of the localChinese restaurant, Yalee Shih — perhaps the only woman in town who could speak Mandarin -to help them navigate cultural nuances. Shih, who also sits on the board of the Texas StateMuseum of Asian Cultures, delicately helped prevent a multimillion-dollar translation error overbuilding costs that might have cost Corpus Christi the project, and also quashed what would havebeen an impolitic gift of clocks — which to the Chinese symbolize death or the end of arelationship — from a local retailer. She and others in the region’s business community plan tohelp guide their new residents through life in America, like how to buy a car, how to rent ahouse, as well as where to go to buy fragrant rice instead of Uncle Ben’s.In the end, while feeling at home helps, it does come down to business, says J.J. Johnston,executive vice president and chief business development officer of the Corpus Christi RegionalEconomic Development Corp. "They like the strategic location of our region, the convenientaccess to materials coming in — mostly scrap metal and pig iron — and the ability to export toNorth and South America through the port of Corpus Christi," he says.There are other incentives. On April 9 the U.S. Commerce Department imposed import duties ofup to 99% on the type of seamless pipe that is to be manufactured by Tianjin Pipe — a reprisalprompted by the United Steelworkers union. The Chinese company, the world’s largest maker ofsteel pipe, had said it could not afford to export to the U.S. if tariffs were over 20%. Now its pipewill be made in America. "It’s just another reason they have to have a U.S.-based productionfacility," says Johnston.Even without tariffs, Tianjin had been looking to expand — as are many Chinese companies oncethey reach about $100 million in annual sales. "Chinese companies, as they get bigger, have tostart thinking about their global positioning," says Clarence Kwan, who runs the ChineseServices Group at Deloitte, which advises Chinese companies on doing business in the U.S.Officially the Chinese government has given approval to over 1,200 Chinese investments in theU.S., but that number is considered low because it doesn’t count those made via Hong Kong -where many Chinese companies earn equity capital from being publicly traded — or tax havenslike the Virgin Islands, where Chinese investment may stop first before flowing to the U.S. Plus,investments below $100 million don’t need Beijing’s nod and may be approved at the local level. Chinese companies see America as more than a manufacturing center. So far this year they haveannounced plans to build a wind-energy turbine plant and wind farm in Nevada that will create1,000 American jobs; purchased the 400-employee Los Angeles Marriott Downtown out offoreclosure; and acquired a shuttered shopping center in Milwaukee, with plans to turn it into amega-mall for 200 Chinese retailers. In some cases Chinese companies are resuscitatingAmerican outfits that had been left for dead. About 70 miles west of Spartanburg, near theGeorgia border, past signs reading "24-hour fried chicken," another Chinese company is hiringengineers — metallurgical and mechanical, some from nearby Clemson University. In June 2009,Top-Eastern Group, a tool manufacturer based in China’s coastal city of Dalian, acquired afactory here along with three other facilities from Kennametal, one of America’s largest machinetool makers, after the U.S. company, based in Latrobe, Pa., reported a $137 million loss (citing aslowdown in industrial activity) in the quarter before the sale.This plant, in Seneca, S.C., makes drill bits. And in the months since his purchase of it for $29million, Top-Eastern founder Jeff Chee has invested another $10 million to upgrade machinery,built a $3 million logistics center, brought back Kennametal’s furloughed workers, hired 120more, and now has his 260-employee plant working overtime filling orders for the ClevelandTwist Drills, Chicago Latrobe, Putnam, and Bassett brands he acquired. He brought back thecompany’s old name, which was Greenfield Industries before Kennametal acquired it in 1997,and emblazoned it on a sign out front.General Electric’s former CEO , Jack Welch, he volunteers, is his inspiration. "I’ve read a lot ofbooks, and I learned a lot from him," Chee says in broken English amid the sharp smell ofgrinding steel. "One person can change a lot." As one of China’s self-made entrepreneurs, whostarted Top-Eastern in 1994 with just $500, Chee now has worldwide sales of more than $120million, 4,000 employees, and factories in Germany and Brazil. He visits the South Carolinaplant monthly to make sure all is proceeding as planned, and employs American managers to runit in his absence rather than bring over Chinese. "There’s good, experienced people and goodknow-how already here," he says.How can he make a drill bit factory profitable where Kennametal had struggled? By increasingproductivity with new equipment and cutting costs, he says. Plus, Chee forges his own steel, andhe owns the mines back in China for two of its more expensive components, tungsten andmolybdenum. The fact that he can source from himself means he keeps the margins — and nowhis tools are officially made in the U.S. The cost of making those products is much higher than inChina, he says, "but the problem is customers just accept ‘made in U.S.A.’ products, so I have nochoice. Lots of customers here have government contracts that have ‘made in U.S.A.’requirements."And how do the employees feel about having a Chinese entrepreneur come to their rescue? "Justbecause it’s a Chinese owner, they don’t really care," says Scott Henderson, a 47-year-oldmanufacturing manager who had been furloughed one week a month along with his workersbefore Chee bought the factory. "They’re all happy to be working 40 hours a week." They alsohave the opportunity for overtime, and a third, graveyard shift has been added to serve a nearly40% rise in orders. "I feel great about it," says Sam Marcengill, a 24-year-old technician at theplant. Last year he was laid off for six months before Chee’s purchase gave him his job back. Now he’s on overtime, 48 hours a week. "The work’s a lot more steady. It’s better. Personally I’ma lot better off. It’s a great thing."Never mind the hiccups Chinese companies experienced when they tried to enter the U.S. before.In 2005, Washington famously blocked China’s National Offshore Oil Corp. (CNOO C) frombuying Unocal, and Chinese appliance maker Haier failed to acquire Maytag. Now, like theJapanese in the 1980s — when U.S. trade frictions combined with Japan’s boom blossomed intoHonda and Toyota manufacturing plants — the Chinese are here to stay. Their presence initiallymade some folks uneasy. A few years ago a caller to The Rush Limbaugh Show complained thatas he was driving past the Haier plant in Camden, the Chinese flag was flying higher than theAmerican flag and the South Carolina state flag out front. It was an easy mistake to make byanyone looking at the three equal-height flagpoles from an angle.Conservative media joined in and called for protests, and the public rang the factory to complain.The Chinese executives at Haier had no idea flags were such a big deal, and it became theirbugaboo. The complaints continued until about a year and a half ago when Haier Americafactory president Joseph Sexton, who was new to the job, decided to fix it. He had two of thepoles lowered so that the U.S. flag looks highest from all angles.It took Haier some time to work through the issues of being a Chinese employer in a small,historic Southern town (pop. 6,682) lined with stately antebellum houses and home to twoRevolutionary War battlefields. "Having a Chinese manager didn’t work. That’s why they tookall the Chinese managers out of here," says Haier’s human resources director, Gerald Reeves,who was one of the first hired by Haier and guided the Chinese through the realities ofAmerican-style personnel management — including convincing them that they needed to offerhealth insurance. He once even asked John Ling, South Carolina’s man in Shanghai, to fly homefrom China to talk to a manager who was arousing employee resentment by publiclyembarrassing the workers, Chinese-style, for their mistakes.Now the only way to know you’re in a Chinese factory is by looking up at the large Chinese flaghanging from the rafters — alongside an American one, of course — and by the very Chinesemotivational slogans on the walls: "Spirit of entrepreneurship — strive for a clearly definedobjective and make the impossible possible without an excuse" reads the banner over therefrigerator testing line. And if you come in February, Sexton organizes a Chinese New Yearparty with food and outdoor firecrackers.What is perhaps most startling about the Haier factory is that it is actually shipping goods back toChina. Best known for its mini-fridges for dorm rooms and studio apartments, Haier’s U.S. plantalso makes large units, good for supersized American McMansions but too large for a typicalChinese household. Now a growing number of wealthy people in China want to supersize too, soHaier has realized it can ship a small number, maybe 4,000 a year, of its highest-end refrigeratorshome and sell them for $2,600 apiece — more than China’s average annual income of around$2,000. (Haier also ships U.S.-made refrigerators to India, Australia, Mexico, and Canada.)There aren’t enough wealthy customers yet to make it worthwhile retooling any of the 29 Haierfactories in China, but the nearby deepwater port in Charleston, S.C., makes export easy enough. "There are folks in China who want high-end products," says Haier America factory presidentJoseph Sexton. "China is a much different place than people think."Chinese newcomers would do well to learn from Haier’s missteps as well as its great strides."They’re coming with little experience into a highly sophisticated market, and they are bound tomake mistakes," says Karl Sauvant, executive director of the Vale Columbia Center onSustainable International Investment at Columbia University and a law lecturer there, who inFebruary published an edited volume titled Investing in the United States: Is the U.S. Ready forFDI From China?"This is the thing the Japanese did fairly successfully: You have to be a good corporate citizen,source locally, contribute to causes and charities in the local community, and be familiar withhow to navigate the corridors of Washington," says Sauvant. "And in key managerial positionsyou should have Americans." Legal questions, such as whether Chinese companies operating inAmerica would be subject in U.S. courts to the Foreign Corrupt Practices Act for businesspractices in, say, India or elsewhere have yet to be tested, he says. And then there’s the issue ofthe local sensitivities exhibited in the Haier flag-flying incident.Unlike Japan, China is no U.S. military ally — despite President Obama’s naming China a"strategic partner," instead of the "strategic competitor" label it had under the Bushadministration. Politically it remains a communist country, despite its capitalist economy.There’s obviously more to overcome.Chinese investors say they don’t care too much about politics, but hope their entry into the U.S.can be a positive force. "This will definitely help U.S.-China relations," remarks Li, the managerof the print-cylinder factory Yuncheng, as he guides me on a tour. "Increasing communicationmakes the two sides closer." Even if it doesn’t, business is business. "Good products areborderless," he notes. And there’s always a Chinese proverb to cite: "It takes 10 years to make asword," says Li. In other words, keep at it till you get it right, and the outcome will be strong andlasting. And perhaps transform into the plowshare that sows a mutually beneficial harvest forAmerica and China both.

Hey there need some help please read article on China investment into the U.S. “Chinese Owned, American Made”, and then in the text box provided acknowledge that you have viewed it. more or less half of page i did not understand the articleAmerican made … Chinese owned: FullversionBy Sheridan Prasso, contributing editor May 7, 2010: 9:35 AM ET(Fortune) — About a mile past the Bountiful Blessings Church on the outskirts of Spartanburg,S.C., make a right turn. There, tucked into an industrial court behind a row of sapling cherrytrees not much taller than I am, past a company that makes rubber stamps and another thatstitches logos onto caps and bags, is a brand-new factory: the state-of-the-art AmericanYuncheng Gravure Cylinder plant. Due to open any day now, it will make cylinders used to printlabels like the ones around plastic soda bottles. But unlike its neighbors in Spartanburg,Yuncheng is a Chinese company. It has come to South Carolina because by Chinese standards,America is darn cheap.Yes, you read that right. The land Yuncheng purchased in Spartanburg, at $350,000 for 6.5 acres,cost one-fourth the price of land back in Shanghai or Dongguan, a gritty city near Hong Kongwhere the company already runs three plants. Electricity is cheaper too: Yungcheng pays up to14¢ per kilowatt-hour in China at peak usage, and just 4¢ in South Carolina. And no brownoutseither, a sporadic problem in China. It’s true that American workers are much more expensive, ofcourse, and the overall cost of making a widget in China remains lower, and perhaps always will.But for hundreds of Chinese companies like Yuncheng, the U.S. has become a better, lessexpensive place to set up shop. It could be the biggest role reversal since, well … when Nixonwent to China. "The gap between manufacturing costs in the U.S. and China is shrinking,"explains John Ling, a naturalized American from China who runs the South Carolina Departmentof Commerce’s business recruitment office in Shanghai. Ling recruited Yuncheng to Spartanburg, and others too: Chinese companies have invested $280 million and created morethan 1,200 jobs in South Carolina alone.Today some 33 American states, ports, and municipalities have sent representatives like Ling toChina to lure jobs once lost to China back to the U.S.: Besides affordable land and reliablepower, states and cities are offering tax credits and other incentives to woo Chinesemanufacturers. Beijing, meanwhile, which has mandated that Chinese companies globalize byexpanding to key markets around the world, is chipping in by offering to finance up to 30% ofthe initial investment costs, according to Chinese business sources.The enticements are working. Chinese companies announced new direct investments in the U.S.of close to $5 billion in 2009 alone, according to New York City-based economic consultancythe Rhodium Group, which tallied the numbers for Fortune. That’s well below Japaneseinvestment in the U.S., which peaked at $148 billion in 1991, but a big jump from China’sprevious investments, which had been averaging around $500 million a year. Chinese firms lastyear acquired or announced they were starting more than 50 U.S. companies. And when Chinafinally allows the value of its currency, the yuan, to appreciate — and it’s just a question of when– Americans can expect to see Chinese projects, small today, really take off and have an impacton the U.S. economy. This could be a good thing for relations between the two countries. "It willtake many years to balance out the flow of U.S. investment into China," says Dan Rosen, aprincipal at the Rhodium Group. But, he says, China’s aggressive interest in U.S. investmentsuddenly gives Washington some leverage as it seeks to negotiate with Beijing on tariffs, tradeissues, and economic policy.None of that matters much in Spartanburg. Skilled workers at American Yuncheng will earn $25to $30 an hour, line operators $10 to $12. That’s a lot more than the $2 an hour that unskilledlabor costs in China, but the company can qualify for a state payroll tax credit of $1,500 perworker (for any company creating more than 10 jobs). And by being closer to companies likeCoca-Cola, Yuncheng can respond more quickly when they need new labels designed to showthat a product has reduced its fat content or added more flavor. If business goes well, companypresident Li Wenchun expects to double the size of his operation, maybe in five to 10 years, andemploy up to 120 Americans. "I’d like it to be next month, but it depends on how fast we developthe market here," he tells me through a Mandarin interpreter.So far there’s little sign of anti-Chinese sentiment among South Carolinians, who watched theirstate lose its cotton-based textile-manufacturing industry to low-cost countries like China.Fortune asked Sen. Jim DeMint, a Republican torchbearer for conservative causes, what hethinks of communists creating work in his home state. "South Carolina is one of the best placesin the world to do business, and that’s why so many international companies are moving jobs intoour state" is his only reply.Brenda Missouri, a 43-year-old leaks tester who works for appliance maker Haier, speaks abouther employer in glowing terms. Haier was the first Chinese company to build a factory in theU.S. — a refrigerator plant in Camden, S.C., in 2000. "They’re good business folks; they get thejob done," she says. As for communism? "Doesn’t matter," she shrugs. "It’s money that makesthe difference." Last December the National Committee on U.S.-China Relations dispatched me to CorpusChristi to give a speech about the Chinese and their economy. Why? Because, they told me, theregion is about to become home to the largest-ever Chinese-built factory in the U.S., a $1 billionplant by Tianjin Pipe Group to manufacture seamless pipe for oil drilling. If everything proceedsas planned — the company received its air-quality permit on April 14 and hopes to break groundby fall — Tianjin Pipe expects to employ 600 Texans by 2012 and to provide an estimated $2.7billion to the local economy over the next decade. Corpus Christians, it turned out, wanted toknow more about their new neighbors who are expected to relocate 40 to 50 families to Texas.Upon arrival, I find it impossible not to notice the resemblance of Corpus Christi’s long, curvingcoastline on the Gulf of Mexico to the one near Tianjin on the Bohai Sea between northern Chinaand Korea. Some 75 U.S. locales competed for the factory, but when Chinese delegations fromTianjin Pipe visited Corpus Christi, the townspeople made them feel at home by welcoming thevisitors to backyard barbecues. They even enlisted the Taiwan-born former owner of the localChinese restaurant, Yalee Shih — perhaps the only woman in town who could speak Mandarin -to help them navigate cultural nuances. Shih, who also sits on the board of the Texas StateMuseum of Asian Cultures, delicately helped prevent a multimillion-dollar translation error overbuilding costs that might have cost Corpus Christi the project, and also quashed what would havebeen an impolitic gift of clocks — which to the Chinese symbolize death or the end of arelationship — from a local retailer. She and others in the region’s business community plan tohelp guide their new residents through life in America, like how to buy a car, how to rent ahouse, as well as where to go to buy fragrant rice instead of Uncle Ben’s.In the end, while feeling at home helps, it does come down to business, says J.J. Johnston,executive vice president and chief business development officer of the Corpus Christi RegionalEconomic Development Corp. "They like the strategic location of our region, the convenientaccess to materials coming in — mostly scrap metal and pig iron — and the ability to export toNorth and South America through the port of Corpus Christi," he says.There are other incentives. On April 9 the U.S. Commerce Department imposed import duties ofup to 99% on the type of seamless pipe that is to be manufactured by Tianjin Pipe — a reprisalprompted by the United Steelworkers union. The Chinese company, the world’s largest maker ofsteel pipe, had said it could not afford to export to the U.S. if tariffs were over 20%. Now its pipewill be made in America. "It’s just another reason they have to have a U.S.-based productionfacility," says Johnston.Even without tariffs, Tianjin had been looking to expand — as are many Chinese companies oncethey reach about $100 million in annual sales. "Chinese companies, as they get bigger, have tostart thinking about their global positioning," says Clarence Kwan, who runs the ChineseServices Group at Deloitte, which advises Chinese companies on doing business in the U.S.Officially the Chinese government has given approval to over 1,200 Chinese investments in theU.S., but that number is considered low because it doesn’t count those made via Hong Kong -where many Chinese companies earn equity capital from being publicly traded — or tax havenslike the Virgin Islands, where Chinese investment may stop first before flowing to the U.S. Plus,investments below $100 million don’t need Beijing’s nod and may be approved at the local level. Chinese companies see America as more than a manufacturing center. So far this year they haveannounced plans to build a wind-energy turbine plant and wind farm in Nevada that will create1,000 American jobs; purchased the 400-employee Los Angeles Marriott Downtown out offoreclosure; and acquired a shuttered shopping center in Milwaukee, with plans to turn it into amega-mall for 200 Chinese retailers. In some cases Chinese companies are resuscitatingAmerican outfits that had been left for dead. About 70 miles west of Spartanburg, near theGeorgia border, past signs reading "24-hour fried chicken," another Chinese company is hiringengineers — metallurgical and mechanical, some from nearby Clemson University. In June 2009,Top-Eastern Group, a tool manufacturer based in China’s coastal city of Dalian, acquired afactory here along with three other facilities from Kennametal, one of America’s largest machinetool makers, after the U.S. company, based in Latrobe, Pa., reported a $137 million loss (citing aslowdown in industrial activity) in the quarter before the sale.This plant, in Seneca, S.C., makes drill bits. And in the months since his purchase of it for $29million, Top-Eastern founder Jeff Chee has invested another $10 million to upgrade machinery,built a $3 million logistics center, brought back Kennametal’s furloughed workers, hired 120more, and now has his 260-employee plant working overtime filling orders for the ClevelandTwist Drills, Chicago Latrobe, Putnam, and Bassett brands he acquired. He brought back thecompany’s old name, which was Greenfield Industries before Kennametal acquired it in 1997,and emblazoned it on a sign out front.General Electric’s former CEO , Jack Welch, he volunteers, is his inspiration. "I’ve read a lot ofbooks, and I learned a lot from him," Chee says in broken English amid the sharp smell ofgrinding steel. "One person can change a lot." As one of China’s self-made entrepreneurs, whostarted Top-Eastern in 1994 with just $500, Chee now has worldwide sales of more than $120million, 4,000 employees, and factories in Germany and Brazil. He visits the South Carolinaplant monthly to make sure all is proceeding as planned, and employs American managers to runit in his absence rather than bring over Chinese. "There’s good, experienced people and goodknow-how already here," he says.How can he make a drill bit factory profitable where Kennametal had struggled? By increasingproductivity with new equipment and cutting costs, he says. Plus, Chee forges his own steel, andhe owns the mines back in China for two of its more expensive components, tungsten andmolybdenum. The fact that he can source from himself means he keeps the margins — and nowhis tools are officially made in the U.S. The cost of making those products is much higher than inChina, he says, "but the problem is customers just accept ‘made in U.S.A.’ products, so I have nochoice. Lots of customers here have government contracts that have ‘made in U.S.A.’requirements."And how do the employees feel about having a Chinese entrepreneur come to their rescue? "Justbecause it’s a Chinese owner, they don’t really care," says Scott Henderson, a 47-year-oldmanufacturing manager who had been furloughed one week a month along with his workersbefore Chee bought the factory. "They’re all happy to be working 40 hours a week." They alsohave the opportunity for overtime, and a third, graveyard shift has been added to serve a nearly40% rise in orders. "I feel great about it," says Sam Marcengill, a 24-year-old technician at theplant. Last year he was laid off for six months before Chee’s purchase gave him his job back. Now he’s on overtime, 48 hours a week. "The work’s a lot more steady. It’s better. Personally I’ma lot better off. It’s a great thing."Never mind the hiccups Chinese companies experienced when they tried to enter the U.S. before.In 2005, Washington famously blocked China’s National Offshore Oil Corp. (CNOO C) frombuying Unocal, and Chinese appliance maker Haier failed to acquire Maytag. Now, like theJapanese in the 1980s — when U.S. trade frictions combined with Japan’s boom blossomed intoHonda and Toyota manufacturing plants — the Chinese are here to stay. Their presence initiallymade some folks uneasy. A few years ago a caller to The Rush Limbaugh Show complained thatas he was driving past the Haier plant in Camden, the Chinese flag was flying higher than theAmerican flag and the South Carolina state flag out front. It was an easy mistake to make byanyone looking at the three equal-height flagpoles from an angle.Conservative media joined in and called for protests, and the public rang the factory to complain.The Chinese executives at Haier had no idea flags were such a big deal, and it became theirbugaboo. The complaints continued until about a year and a half ago when Haier Americafactory president Joseph Sexton, who was new to the job, decided to fix it. He had two of thepoles lowered so that the U.S. flag looks highest from all angles.It took Haier some time to work through the issues of being a Chinese employer in a small,historic Southern town (pop. 6,682) lined with stately antebellum houses and home to twoRevolutionary War battlefields. "Having a Chinese manager didn’t work. That’s why they tookall the Chinese managers out of here," says Haier’s human resources director, Gerald Reeves,who was one of the first hired by Haier and guided the Chinese through the realities ofAmerican-style personnel management — including convincing them that they needed to offerhealth insurance. He once even asked John Ling, South Carolina’s man in Shanghai, to fly homefrom China to talk to a manager who was arousing employee resentment by publiclyembarrassing the workers, Chinese-style, for their mistakes.Now the only way to know you’re in a Chinese factory is by looking up at the large Chinese flaghanging from the rafters — alongside an American one, of course — and by the very Chinesemotivational slogans on the walls: "Spirit of entrepreneurship — strive for a clearly definedobjective and make the impossible possible without an excuse" reads the banner over therefrigerator testing line. And if you come in February, Sexton organizes a Chinese New Yearparty with food and outdoor firecrackers.What is perhaps most startling about the Haier factory is that it is actually shipping goods back toChina. Best known for its mini-fridges for dorm rooms and studio apartments, Haier’s U.S. plantalso makes large units, good for supersized American McMansions but too large for a typicalChinese household. Now a growing number of wealthy people in China want to supersize too, soHaier has realized it can ship a small number, maybe 4,000 a year, of its highest-end refrigeratorshome and sell them for $2,600 apiece — more than China’s average annual income of around$2,000. (Haier also ships U.S.-made refrigerators to India, Australia, Mexico, and Canada.)There aren’t enough wealthy customers yet to make it worthwhile retooling any of the 29 Haierfactories in China, but the nearby deepwater port in Charleston, S.C., makes export easy enough. "There are folks in China who want high-end products," says Haier America factory presidentJoseph Sexton. "China is a much different place than people think."Chinese newcomers would do well to learn from Haier’s missteps as well as its great strides."They’re coming with little experience into a highly sophisticated market, and they are bound tomake mistakes," says Karl Sauvant, executive director of the Vale Columbia Center onSustainable International Investment at Columbia University and a law lecturer there, who inFebruary published an edited volume titled Investing in the United States: Is the U.S. Ready forFDI From China?"This is the thing the Japanese did fairly successfully: You have to be a good corporate citizen,source locally, contribute to causes and charities in the local community, and be familiar withhow to navigate the corridors of Washington," says Sauvant. "And in key managerial positionsyou should have Americans." Legal questions, such as whether Chinese companies operating inAmerica would be subject in U.S. courts to the Foreign Corrupt Practices Act for businesspractices in, say, India or elsewhere have yet to be tested, he says. And then there’s the issue ofthe local sensitivities exhibited in the Haier flag-flying incident.Unlike Japan, China is no U.S. military ally — despite President Obama’s naming China a"strategic partner," instead of the "strategic competitor" label it had under the Bushadministration. Politically it remains a communist country, despite its capitalist economy.There’s obviously more to overcome.Chinese investors say they don’t care too much about politics, but hope their entry into the U.S.can be a positive force. "This will definitely help U.S.-China relations," remarks Li, the managerof the print-cylinder factory Yuncheng, as he guides me on a tour. "Increasing communicationmakes the two sides closer." Even if it doesn’t, business is business. "Good products areborderless," he notes. And there’s always a Chinese proverb to cite: "It takes 10 years to make asword," says Li. In other words, keep at it till you get it right, and the outcome will be strong andlasting. And perhaps transform into the plowshare that sows a mutually beneficial harvest forAmerica and China both.

Hey there need some help please read article on China investment into the U.S. “Chinese Owned, American Made”, and then in the text box provided acknowledge that you have viewed it. more or less half of page i did not understand the articleAmerican made … Chinese owned: FullversionBy Sheridan Prasso, contributing editor May 7, 2010: 9:35 AM ET(Fortune) — About a mile past the Bountiful Blessings Church on the outskirts of Spartanburg,S.C., make a right turn. There, tucked into an industrial court behind a row of sapling cherrytrees not much taller than I am, past a company that makes rubber stamps and another thatstitches logos onto caps and bags, is a brand-new factory: the state-of-the-art AmericanYuncheng Gravure Cylinder plant. Due to open any day now, it will make cylinders used to printlabels like the ones around plastic soda bottles. But unlike its neighbors in Spartanburg,Yuncheng is a Chinese company. It has come to South Carolina because by Chinese standards,America is darn cheap.Yes, you read that right. The land Yuncheng purchased in Spartanburg, at $350,000 for 6.5 acres,cost one-fourth the price of land back in Shanghai or Dongguan, a gritty city near Hong Kongwhere the company already runs three plants. Electricity is cheaper too: Yungcheng pays up to14¢ per kilowatt-hour in China at peak usage, and just 4¢ in South Carolina. And no brownoutseither, a sporadic problem in China. It’s true that American workers are much more expensive, ofcourse, and the overall cost of making a widget in China remains lower, and perhaps always will.But for hundreds of Chinese companies like Yuncheng, the U.S. has become a better, lessexpensive place to set up shop. It could be the biggest role reversal since, well … when Nixonwent to China. "The gap between manufacturing costs in the U.S. and China is shrinking,"explains John Ling, a naturalized American from China who runs the South Carolina Departmentof Commerce’s business recruitment office in Shanghai. Ling recruited Yuncheng to Spartanburg, and others too: Chinese companies have invested $280 million and created morethan 1,200 jobs in South Carolina alone.Today some 33 American states, ports, and municipalities have sent representatives like Ling toChina to lure jobs once lost to China back to the U.S.: Besides affordable land and reliablepower, states and cities are offering tax credits and other incentives to woo Chinesemanufacturers. Beijing, meanwhile, which has mandated that Chinese companies globalize byexpanding to key markets around the world, is chipping in by offering to finance up to 30% ofthe initial investment costs, according to Chinese business sources.The enticements are working. Chinese companies announced new direct investments in the U.S.of close to $5 billion in 2009 alone, according to New York City-based economic consultancythe Rhodium Group, which tallied the numbers for Fortune. That’s well below Japaneseinvestment in the U.S., which peaked at $148 billion in 1991, but a big jump from China’sprevious investments, which had been averaging around $500 million a year. Chinese firms lastyear acquired or announced they were starting more than 50 U.S. companies. And when Chinafinally allows the value of its currency, the yuan, to appreciate — and it’s just a question of when– Americans can expect to see Chinese projects, small today, really take off and have an impacton the U.S. economy. This could be a good thing for relations between the two countries. "It willtake many years to balance out the flow of U.S. investment into China," says Dan Rosen, aprincipal at the Rhodium Group. But, he says, China’s aggressive interest in U.S. investmentsuddenly gives Washington some leverage as it seeks to negotiate with Beijing on tariffs, tradeissues, and economic policy.None of that matters much in Spartanburg. Skilled workers at American Yuncheng will earn $25to $30 an hour, line operators $10 to $12. That’s a lot more than the $2 an hour that unskilledlabor costs in China, but the company can qualify for a state payroll tax credit of $1,500 perworker (for any company creating more than 10 jobs). And by being closer to companies likeCoca-Cola, Yuncheng can respond more quickly when they need new labels designed to showthat a product has reduced its fat content or added more flavor. If business goes well, companypresident Li Wenchun expects to double the size of his operation, maybe in five to 10 years, andemploy up to 120 Americans. "I’d like it to be next month, but it depends on how fast we developthe market here," he tells me through a Mandarin interpreter.So far there’s little sign of anti-Chinese sentiment among South Carolinians, who watched theirstate lose its cotton-based textile-manufacturing industry to low-cost countries like China.Fortune asked Sen. Jim DeMint, a Republican torchbearer for conservative causes, what hethinks of communists creating work in his home state. "South Carolina is one of the best placesin the world to do business, and that’s why so many international companies are moving jobs intoour state" is his only reply.Brenda Missouri, a 43-year-old leaks tester who works for appliance maker Haier, speaks abouther employer in glowing terms. Haier was the first Chinese company to build a factory in theU.S. — a refrigerator plant in Camden, S.C., in 2000. "They’re good business folks; they get thejob done," she says. As for communism? "Doesn’t matter," she shrugs. "It’s money that makesthe difference." Last December the National Committee on U.S.-China Relations dispatched me to CorpusChristi to give a speech about the Chinese and their economy. Why? Because, they told me, theregion is about to become home to the largest-ever Chinese-built factory in the U.S., a $1 billionplant by Tianjin Pipe Group to manufacture seamless pipe for oil drilling. If everything proceedsas planned — the company received its air-quality permit on April 14 and hopes to break groundby fall — Tianjin Pipe expects to employ 600 Texans by 2012 and to provide an estimated $2.7billion to the local economy over the next decade. Corpus Christians, it turned out, wanted toknow more about their new neighbors who are expected to relocate 40 to 50 families to Texas.Upon arrival, I find it impossible not to notice the resemblance of Corpus Christi’s long, curvingcoastline on the Gulf of Mexico to the one near Tianjin on the Bohai Sea between northern Chinaand Korea. Some 75 U.S. locales competed for the factory, but when Chinese delegations fromTianjin Pipe visited Corpus Christi, the townspeople made them feel at home by welcoming thevisitors to backyard barbecues. They even enlisted the Taiwan-born former owner of the localChinese restaurant, Yalee Shih — perhaps the only woman in town who could speak Mandarin -to help them navigate cultural nuances. Shih, who also sits on the board of the Texas StateMuseum of Asian Cultures, delicately helped prevent a multimillion-dollar translation error overbuilding costs that might have cost Corpus Christi the project, and also quashed what would havebeen an impolitic gift of clocks — which to the Chinese symbolize death or the end of arelationship — from a local retailer. She and others in the region’s business community plan tohelp guide their new residents through life in America, like how to buy a car, how to rent ahouse, as well as where to go to buy fragrant rice instead of Uncle Ben’s.In the end, while feeling at home helps, it does come down to business, says J.J. Johnston,executive vice president and chief business development officer of the Corpus Christi RegionalEconomic Development Corp. "They like the strategic location of our region, the convenientaccess to materials coming in — mostly scrap metal and pig iron — and the ability to export toNorth and South America through the port of Corpus Christi," he says.There are other incentives. On April 9 the U.S. Commerce Department imposed import duties ofup to 99% on the type of seamless pipe that is to be manufactured by Tianjin Pipe — a reprisalprompted by the United Steelworkers union. The Chinese company, the world’s largest maker ofsteel pipe, had said it could not afford to export to the U.S. if tariffs were over 20%. Now its pipewill be made in America. "It’s just another reason they have to have a U.S.-based productionfacility," says Johnston.Even without tariffs, Tianjin had been looking to expand — as are many Chinese companies oncethey reach about $100 million in annual sales. "Chinese companies, as they get bigger, have tostart thinking about their global positioning," says Clarence Kwan, who runs the ChineseServices Group at Deloitte, which advises Chinese companies on doing business in the U.S.Officially the Chinese government has given approval to over 1,200 Chinese investments in theU.S., but that number is considered low because it doesn’t count those made via Hong Kong -where many Chinese companies earn equity capital from being publicly traded — or tax havenslike the Virgin Islands, where Chinese investment may stop first before flowing to the U.S. Plus,investments below $100 million don’t need Beijing’s nod and may be approved at the local level. Chinese companies see America as more than a manufacturing center. So far this year they haveannounced plans to build a wind-energy turbine plant and wind farm in Nevada that will create1,000 American jobs; purchased the 400-employee Los Angeles Marriott Downtown out offoreclosure; and acquired a shuttered shopping center in Milwaukee, with plans to turn it into amega-mall for 200 Chinese retailers. In some cases Chinese companies are resuscitatingAmerican outfits that had been left for dead. About 70 miles west of Spartanburg, near theGeorgia border, past signs reading "24-hour fried chicken," another Chinese company is hiringengineers — metallurgical and mechanical, some from nearby Clemson University. In June 2009,Top-Eastern Group, a tool manufacturer based in China’s coastal city of Dalian, acquired afactory here along with three other facilities from Kennametal, one of America’s largest machinetool makers, after the U.S. company, based in Latrobe, Pa., reported a $137 million loss (citing aslowdown in industrial activity) in the quarter before the sale.This plant, in Seneca, S.C., makes drill bits. And in the months since his purchase of it for $29million, Top-Eastern founder Jeff Chee has invested another $10 million to upgrade machinery,built a $3 million logistics center, brought back Kennametal’s furloughed workers, hired 120more, and now has his 260-employee plant working overtime filling orders for the ClevelandTwist Drills, Chicago Latrobe, Putnam, and Bassett brands he acquired. He brought back thecompany’s old name, which was Greenfield Industries before Kennametal acquired it in 1997,and emblazoned it on a sign out front.General Electric’s former CEO , Jack Welch, he volunteers, is his inspiration. "I’ve read a lot ofbooks, and I learned a lot from him," Chee says in broken English amid the sharp smell ofgrinding steel. "One person can change a lot." As one of China’s self-made entrepreneurs, whostarted Top-Eastern in 1994 with just $500, Chee now has worldwide sales of more than $120million, 4,000 employees, and factories in Germany and Brazil. He visits the South Carolinaplant monthly to make sure all is proceeding as planned, and employs American managers to runit in his absence rather than bring over Chinese. "There’s good, experienced people and goodknow-how already here," he says.How can he make a drill bit factory profitable where Kennametal had struggled? By increasingproductivity with new equipment and cutting costs, he says. Plus, Chee forges his own steel, andhe owns the mines back in China for two of its more expensive components, tungsten andmolybdenum. The fact that he can source from himself means he keeps the margins — and nowhis tools are officially made in the U.S. The cost of making those products is much higher than inChina, he says, "but the problem is customers just accept ‘made in U.S.A.’ products, so I have nochoice. Lots of customers here have government contracts that have ‘made in U.S.A.’requirements."And how do the employees feel about having a Chinese entrepreneur come to their rescue? "Justbecause it’s a Chinese owner, they don’t really care," says Scott Henderson, a 47-year-oldmanufacturing manager who had been furloughed one week a month along with his workersbefore Chee bought the factory. "They’re all happy to be working 40 hours a week." They alsohave the opportunity for overtime, and a third, graveyard shift has been added to serve a nearly40% rise in orders. "I feel great about it," says Sam Marcengill, a 24-year-old technician at theplant. Last year he was laid off for six months before Chee’s purchase gave him his job back. Now he’s on overtime, 48 hours a week. "The work’s a lot more steady. It’s better. Personally I’ma lot better off. It’s a great thing."Never mind the hiccups Chinese companies experienced when they tried to enter the U.S. before.In 2005, Washington famously blocked China’s National Offshore Oil Corp. (CNOO C) frombuying Unocal, and Chinese appliance maker Haier failed to acquire Maytag. Now, like theJapanese in the 1980s — when U.S. trade frictions combined with Japan’s boom blossomed intoHonda and Toyota manufacturing plants — the Chinese are here to stay. Their presence initiallymade some folks uneasy. A few years ago a caller to The Rush Limbaugh Show complained thatas he was driving past the Haier plant in Camden, the Chinese flag was flying higher than theAmerican flag and the South Carolina state flag out front. It was an easy mistake to make byanyone looking at the three equal-height flagpoles from an angle.Conservative media joined in and called for protests, and the public rang the factory to complain.The Chinese executives at Haier had no idea flags were such a big deal, and it became theirbugaboo. The complaints continued until about a year and a half ago when Haier Americafactory president Joseph Sexton, who was new to the job, decided to fix it. He had two of thepoles lowered so that the U.S. flag looks highest from all angles.It took Haier some time to work through the issues of being a Chinese employer in a small,historic Southern town (pop. 6,682) lined with stately antebellum houses and home to twoRevolutionary War battlefields. "Having a Chinese manager didn’t work. That’s why they tookall the Chinese managers out of here," says Haier’s human resources director, Gerald Reeves,who was one of the first hired by Haier and guided the Chinese through the realities ofAmerican-style personnel management — including convincing them that they needed to offerhealth insurance. He once even asked John Ling, South Carolina’s man in Shanghai, to fly homefrom China to talk to a manager who was arousing employee resentment by publiclyembarrassing the workers, Chinese-style, for their mistakes.Now the only way to know you’re in a Chinese factory is by looking up at the large Chinese flaghanging from the rafters — alongside an American one, of course — and by the very Chinesemotivational slogans on the walls: "Spirit of entrepreneurship — strive for a clearly definedobjective and make the impossible possible without an excuse" reads the banner over therefrigerator testing line. And if you come in February, Sexton organizes a Chinese New Yearparty with food and outdoor firecrackers.What is perhaps most startling about the Haier factory is that it is actually shipping goods back toChina. Best known for its mini-fridges for dorm rooms and studio apartments, Haier’s U.S. plantalso makes large units, good for supersized American McMansions but too large for a typicalChinese household. Now a growing number of wealthy people in China want to supersize too, soHaier has realized it can ship a small number, maybe 4,000 a year, of its highest-end refrigeratorshome and sell them for $2,600 apiece — more than China’s average annual income of around$2,000. (Haier also ships U.S.-made refrigerators to India, Australia, Mexico, and Canada.)There aren’t enough wealthy customers yet to make it worthwhile retooling any of the 29 Haierfactories in China, but the nearby deepwater port in Charleston, S.C., makes export easy enough. "There are folks in China who want high-end products," says Haier America factory presidentJoseph Sexton. "China is a much different place than people think."Chinese newcomers would do well to learn from Haier’s missteps as well as its great strides."They’re coming with little experience into a highly sophisticated market, and they are bound tomake mistakes," says Karl Sauvant, executive director of the Vale Columbia Center onSustainable International Investment at Columbia University and a law lecturer there, who inFebruary published an edited volume titled Investing in the United States: Is the U.S. Ready forFDI From China?"This is the thing the Japanese did fairly successfully: You have to be a good corporate citizen,source locally, contribute to causes and charities in the local community, and be familiar withhow to navigate the corridors of Washington," says Sauvant. "And in key managerial positionsyou should have Americans." Legal questions, such as whether Chinese companies operating inAmerica would be subject in U.S. courts to the Foreign Corrupt Practices Act for businesspractices in, say, India or elsewhere have yet to be tested, he says. And then there’s the issue ofthe local sensitivities exhibited in the Haier flag-flying incident.Unlike Japan, China is no U.S. military ally — despite President Obama’s naming China a"strategic partner," instead of the "strategic competitor" label it had under the Bushadministration. Politically it remains a communist country, despite its capitalist economy.There’s obviously more to overcome.Chinese investors say they don’t care too much about politics, but hope their entry into the U.S.can be a positive force. "This will definitely help U.S.-China relations," remarks Li, the managerof the print-cylinder factory Yuncheng, as he guides me on a tour. "Increasing communicationmakes the two sides closer." Even if it doesn’t, business is business. "Good products areborderless," he notes. And there’s always a Chinese proverb to cite: "It takes 10 years to make asword," says Li. In other words, keep at it till you get it right, and the outcome will be strong andlasting. And perhaps transform into the plowshare that sows a mutually beneficial harvest forAmerica and China both.

Hey there need some help please read article on China investment into the U.S. “Chinese Owned, American Made”, and then in the text box provided acknowledge that you have viewed it. more or less half of page i did not understand the articleAmerican made … Chinese owned: FullversionBy Sheridan Prasso, contributing editor May 7, 2010: 9:35 AM ET(Fortune) — About a mile past the Bountiful Blessings Church on the outskirts of Spartanburg,S.C., make a right turn. There, tucked into an industrial court behind a row of sapling cherrytrees not much taller than I am, past a company that makes rubber stamps and another thatstitches logos onto caps and bags, is a brand-new factory: the state-of-the-art AmericanYuncheng Gravure Cylinder plant. Due to open any day now, it will make cylinders used to printlabels like the ones around plastic soda bottles. But unlike its neighbors in Spartanburg,Yuncheng is a Chinese company. It has come to South Carolina because by Chinese standards,America is darn cheap.Yes, you read that right. The land Yuncheng purchased in Spartanburg, at $350,000 for 6.5 acres,cost one-fourth the price of land back in Shanghai or Dongguan, a gritty city near Hong Kongwhere the company already runs three plants. Electricity is cheaper too: Yungcheng pays up to14¢ per kilowatt-hour in China at peak usage, and just 4¢ in South Carolina. And no brownoutseither, a sporadic problem in China. It’s true that American workers are much more expensive, ofcourse, and the overall cost of making a widget in China remains lower, and perhaps always will.But for hundreds of Chinese companies like Yuncheng, the U.S. has become a better, lessexpensive place to set up shop. It could be the biggest role reversal since, well … when Nixonwent to China. "The gap between manufacturing costs in the U.S. and China is shrinking,"explains John Ling, a naturalized American from China who runs the South Carolina Departmentof Commerce’s business recruitment office in Shanghai. Ling recruited Yuncheng to Spartanburg, and others too: Chinese companies have invested $280 million and created morethan 1,200 jobs in South Carolina alone.Today some 33 American states, ports, and municipalities have sent representatives like Ling toChina to lure jobs once lost to China back to the U.S.: Besides affordable land and reliablepower, states and cities are offering tax credits and other incentives to woo Chinesemanufacturers. Beijing, meanwhile, which has mandated that Chinese companies globalize byexpanding to key markets around the world, is chipping in by offering to finance up to 30% ofthe initial investment costs, according to Chinese business sources.The enticements are working. Chinese companies announced new direct investments in the U.S.of close to $5 billion in 2009 alone, according to New York City-based economic consultancythe Rhodium Group, which tallied the numbers for Fortune. That’s well below Japaneseinvestment in the U.S., which peaked at $148 billion in 1991, but a big jump from China’sprevious investments, which had been averaging around $500 million a year. Chinese firms lastyear acquired or announced they were starting more than 50 U.S. companies. And when Chinafinally allows the value of its currency, the yuan, to appreciate — and it’s just a question of when– Americans can expect to see Chinese projects, small today, really take off and have an impacton the U.S. economy. This could be a good thing for relations between the two countries. "It willtake many years to balance out the flow of U.S. investment into China," says Dan Rosen, aprincipal at the Rhodium Group. But, he says, China’s aggressive interest in U.S. investmentsuddenly gives Washington some leverage as it seeks to negotiate with Beijing on tariffs, tradeissues, and economic policy.None of that matters much in Spartanburg. Skilled workers at American Yuncheng will earn $25to $30 an hour, line operators $10 to $12. That’s a lot more than the $2 an hour that unskilledlabor costs in China, but the company can qualify for a state payroll tax credit of $1,500 perworker (for any company creating more than 10 jobs). And by being closer to companies likeCoca-Cola, Yuncheng can respond more quickly when they need new labels designed to showthat a product has reduced its fat content or added more flavor. If business goes well, companypresident Li Wenchun expects to double the size of his operation, maybe in five to 10 years, andemploy up to 120 Americans. "I’d like it to be next month, but it depends on how fast we developthe market here," he tells me through a Mandarin interpreter.So far there’s little sign of anti-Chinese sentiment among South Carolinians, who watched theirstate lose its cotton-based textile-manufacturing industry to low-cost countries like China.Fortune asked Sen. Jim DeMint, a Republican torchbearer for conservative causes, what hethinks of communists creating work in his home state. "South Carolina is one of the best placesin the world to do business, and that’s why so many international companies are moving jobs intoour state" is his only reply.Brenda Missouri, a 43-year-old leaks tester who works for appliance maker Haier, speaks abouther employer in glowing terms. Haier was the first Chinese company to build a factory in theU.S. — a refrigerator plant in Camden, S.C., in 2000. "They’re good business folks; they get thejob done," she says. As for communism? "Doesn’t matter," she shrugs. "It’s money that makesthe difference." Last December the National Committee on U.S.-China Relations dispatched me to CorpusChristi to give a speech about the Chinese and their economy. Why? Because, they told me, theregion is about to become home to the largest-ever Chinese-built factory in the U.S., a $1 billionplant by Tianjin Pipe Group to manufacture seamless pipe for oil drilling. If everything proceedsas planned — the company received its air-quality permit on April 14 and hopes to break groundby fall — Tianjin Pipe expects to employ 600 Texans by 2012 and to provide an estimated $2.7billion to the local economy over the next decade. Corpus Christians, it turned out, wanted toknow more about their new neighbors who are expected to relocate 40 to 50 families to Texas.Upon arrival, I find it impossible not to notice the resemblance of Corpus Christi’s long, curvingcoastline on the Gulf of Mexico to the one near Tianjin on the Bohai Sea between northern Chinaand Korea. Some 75 U.S. locales competed for the factory, but when Chinese delegations fromTianjin Pipe visited Corpus Christi, the townspeople made them feel at home by welcoming thevisitors to backyard barbecues. They even enlisted the Taiwan-born former owner of the localChinese restaurant, Yalee Shih — perhaps the only woman in town who could speak Mandarin -to help them navigate cultural nuances. Shih, who also sits on the board of the Texas StateMuseum of Asian Cultures, delicately helped prevent a multimillion-dollar translation error overbuilding costs that might have cost Corpus Christi the project, and also quashed what would havebeen an impolitic gift of clocks — which to the Chinese symbolize death or the end of arelationship — from a local retailer. She and others in the region’s business community plan tohelp guide their new residents through life in America, like how to buy a car, how to rent ahouse, as well as where to go to buy fragrant rice instead of Uncle Ben’s.In the end, while feeling at home helps, it does come down to business, says J.J. Johnston,executive vice president and chief business development officer of the Corpus Christi RegionalEconomic Development Corp. "They like the strategic location of our region, the convenientaccess to materials coming in — mostly scrap metal and pig iron — and the ability to export toNorth and South America through the port of Corpus Christi," he says.There are other incentives. On April 9 the U.S. Commerce Department imposed import duties ofup to 99% on the type of seamless pipe that is to be manufactured by Tianjin Pipe — a reprisalprompted by the United Steelworkers union. The Chinese company, the world’s largest maker ofsteel pipe, had said it could not afford to export to the U.S. if tariffs were over 20%. Now its pipewill be made in America. "It’s just another reason they have to have a U.S.-based productionfacility," says Johnston.Even without tariffs, Tianjin had been looking to expand — as are many Chinese companies oncethey reach about $100 million in annual sales. "Chinese companies, as they get bigger, have tostart thinking about their global positioning," says Clarence Kwan, who runs the ChineseServices Group at Deloitte, which advises Chinese companies on doing business in the U.S.Officially the Chinese government has given approval to over 1,200 Chinese investments in theU.S., but that number is considered low because it doesn’t count those made via Hong Kong -where many Chinese companies earn equity capital from being publicly traded — or tax havenslike the Virgin Islands, where Chinese investment may stop first before flowing to the U.S. Plus,investments below $100 million don’t need Beijing’s nod and may be approved at the local level. Chinese companies see America as more than a manufacturing center. So far this year they haveannounced plans to build a wind-energy turbine plant and wind farm in Nevada that will create1,000 American jobs; purchased the 400-employee Los Angeles Marriott Downtown out offoreclosure; and acquired a shuttered shopping center in Milwaukee, with plans to turn it into amega-mall for 200 Chinese retailers. In some cases Chinese companies are resuscitatingAmerican outfits that had been left for dead. About 70 miles west of Spartanburg, near theGeorgia border, past signs reading "24-hour fried chicken," another Chinese company is hiringengineers — metallurgical and mechanical, some from nearby Clemson University. In June 2009,Top-Eastern Group, a tool manufacturer based in China’s coastal city of Dalian, acquired afactory here along with three other facilities from Kennametal, one of America’s largest machinetool makers, after the U.S. company, based in Latrobe, Pa., reported a $137 million loss (citing aslowdown in industrial activity) in the quarter before the sale.This plant, in Seneca, S.C., makes drill bits. And in the months since his purchase of it for $29million, Top-Eastern founder Jeff Chee has invested another $10 million to upgrade machinery,built a $3 million logistics center, brought back Kennametal’s furloughed workers, hired 120more, and now has his 260-employee plant working overtime filling orders for the ClevelandTwist Drills, Chicago Latrobe, Putnam, and Bassett brands he acquired. He brought back thecompany’s old name, which was Greenfield Industries before Kennametal acquired it in 1997,and emblazoned it on a sign out front.General Electric’s former CEO , Jack Welch, he volunteers, is his inspiration. "I’ve read a lot ofbooks, and I learned a lot from him," Chee says in broken English amid the sharp smell ofgrinding steel. "One person can change a lot." As one of China’s self-made entrepreneurs, whostarted Top-Eastern in 1994 with just $500, Chee now has worldwide sales of more than $120million, 4,000 employees, and factories in Germany and Brazil. He visits the South Carolinaplant monthly to make sure all is proceeding as planned, and employs American managers to runit in his absence rather than bring over Chinese. "There’s good, experienced people and goodknow-how already here," he says.How can he make a drill bit factory profitable where Kennametal had struggled? By increasingproductivity with new equipment and cutting costs, he says. Plus, Chee forges his own steel, andhe owns the mines back in China for two of its more expensive components, tungsten andmolybdenum. The fact that he can source from himself means he keeps the margins — and nowhis tools are officially made in the U.S. The cost of making those products is much higher than inChina, he says, "but the problem is customers just accept ‘made in U.S.A.’ products, so I have nochoice. Lots of customers here have government contracts that have ‘made in U.S.A.’requirements."And how do the employees feel about having a Chinese entrepreneur come to their rescue? "Justbecause it’s a Chinese owner, they don’t really care," says Scott Henderson, a 47-year-oldmanufacturing manager who had been furloughed one week a month along with his workersbefore Chee bought the factory. "They’re all happy to be working 40 hours a week." They alsohave the opportunity for overtime, and a third, graveyard shift has been added to serve a nearly40% rise in orders. "I feel great about it," says Sam Marcengill, a 24-year-old technician at theplant. Last year he was laid off for six months before Chee’s purchase gave him his job back. Now he’s on overtime, 48 hours a week. "The work’s a lot more steady. It’s better. Personally I’ma lot better off. It’s a great thing."Never mind the hiccups Chinese companies experienced when they tried to enter the U.S. before.In 2005, Washington famously blocked China’s National Offshore Oil Corp. (CNOO C) frombuying Unocal, and Chinese appliance maker Haier failed to acquire Maytag. Now, like theJapanese in the 1980s — when U.S. trade frictions combined with Japan’s boom blossomed intoHonda and Toyota manufacturing plants — the Chinese are here to stay. Their presence initiallymade some folks uneasy. A few years ago a caller to The Rush Limbaugh Show complained thatas he was driving past the Haier plant in Camden, the Chinese flag was flying higher than theAmerican flag and the South Carolina state flag out front. It was an easy mistake to make byanyone looking at the three equal-height flagpoles from an angle.Conservative media joined in and called for protests, and the public rang the factory to complain.The Chinese executives at Haier had no idea flags were such a big deal, and it became theirbugaboo. The complaints continued until about a year and a half ago when Haier Americafactory president Joseph Sexton, who was new to the job, decided to fix it. He had two of thepoles lowered so that the U.S. flag looks highest from all angles.It took Haier some time to work through the issues of being a Chinese employer in a small,historic Southern town (pop. 6,682) lined with stately antebellum houses and home to twoRevolutionary War battlefields. "Having a Chinese manager didn’t work. That’s why they tookall the Chinese managers out of here," says Haier’s human resources director, Gerald Reeves,who was one of the first hired by Haier and guided the Chinese through the realities ofAmerican-style personnel management — including convincing them that they needed to offerhealth insurance. He once even asked John Ling, South Carolina’s man in Shanghai, to fly homefrom China to talk to a manager who was arousing employee resentment by publiclyembarrassing the workers, Chinese-style, for their mistakes.Now the only way to know you’re in a Chinese factory is by looking up at the large Chinese flaghanging from the rafters — alongside an American one, of course — and by the very Chinesemotivational slogans on the walls: "Spirit of entrepreneurship — strive for a clearly definedobjective and make the impossible possible without an excuse" reads the banner over therefrigerator testing line. And if you come in February, Sexton organizes a Chinese New Yearparty with food and outdoor firecrackers.What is perhaps most startling about the Haier factory is that it is actually shipping goods back toChina. Best known for its mini-fridges for dorm rooms and studio apartments, Haier’s U.S. plantalso makes large units, good for supersized American McMansions but too large for a typicalChinese household. Now a growing number of wealthy people in China want to supersize too, soHaier has realized it can ship a small number, maybe 4,000 a year, of its highest-end refrigeratorshome and sell them for $2,600 apiece — more than China’s average annual income of around$2,000. (Haier also ships U.S.-made refrigerators to India, Australia, Mexico, and Canada.)There aren’t enough wealthy customers yet to make it worthwhile retooling any of the 29 Haierfactories in China, but the nearby deepwater port in Charleston, S.C., makes export easy enough. "There are folks in China who want high-end products," says Haier America factory presidentJoseph Sexton. "China is a much different place than people think."Chinese newcomers would do well to learn from Haier’s missteps as well as its great strides."They’re coming with little experience into a highly sophisticated market, and they are bound tomake mistakes," says Karl Sauvant, executive director of the Vale Columbia Center onSustainable International Investment at Columbia University and a law lecturer there, who inFebruary published an edited volume titled Investing in the United States: Is the U.S. Ready forFDI From China?"This is the thing the Japanese did fairly successfully: You have to be a good corporate citizen,source locally, contribute to causes and charities in the local community, and be familiar withhow to navigate the corridors of Washington," says Sauvant. "And in key managerial positionsyou should have Americans." Legal questions, such as whether Chinese companies operating inAmerica would be subject in U.S. courts to the Foreign Corrupt Practices Act for businesspractices in, say, India or elsewhere have yet to be tested, he says. And then there’s the issue ofthe local sensitivities exhibited in the Haier flag-flying incident.Unlike Japan, China is no U.S. military ally — despite President Obama’s naming China a"strategic partner," instead of the "strategic competitor" label it had under the Bushadministration. Politically it remains a communist country, despite its capitalist economy.There’s obviously more to overcome.Chinese investors say they don’t care too much about politics, but hope their entry into the U.S.can be a positive force. "This will definitely help U.S.-China relations," remarks Li, the managerof the print-cylinder factory Yuncheng, as he guides me on a tour. "Increasing communicationmakes the two sides closer." Even if it doesn’t, business is business. "Good products areborderless," he notes. And there’s always a Chinese proverb to cite: "It takes 10 years to make asword," says Li. In other words, keep at it till you get it right, and the outcome will be strong andlasting. And perhaps transform into the plowshare that sows a mutually beneficial harvest forAmerica and China both.

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