When American companies come to China to set up factories or start companies, what they want is cheap labor. So are there any favorable factors for Chinese corporations to come to the United States to set companies? The answer is yes. The benefits of Chinese companies opening a subsidy in the United States include:
First, when Chinese companies set up companies or factories in the United States, although labor costs are relatively high, Chinese companies can acquire advanced technology and management experience. At the same time, they can strengthen and improve their business mechanisms and build confidence.
Second, a global sales platform can be established. At present, most Chinese enterprises rely on exports. However, foreign countries have two trump cards against Chinese companies. The first is anti-dumping, and the second is to establish non-tariff trade barriers, raise technical thresholds, and prevent Chinese products from entering their territory. If Chinese enterprises continue to rely on export, the risk is very large. Localization, ie local design, local manufacture, local sales, is the ultimate trend. Chinese enterprises’ foreign investment can further drive exports and be welcomed by importing countries, thereby reducing trade frictions and disputes.
Third, at the same time, it can expand business contacts with companies in Canada, Mexico and other countries.
Fourth, it is beneficial to create international brands. The United States is still the global economic, political, and military center. Chinese enterprises setting up companies in the United States can enable them to participate in international economic and technological cooperation and competition on a larger scale, in a wider field and at a higher level, optimize resource allocation, expand development space, and develop into a true multinational company. It can improve the international awareness of products or create world famous brands.
Fifth, local financing is also available. The United States has the world’s largest financial center and the most complete financial system. If you want to develop your company bigger and faster, entering the United States is necessary.
Sixth, it facilitates the US visa and immigration for company managers.