Saturday, May 3, 2014

1 big reason Americans can't afford to ignore China

The Rhodium Group just published a report showing that the US-China relationship is at a crossroads: for the first time in modern history, more money from Chinese companies is coming into the US than the other way around. These trends are only accelerating:
It is important to observe that US investment in China isn't stopping; although the rate of foreign direct investment (FDI) growth seems to be stagnating, US investment in China will continue to be an important feature that should be of significant interest to Chinese officials. Of greater importance to this relationship, as the Rhodium report points out, is American policymakers' increased consideration of this sea change--most importantly, I would argue, as it relates to employment of Americans in America by Chinese-owned firms:
Although the number of jobs currently produced by Chinese employers in America is relatively small, the number is increasing exponentially. Major takeaway: going forward, the career paths for hundreds of thousands and eventually millions of Americans based in the US will be defined by their ability to understand and navigate Chinese culture, language, and corporate behavior.

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