Wednesday, March 12, 2014

In the United States: China and India invest abroad

The company is moving to another country for decades, seeking to reduce costs and increase revenue by Outsourcing production. And like China and India continue their rise to become a global economic power, continues this trend. However, rather than American companies moving to India and China in order to save money, Chinese companies now see the United States as a land of opportunity and cost savings.

Yes, Africa or Southeast Asia, although there are many Chinese companies already in that location, but America. And by Chinese standards, the Land of Lincoln cheap.

Writing in Fortune, Prasso Sheridan explained that the gap between the cost of production in the United States and China is shrinking. "The land Yuncheng [Chinese manufacturing companies] bought in Spartanburg, Rp 350,000 for 6.5 acres, a quarter of the cost price of the land back in Shanghai or Dongguan, a gritty city near Hong Kong where the company operates three factories. Electricity is cheaper too: • Yungcheng pay up to 14 ¢ per kilowatt-hour in China at peak usage, and just 4 ¢ in South Carolina • And no brownouts either, a sporadic problem in China "..

While American workers may be more expensive, infrastructure and land is cheaper and more reliable while tax incentives are either equal to, or more favorable than those found in China.

It is not just a Chinese manufacturing company found in the United States, stung by high unemployment, American cities to woo Indian IT companies with tax credits and other incentives. They hope that the Indian IT companies, to better compete with U.S. rivals such as IBM and Accenture, will hire more Americans, thus creating more jobs.

Cincinnati, Dallas, Atlanta, Minneapolis, and Tallahassee is actively courting leading Indian IT companies like TCS, Infosys and Wipro to set up or expand their operations. Ohio Governor Ted Strickland gave U.S. $ 19 million in tax credits for TCS to expand operations in Cincinnati, increase the number of heads of companies from 300 in 1000. Atlanta will push Wipro Technologies, which now has 350 employees - nearly 300 of them Americans - to expand operations in the city.

The expansion of the Chinese and Indian companies in the United States on the other side of the global economy. As these companies get bigger, they need to start thinking about global positioning, and more and more, they see the United States as more of a manufacturing or Outsourcing center. Whether it's a Haier washing machine or technology Indies export, Made in USA label helps global brands competing in the U.S. and at home in India and China.

"Good products is the limit," said Li, manager of Yuncheng, for Prasso.

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