In the past few decades, the vigorous development of American enterprises in China has profoundly influenced the global economic pattern while also bringing substantial revenue to the United States.
To this day, the products of many American companies have become integrated into our daily lives. For example, the various daily necessities produced by Procter & Gamble, if not reminded, are hard to associate with products manufactured by American companies.
Chinese enterprises also occupy a significant part in the American economic system.
How many American companies are there in China? And how much profit have they brought to the United States?
How many companies does our country have in the United States? What is the current situation of these companies?
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I. Basic situation of American enterprises in China
As a former leader in global globalization, the United States has many overseas enterprises, among which there is a large number of American enterprises in China.During the early stages of reform and opening up, the exchanges between China and the United States in the fields of economy and technology were very close.
In this particular period, American companies began to actively strategize their presence in the Chinese market.
The Chinese market at that time was seen as a fertile ground full of infinite opportunities, thus attracting a large number of American companies to enter and seek to expand their business on Chinese soil.
To this day, American companies have deeply integrated and become an indispensable part of China's economic structure.
According to the latest data from 2023, the number of American companies within our country has exceeded 73,000.
When it comes to American companies in China, everyone's first reaction should be various high-tech brands, such as Tesla, Apple, etc.
However, contrary to everyone's impression, the most numerous American companies in China are actually daily necessities like Procter & Gamble.
A large number of American companies, in order to obtain cheap labor, have entered the country and have since taken root in China.Taking the globally renowned Apple Inc. as an example, in China it not only occupies the primary position in its sales territory, becoming the largest consumer market, but it is also an essential link in the processing chain of Apple products, undertaking a large amount of production and processing tasks.
Emerging companies in the United States, such as Tesla, have also successively entered the Chinese market. For any American company, China is a huge market that cannot be ignored.
In addition to the large number of enterprise types, the amount of investment from the United States in China is also very high.
As of 2023, the cumulative investment from the United States in China has exceeded 1.2 trillion US dollars.
This part of the investment is heavily concentrated on the acquisition of domestic brands in China, with a small amount of investment in the financial sector.
II. The important position of American companies in China's economic system
Even though the contradictions between China and the United States have intensified in recent years, the Chinese market is still full of temptation for American companies.Contrary to the United States' continuous restrictions on Chinese enterprises domestically, even in the current context of escalating Sino-American tensions, China still adopts a tolerant stance towards American enterprises.
It is precisely because of China's sound market policies that a large amount of American capital still hopes to enter China.
Due to China's large population, coupled with the deepening of reforms, the money in the pockets of the people is also increasing, which makes the purchasing power of Chinese residents continuously strengthen with the rise in income.
For American enterprises, the more consumers there are, the stronger the purchasing power, and the Chinese market is undoubtedly a paradise.
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From a factual point of view, more exchanges and cooperation between enterprises of China and the United States are a good thing for the global economy.
China has the largest population in the world, coupled with its vast territory and numerous markets. Once the Chinese economy develops, it is a good thing for enterprises around the world.
Now, to ensure the smooth operation of the global supply chain, no economic entity can avoid China.
For potential global economic issues in the future, the existence of the Chinese market is key to solving the problem.
III. The basic situation of Chinese enterprises in the United StatesCompared to the widespread presence of American companies in China, the number of Chinese companies in the United States is significantly smaller, with only about 5,700.
However, despite the numerical deficiency, Chinese enterprises still constitute an indispensable force in the American economic composition.
Take the automotive industry as an example. In the U.S. market, Chinese new energy vehicles are gradually becoming the mainstream choice for American electric vehicle users.
Electric vehicles made in China have gained unexpected widespread acceptance and popularity among young Americans.
According to relevant data surveys, in more than 20,000 questionnaires, nearly 40% of people expressed interest in electric vehicles.
Among this group, many explicitly stated that they plan to buy or may buy electric vehicles of Chinese brands.
In this questionnaire, the group willing to choose Chinese electric vehicles is predominantly young people under the age of 40, accounting for about 76% of the population willing to purchase electric vehicles.
This is sufficient to prove that domestic new energy vehicles have become an indispensable presence in the American automotive market, and it also indicates that Chinese enterprises have a huge development space and potential in the American market.In addition to the widely acclaimed electric vehicle industry, Chinese enterprises in the United States cover all aspects, and a considerable part of these enterprises were established in the United States after the subprime mortgage crisis in 2008.
During the subprime mortgage crisis, the turmoil in the U.S. financial sector eventually spread throughout the entire country, with a large number of enterprises going bankrupt due to the breakdown of their capital chains, and the unemployment rate soaring.
At this time, Chinese enterprises that entered the United States provided a large number of job opportunities for various industries in the country, effectively absorbing a large number of unemployed people.
The establishment of Chinese enterprises also injected new vitality into the U.S. economy, which was severely impacted at the time.
The presence and efforts of Chinese enterprises in the United States during the economic crisis played an indispensable role in promoting the recovery of the U.S. economy.
With the economic exchanges between the two countries, Chinese enterprises have long held an irreplaceable position in the U.S. economy.
IV. Trust Crisis Faced by Chinese Enterprises in the United StatesUnlike the tolerance our country has shown towards American companies, over the past few years, the U.S. government has been increasingly imposing restrictions on Chinese enterprises operating within the United States.
The Biden administration has even issued executive orders to restrict investments in China, particularly in the field of sensitive technologies.
Why is the U.S. doing this? Mainly because they are concerned about national security and the threat to their technological advantages.
The Biden administration fears that China might catch up or even surpass them in key technological fields by accepting their investments.
Their justification is quite hypocritical, as they believe that China has a trade surplus with the United States.
Through trade, China has earned a lot of benefits from the U.S., and the U.S. government wants to reclaim these benefits from Chinese enterprises operating within the country.
Naturally, the U.S. government's excuse is unreasonable. It's important to note that the number of Chinese enterprises in the U.S. is far less than the number of American companies in China.
It's true that China has a trade surplus with the U.S., but has the U.S. really been at a disadvantage in its economic and trade relations with China?It should be known that the total profits of American companies in China have even caught up with the total profits of all state-owned enterprises within China.
The total profits of American companies have even surpassed the tax revenue of the Chinese government, and this part of the income has already been enough to offset the trade deficit between China and the United States.
Whether it is for American companies or Chinese companies, trade and economic exchanges between China and the United States are beneficial to both parties.
However, under the current situation, American companies have earned substantial profits in China, but the U.S. government avoids discussing this and instead restricts Chinese companies within their country due to trade deficits, which is a challenge to the economic trust between the two countries.
Under the backdrop of globalization, only by maintaining trade exchanges can the economic growth between China and the United States be better maintained.
In recent years, the unilateral actions of the United States have had a significant negative impact on the cooperation and interests between the two countries' enterprises.
This one-sided attitude not only damages the common interests of both parties' enterprises but also gradually pushes the United States itself to the periphery of the globalization process, limiting its participation and influence in global economic cooperation and development.For the United States, its investment in China has become one of the important driving forces for promoting its domestic economic growth. At the same time, the Chinese market still contains huge development potential, providing broad opportunities and prospects for American investors.
If the United States adopts unequal strategies against Chinese enterprises again, it is hard to say whether our country will take corresponding measures for counteraction in the future.
As the two largest economic entities in the world, if the trade friction between China and the United States continues to increase, it will be detrimental to the global economy without any benefit.
Conclusion
The success of American enterprises in China has not only injected new vitality into China's economy but also promoted the optimization and upgrading of the global industrial chain and supply chain.
Chinese enterprises have also brought new momentum to the American market, and even provided timely help to the American market during the financial crisis.
However, in recent years, the restrictions imposed by the U.S. government on Chinese enterprises in the United States have undoubtedly cast a shadow over this cooperative relationship.
The result of zero-sum games is that both China and the United States will face unimaginable losses. Confrontation can only lead to economic regression.Maintaining an open market environment and strengthening economic exchanges remain key to promoting the common development of the two countries, and indeed the global economy, and are also the common expectations of the citizens of both nations.
It is hoped that in the future, the United States will discard prejudice and adopt a more rational and pragmatic attitude towards Chinese enterprises and markets, working together to drive the global economy towards a more prosperous and sustainable direction.
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