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Since the beginning of this year, Chinese companies have rapidly increased their investment in the United States, among which manufacturing companies have become the most valued and welcomed groups in the United States. Among these, it includes Chinese tire manufacturers.
In November this year, Triangle announced the establishment of a US subsidiary. The company is based in Nashville, Tennessee and is responsible for the operation, development and service of Delta tires in the U.S. market, and establishes a triangular brand distribution network to promote its growth in the U.S. market.
Triangle tires did not disclose to build a factory in the United States. However, according to analysis, once the time is ripe, it is something that it will do sooner or later.
The rising star of the tire industry in China, Sen Qilin, has already taken steps to build a factory in the United States. The company plans to invest hundreds of millions of dollars to build a US base and has now entered the stage of determining the site. Recently, he specially invited the former Vice President of Nobel Motors to serve as the CEO of the American company. The goal is to build the US factory in 2017.
Double money tires are also studying the feasibility of building a plant in the United States. Although no specific timetable has yet been announced, Liu Xunfeng, chairman of the major shareholder Huayi Group, has disclosed this possibility to the outside world. If the plan for investing in the United States is determined, this will be the first time that the Double Money Tire has built a factory outside of China.
According to industry insiders, Chinese tire manufacturers have rushed to invest in the United States and become a new trend for the industry to “go global†in the past two years.
According to analysis, the emergence of this new phenomenon mainly comes from two reasons.
First, China’s tire industry does not want to lose the United States’ largest export market, and the “double reverse†high tariffs are not affordable to companies. After the establishment of a factory in the United States, local local production can be realized and the situation of “passive beating†can be avoided directly.
Second, the trend is consistent with the trend of Chinese companies accelerating investment in the United States. According to statistics, in 2014, China’s direct investment in the United States reached 7.596 billion U.S. dollars, covering 18 major categories of industries, and investment in 4 areas, such as finance and manufacturing, accounted for nearly 80% of the total investment.
According to overseas sources, in order to attract investment in China's manufacturing industry, some US government agencies and private organizations have taken measures to create an investment environment and a social atmosphere suitable for the development of the manufacturing industry so that Chinese enterprises can settle in peace.
In addition to improving the soft environment, Chinese manufacturing companies investing in the United States are also due to the improvement in the hard environment of the local production cost advantage. Some Chinese companies investing in the United States reported that the price of production materials in the United States has a greater advantage, which to a certain extent offset the high disadvantages of local labor costs.
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