Investment Between Chinese And Chinese Contributed To The Return Of The Textile Industry In The United States

< p > Lancaster County, South Carolina, was once a famous textile industry in the United States.

At the height of its prosperity, the textile industry corridor composed of two counties in Lancaster and surrounding counties had gathered 20 textile enterprises, but the local textile industry almost disappeared in 2007.

As China Cole Group invested 218 million US dollars to build factories in the region, the "textile industry corridor" is revitalized again.

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< p > not only does Cole group enter into South Carolina, but as of 2013, 17 Chinese companies have invested in South Carolina and invested 656 million US dollars, and China has become the second largest source of investment in the state.

Analysts believe that investment in the United States has become a direction for Chinese enterprises to invest abroad, and this trend will continue. Attracting Chinese enterprises is a mature local market.

Francisco Sanchez, former Vice Minister of Commerce, told our reporter that "Chinese companies are seeking to go out and have many economic reasons to invest in the United States".

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< p > < strong > < a > href= > http://sjfzxm.com/news/index_h.asp > investment > /a > attracting investment. The industrial base is looking forward to China's investment < /strong > /p >

< p > Lancaster County, South Carolina, was once a famous textile industrial base in the United States.

The rise and fall of the local textile industry is a portrayal of the shift of us factories to overseas and the decline of manufacturing industry under globalization.

Founded in 1887, springs, Lancaster, Ford, closed the last bedsheet factory in the county in 2007, announcing the end of the 120 year history of the textile industry in the county.

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Less than P, however, 6 years later, the textile industry has returned, and this is the reason for the return of Chinese enterprises.

In December 2013, Zhejiang Cole group, a Chinese textile enterprise, announced that it would open its first overseas factory in Lancaster County, the first manufacturing plant established by Chinese textile enterprises in the US.

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< p > Keith Tenel, director general of Lancaster County Investment Promotion Bureau, told our reporter that the county is taking the "textile technology corridor" as a selling point for investment promotion.

The textile industry is the leading industry in the region.

Founded in this county, springs is the largest manufacturer of textiles and bedding products in the United States, and operates 25 factories in Chester and York counties around Lancaster.

But in 2006, it was acquired by Brazil's large textile factory, the company of the company, and pferred its production facilities overseas, and closed its last factory in Lancaster in 2007.

The closure of factories and layoffs, coupled with the ensuing US financial crisis and economic recession, has greatly hit Lancaster's economy, with unemployment rate reaching 18.6% in 2009.

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< p > under such circumstances, the arrival of Cole group was warmly welcomed.

Tenel said that the Cole group has brought hope to the revival of the local textile industry. With the first one, it will be easier to invest again.

In April of this year, Teng Nell joined the business delegation from South Carolina to China for investment. Three other textile enterprises in mainland China were interested in investing locally, and another Chinese Taiwan enterprise and a India company were also interested in entering.

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"P" is unique.

In the neighbouring County Chester County of Lancaster County, Cixi Jiangnan Chemical Fiber Co., Ltd. is building a factory with an investment of US $45 million. It plans to use recycled plastic bottles to produce polyester staple fiber.

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< p > < strong > seek economic rebalancing and take the road of Shanghai peripheral plant < /strong > /p >

< p > "the rise and fall of Chinese enterprises to South Carolina investment and the textile industry of the United States is a natural process of economic change", said Robert Hitt, director of the Commerce Department of South Carolina.

He told our reporter that in the past 20 years, South Carolina lost 60 thousand jobs in the textile industry.

More than 100 years ago, the textile factories in the United States were in the new England region in the northeast.

Later, due to the relatively backward economic development in the south, the abundant labor force and low wages of workers, the manufacturing industry began to move southward and existed in the south for about 75 years.

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"P >" since then, in the era of economic globalization, following the low labor force, the American textile industry has shifted to Latin America, the Caribbean, Southeast Asia and other places. "The raw materials of the textile industry are almost unified international prices, and the only one without international price is labor force," Hitt said.

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Hitt, former chairman of the South Carolina Manufacturers Federation, said that in the South Carolina textile industry, the first labor force intensive tailoring factory was left, and the P factory with higher mechanization also moved out.

But most of the carpet industry remains in the United States, because the product is of high weight and high pportation cost.

What's more, there are those textile enterprises that focus on "niche market", innovation and high technology, such as fire and fire retardant clothing manufacturers, which often have higher technology and intellectual property rights.

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< p > Hitt set up a production facility for Chinese companies in the United States, known as "a rebalancing that began."

He said, compared with 20 years ago, labor costs in China and Southeast Asia are rising, and pportation costs are rising.

"So you can see such a rebalancing.

For a particular textile industry, you may want to produce in the United States and sell locally.

We are beginning to see that some companies are changing their strategies based on the products they produce.

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< p > < strong > market matures, Chinese enterprises continue to enter the United States < /strong > /p >

From P's point of view, "with the economic maturity to a certain extent, production will follow the market."

It is the market orientation that drives Chinese textile enterprises to enter South Carolina, "Hitt said.

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Zhu Shanqing, chairman of Cole group, told reporters in a written interview that Cole decided to invest in the new spinning project in South Carolina in P because of multiple considerations.

"Cole cotton textile products mainly rely on air spinning, and rely heavily on imported cotton, especially American cotton, but cotton import quota is less than 2000 tons, accounting for only about 6.7% of the company's total demand."

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< p > "American cotton has the advantage of high quality and low price.

And the cost of energy and capital needed by Cole group is relatively low in the United States.

The logistics industry in the United States is developed, and cotton can be used with purchase, which greatly reduces the cost of warehousing.

Zhu Shanqing said that the southern US is the center of the textile industry in the United States, where the economy is relatively backward, the wages of workers are generally low, and investment in the region has a unique low cost advantage.

In particular, South Carolina and North Carolina, the two textile States, have a large number of skilled textile workers.

In terms of production technology, American textile enterprises have made achievements in the field of research and integration between textiles, fibers, polymers and materials, and have a number of advanced products and production technologies.

At the same time, the US financial market is developed, and many financial instruments such as futures and options can be used to resist or hedge market risks.

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Sun Ya, deputy general manager of Cixi Jiangnan Chemical Fiber Co., Ltd., also believes that the suitable market conditions in South Carolina attract Chinese companies to invest in P.

She said: "investing in the United States is mainly because the market is in the United States."

The polyester staple produced by the company is mainly exported to Europe and the United States.

But as domestic production costs continue to rise, the price advantage is getting smaller and smaller.

In 2011, when sun Ya visited the United States, he found that not only the raw materials could be resolved locally, but also the energy price that accounted for the largest cost in production costs was relatively low.

Though the overall manufacturing cost is concerned, production in the United States will be slightly higher than in China.

But after China's exports to the US, pportation costs and tariffs are very high.

A comprehensive analysis of investment in the us becomes feasible from cost.

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Francisco Sanchez, former Vice Minister of Commerce of the US Department of Commerce, said in an interview with our reporter that the United States is the largest market in the world with low energy costs and well-trained labor force. P

In addition, the United States has free trade agreements with about 20 countries, and companies in the United States can export products and services to many markets without tariffs.

"Chinese companies are seeking to go out, and they have many economic reasons to invest here."

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