On the outskirts of Spartanburg, S.C., USA, is a brand-new factory: the state-of-the-art American Yuncheng Gravure Cylinder plant.
Unlike its neighbors in Spartanburg, Yuncheng is a Chinese company.
It has come to South Carolina because by Chinese standards, America is darn cheap.
It has come to South Carolina because by Chinese standards, America is darn cheap.
Yes, you read that right.
The land Yuncheng purchased in Spartanburg, at $350,000 for 6.5 acres, cost one-fourth the price of land back in Shanghai or Dongguan, a gritty city near Hong Kong where the company already runs three plants.
The land Yuncheng purchased in Spartanburg, at $350,000 for 6.5 acres, cost one-fourth the price of land back in Shanghai or Dongguan, a gritty city near Hong Kong where the company already runs three plants.
Electricity is cheaper too: Yungcheng pays up to 14¢ per kilowatt-hour in China at peak usage, and just 4¢ in South Carolina.
For hundreds of Chinese companies like Yuncheng, the U.S. has become a better, less expensive place to set up shop.
Today some 33 American states, ports, and municipalities have sent representatives like Ling to China to lure jobs once lost to China back to the U.S.: Besides affordable land and reliable power, states and cities are offering tax credits and other incentives to woo Chinese manufacturers.
Beijing, meanwhile, which has mandated that Chinese companies globalize by expanding to key markets around the world, is chipping in by offering to finance up to 30% of the initial investment costs.
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