Air Products & Chemicals, Inc. : China, US Sign $3.4 Billion Bilateral Investment Agreements
06/23/2012| 02:58am US/Eastern
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--China, U.S. seek to boost trade and investment
--Two sides signed contracts on 42 bilateral investment projects
--Among agreements are two from the city of Xi'an
(Recasts lead, adds details of the bilateral investment projects through out the story)
NANJING--Companies from China and the U.S. on Saturday signed total of $3.4 billion worth of bilateral investment projects, as the world's two biggest economies seek to boost trade and investment between each other at a time of increased global uncertainties.
These deals is another sign that the two economies are becoming ever more intertwined and interdependent, despite constant trade frictions and complaints about protectionism on both side.
The two sides signed contracts on 42 bilateral investment projects at a forum held in Nanjing, ranging from manufacturing, new energy, property, logistics and entertainment.
China's finance minister Xie Xuren said at the forum that he hopes China and the U.S. can expand cooperation in sectors including energy and environmental protection, adding that both countries are restructuring their economies and pushing ahead major reforms, which provides a great potential for cooperation between local governments of the two sides.
Assistant Treasury Secretary Marisa Lago said at the same forum that the U.S. welcomes investments from all countries including China and hopes cross-border investment with China will continue to grow.
The U.S.-China Cities Forum On Economic Cooperation and Investment, which is aimed to facilitate cross-border investment between local governments and companies of the two economies, followed the fourth Sino-China strategic and economic dialogue earlier May.
Local governments in the U.S. in thirsty of capital for their infrastructure construction are turning to China which has been relaxing controls on outbound investment of the nation as it internationalizes its currency.
The U.S. government has been striving for investment from both China's state-owned firms as well a small-and medium-sized enterprises whose operation faces more difficulties in China given the U.S.'s top priority of job creation, said Robert W. Hsueh, deputy head of the Dallas Delegation, currently serving as the chairman of DFW International Airport.
Linuo Group Co., a Jinan-based company, has agreed to invest multimillion dollars in the U.S. to develop a solar energy photovoltaic project.
State-owned firms' investments carry little risks but target only selective industries while SME's investments in the U.S. could be widespread and the U.S. government has many supportive and incentive measures for such firms, he added.
Less-developed Chinese cities, especially those in the central and western China, are also eager for more investment from abroad as Beijing is filling in a gap between the west and east.
Among $3.4 billion worth of agreements are two from the city of Xi'an. Under the agreements, two U.S. companies will invest around $527 million in the wester city of China: One is from Air Products and Chemicals Inc. (APD) and the other is from a U.S. entertainment company.
Write to Amy Li at amy.li@dowjones.com
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