1. CHINESE DIRECT INVESTMENT IN THE UNITED STATES SEEKING RELIEF IN AMERICA FROM HIGH PRODUCTION COSTS

2. GIANT SUCKING SOUND Most American’s impressions of our relationship with China and the developing world in trade and commerce can be summed up by the words of Texas billionaire Ross Perot http://www.youtube.com/ watch?v=Rkgx1C_S6ls

10. CLICK HERE FOR A MAP TRACKING ALL CHINESE DIRECT INVESTMENT IN EACH OF THE 50 STATES

11. OLD PERCEPTIONS DIE SLOWLY  Mexico now is a cheaper place to manufacture than China  Brazil ranks among the most expensive  Russia and Eastern European nations are nearly at parity with the U.S.

12. CHINA’S LOST EDGE  China’s labor costs have soared and productivity has not been able to keep up.  Their manufacturing cost advantage over the U.S. has shrunk to less than 5%

14. U.S. ADVANTAGES 50 percent fall in natural- gas prices, land and energy are ¼ the price Moderate wage growth with significant productivity gains China recognizes the advantage of building factories closer to where the products are consumed

15. RETURNING HOME  Caterpillar is shifting some of its excavator production from abroad to Texas.  Sauder, an American furniture-maker, is moving production back home from low-wage countries.  NCR has returned production of cash machines to Georgia.  Wham-O restored half of its Frisbee and Hula Hoop production to America from China and Mexico.

16. COST CUTTING Firms are also trying to reduce their inventory costs. Importing from China to the United States may require a company to hold 100 days of inventory. That burden can be handily reduced if the goods are made nearer home

17. APPLE WON’T BE COMING BACK In some areas, such as consumer electronics, America no longer has the necessary supplier base or infrastructure. Firms did not realize when they shifted operations to low-wage countries that some moves “would be almost irreversible”,

18. HOW WELCOME? Surging Chinese investment has triggered populist anxieties in the United States, just as Americans once feared economic domination by Japan Chinese tech companies are perceived as threats to our national security

19. A lot of the benefits without a lot of the hassles CHINA MAY LOOK SOUTH

20. FILM AND QUESTIONS CLICK ON THIS TO GO TO THE FILM ON CHINESE DIRECT INVESTMENT CLICK ON THIS TO GO TO THE FILM ON CHINESE DIRECT INVESTMENT ANSWER THE QUESTIONS ON THE RIGHT WHILE WATCHING 1.Based on the opening remarks in the first minutes of the film and your own perceptions, what is the economic and trade relationship between the U.S. and China? 2.Some of the gentlemen from South Carolina speak very affectionately about textiles. What are textiles? 3.What was the “straw that broke the camel’s back” that led to the massive loss of textile jobs and the abandonment of the big factories? 4.In recent years, the Chinese have significantly increased their direct investment in the U.S. Why has it become increasingly cost effective for them to build factories in the U.S.? 5.What is China’s “Globalization 2.0”? Can you describe the dose of irony that this trend delivers? 6.Why is South Carolina an attractive place for the Chinese to build a textile mill?