The global trade winds are blowing in America’s direction again.
Chinese companies are investing in manufacturing plants and expanding operations in the U.S, the Wall Street Journal reports. “Job-creating investment from China is booming,” WSJ columnist Andrew Browne notes.
Several factors are driving the trend. One is a closing wage gap, particularly for skilled workers. Another: industrial land in the U.S. can be cheaper than in the coastal cities of China from which manufacturers can easily ship their product. Lower U.S. energy costs are also playing a role, Browne writes.
The biggest factor, according to Browne, is advanced manufacturing technology–which could curb some of the job-creating power of China’s investments in the U.S. Browne calls Trump’s promise to bring about a manufacturing jobs renaissance “pure fantasy.”