The automotive industry accounts for about 4~5 % of the U.S. GDP. While it is trying to rebound after the collapse during the recent financial crisis, China is now quickly expanding its presence in Detroit. According to CSmonitor, Chinese auto companies and suppliers are opening plants and offices in Detroit due to low price of real estate and high level of advanced engineering talent.
Experts and the governor consider that the Chinese investment plays a big role in the market economy. They hope that this investment becomes a turning point for the auto industry in Detroit. This is a win-win scenario for both of Chinese companies and the U.S. since the Chinese companies can use the skilled labor with cheap real estate while the auto industry in the U.S. can use their investment to promote the growth. According to Michigan Gov. Rick Snyder, Chinese companies have invested about 1 billion dollars in his state so far.
Chinese see opportunity in Detroit. In addition to cheap real estate market, investors are also eligible for many local, state and federal tax credits for their investment and redevelopment. There are about 50,000 Chinese live in the area; it is expected to grow even more soon. Will this lead to a hopeful future for Detroit? We will see how it goes.