American slump sees investors journey West to snap up bargains

WASHINGTON - THERE is no Chinatown in the state of Maryland, but a small corner of the local university could well qualify for that label.

Of 14 companies based at the Maryland International Incubator - part of Governor Martin O'Malley's drive to attract multinationals, create jobs and boost exports - a total of 10 are first-time investors from China.

In the Midwest, a Chinese performing arts company bought an American theatre last December, the first deal of its kind. And a small Chinese entrepreneur plans to open a shopping mall in Wisconsin in August - another first.

Over on the West Coast, the story is similar, if not more frenetic, as Chinese companies continue to make the most of a chance to gain access to Silicon Valley skills, funds and technology at recession-era prices.

Clearly, all the wrinkles in Beijing-Washington ties - whether over the United States' arms deal with Taiwan, the Dalai Lama's White House visit or the anti-dumping duties on Chinese manufacturers - have not stopped ambitious Chinese companies from acquiring assets in the US.

Last year, Chinese direct investment in the US touched US$6.4 billion (S$8.8 billion), according to an estimate by the Heritage Foundation think-tank's Dr Derek Scissors. It is a huge jump from under US$500 million in 2004 and US$1.2 billion in 2008, going by figures from the US Bureau of Economic Analysis.