Chinese firms outsourcing to U.S.

Liu Keli, president of Shanxi Yuncheng Plate-Making Group, is building a factory in Spartanburg, S.C. He expects to offset some of the higher labor costs compared with China with a state payroll tax credit of $1,500 per employee.

 

States are aggressively trying to lure companies looking to grow. Incentives and a weak dollar are spurring investment.

By Don Lee

DONGGUAN, CHINA -- Liu Keli couldn't tell you much about South Carolina, not even where it is in the United States. It's as obscure to him as his home region, Shanxi province, is to most Americans.

But Liu is investing $10 million in the Palmetto State, building a printing-plate factory that will open this fall and hire 120 workers. His main aim is to tap the large American market, but when his finance staff penciled out the costs, he was stunned to learn how they compared with those in China.

Liu spent about $500,000 for seven acres in Spartanburg -- less than one-fourth what it would cost to buy the same amount of land in Dongguan, a city in southeast China where he runs three plants. U.S. electricity rates are about 75% lower, and in South Carolina, Liu doesn't have to put up with frequent blackouts.

- more -