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June 7, 2019: Chinese Steel Wheels Manufacturer Picks Indiana for US Production Facility

 Posted by on June 10, 2019  News  Comments Off on June 7, 2019: Chinese Steel Wheels Manufacturer Picks Indiana for US Production Facility
Jun 102019
 

 

Indiana Wheel Corporation (IWC), a startup manufacturing company specializing in the production and distribution of steel wheels, announced plans today to establish operations in Marshall County, creating up to 117 new jobs over the next few years. 

“Indiana’s fiscally-predictable, pro-growth business climate and talented workforce continue to attract companies from around the world, with foreign direct investment committed to Indiana up more than 300 percent since 2016,” Governor Eric J. Holcomb said. “We’re pleased to welcome IWC to Indiana and look forward to the company’s growth and future contributions to the Marshall County economy and community as a whole.”

The company, which is a joint venture led by China-based Jingu Company Limited (Jingu), will invest nearly $23 million to purchase, renovate and equip a 300,000-square-foot production facility at 2935 Vanvactor Drive in Plymouth. The new facility, which will undergo immediate on-site infrastructure improvements, will feature more than $14.5 million of state-of-the-art, specially-designed equipment to support IWC’s manufacturing operations for the trailer and recreational vehicle (RV) industries. Upgrades will begin this summer with production expected to start later this year.

To support its growth in north central Indiana, IWC plans to add 60 full-time employees toward its goal of 117 by the end of 2019. The company will begin by hiring for executive-level positions, skilled machinists, and operations and administrative associates. 

”With a low-cost, business-friendly environment and highly-skilled workforce, Indiana is the perfect place to launch and grow our manufacturing of steel wheels for the trailer and RV industries,” said David Saylor, president of IWC. “As we scale IWC’s operations in north central Indiana, we plan to build our customer base and exceed expectations in both quality and service. We appreciate the strong relationship established with the city, the state, and with our partners, and we look forward to growing together right here in Plymouth.”

With its investment in IWC, Jingu, which was established in 1986, will add a major U.S. location to complement its global steel wheel manufacturing operations. Jingu, a publicly-traded, tier-one supplier for leading automotive companies such as General Motors, Volkswagen and Ford Motor Company, is the largest steel wheel manufacturer in China. The company is headquartered in Fuyang City, Zhejiang Province, which has shared a sister-state relationship with Indiana for more than 30 years, promoting and encouraging economic, cultural and educational ties between the two states. 

“Marshall County and the city of Plymouth have made great strides to prepare ourselves for new business expansions, and we believe IWC will benefit from our preparation,” said Plymouth Mayor Mark Senter. “We are grateful to our economic development partners who have significantly weighed in to make the project feasible. We’re thankful for the high-quality jobs and automation that this expansion will bring.”

The Indiana Economic Development Corporation (IEDC) offered IWC up to $1.2 million in conditional tax credits based on the company’s job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. The city of Plymouth will consider additional incentives at the June 10 meeting of the Plymouth Common Council at the request of the Marshall County Economic Development Corporation. 

IWC joins a network of more than 950 foreign-owned business establishments operating in Indiana, including more than 21 China-based businesses, including SF Motors, BWI North America, Westfield Outdoors and Nanshan America Advanced Aluminum Tech.

 

May 15, 2019: (JP MORGAN) What Chinese Tariffs Mean for the US Economy

 Posted by on May 17, 2019  News  Comments Off on May 15, 2019: (JP MORGAN) What Chinese Tariffs Mean for the US Economy
May 172019
 
The US and China appeared to be getting close to a trade agreement until a new round of tariffs on Chinese exports was announced last week—leading to renewed worries over trade tensions that could impact US consumers and the economy.

Trade negotiations with China stalled on Friday, leading the Trump administration to impose a 25 percent tariff on approximately $200 billion of imported Chinese merchandise. The broad tariff appeared to rattle financial markets earlier this week; investors may be anxious about global supply chains, and many fear retaliatory measures that could curtail US access to the Chinese market.

The bigger picture, however, tells a more reassuring story. America’s trade deficit is hardly the crisis it’s made out to be, and its real issues with China are resolvable. Ultimately, global commerce offers too many benefits for trade relationships to be rolled back—Asia’s developing economies run massive trade imbalances today, but their growth is creating expansive new markets for US exports.

Who Really Pays Tariffs?

By definition, tariffs are taxes paid by the consumers of imported goods. The latest round of tariffs was intended to raise the price of Chinese goods on the American market, which could dampen consumer demand and hurt China’s export-focused manufacturing sector.

In the real world, however, tariffs don’t always translate directly into higher retail prices. For example, when the Trump administration placed some $35 billion in tariffs on Chinese goods last summer, the People’s Bank of China responded by devaluing the yuan by 10 percent against the US dollar. The falling exchange rate more than offset the tariffs’ effect on retail prices, and Chinese imports remained affordable for American consumers.

China’s reaction to the current round of tariffs may not follow the exact same script. But the Chinese government has displayed considerable flexibility in addressing trade barriers and preventing economic disruptions. China is committed to maintaining a steady growth trajectory, and the central government has the power to enact fiscal and monetary stimulus measures to offset the impact of new tariffs.

The Deficit Red Herring

America’s trade deficit dominates discussions of the US-China relationship, but focusing on the nations’ balance of trade is misguided. China may be the world’s second-largest economy, but its consumers are still relatively poor; Chinese GDP per capita is only 13.7 percent of the US average. It’s unrealistic to expect nations with such uneven standards of living to sustain an even flow of trade.

Despite alarming rhetoric to the contrary, the US trade deficit has actually been declining for several years. A boom in exported services has pushed the trade deficit to one-third of last decade’s heights, largely due to an influx of foreign students studying in the US. This is a natural consequence of globalization: America imports low-cost consumer merchandise from developing nations abroad and exports high-value services like tuition at world-class universities.

Although large in absolute terms, the US trade deficit with China has been stable for almost a decade, holding slightly below 2 percent of GDP. This moderate imbalance should gradually fade as the Chinese economy matures and its massive consumer market emerges.

The Long View

Ultimately, the rewards of globalization vastly outweigh its disruptions. China’s rise dislocated some sectors of the US economy as low-cost imports began to compete with domestic products on store shelves. But China is on track to become the world’s largest consumer market, and it’s already an important destination for high-end US exports. The US-China economic relationship is too important—and has the potential to generate too much wealth—to be sacrificed for short-term protectionism.

That doesn’t mean a resolution to the real issues separating the nations will come easily, or that either side will be likely to soften its stance when negotiations resume. The US has real grievances regarding intellectual property theft and forced technology transfers. But neither side would benefit from disrupting the flow of trade or reversing the integration of the global economy.

Apr. 14, 2019: ACSI Hosts, Signs MOU with Sichuan CCPIT

 Posted by on April 29, 2019  News  Comments Off on Apr. 14, 2019: ACSI Hosts, Signs MOU with Sichuan CCPIT
Apr 292019
 

On April 12-13, the America China Society of Indiana (ACSI) welcomed the Sichuan China Council on the Promotion of International Trade (Sichuan CCPIT) to a host of meetings throughout Indiana. The purpose of the visit was to: (1) serve as an advance delegation to learn more about Indiana and explore investment opportunities for its member companies in Sichuan;    (2) Identify opportunities for bilateral investment between Sichuan and Indiana; and (3) explore opportunities in the medical device, life science, hospital, information technology and agricultural industries.

The Sichuan CCPIT began their visit to Indiana by attending a business reception hosted by the ACSI focused on the business opportunities between Indiana and Sichuan Province. Attendees were then treated to a video summarizing the key industries and economic data on Sichuan Province before opening a dialogue on each company’s business interests in China. The event ended with a Memorandum of Understanding signing ceremony between ACSI and Sichuan CCPIT to promote and cultivate business opportunities between the State and Province.

To learn more about Indiana’s competitive business climate, Sichuan CCPIT met with representatives from the Indiana Economic Development Corporation. Additionally, the group met with representatives from BioCrossroads and Hathaway Strategies to learn more about Indiana’s life sciences and medical device industries.

To learn more about the opportunities for Sichuan companies in central Indiana, Sichuan CCPIT met with representatives from the Indy Partnership over lunch. The group discussed the international trade opportunities between Chengdu and Indianapolis, the Indy Chamber’s Global Business Center as a platform for investment, and other central Indiana assets that can help drive growth for Sichuan companies looking to expand into the U.S. market.

To learn more about the history and impact of the Fortune 500 company, the delegation received a personal tour of Lilly’s Indianapolis Headquarters. Led by Tom Xiao, the delegation learned about Lilly’s humble beginnings, it’s deep relationship with China, and the future growth opportunities for the company both domestically and internationally.

Led by Indiana State Department of Agriculture Director Bruce Kettler, Sichuan CCPIT met with representatives of the ISDA and the Indiana Soybean Alliance to learn more about Indiana’s agriculture industry. Sichuan Province has a strong demand to import 750,000 metric tons of soybeans for use in a newly created soybean processing plant. The delegation also learned about the diversity in crops produced by Indiana and the excess capacity that is readily available for export.

Sichuan CCPIT met with executives from Boden LLC, an agricultural technology company specializing in reducing heavy metal pollutants from soil; increasing yields. The group discussed the company’s new technology, The BOLT, and the opportunities to license the technology for use in the China market.

To learn more about the opportunities for Sichuan companies in Columbus, Sichuan CCPIT met with Mayor Lienhoop and representatives from the city’s economic development board. With Cummins operating a facility in the Province, the group discussed opportunities for trade and investment in the
manufacturing industry and the new opportunities in innovation, life sciences and technology.

As part of their trip to Columbus, Sichuan CCPIT toured LHP Engineering Solutions’ downtown
automotive technology training facility and their northside technology center. Led by Michael King, President of Data Analytics Solutions, the group discussed the opportunities in IoT, data analytics, and technology industries along with LHP’s growth plans into the China market.

No trip to Indiana can be complete without a little fun! As the delegation’s last “official meeting”, the representatives from Sichuan CCPIT got to attend their first ever baseball game courtesy of Barnes & Thornburg LLP. Greeted by representatives of IEDC, Boden LLC and Nanshan America, the group got to sit back and relax with America’s pastime during firefighter appreciation night.

Mar. 18, 2019: ACSI Leads Trip to China

 Posted by on April 2, 2019  News  Comments Off on Mar. 18, 2019: ACSI Leads Trip to China
Apr 022019
 

From March 7 – 16, the America China Society of Indiana directed a business trip to China to meet with partners and companies.

Beginning in Hangzhou, ACSI met with the Zhejiang Department of Commerce, Zhejiang International Investment Promotion Center, and Zhejiang Foreign Affairs Office to reinforce the Indiana-Zhejiang sister state relationship and to discuss future collaborations and initiatives to foster bilateral business opportunities between Indiana and China.

 

 

While in Hangzhou, ACSI also met with several prospective and existing companies wanting to do business in Indiana including HIDEA Power Machinery, who opened their North American Headquarters in Brownsburg, Ind. in 2017. To foster additional opportunities for Indiana companies looking to sell their products to Chinese consumers, ACSI toured Alibaba Group (NYSE: BABA) to learn more about their business platforms.

While in Shanghai, ACSI met with Faegre Baker Daniels and U.S. Commercial Service at their regional offices to discuss programs designed to spur foreign direct investment to Indiana. Last, but certainly not least, the organization met with additional prospective companies looking to expand its services into Indiana.

Mar. 13, 2019: ACSI Board Member Selected for China Fellowship

 Posted by on March 18, 2019  News  Comments Off on Mar. 13, 2019: ACSI Board Member Selected for China Fellowship
Mar 182019
 

Russell Menyhart, ACSI Board Member and Partner at Taft Stettinius & Hollister, has been selected as a fellow to the National Committee on United States-China Relations Public Intellectuals Program (PIP).

Launched in 2005, PIP identifies outstanding members of the next generation of American China specialists – in the academic, professional, or policymaking spheres – who, in the tradition of earlier China hands, have the interest and potential to venture outside of academia or their professions into areas relevant to foreign policy and public education.

The two-year program is designed to enrich the twenty new fellows’ understanding of policymaking processes in both the United States and China; help them establish useful relationships both with their academic colleagues and with policy practitioners; encourage them to move beyond the confines of their own disciplines; and nurture their ability to engage with the public at a national, regional, and local level. PIP is implemented through a series of activities. These include seminars in Washington, D.C., and San Francisco; a study tour of China; opportunities to participate in National Committee delegations as scholar-escorts; and public education initiatives.

PIP is an enrichment opportunity intended to complement the primary academic or professional positions held by the fellows. The program offers unique opportunities for professional development, mentoring by senior scholars, networking, and exposure. Fellows gain access to senior policymakers and experts in both the United States and China, and to individuals and fields they are not typically be exposed to, such as the business, arts, health, and civil society sectors in China, as well as to the media in both countries. Fellows have access to media coaches to help edit and place op-eds and develop a social media presence.

Feb. 28: ACSI Hosts Regulatory Exec from China; Seminar

 Posted by on March 4, 2019  News  Comments Off on Feb. 28: ACSI Hosts Regulatory Exec from China; Seminar
Mar 042019
 

On Thursday, February 28th, ACSI was delighted to welcome Mr. Yongheng Chang (Executive Chairman of the China International Medical Device Regulatory Forum in the  National Medical Product Administration) to Indiana. As part of his visit, Mr. Chang met with officials from Roche Diagnostics and Eli Lilly & Company.

 

Mr. Chang was also the keynote speaker of ACSI’s China Business Seminar on Medical Device Regulations. The event also featured a presentation by Xinmin Yue (CEO, Minyue-Pharos Consulting) and panel discussion with Naomi Kwang (Attorney, Barnes & Thornburg).

Feb. 21: ACSI Hosts New Year Networking; Chinese Company

 Posted by on March 4, 2019  News  Comments Off on Feb. 21: ACSI Hosts New Year Networking; Chinese Company
Mar 042019
 

On Thursday, February 21st, ACSI hosted its annual New Year Networking Event at Tastings Bar in downtown Indianapolis. In collaboration with the Indiana India Business Council, the sold-out event featured attendees from a variety of industries with business ties to India, China and Indiana.

Earlier in the day, ACSI hosted global IT provider HAND Enterprises USA to introduce them to the Indiana market and facilitated meetings with potential customers and ACSI Members.

January 7, 2019: ACSI Releases 2018 Indiana-China Year in Review

 Posted by on January 7, 2019  News  Comments Off on January 7, 2019: ACSI Releases 2018 Indiana-China Year in Review
Jan 072019
 

ACSI is delighted to release the 2018 Indiana-China Year in Review. The report highlights the economic development efforts, programs, initiatives, and events which strengthened the Indiana-China business relationship in 2018. Read the entire report below:

Year in Review 2018

Oct. 16, 2018: ACSI Signs MOUs with World Trade Center, ICCCI

 Posted by on October 31, 2018  News  Comments Off on Oct. 16, 2018: ACSI Signs MOUs with World Trade Center, ICCCI
Oct 312018
 

On October 16th, the America China Society of Indiana (ACSI) signed memorandum’s of understanding with World Trade Center-Indianapolis (WTC-Indy) and the Indianapolis Chinese Community Center, Inc. (ICCCI) at ACSI’s China Business Conference and Annual Gala.

The agreement with WTC-Indy seeks joint collaborations to encourage and support business, economic, educational, and governmental exchanges between Indiana and China in addition to partnering to provide a soft landing zone for Chinese investment in Indiana.

The agreement with ICCCI seeks to provide a platform for Chinese-Americans living in Indiana with access to business and investment resources. Both ACSI and ICCCI will collaborate on fostering a China-friendly environment in Indiana.

Oct. 16, 2018: ACSI Hosts China Business Conference & Annual Gala

 Posted by on October 31, 2018  News  Comments Off on Oct. 16, 2018: ACSI Hosts China Business Conference & Annual Gala
Oct 312018
 

On Tuesday, October 16, 2018, the America China Society of Indiana (ACSI) hosted its seventh Annual Gala & Business Conference at the Hilton in downtown Indianapolis. Kicking off with welcoming remarks by Elaine Bedel (President, Indiana Economic Development Corp.), the Business Conference featured panels and presentations on the US-China Economic & Trade Outlook, Foreign Direct Investment & Inbound Business, and Export, Trade & Tariffs. Co-led by ACSI and the Chinese Consulate, the Conference also featured an economic development roundtable with Indiana economic developers on best practices given the current US-China trade frictions.

The Annual Gala started with a networking reception with hors d’oeuvres, ping pong and a photo exhibition featuring the 40th anniversary of the opening of China. Acting Chinese Consul General Mr. Liu Jun offered keynote remarks followed by performances by the Indianapolis Chinese Community Center, Inc. ACSI also awarded its Friend of China, Friend of Indiana, and Chen Legacy Awards to Buchanan Group, BWI Group and Agnes Wolverton respectively.