A popular region for Chinese investment is the American Midwest where business has long focused on the car. As CGTN’s Hendrik Sybrandy reports, more Chinese auto companies are acquiring US automakers and suppliers to tap into the US market.
Henniges Automotive manufactures rubber weather strips that fill the gaps between a car's sheet metal in order to reduce cockpit noise. In this age of hands-free phones and infotainment systems, drivers not only want to keep rain out of their vehicles, but noise as well.
Two years ago, the Aviation Industry Corporation of China bought this auto supplier to put its money to work in North America and gain access to the huge US car market.
According to Dustin Walsh, a reporter with Crain's Detroit Business publication, Chinese investment in Midwestern US auto suppliers was up 2 billion US dollars in 2016 over 2015.
“The Chinese car companies and suppliers know that if they want to be taken seriously they have to be international conglomerates, global companies, like the United States companies are”, said Walsh.
Henniges has 17 plants around the world, including five in China and four in the US. With consumer demand for cars still strong, this facility in Missouri is humming 24 hours a day, six days a week. A relatively quiet business trend that doesn't get a lot of notice, but still may be picking up speed.
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