Strategic moves by Chinese companies into the US - Location is key to success

During US President Donald Trump's state visit to China and meeting with Chinese President Xi Jinping, the two leaders witnessed the signing of 15 commercial deals worth a quarter-trillion dollars, covering energy, agriculture, aircraft, and sharing economy sectors. Developments such as these send an upbeat signal to the market that stronger Sino-US ties are potentially being forged at this historic moment, highlighting the numerous opportunities for cooperation between the world’s two largest economies.

Riding the ongoing trend, Chinese investors are seeking cross-border opportunities into the US, and a sound location strategy will help them stay on top of things as the business grows.

According to Darin Buelow, Principal of Real Estate & Location Strategy practice from Deloitte US, there are 4 key considerations when companies are making footprint decisions:

1.   Market access

2.   Talent availability

3.   Risk mitigation

4.   Cost containment

However, these variables can change quickly. In order to position assets in the right place at the right time, companies need proactive mechanisms in place to effectively embrace changes, optimize talent, cost and risk solutions when deploying resources across the globe.

A few quick tips to start strategic moves:

• Look before leaping. Clearly outline location decision drivers and the broader impact of decisions on the overall operational and facility footprint to address strategic considerations.
• Think outside the box. Best-in-class locations for specific functions may be outside of company’s initial comfort zone and may not receive mainstream media attention.
• Think like the locals. Take time to understand nuances of local markets to adapt broader enterprise approaches to local requirements.

Leveraging on a solid and integrated platform, Deloitte Global Chinese Services Group US team has well-positioned itself to support Chinese companies in the market for almost 15 years. This mature cross-functional network is composed of talents possessing both professional expertise and cultural sensitivity, sitting in over 80 locations across US states and cities.