For years, we’ve been hearing about jobs moving overseas—particularly manufacturing jobs. The justification for this trend has often been that the cost of labor and doing business in the U.S. is simply too high compared to countries like China. However, one Chinese billionaire is shaking up this narrative by relocating his business to the U.S. The reasons behind this bold move might surprise you: taxes and land are significantly cheaper in the United States, making it an attractive option for manufacturers.
Cao Dewang, the billionaire owner of Fuyao Glass, has made headlines by becoming the largest Chinese investor in Ohio after transferring his company from China to the U.S. Dewang has cited the high tax burden in China as a critical factor in his decision. In fact, taxes are approximately 35% higher in China for manufacturers compared to the U.S. Additionally, costs related to land and energy are also more favorable in the U.S., allowing him to maximize profits despite higher manufacturing costs.
Dewang has invested over $1 billion in the U.S. economy, opening a new factory in Moriane, a suburb of Dayton, Ohio, back in October 2016. The factory, which occupies the former General Motors plant that had been closed since 2008, was purchased by Dewang for $200 million. Currently, the Fuyao Glass plant employs around 2,000 people and is expected to create 3,000 jobs once it reaches full operational capacity.
| Name | Cao Dewang |
|---|---|
| Position | Owner of Fuyao Glass |
| Investment in U.S. | Over $1 billion |
| Factory Location | Moriane, Ohio |
| Current Employees | 2,000 (expected 3,000) |
| Year Founded | 1987 |
- Chinese companies are increasingly considering the U.S. for manufacturing.
- Tax burdens and operational costs influence business relocation decisions.
- Wages in China have tripled over the past four years.
- Fuyao Glass is the first major Chinese company to invest significantly in U.S. manufacturing.
