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Intel opens first chip plant in China
( Xinhua )

Intel's Confidence

Trade frictions between China and the United States boiled over this month, when Washington postponed the release of its semi-annual international economic and exchange rate policies report to Congress, and launched a new probe targeting China's "green technology" trade policies.

However, Jefferson believed the frictions would not affect operations of the plant in Dalian. Noting that the new factory would help Intel better serve customers in Asia, he suggested that it could set an example to the development of Sino-US trade ties.

Completion of the Dalian factory raised Intel's investment in China to $4.7 billion.

"Establishment of the plant shows Intel's confidence in China's economic growth and information and technology industries development," said Professor Zhang Hanlin, of the University of International Business and Economics.

"On the other hand, the move will help remedy the trade relationship between China and the US."

He was echoed by Dr. Mei Xinyu, an associate researcher at the International Trade and Economic Cooperation Institute of the Ministry of Commerce.

"The Dalian plant is a high-tech project with huge investment," he said. "The return period of the investment could be long. Therefore, operation of such a project shows that the United States is optimistic about the stability of the Sino-US relationship."

Mei said China's labor costs were rising as a result of economic development. At the same time, thanks to the efforts of local governments, the quality of labor, infrastructure and public facilities in China was approaching or even surpassing that in developed countries.

"Low cost is no longer the major advantage in China to attract investment," he said. "The environment is improving."

According to the website of China's Ministry of Commerce, in the first nine months this year, US enterprises set up 1,155 new companies in China, up 0.17 percent from the corresponding period last year.

A total of 19,209 foreign-funded companies were set up during the past nine months, up 17.5 percent. Some $74.3 billion were involved, up 16.58 percent.

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