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Trump's China rhetoric presents big risks for US firms

Reporter: Phil Lavelle 丨 CCTV.com

12-15-2016 05:27 BJT

Thousands of employees in the US could suffer if Chinese investments here are blocked - that is the warning from the chairman of the Dalian Wanda Group. Nearly 16 billion dollars of Chinese cash was injected into the US last year alone - and California, in particular, is doing incredibly well from it.

Virgil Chis couldn't be busier. And he's grateful. Because a few years back, things were very different.

The electric car maker he worked at in Southern California shut down and he was out of a job.

Until a Chinese investor bought it, rebranded it, and gave it that new jolt of power.

"It gave me a chance to come back and finish what we started," Chis said.

Karma is an all-American company saved by Chinese cash - literally bringing people into work, says the boss.

"Arguably, there're 700 - close to 800 people - working here now who might not have, had this particular Chinese businessman not decided to invest in the auto space in the U.S.," said Jim Taylor, chief revenue officer, Karma Automotive.

Of course, the other side of this argument.

"We're not making anything anymore. Our product is pouring in from China," President-elect Donald Trump said.

But that 'pouring in' as the now President-Elect puts it, and indeed, pouring out which is stuff going the other way, is having a major beneficial impact here in California, starting down there

LA's port has never been busier. This is the country's largest port and more than half of those containers come from...China.

Six out of ten arriving here, left from there.. And last year, more then 32,000 staff were involved in processing and transporting them sweeping people in work, people who then pay taxes and keep that economic circle spinning..

"China is the number one customer of the port. And this has been true for a couple of decades..They've become our number one trading partner and really their growth has helped us become the port we are today," said Jim MacLellan, director of trade dev't, Port of Los Angeles.

The fact is that Chinese cash is pouring into the U.S. And California, in particular, is benefiting.. the city's skylines, shopping malls, massive homes, the movie industry - all targets.

In fact, last year, Chinese investors injected a record US$15.7 billion into U.S. companies. And California got 21% of that. That's more than a fifth - to just one state. China's trade with LA alone, nearly 27% of the total trade with the U.S.

"If we continue supporting the relationship between China and the US, there will be trade offs. If we do not support it, there will be less wealth," said Professor Silvia Martin, California State University, Los Angeles.

For the workers, like Virgil, that Chinese cash - the wealth - has been a godsend.

"It's given me the opportunity to support my family and kids," Virgil Chis said.

And while not all in the U.S. will agree, there are plenty in California, at least, who will.

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