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Chinese investment in Alaska - not

December 06, 2012

Firmex has produced a graphical piece highlighting Chinese investment in North America.

According to Firmex’s research:



The attached graphic is deceiving. It shows the US with a higher concentration of Chinese investment than Canada and it shows Alaska with a higher level of Chinese investment. In absolute dollars the level of Chinese investment in the US is higher than in Canada, but the US economy is ten times larger.  Proportionately Chinese investment is much lower in the US than in Canada. Could be China views America as a rival and chooses not to invest (a political decision) or it could be concern with investment return/taxation (business decisions), not sure which.

Alaska exports to China are significant ($1.5 B/year) but direct investments by Chinese companies are nowhere on the radar. This lack of investment undoubtedly costs economic opportunities and jobs for Alaskans. Next door in Yukon, Chinese capital is employed in mining (Yukon Zinc mine, Selwyn zinc project,etc.) and oil and gas exploration with Northern Cross’ Eagle Plains drilling program.