Detroit: Gold mine for China

The business association estimates that about 100 Chinese firms, mostly in the auto industry, are active in the region. Those who come here typically aim to make a name for themselves in the global marketplace via Detroit, which has retained its legacy as a model for American innovation, notwithstanding its long decline and financial problems, Xu said.

Understanding that the path to success is through the Motor City, "they have to find a way to push through and come to the US, to the Michigan area, to realize that aspiration," Xu said.

Sometimes, he said, large companies come with abundant talent and experience in doing business in the US. But "there are a lot of Chinese medium and small businesses that need help when they come", Xu said.

The area's abundant engineering talent is a magnet for Chinese auto-related companies looking to increase their knowledge of automobile production.

Hong Su, vice-president in charge of research at the United States R&D center for Chinese automaker Changan, in Plymouth, Michigan, about 40 km west of Detroit, said he has hired about 20 engineers with US auto industry experience in the last few years because of their expertise in developing vehicles.

Chassis class

"In China, at original equipment manufacturers, the senior people - even managers and directors in engineering - have fewer than 10 years, 15 years of experience," Su said. "And most of that experience is in reverse-engineering, or copying. They don't have vehicle-development experience." Su chuckled as he said the youngest engineer at the US R&D center, which focuses on chassis design, has 19 years of Detroit industry experience, which is more than some senior managers in China. By contrast, his most senior employee, retired, had 35 years of experience.

China has reverse-engineered many cars, but even creating a copy requires vehicle-development know-how, Su said. "Vehicles have copyright issues; sometimes you are forced to modify. If you don't know the principles of how to modify, you can't do it."

Most important, you need vehicle-development expertise to make automobiles to the performance and quality specifications demanded by today's buyers, he said.

"You can never copy the technical know-how," he said, as he showed a prototype of a large sedan that Changan, traditionally a maker of smaller cars, plans to build and sell in China. When finished, the car will target prosperous buyers with families who also crave a big, luxurious vehicle.

Frank Yang, managing director at ZYNP International in Romulus, said the combination of the Detroit area's existing transportation and manufacturing infrastructure, talent pool and cost-efficiency, along with government tax breaks, allow that US unit to pursue its plan to be a one-stop, full-service company in the engine cylinder industry. ZYNP International's ability to offer customers R&D, engineering, supply chain management, manufacturing and financing under one roof "differentiates us from competitors, either locally or internationally", Yang said.

A wide range

"All this is hard to find in other areas of the country," he said. "Detroit is the hub."

Showing that being Chinese doesn't guarantee a job here, ZYND's Romulus-based engineering staff hail from a range of countries, including China, the US, Brazil, Mexico and Canada. The company employs 50 to 80 people, including seasonal workers. Most are Americans or US residents. The staff include one or two Chinese nationals and very few Chinese Americans because the company emphasizes US industry experience.

"We only have visitors from our China operation to do troubleshooting, to undertake training, to give training, and to receive whatever knowledge they can take from the US," Yang explained.