Investors to seek bridge over troubled waters

For example, in 2006, Shanghai Zhenhua Heavy Industries Co Ltd, a port crane manufacturer, successfully bid on parts of the new San Francisco-Oakland Bay Bridge project. At first it was an unlikely candidate by many standards. But as it was at a time of fiscal austerity for California, and the state's procurement focused on reducing cost, Shanghai Zhenhua stood out for its competitive pricing - $400 million was saved, according to California officials.

Local procurement preferences also pose an obstacle for Chinese companies, which are usually good at lump-sum contracting, from engineering to procurement to construction. Xing Houyuan, vice-president of the Chinese Academy of International Trade and Economic Cooperation, said that in the US, chief contractors have to subcontract many parts of a project to local companies and concentrate on contract managing, which greatly undercuts Chinese companies' competitiveness.

The difficulty for Chinese companies to provide after-sales service is another impediment. With respect to quality control, there are concerns that the current US-China legal cooperation may make it more difficult to hold Chinese vendors liable for any damage caused by a faulty product.

Despite all the technical gaps, Xing said Chinese enterprises have great enthusiasm for investing in US infrastructure, driven by a desire to diversify their asset portfolios and boost their brand recognition by completing deals in a developed economy.

Jeremie Waterman, the USCC's executive director for Greater China, said improving two-way infrastructure investment "will not happen overnight", but that the potential benefits arising from such growth are substantial enough to warrant patience and diligent efforts from the private and public sectors in both China and the US.

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