Magazine article PM Network

Chinese Companies Incubate Project Possibilities Abroad

Magazine article PM Network

Chinese Companies Incubate Project Possibilities Abroad

Article excerpt

Chinese investors- eager to nurture homegrown start-ups expanding abroad and to entice more U.S. companies to launch projects in China- are building massive tech centers across the United States.

InnoSpring, a business incubator devoted to U.S.-Chinese business partnerships, opened its doors to start-ups in Santa Clara, California, USA in mid-2012. Hanhai zPark, an 80,000-square-foot (7,432-square-meter) tech incubator backed by Chinese investors, opened last June in San Jose, California, USA. In addition to renting lab and office space to Chinese companies eager to do business in the country, Hanhai zPark will invest directly in some of its tenant companies through a US$5 million angel fund, according to Bloomberg Businessweek.

The buzz-worthy project is only the opening act: Hanhai Investment Incorporated is on track to open a second biotech incubator - twice the size of the San Jose space - in nearby San Francisco, California, USA in the next few months. A third incubator, devoted to clean-tech companies, will open in 2014. And the organization recently announced that it's scouting for additional spaces in Boston, Massachusetts and other U.S. cities.

All told, investors from China spent US$6.5 billion buying U.S. properties and companies in 2012, a 17 percent increase over 2010, according to financial research firm Rhodium Group, New York, New York, USA.

"Many U.S. companies don't have the necessary experience to deal with doing business in China and doing business with Chinese companies," Victor Wang, president of Hanhai Investment, told the Silicon Valley Business Journal. By creating these incubators, his company hopes to help U.S. project leaders connect with Chinese partners to support technology alliances in both countries.

Eager Investors

Investment in Chinese-backed incubators is fueled in part by surging demand for tech services and solutions in China, says Thilo Hanemann, a research director who tracks Chinese investment at Rhodium Group. …

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