U.S. opens door to Chinese investors

The United States faces a massive US$8 trillion infrastructure investment bill, and is courting Chinese investors since many of its own local governments are in financial difficulties, according to a US Chamber of Commerce report.

"The US is poised to undertake the most significant expansion and modernisation of its infrastructure since the 1950s," the chamber said in its report.

"This is taking place in the context of significant pressure on federal and local budgets. The pressing need for capital to modernise US infrastructure is creating substantial new opportunities for Chinese investors."

At a minimum, more than US$8 trillion in new investment would be needed in transportation, energy and water infrastructure until 2030, or US$455 billion per year, the chamber estimated. "In reality, a much higher amount of investment will likely be necessary."

The expansion came against a backdrop of a dramatically changed global economy that boasted new players, the report said, citing China as the most important of the new players.

"With a large and growing pool of capital, China is well positioned to participate in US infrastructure," it added.

But Chinese investors were likely to be selective about taking up opportunities, said Mao Tong, a partner at international law firm Squire Sanders in Hong Kong.