China State Construction Nets $100m US Subway Deal
The company has signed more than $2 billion worth of contracts in the US this year – China Daily
Remember earlier this year when Obama promised us he would be the president who would put America back to work with jobs building bridges and roads and replacing crumbling infrastructure? We were told that there were ‘shovel ready’ projects just waiting for funding created by the stimulus bill. It’s been 9 months and the first major contract is going to a Chinese company.
According t0 China Daily:
China State Construction Engineering Corp, the largest contractor in China, has bagged a subway ventilation project worth about $100 million in New York’s Manhattan area, marking the construction giant’s third order in the United States’ infrastructure space this year.
“The new project, along with the $410-million Hamilton Bridge project and a $1.7-billion entertainment project it won earlier this year, signals China State Construction’s ambition to tap the American construction market,” said Li Zhirui, an industry analyst at First Capital Securities.
Li, however, said the order came as no surprise as the US government is spending massively on infrastructure projects.
The three orders only account for about 4 percent of the value of its total orders this year, Li added.
In the first three quarters of this year, the Chinese construction giant signed more than $2 billion worth of contracts in the US market. China State Construction was also the contractor for a high school, a railway station and the Chinese embassy in the US.
There are Always Strings Attached with Chinese Companies
The U.S. might look at the deal China made with Angola. Since 2004, Angola has taken out $8-12bn in loans from China. Thanks to its huge oil deposits in the Gulf of Guinea, the former Portuguese colony has become China’s biggest African trading partner. Sound familiar?
In exchange for Angola’s oil, energy-hungry China is helping to repair the country’s infrastructure. Although Beijing insists its credit comes with no strings attached, the deal in Angola is that 70% of tenders for public works must go to Chinese firms.
That means tens of thousands of jobs there for Chinese workers, engineers, planners – and even doctors. No locals need apply.
The lack of jobs for Angolans in Chinese firms is causing increasing resentment in a country suffering from chronic unemployment.
Is this the same kind of deal Obama worked out with China for America? Ron Paul told us last year that we owe China more than two and a half trillion dollars.
Are all those jobs building our country’s infrastructure going to Chinese workers? We have Michigan with the highest unemployment rate in the nation. We have workers waiting for jobs. How many will be hired?
No word from the White House yet.