Skip to:

Office of the Governor Blog

RSS Feed


    view as list


      Minnesota: A Future Worth Investing In

      Posted on June 11, 2012 at 10:49 AM

      A key part of Governor Dayton’s trade mission to China is convincing Chinese companies that Minnesota companies – and Minnesotans – are worth investing in.

      Foreign Direct Investment (FDI) is the direct investment into production in a country by a company located in another country, and Minnesota has been a beneficiary of FDI from China. When Chinese companies invest in Minnesota companies, it allows those companies to expand and increase their production – this creates more jobs for Minnesotans, and provides a benefit for Chinese companies when companies they have invested in do well and provide extra profit. Chinese FDI in Minnesota has risen from $151 million in 2008 to $390 million in 2011.

      Graphic: Chinese FDI in Minnesota by year:

       Chinese FDI in MN.jpg

      One recent example of FDI, and how it benefits Minnesota, comes from Duluth last year. Since 2011, the China Aviation Industry General Aircraft Company (CAIGA) has invested nearly $100 million into the Duluth-based company Cirrus Aircraft. As a result, Cirrus has been able to expedite its aircraft development programs and accelerate the company’s global expansion, helping make the Cirrus brand more successful and prominent in the marketplace. CAIGA’s investment also allowed Cirrus to develop a new aircraft, the Vision SF-50, a project that will create hundreds of jobs in Minnesota.

      FDI is a key component of the relationship between China and Minnesota (and the US on the whole). China has been an increasingly interested and important investor in U.S. companies. In 2002, China’s FDI in the US totaled $395 million, but that amount rose to over $30 billion in 2010. Chinese companies have invested in American automotive, energy, and financial industries and have bought stocks in major companies such as Visa, AIG, Apple, and Coca-Cola. In Minnesota, the largest recipient of Chinese FDI in 2011 was the transportation industry, which received $210 million, followed by the biomedical industry ($151 million), fossil fuels ($18 million), and clean energy ($11 million).

      Graphic: 2011 Chinese FDI in Minnesota by sector:

      FDI by Sector.jpg

      Part of Governor Dayton’s trade mission to China is convincing Chinese companies that Minnesota has companies worth investing in. Minnesota’s good business environment, sound infrastructure, and commitment to economic growth and job creation – as well as our strong and talented workforce – will  all provide incentives for Chinese companies to invest in Minnesotans.