China deepens auto ties in Michigan

Future investment

Hong of the Center for Automotive Research said patterns are developing around Chinese investment. "(Chinese) companies are setting up R&D (research and development) centers especially in Michigan and California. In fact a competition is developing between Michigan and California socially in autonomous driving," he said.

Electric vehicles will become a factor, but this may depend on national policies. "EVs may require companies to decide if they want to go global or stay at home," Hong said.

Kerrigan agrees with Hong.

"We are starting to see Chinese companies put research and development centers in Michigan as they try to understand the new areas of autonomy, connectivity, electrification and sharing. We see a lot of interest from China in working with Michigan companies on this new technology," he said. "Chinese have taken the position that they want to become a leader in the electrification of vehicles."

"Shorter term, the export model in China will find success in selling lower-cost EVs in markets other than North America and Europe. (Eventually) you will see the Chinese manufacture cars in North America and Europe but on a smaller scale," said Pankin of the Auto Harvest Foundation.

"We haven't seen a Chinese OEM set up an assembly plant in the US yet. We know that will happen. I wouldn't be surprised if in the next five years we see a Chinese OEM making cars in the US and yes I think Michigan would the ideal place for the plant," said Kerrigan.

Contact the writer at paulwelitzkin@chinadailyusa.com