{"id":17232,"date":"2019-07-17T01:29:59","date_gmt":"2019-07-17T01:29:59","guid":{"rendered":"https:\/\/www.lifeandnews.com\/articles\/?p=17232"},"modified":"2019-07-18T11:01:00","modified_gmt":"2019-07-18T11:01:00","slug":"how-immigrants-give-american-companies-a-powerful-boost-against-chinese-rivals","status":"publish","type":"post","link":"https:\/\/www.lifeandnews.com\/articles\/how-immigrants-give-american-companies-a-powerful-boost-against-chinese-rivals\/","title":{"rendered":"How immigrants give American companies a powerful boost against Chinese rivals"},"content":{"rendered":"

Benjamin A.T. Graham<\/a>, University of Southern California \u2013 Dornsife College of Letters, Arts and Sciences<\/a><\/em><\/p>\n

The ongoing trade war<\/a> is the most visible front in America\u2019s struggle with China for global influence<\/a>. Oddly, it may be immigration policy, as much as tariffs and trade deals, that determines which country prevails.<\/p>\n

That\u2019s because American competitiveness in foreign markets is a key battlefield in the struggle. And while the U.S. has long been the leading source<\/a> of foreign investment in developing countries, China has emerged as an increasingly assertive player. With its Belt and Road Initiative<\/a>, China is using investment as a tool to extend its political influence<\/a> throughout Asia, Africa and Latin America.<\/p>\n

But as it turns out, immigrants \u2013 a group that President Donald Trump frequently denigrates<\/a> \u2013 provide the U.S. with a surprisingly powerful competitive advantage, as my research<\/a> has shown. And policies that limit the number of immigrants who can come to the U.S. could be detrimental to America\u2019s competitiveness in the long run.<\/p>\n

A nation of immigrants<\/h2>\n

While America is a nation of immigrants, China is not<\/a>. Chinese companies have few immigrants to hire, and this hurts them.<\/p>\n

There are only a million foreign-born residents in China, compared with 50 million in the U.S.<\/a>, even though China\u2019s population is four times larger.<\/p>\n

Whether an American company wants to invest in India, Nigeria, Armenia or Guatemala, there is a flourishing immigrant community in the U.S. that businesses can tap to help them navigate challenging social and political environments. Few Chinese companies can do the same.<\/p>\n

This gives American companies a competitive edge. Specifically, immigrants\u2019 social and political ties to their home countries, combined with the professional connections they make in the U.S., allow immigrants to bridge the gap between American companies and valuable networks in developing countries.<\/p>\n

Brothers-in-law and childhood friends<\/h2>\n

In many developing countries, formal institutions like courts are weak<\/a>, and personal relationships play a large role in both business and politics.<\/p>\n

If you want to get a permit quickly, you need a brother-in-law in the permit office or a childhood friend who is now a politician. Thriving in emerging markets requires knowing and trusting the right people. These can be hard relationships for foreign companies to develop<\/a>.<\/p>\n

Many turn to local fixers to navigate challenging environments. But establishing trust with a local you just met is hard. A fixer you can\u2019t trust is a fixer you can\u2019t use.<\/p>\n

This is where immigrants come in. Immigrants often have the same local connections as any other fixer \u2013 many retain strong ties<\/a> to childhood friends and extended family back home. At the same time, they also build strong, trustworthy ties to colleagues and friends in their new country of settlement<\/a>. This makes immigrants valuable brokers.<\/p>\n