Latest Chinese import: construction workers?
The Wall Street Journal reports that a $3.4 billion hotel, casino and resort in the Bahamas will break ground on Monday with the help of two unlikely partners: China State Construction Engineering Corp. and the Export-Import Bank of China.
The Journal says the project in Nassau will be the largest property to be built and partly owned by a Chinese company outside of China.
Money appears to be at the heart of the matter — the Export-Import Bank is providing a $2.5 billion loan for the project. Part of that financing deal allows China State Construction to take a $150 million equity stake and “import” 8,000 construction workers to build the resort.
It’s not the first time Chinese workers have been “imported” for a construction project in North America. China State Construction recently renovated the Alexander Hamilton Bridge in New York City and built a new Metro-North train platform at Yankee Stadium.
I don’t know what those 8,000 workers will be getting paid in Nassau, but I bet it will be less than what a crew from North America would cost.
That couldn’t bode well for U.S. construction workers, who face 20 percent unemployment and developers looking to save on project costs amid a tough financing environment.
Is there more to come?
The Journal says the Chinese government is encouraging homeland companies to go abroad to help diversify China’s $2.85 trillion foreign-exchange reserves and reduce its reliance on the greenback.
The 1,000-acre Bahamas project would have 2,250 hotel rooms, a 100,000-square-foot casino and an 18-hole golf course.
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February 18th, 2011 at 10:12 am
Oh lovely! Now our construction jobs get outsourced! One field of industry you think was safe from outsourcing, but NOOOOOOOO.
Guess I better learn some Mandarin…
February 18th, 2011 at 4:14 pm
This actually isn’t a new idea. Remember the railroads?
Actually, that might be one way of building high speed rail in our country – import Chinese labor.
I’m actually not too bothered by this. Keep in mind that our engineering and architectural talent has been outsourced to countries all over the world. I spent a year working on a project for Dubai in an American firm. Now that we have a lot of construction workers out of work, maybe we can send some of them abroad to build (ok, they’ll never work as cheaply as the Chinese, but perhaps they have skills that other countries’ construction workers don’t have).
February 18th, 2011 at 5:11 pm
Good point Matt.
I bet those 19th century Chinese workers weren’t backed by the largest construction company in China. And, their presence in the U.S. was met with a lot of opposition back then (as evidenced by Congress passing the Chinese Exclusion Act in 1882, barring Chinese laborers from entering the U.S. for 10 years).
I wonder how receptive today’s U.S. construction labor market would be to that. I also wonder how many U.S. construction workers would want to work abroad.
Any construction workers want to comment on that?
February 22nd, 2011 at 8:54 am
This statement is not true: “It’s not the first time Chinese workers have been “imported” for a construction project in North America. China State Construction recently renovated the Alexander Hamilton Bridge in New York City and built a new Metro-North train platform at Yankee Stadium.”
Alexander Hamilton Bridge was procured by NYSDOT, which requires that union workers work the job. There’s no way they could import Chinese workers for a project like this in NYC (because it’s being financed by the state/fed gov’t, not Export/Import Bank).
February 22nd, 2011 at 10:51 am
OK, I stand corrected on the New York City projects (apparently managed by the Chinese, but built by U.S. labor). But, with all levels of government chopping their budgets, could the future hold some public-private projects in the U.S. involving the Export-Import Bank of China?
February 28th, 2011 at 10:15 am
I am bothered by the exploitation of workers. I am bothered by bringing in cheap foreign labor to build USA (or even North American) projects. A relative of mine has a factory in California that employs Phillipino workers at minimum wage, no benefits and requires them to live at the factory. Reason? The workers in the city wanted “too much money and benefits”. And the Phillipino workers send their money back home instead of reinvesting it in the city they work in.
Something is really wrong with this whole scenario…
July 16th, 2012 at 9:21 am
I beg to differ with Alex… federal transportation funds were used in Calif. on a bridge contract awarded to a chinese firm who imported their own chinese workers thus depriving american workers these jobs.. I understand a similar contract is taking place in Texas… Are these examples of Obama’s famous “insourcing” he’s been touting…..?????