France-based Schneider Electric had to make a choice.
It was opening a new manufacturing plant. The question was where it would be. And the two places it had narrowed the decision down to couldn’t be more different…
One was China. The other was El Paso, Texas.
Guess which location’s friendly stance toward business and proximity to a Western audience rewarded it with 400 new, well-paying jobs?
And this French manufacturer isn’t alone. Apple is quietly shifting from Chinese to U.S.-made microchips. We aren’t talking about 1% or 2%. One-third of the chips Apple – the world’s most valuable company – uses already made the switch.
If you’ve been following us at Wide Moat Research, this may not shock you. But what I’m going to tell you next probably will.
It’s not just European and American companies that are ditching China for the U.S.
Now, major Chinese companies are abandoning their homeland and investing in none other than the good ol’ U.S. of A.
TikTok, the world’s most downloaded app for three years running, now has a Los Angeles headquarters. Its Chinese parent company ByteDance – worth over $220 billion – recently leased a massive 658,000 sq ft building in San Jose, California. Three out of ByteDance’s five board of directors are now American.
And now, companies in a crucial sector of the market are also leaving Chinese shores for greener American pastures.
The battle for global economic supremacy is shifting. And this could be a huge income opportunity for investors in the best American companies.
In today’s article, I’m going to explain how America’s manufacturing revival is reaching a new stage. And I’ll share a company uniquely positioned to profit from this megatrend – and another closely related one.
The Chinese Companies Opting for America’s Market
Many of the world’s most valuable companies are Chinese. And as they start bringing their operations to American soil… it could unleash a new wave of potential in America’s industrial renaissance.
Take LONGi Solar, for example. You’ve likely never heard of it. But this Chinese heavyweight is the #1 solar panel manufacturer in the world.
Not far behind is JinkoSolar, another Chinese giant. Nearly 3 out of every 4 solar panels on the planet come out of just these two companies.
But their newest locations aren’t in Shanghai or Xinjiang, where they’ve built before.
Instead, they’re in places like Pataskala, Ohio, and Jacksonville, Florida.
These Chinese companies noticed something. More and more of their panels were being shipped to power new projects in the U.S.
The reindustrialization of America requires energy, and solar panels are a key source. According to the Solar Energy Industries Association (SEIA), the U.S. solar industry installed 6.1 gigawatts-direct current (GWdc) of capacity in Q1 2023, a 47% increase from Q1 2022.
(1 GW is enough to power approximately 876,000 homes for one year.)
And U.S. demand for solar energy is expected to triple over the next five years.
So, a couple of extended lockdowns in China… a growing market in America… and LONGi and Jinkosolar saw the writing on the wall.
Building in the U.S. – and avoiding tariffs – was too good of an opportunity to pass up. Now, they’re part of America’s story.
These are the kinds of companies that initially powered China’s rapid growth from an impoverished country to the world’s second-largest economy.
Now, they too are contributing to America’s economic resurgence. And this means we have an opportunity to profit from them.
How We Can Profit From Foreign Companies Moving to America
America’s reindustrialization is going to be a huge driver of demand and growth for the energy sector. That includes fossil fuel and renewable energy.
Cheap fuel and electricity are some of the reasons outside companies are opting to build in America. And they’re crucial to promoting rapid growth with fewer operating costs.
One company sits at the intersection of these key themes. Hannon Armstrong Sustainable Infrastructure Capital (HASI) is the best renewable energy-focused REIT we follow.
In the past 10 years, the real estate investment trust’s (REIT’s) dividend has more than doubled – and it’s never been cut. Revenue has increased every year during that period, too. More recently, the company’s cash flow grew by 41% year-over-year.
The company’s expanding portfolio of renewable energy projects allows it to capitalize on economic growth all around the country.
Hannon Armstrong is currently trading near 52-week lows and with an attractive 6.8% yield. It’s been years since the stock yielded that high, making this a great time to get in.
At Wide Moat Research, we bring you high-quality income opportunities that allow you to sleep well at night… And there’s an even a bigger trend we’re tracking that can help you do that.
Right now, Intelligent Income Daily Editor Brad Thomas has identified a trillion-dollar shift taking place in the energy sector.
Already, investors have had the chance to see gains as high as 234%… 315%… and 544% from a handful of little-known energy plays.
And Brad has identified the next opportunity that’s poised to soar. It could help investors claim a piece of the $44 trillion worth of investments headed into these types of companies.
Every company that moves manufacturing to the U.S. – including Chinese ones – will help power this trend. And you won’t want to miss out on the potential profits up for grabs.
Make sure to watch Brad break it all down – including the name of one of these little-known companies – before this presentation is taken down at midnight tonight.
Regards,
Stephen Hester
Analyst, Intelligent Income Daily