Chinese Seek to Build Industrial Park in Winnie to Usurp US Tariffs

By Gloria Way

*I want to clarify a couple of issues before you read this article. (1) The Opportunity Zone under which this proposed industrial park is seeking to operate was created by the federal government in 2017. It is a federal initiative not a county initiative. The county has no control of what a potential buyer does with the property as long as the development meets the requirements outlined in the Chambers Subdivision Manual June 2022 which is on the road and bridge website. It must also be noted that Asia-Pacific OZ Business Park has yet to purchase the property.

  Chambers County requires permitting for any commercial or residential development, including additions or remodeling. Permits must be reviewed by the Development Review Committee (DRV) to ensure compliance with county regulations, including but not limited to Subdivision Regulations, Drainage Criteria, Fire Code, and Environmental Health.

  Thursday, January16th at 10am, at the county’s road and bridge office, the county’s DRC will meet to hear plans from David Chen, president of Asia-Pacific OZ Business Park, to develop approximately 500 acres located at FM 1410 and right off I-10.

  Here is the project background straight from Chen’s report to be presented Thursday (there are grammatical errors in the statement likely due to translation):

“As President Trump will most likely to increase the tariff on Chinese products during this new administration, therefore it will significantly reduce the competitiveness of Chinese products into the US Market, and results higher cost of goods imported from China, and causes American importers to seek supply from elsewhere such as South East Asia and Mexico. Recently, many Chinese manufacturers have rerouted their products into the US market via Mexico and Canada, in attempt to get around the uprising importation tariff and duties, but this strategy is about to be compromised as President Trump has already threatened to raise the import tax and tariff on products come in from Mexico and Canada, so a new and permanent strategy is needed desperately now more than ever for the Chinese manufacturers who wish to sell their products into the US market.

  Under the current trade tension between the two largest economic powers in the world, an excellent business opportunity surfaces  as a result, our Company as a real estate developer has decided to act and take advantage of this situation, by building a centralized full-service industrial park to satisfy the strong demand of those Chinese companies who wish to establish their final assembly operation in the US to totally avoid the heavy tariff burden. After a series of physical site visits, thorough policies researches and careful strengths evaluations performed on dozen of potential sites over the past six months, our Company has decided to establish the very first Asia-Pacific OZ Business Park in the Greater Houston area in Texas, to accommodate those Chinese manufacturer to relocate their final production and assembly operations from China, Taiwan, Thailand, Malayasia, Vietnam, and Cambodia into our business park, and become US domestic companies.”

   This parcel of land is part of The Opportunity Zone Program that was created through the Tax Cuts & Jobs Act of 2017, and is a federal initiative administered by the U.S. Department of Treasury. The program is designed to spur economic development and job creation in distressed communities throughout the United States. The program offers incentives, in the form of capital gains tax abatement, for those who invest eligible capital into Qualified Opportunity Zone assets. 

  Because this is a rural area in a federally qualified opportunity zone, by spending a minimum of $$800,000 or $1,050,000 (depending on the location) in a project with a US base that meets the program’s requirements, overseas investors can become permanent residents of the US through the EB-5 investor visa program.

  So, as you can see, what was intended to be a program to promote and enhance economic growth in rural communities through the federal opportunity zones, it has become a loophole for foreign investors to infiltrate communities that offer tax incentives and capital gains deferrals. And, because of low populations rates in rural communities, foreign nationals/investors can take advantage of the Rural EB Investment Green Cards for permanent residency.

  The Seabreeze Beacon will update you as more information becomes available.