China, Savior of the Rust Belt?

As a Mandarin-speaking lawyer and now managing director of the China Alliance, a venture of three law firms--two Midwestern and one Canadian--Charles W Freeman III advises clients in such cities as Detroit, Milwaukee, and St. Louis about how to tap into the $820 billion in foreign reserves that China is holding. In the process, he could help salvage some of the hundreds of small US auto parts makers struggling to survive. Investment in America's heartland, he argues, would strengthen Chinese ties to the US and promote goodwill and influence in Washington. Eventually, China might even join Japan and South Korea as a player in the world's most lucrative auto market, he contends. So far, Chinese companies aren't lining up for a piece of the Rust Belt. Freeman has yet to complete a deal, though he claims to be close to selling two Midwestern auto parts companies--makers of brakes, heaters, and air conditioners--to Chinese investors.