Bank of China (BoC) is set to move to a larger branch in New York this fall as the Chinese 2015 FDI in the U.S. rose by 30 percent to $15.7 billion.
The new branch, which is located in 7 Bryant Park in midtown Manhattan, will stand next to the Bank of America Tower and other major American financial institutions around the neighborhood.
Xu Chen, director of Bank of China's U.S. branch, told China Daily that the move was prompted by a lot of new business caused by stronger economic and trade partnerships between Beijing and Washington.
"Our number of employees is increasing quickly, and the old building (on Madison Avenue and 48th Street) wasn't big enough," he said.
Xu noted that the new branch's location in Bryant Park, which sits on the Avenue of the Americas, is symbolic of the close economic and trade cooperation between the two countries and highlights China's increasing role in the global economy.
The move comes as BoC's assets abroad have skyrocketed by 54 percent in 2014. The bank's foreign profit rose by more than 5 percent, comprising almost a quarter of its total profit.
Analysts expect the BoC to continue to provide traditional banking services, including bond investments and trade services, to its customers while at the same time develop its retail services to accommodate the growing number of Chinese students in the U.S. and those immigrating to America for work.
The bank previously opened a branch in Flushing, Queens, the previous year to serve New York's fastest-growing Chinese community.
In addition, Bank of China has been active in cross-border yuan transactions as China's currency continues to internationalize, Xu said, adding that its U.S. counterpart is expected to increase its yuan liquidation and settlement.
Chinese investment in the American market is at an all-time high, with China's foreign direct investments in the U.S. in 2015 growing by 30 percent to reach $15.7 billion.
Activity this year has already surpassed 2015 number, and the bank expects the trend to grow stronger in the foreseeable future, Xu said.
"The U.S. is the most desired destination for Chinese investors," he added, noting that the U.S. market offers a wide variety of products and expertise that many Chinese companies might be lacking.
Xu said the food and beverage, energy, and healthcare sectors in particular can help China support its aging and growing population.
"Being a populous country, China is already experiencing what we call an 'aging society.' For the pharmaceutical, healthcare sectors, there is a greater and greater need for their services," he said. "The U.S. is also a leader in fields like biotechnology, so I feel the two countries will find ways to cooperate more and more."
Xu also cited the environment as another point of collaboration, given China's partnership with the U.S. on reduction of carbon emissions.
"There is huge cooperation potential for the two countries in the clean energy sector, since the two countries jointly promoted the agreement on global reduction of carbon dioxide emissions in Paris last year," he said.