Before the end of his 30-day visit to Columbus, Indiana, business owner Lin Yin agreed to invest in a warehouse and distribution center for Shanghai Top Motor Co.

By building the company's first warehouse and distribution facility in Columbus, Lin hopes to make the city a launching pad for his growing US business.

That is the same reasoning the Columbus Economic Development Board (EDB) would like other Chinese companies to invest in the southern Indiana city.

Shanghai Top Motor is one of the leading manufacturers of small- to medium-sized electric motors, water pumps and generators in China. The privately owned company, worth $12 million, exports its products to the US, Europe, the Middle East, and Africa as well as sells them domestically in China.

In May 2008, Shanghai Top Motor entered into a joint venture with Columbus-based LHP Technologies to build a six-acre facility in Woodside Northwest Industrial Park in Columbus. The $7.3 million joint venture, called Techtop LHP, also purchased an additional 30 acres adjoining its warehouse facility in hopes of attracting other companies.

Ryan Hou, founder and chief executive of LHP Technologies, says that the company is one of four Chinese investments in Columbus that is a result of a good relationship with China.

Hou says the city wants "a piece of the Chinese investment pie".

"Columbus has a lower cost of living compared to many American cities," he says. "It has a supportive local government who provides good incentives for businesses."

Techtop LHP was lured to Columbus with a promise to receive more than $1 million in income tax and investment tax credits, training and infrastructure grants, and property tax abatement.

In April of last year, Techtop LHP officially opened its Columbus facility. It hired more than 200 people to work at the 60,000-square-foot building that mostly serves as a warehouse and distribution center for its North American business.

The company plans to add assembly and manufacturing operations at the Columbus center, which could create 60 more jobs.

According to Tom Brosey, president of LHP, it would make sense for Chinese companies that do business in the US to locate their manufacturing facilities here, especially for businesses that require little labor.

"The automotive industry is one example that could make manufacturing here a possibility. The difference between China and the US is labor costs. At present, it takes three to five weeks to ship an electric motor from China to the US. It might be worthwhile to manufacture them here in the future, especially if the yuan keeps rising," Brosey says.

Techtop LHP, meanwhile, hopes to attract other Chinese businesses to its adjoining 30-acre development at the industrial park.

"It could be a joint venture with us or a wholly owned business. Part of our strategy is that if we can attract additional businesses here, we might be able to provide value-added services to them as well," Brosey says.

Besides Techtop, LHP has another joint venture with two other Chinese companies called LHP Yinchang, whose office is housed within the new warehouse. LHP Yinchang has a full-time employee and a team of contractors to help Chinese automotive companies who supply engine parts to US companies.

Having prior experience with Chinese companies means LHP understands how to work with Chinese partners.

"What I learned most is that the Chinese business culture is based on relationships and trust among parties. If you do not have a relationship, you probably are not going to have a successful business," Brosey says.