FORTUNE -- Chinese companies have created more than 10,000 American jobs in 35 states as they seek to go global and expand into the U.S. market -- investing more than $5 billion here in 2010 alone.

But the unfortunate perception that Chinese investments are unwelcome in the U.S. for political reasons risks deterring further investment, turning away the opportunity for further capital inflows and job-creation, according to a study released Wednesday by the Asia Society in New York and the Woodrow Wilson Center for International Scholars in Washington.

It's all part of political tit-for-tat in Washington, where some lawmakers are seeking to hit back at China in response to reports of negative treatment of U.S. investors in that market -- or simply to take advantage of anti-China sentiment among an electorate that's angry over job losses during the economic downturn. The irony, of course, is that with national unemployment still nearly 9%, jobs are badly needed in the U.S., no matter who is doing the creating.

"Political interference and fear-mongering threaten to divert legitimate and potentially beneficial investment deals," the report says. "If political interference is not tempered, some of the benefits of Chinese investment -- such as job creation, consumer welfare, and even contributions to U.S. infrastructure renewal -- risk being diverted to U.S. competitors."

In other words, why set up shop in a hostile United States when it's easier to take advantage of North American Free Trade Agreement (NAFTA) provisions and head to Juarez, Mexico instead of Texas, or Ontario, Canada instead of Michigan, and simply export to the U.S. market instead?

For a number of reasons (see "American Made...Chinese Owned," Chinese companies want to be closer to U.S. consumers to figure out their desires and interests. They also want to take advantage of the fact that the recession has made the U.S. a cheap manufacturing destination compared to coastal Guangdong province and Shanghai. And in some cases -- such as the construction of a plant to make seamless pipe for the oil-drilling industry, which Tianjin Pipe Group of China is currently building in Corpus Christi, Texas -- it makes sense to evade 99% tariffs on imported steel. That plant will ultimately create 600 jobs, though its completion has been delayed by a year until 2013.Carlyle's Rubenstein: Why China 'really' loves private equity



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