Later this year along the banks of the James River outside Richmond, Virginia, a paper products maker based in northeastern China will begin construction on a new U.S. manufacturing plant. The factory will churn the region's straw and corn stalks into household products including napkins, tissue and organic fertilizer—all marked "Made in the USA." Shandong Tranlin Paper's new U.S. factory is forecast to generate about 2,000 new jobs by 2020, and is the latest Chinese company to invest in American manufacturing. Chinese foreign direct investment in the U.S. totaled $12 billion last year, topping $10 billion for the second year...