China's decision to open its industry and economic doors to the world has resulted in a massive influx of foreign investors in recent years.
This is especially true in the capital city of the Sichuan province, where a reported 22 foreign investment deals were made just recently. During the city's "Chengdu can do" foreign investment event held late last week, a number of foreign firms had signed deals that were reportedly worth more than US$3.39 billion.
Out of the 22 foreign investment projects, nine were for massive high-end manufacturing facilities. This includes projects for key sectors including aerospace, automotive, equipment manufacturing, and electronics. Those nine deals alone are reportedly worth around US$1.77 billion. The other projects that were signed by foreign firms included undertaking in various other fields, which includes logistics, elderly care services, culture, and logistics. Those deals are reportedly worth around US$1.62 billion.
Some of the largest foreign industry leaders in their respective sectors took part in the event. Some of the firms that had signed multi-million dollar deals included the HappyEasyGo Group from Singapore, AREP from France, and Baxter International from the United States.
During the event, City Mayor Luo Quiang mentioned that Chengdu will continue to improve its business relationships with foreign investors as the country enters a new era with its new and more open regulations to foreign businesses. Luo also proudly exclaimed that Chengdu is in one of the powerhouse cities that is fully open to welcoming foreign investments. Luo emphasized that the city's government will do everything in their power to provide a suitable business environment that will support the further development of foreign projects.
The city of Chengdu currently boasts more than 8,000 foreign-invested firms. Around 285 Fortune 500 companies operate in the city, which translates to billions of dollars being injected in its economy every year. In 2018, Chengdu reported around US$12.28 billion in new foreign capital, which is a drastic 22.3 percent increase from what it got in the previous year.
The rapid increase in foreign business interest in the city has mostly been due to the various policy changes in the country, which included more lenient business registration processes and other preferential policies. One of the biggest countries to express its interest in undertaking more projects in the city is New Zealand.
The country is reportedly working closely with Chengdu to explore more business and investment opportunities that are beneficial for both sides. According to the country's consul general in Chengdu, New Zealand has recognized Chengdu as an important driver of growth in Southwest China.
