Chengdu bucks downward trend as multinationals thrive

Updated: 2014-08-15 14:12

(China Daily)

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Sichuan's capital Chengdu has been winning favor among the foreign investment community even amid a gloomy global economy and downward pressure nationwide.

A leading multinational medical device provider from the US, Medtronic Inc, is a recent arrival in the Chengdu High-Tech Zone, where it established a development and global manufacturing base for its hemodialysis system on Aug 4.

Its production line is expected to begin operation in 2016 making products and key parts to serve markets in China and around the world, said Omar Ishrak, chairman and CEO of the company.

The Chengdu f a c i l - ity also marked a milestone for Medtronic's development in China following its Shanghai Innovation Center that opened two years ago, Ishrak said. "Chengdu is our best choice because it is the most dynamic region in central and western China, and a great number of Fortune Global 500 companies have established development and manufacturing facilities here," he said.

Chengdu is home to a number of universities and research institutes that provide a large talent pool in electronic engineering, material chemistry and medical treatment.

As well "the efficient and pragmatic government service is one of the main factors that Medtronic chooses Chengdu", he said.

Global logistics giant DHL also places a high value on Chengdu as an emerging market and investment focus in China.

DHL has based its finance shared service center in Chengdu and established an operation center in the city in 2012.

Wu Dongming, executive vice-president of DHL Express Asia Paci( c, said the group is planning to put its global shared service center in the city following the good performance in Chengdu.

Xie Shiping, southwest cluster general manager of joint venture DHL-Sinotrans, said the company's Chengdu branch had double-digit growth in 2013 despite a global decrease in foreign trade.

"DHL has been adding investment in Chengdu and southwestern China as the market continues to grow and more clients establish relationships with us," he said.

"Apart from the major clients in electronics, heavy industry and auto manufacturing, DHL has expanded its service to international ( nancial and other foreign institutions in Chengdu."

In February, DHL signed an agreement with the Chengdu international express center to extend its business in the city.

The company's office space will be expanded to 2,000 square meters, able to handle 8,000 metric tons of express cargo annually.

Multinational chemical company DuPont opened a Chengdu branch in 2012.

Tony Su, president of DuPont China, said the company's business in the region has grown rapidly because of Chengdu's favorable business environment and support provided by local governments at all levels.

"DuPont's focus on food, energy and protection matched perfectly with the growth strategy and vision of Chengdu, and we look forward to working with local governments, academics, science institutes and industry partners," he said.

He also noted Sichuan province's large population and welldeveloped economy.

Chen Fu, deputy directorgeneral of Chengdu Investment Promotion, said the city has become a magnet to multinational companies.

It attracted 95 foreign investment projects in the ( rst half of the year, with actually utilized foreign capital totaling $5.1 billion, ranking second among China's 15 sub-provincial cities, trailing only Dalian.

A total of 255 Fortune Global 500 companies have operations in Chengdu with the number reaching 260 by the end of the year, Chen said.

He said the city's attraction to foreign investment "is backed by a convenient logistics network and excellent government services".

Chengdu Shuangliu International Airport, the fourth-largest in China in passenger traf- ( c, has 74 international K ights to a range of cities including London, Abu Dhabi, San Francisco and Melbourne.

An express rail from Chengdu that opened last year links China's western region with Lodz, Poland. "

The express rail carries laptops, iPads, auto parts and daily necessities produced in Chengdu and other parts of the country to Europe in 14 days. Over the past decade, the Chengdu government has been reducing administrative procedures, to make it easier for foreign-funded enterprises to do business. It is one of the Chinese cities with least administrative procedures.

Contact the writers at liyu@ chinadaily.com.cn and pengchao@chinadaily.com.cn

 

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