Leading U.S. supplier of biotechnology products and services, Thermo Fisher Scientific, will set up a new production base in the city of Suzhou, east China's Jiangsu Province, as part of its long-term investment in the Chinese market.

The plan was unveiled when the company signed an agreement with the hi-tech development zone of Suzhou New District (SND) on Wednesday to increase investment in China.

Despite the short-term challenges posed by the escalation of U.S.-China trade frictions, Thermo Fisher Scientific remains optimistic about the long-term growth opportunities in China, one of its most important markets worldwide, and will continue to invest in it, said Syed Jafry, the company's senior vice president.

In an interview with CGTN in March, Tony Acciarito, president of Thermo Fisher Scientific's China branch said that the company remains confident in China's further opening-up and its national focus on health, noting the company would continue to innovate for the Chinese market by developing digital solutions.

The Fortune 500-company plans to build a base in the SND to manufacture single-use bioreactor bags. Phase I of the project is expected to commence in 2024.

The production base will provide services to major biomedicine clients within and around the SND, according to the company.

Seizing the momentum of China's healthcare industry, the company has posted rapid growth in China since the establishment of its largest single manufacturing plant, Thermo Fisher Scientific (Suzhou) Instruments Co., Ltd, in 2011.

SND's medical device industry has seen an average annual growth rate of over 30 percent in recent years. Related firms, from both at home and abroad, exceeded 300 at the end of 2018, up from 87 in 2011, according to SND director Wu Xinming.

In 2018, the SND's biotechnology and new pharmaceutical industries generated more than 10 billion yuan (about 1.41 billion U.S. dollars) in output value, added Wu.

During the January-June period, foreign investment utilized by Jiangsu Province ranked first nationwide to reach 15.25 billion U.S. dollars, as overseas companies showed confidence to further tap the market.

(With input from Xinhua)