Foreign Investment Continues to Grow in Chengdu

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One billion yuan, or 158 million US dollars – this is what the German engineering giant Siemens has invested in August in the southwestern metropolis of Chengdu to establish a smart manufacturing innovation center, and a global industrial software R&D center. This ambitious move came after 2013 when the company established its first overseas digital factory here.

MA ZIYE, GENERAL MANAGER SIEMENS CHENGDU & CHONGQING "Chengdu has a very solid industrial eco-system, with favorable investment environment and very good talent resources."

Ma said Siemens Electronics Works Chengdu receives strong local government support, and the two sides have closely cooperated on the city's infrastructure such as the airport and metro lines. The company's rapid development demonstrates Chengdu's status as China's new hub for foreign investment.

YANG JINGHAO CHENGDU, SICHUAN PROVINCE "Official data show as of October, 281 of Fortune Global 500 companies already have a presence in Chengdu. 199 of them are from overseas, and the number is expected to continue to grow.

Benjamin Wang, Chairman of the American Chamber of Commerce in Southwest China, brought the US coffee brand Beanary to Chengdu in 2002.

He said investment in the city has been more diverse in recent years. Besides multi-nationals, many small and medium-sized US firms in various industries have also been drawn to the thriving city.

With good development momentum, these companies are also faced with multiple challenges such as rising labor and operational costs, as well as IPR protection problems.

BENJAMIN WANG, CHAIRMAN AMERICAN CHAMBER OF COMMERCE IN SOUTHWEST CHINA "The city gotta have the IP(R) protection. Some US enterprises are afraid of losing IP(R). So this is a big challenge for US companies and on the other hand, this is another challenge for Chinese government."

Wang said despite these problems, more than 80 percent of the US companies they survey are confident in the development of the city. Some are willing to invest more. As the global leader in electrification, automation and digitization, Siemens is optimistic and has bigger plans.

MA ZIYE, GENERAL MANAGER SIEMENS CHENGDU & CHONGQING "With the further implementation of the Belt and Road Initiative, we are confident we will have more opportunities in intelligent manufacturing, smart cities, mobility and energy in Chengdu."

Ma said with these two new centers, Siemens hopes to promote the connection between "Made in China 2025" and German "Industry 4.0" initiative in a new era when China is determined to open its doors wider to foreign investors. Yang Jinghao, CGTN, Chengdu, Sichuan Province.