Latest News:  


Labor, foreign investment key advantages for Chengdu: Nobel laureate


08:06, June 07, 2013

CHENGDU, June 6 (Xinhua) - Cheaper labor and booming foreign investment are the key strengths of China's western business center of Chengdu, Nobel Prize-winning economist Robert Mundell said Thursday.

Addressing a symposium held on the sidelines of the 2013 Global Fortune Forum in Chengdu, Mundell said the inland economic hub should exploit its comparative strengths in the face of economic globalization.

Relatively cheap labor in Chengdu has attracted many domestic and foreign companies against the backdrop of rising labor and operational costs in the east.

"There will always be a low-end production comparative advantage here," Mundell said.

"As you move up the ladder to more high-tech and capital-intensive products, foreign investment will be a big part," he said, adding that foreign investment simultaneously brings capital, technology and market access.

"Growth has been spectacular in Chengdu, with a huge increase in foreign investment and exports," said Mundell. "Given the success that Chengdu has been having with foreign investment, I think that should play a big role."

More than 200 Fortune 500 companies have set up branches in Chengdu, which is often cited as "a benchmark city for investment in inland China."

The combination of a low-end production advantage and a booming high-tech sector has made Chengdu an attractive place for foreign investors and improved labor quality.

Mundell said Chengdu should consolidate its role as a manufacturing base and continue to foster investment in order to maintain its advantages.

Mundell also expressed confidence in China's economy.

"I think economic growth is going to remain high in China. I think growth in China will remain around 8 percent," Mundell said, adding that China must increase consumption and boost incomes in order to sustain its growth.

"I think that will also involve some movement of production from export industries to the service industry. China has a very small service industry compared to more advanced countries," he said.

We Recommend:

Ladies in finance industries

Fortune Global Forum to be held in Chengdu

Top 10 most competitive airlines in the world

General view of Hefei Xinqiao Int’l Airport

China FAW launches high-end car model H7

Top 10 most competitive cities in China in 2013

Boeing delivers China’s first 787 Dreamliner

Intelligent & beautiful Asian business women

Eye-catching models highlight house fair

Email|Print|Comments(Editor:WangXin、Chen Lidan)

Leave your comment0 comments

  1. Name


Selections for you

  1. North Sea Fleet in replenishment training

  2. Internal photos of China's aircraft carrier "Liaoning"

  3. Chinese miners in Ghana

  4. Versatile Chengdu in SW China

  5. Former journalist draws pollution map of China

  6. Where's the bottom line of shows?

  7. Yuan Shanshan in white dress

  8. Sharapova reaches semifinals

  9. China's cloud computing chain ready

  10. Top Wine China 2013 Expo kicks off in Beijing

Most Popular


  1. Law desiderated to protect interns' right
  2. China owes a huge debt to the environment
  3. China's middle class emerges, to spend more
  4. Xi-Obama meeting of milestone significance
  5. Violation of women's rights root of sexual assaults
  6. China not to tolerate rogue act on S. China Sea
  7. Imaginaion: essential for cultural confidence
  8. How ZTE is winning the US market
  9. Global IT and techno-jingoism
  10. Copycats stifle Chinese innovation

What’s happening in China

Breathing and Working Together:Mobile app tells you Beijing's environment

  1. China tops world in losing top-notch personnel
  2. Beijing hikes taxi base fare by 30 pct
  3. Shanghai ranks No.2 in research contributions
  4. 'Special marriage group' byproduct of social times
  5. Reservoir to be built in Huangpu's upper reaches