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Multinationals Marching Into Western China
More than 60 out of the world's top 500 industrial enterprises have invested in western China. In the first several months, foreign investment in Sichuan Province, southwest China, was three times more than the same period last year.
Since June last year, China has encouraged foreign businesses to invest in its western region since the central government initiated a campaign to develop the region.
Ford Motor Company Vice Chairman Wayne Booker said that "We need a balanced development. The western region with one-fourth of China's total population is the first choice of my company to develop business potential since there are flood of markets in eastern China."
Booker, who is attending an international symposium on the development of western China, said his company is considering investing more in western China.
Compared to foreign investment in eastern China, some western regions are still struggling to attract overseas money. However, the situation is expected to turn around for the better this year since some foreign companies are starting to make profits.
The U.S. BP Amoco company has invested in an acetic acid project in Chongqing and made 3 million U.S. dollars in profits in its first year of operation. The company plans to invest more funds in the project.
The Glaxo Holdings Ltd. from Britain has also made big profits after increasing investment.
Many foreign businessmen have attributed the success to the rich resources and cheap labor in the western region.
Another factor that encourages foreign investors is that the Chinese Government plans to invest heavily to improve infrastructure facilities. China plans to build 20 airports in the region this year.
Lawrence Klein, who was awarded a Nobel Economics Prize in 1980, said at the symposium that multinationals coming to western China is part of companies exploring new markets around the world.
Most multinational companies first put their capital into high- tech industries zones in some key cities in western China.
The Republic of Korea (ROK) has become the second largest trade partner of Xinjiang Uygur Autonomous Region. ROK's businessmen have not only invested in local railway construction, but also in the development of organic agriculture.
Wang Tongsan, an economist from the Chinese Academy of Social Sciences, said that "Chinese Government should further open its western markets, so that the region can attract more foreign funds. "
The State Development Planning Commission announced recently that the country will open more sectors to foreign investors, including telecommunications, insurance and retail sales market.
Foreign investors even can apply for mineral exploration in the region.
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