China's Shaanxi, a magnet for foreign investment

An aerial drone photo taken on March 5, 2024 shows the plant of People and Technology from the Republic of Korea in Qianxian County of Xianyang, northwest China's Shaanxi Province. (Xinhua/Zhao Yingbo)

XI'AN, June 5 (Xinhua) -- An industrial park, invested by a company from the Republic of Korea (ROK), for the production of high-performance copper foil and advanced materials for rechargeable lithium metal batteries is under construction in northwest China's Shaanxi Province.

Part of the company's Next Advanced Material (NAM) project, it is the second industrial park in Qianxian County, Xianyang City, invested in by People and Technology Inc. (PNT), a ROK-based global manufacturer and provider of roll-to-roll processing equipment.

In 2014, the ROK company invested in its first industrial park in Qianxian, specializing in copper foil manufacturing equipment and coating machines. After it began operations in 2016, a number of enterprises producing supporting facilities were attracted to the county.

After it begins full production, the NAM project, with a total investment of approximately 3 billion yuan (about 421.96 million U.S. dollars), is expected to generate an annual output value of 20 billion yuan, create over 1,000 job opportunities and attract more than 10 supporting enterprises from ROK to the industrial park.

"Local government has provided us substantial support all along, which is the reason why we once again chose to start our business here," said Jeon Deogho, chairman of PNT.

PNT's expanded investment reflects a foreign investment boom in Shaanxi. In 2023, the number of newly established foreign-invested firms in the province hit 408, a record high over the past two decades, and up 29.9 percent year on year, according to the local commerce department.

Shaanxi is attractive to overseas firms due to its geographical features, and supporting and preferential policies provided by the local government.

An aerial drone photo taken on May 25, 2024 shows Xi'an international port station in Xi'an, the capital city of northwest China's Shaanxi Province. (Xinhua/Zhang Bowen)

Shaanxi is also a national traffic hub, and its provincial capital of Xi'an is a departure city of the China-Europe freight train service, which means products can be conveniently transported from there to West Asia, the Middle East and Europe. This is important for companies targeting the global market.

The Shaanxi local government attaches great importance to foreign investment, and has introduced a flurry of preferential policies, including tax incentives and streamlined approval processes.

With the support of the local government, Switzerland-based power equipment company Hitachi Energy established its subsidiary, Hitachi Energy Xi'an Power Capacitor Co., Ltd., in Xi'an in 2000. In April 2023, the subsidiary relocated to a new production base in Xi'an-Xianyang New Area, which is considered Hitachi Energy's largest global manufacturing base for producing capacitors and power-quality products.

"It was a huge project to complete the overall relocation and operate the facilities and production lines in an orderly fashion. We achieved this thanks to the support from local governments at all levels," said Huang Zheng, general manager of the subsidiary.

In March this year, an action plan comprising 24 specific pro-foreign investment measures was unveiled by the State Council, China's cabinet, with targeted measures to expand market access, enhance appeal to foreign investment, foster a level playing field, and facilitate the flow of innovation factors, as well as better align domestic rules with high-standard international economic and trade rules.

"In the process of working here for 31 years, I have found less and less barriers to communication between foreign enterprises and the government, and the increasing efficiency of government services," Huang said.