| 21st Century Manufacturing Base |
简体中文版 |
The Chinese government has been dedicated to improving its investment environment to attract more foreign investment since its adoption of the open-door policy. In 2002, China ranked No.1 in the world in terms of foreign direct investment ("FDI"). China has obviously become the first choice for many foreign investors.
Generally speaking, FDI in China mainly focuses on three economic regions: the Bohai Sea Region, the Pearl River Delta and the Yangtze Delta. In recent years, more and more foreign investment enterprises have found that land, energy, labour force and other production costs in these three regions are increasingly high. This has negatively impacted operating costs. Concerns over increased costs have led to the relocation of foreign investment as well as the rearrangement of industry chains.
A series of central government policies has promoted the transfer of foreign investment, especially in the manufacturing segment, from the three economic zones to Central and Western China. This broad region is a naturally advantageous location, rich in resources and with a large market.
Among Central and Western Chinese cities, Wuhu is one of the most important transportation links connecting traditional three economic zones in East, South and North China. Wuhu has become a popular choice for many enterprises moving from the Eastern costal areas to Central and Western China. With years of support from various levels of government, Wuhu's investment environment has been greatly improved. A significant number of well-established domestic and overseas enterprises have invested here, including Wal-Mart, Hitachi, Knauf, Siemens, Total, Chery and Conch. These enterprises have recognized the following advantages of locating in Wuhu:
- Superior geographic location and logistics;
- Convenient access to other major Chinese cities;
- Abundant land storage at relatively low prices;
- Substantial labour resources and low labour costs;
- Sophisticated infrastructure and low costs; and
- Positive industrial policies and highly efficient public services.
The Wuhu government engaged PricewaterhouseCoopers to prepare a report analysing Wuhu's investment environment. We believe that Wuhu will emerge as a Chinese manufacturing base in the 21st century. This is especially so given the global manufacturing industry's and investors' focus on lower operating costs and broader market range.
The Use of this Report
This analysis aims to provide information regarding investment strategy for enterprises intending to invest in China, and in Wuhu, Anhui Province specifically.
Unless noted, the information and statistics enclosed in this report are based on materials provided by various Wuhu government departments up to 31 July 2006. Therefore, the subsequent updating of relevant information or statistics is not covered in this report. In this regard, we suggest that investors consult with the relevant Wuhu government department(s) or with PricewaterhouseCoopers for any possible changes before making any decisions.
We would like to thank the Wuhu government and the Wuhu Economic and Technological Area for providing relevant materials, information and pictures. Their assistance is highly appreciated.
Get Your Copy Here
Read more by downloading our Wuhu City, Anhui Province - Investment Environment Study 2006 (pdf file, 1.7MB) for your reference.
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