Hangzhou: A magnet for foreign investment

A sound business environment, booming internet industry and innovative technologies have made Hangzhou, capital of Zhejiang province, a strong magnet for global enterprises and foreign investment.

According to statistics from the Hangzhou municipal government, Hangzhou foreign investment showed an upward trend in 2018, with 744 new foreign-invested enterprises and 224 over-$30-million foreign funded projects landing in the city. The actual use of foreign capital amounted to $6.83 billion, up 3.28 percent compared with the previous year.

Foreign companies optimistic about Hangzhou

Toshiba Carrier Corporation, an air-conditioning joint venture between Japan's Toshiba and the USA's Carrier Air Conditioning & Refrigeration Limited, established their Chinese air conditioner production base in Hangzhou.

After five years of development, the company poured 400 million yuan ($57.97 million) into building a larger base in Hangzhou last year which will serve as a regional headquarters and a center for production, research and development (R&D).

"The huge potential demand in the Chinese air conditioning market and the sound business climate in Hangzhou persuaded us to expand investment and build a global R&D production base," said an official from the company.

A keen focus on innovative technologies is another key reason why foreign companies are entering Hangzhou.

Singapore-Hangzhou Science & Technology Park, a joint venture between Ascendas-Singbridge Group, Asia's leading provider of business space solutions, and Hangzhou, is currently home to a range of leading research institutions, such as Sougou and the University of Auckland Innovation Institute China and others in the areas of artificial intelligence, information technology, biopharmaceuticals and the e-commerce industries.

"We are honored to witness and be a part of the rapid economic development of Hangzhou,"said Miguel Ko, executive director of the group, adding that the company will continue to expand its business in China and provide quality services and products for customers.

Forging a better environment, diversified investment structure

Hangzhou has constantly strived to improve the working efficiency of government services and develop a world-class business environment for global investors.

Pfizer Inc, the world's largest pharmaceutical firm, broke ground for a state-of-the-art global biotechnology center in the Hangzhou Economic Development Area in 2016. Within less than two years, the project went into operation.

We hope to bring the latest technology to Hangzhou and the best quality and most effective drugs to China, with the hope of contributing to the economic development of Hangzhou, said Wang Yingqun, general manager of Pfizer Biopharmaceutical (Hangzhou).

Aside from foreign capital, Hangzhou has also attracted an increasing number of domestic investments over the years. Last year, a total of 1,048 projects from overseas Zhejiang merchants were introduced, with a paid-in investment value totaling 86.92 billion yuan, a year-on-year increase of 14.09 percent.

The information economy, advanced manufacturing, and biopharmaceutical industries are among the key focuses of investments in Hangzhou.