Beijing riding wave of investment into prosperity

Decades of opening-up paying dividends as republic celebrates its 70th anniversary

Beijing has made marked achievements in opening-up over the past 70 years, gaining momentum for future growth, local officials said.

More than 40,000 foreign-invested companies have established a presence in the Chinese capital since 1949. Collectively they have utilized more than $160 billion in combined investment, said Liu Meiying, deputy director of the Beijing Commerce Bureau, at a news conference on Sept 12.

Since late 2012, the total paid-in foreign investment flowing into Beijing has consecutively passed $8 billion, $9 billion, $10 billion, $13 billion and $16 billion, Liu said. She added that these are only part of Beijing's remarkable growth.

Dai Ying, spokesperson for the Beijing Development and Reform Commission, said that to date, foreign-invested companies have contributed nearly 40 percent of Beijing's total industrial output value. They supply one-fourth of invention patents, more than one-third of fiscal revenue and 12.4 percent of urban employment.

Foreign direct investment has expanded from manufacturing to business services, software and information technology. Among the 179 regional headquarters built by multinationals in Beijing last year, many are tech-focused and innovation-centered, Dai said.

"They are taking advantage of Beijing's extraordinary pool of high-tech capability," she added.

According to her, German car giant Daimler and Beijing's auto group BAIC Motor have jointly invested 11.9 billion yuan ($1.7 billion) to build a new Mercedes-Benz production center in the city. Japan-based pneumatic products manufacturer SMC has established a global technology hub in the city, with an annual investment of 440 million yuan in research and development.

In addition to attracting foreign investment, Beijing has created opportunities for local companies to enter the international market.

Government data show from January to July this year, local enterprises increased their direct investment in overseas projects by $5.5 billion, up 56 percent year-on-year. Over the past six years, their investment in more than 30 countries involved in the Belt and Road Initiative totaled $2.1 billion, with a double-digit average annual growth rate.

Beijing Enterprises Group has helped set up a special economic zone in Cambodia's capital, Phnom Penh. It plans to be the Association of Southeast Asian Nations' largest inland industrial center and the first phase of its regulatory plan has been completed.

It was reported earlier this year that the TusPark Cambridge science park, funded by Chinese science park giant Tus-Holdings and Trinity College of the University of Cambridge, had officially opened. It has attracted innovative British institutions involved in the Industry 4.0 and life and health R&D sectors.

"This year, four new overseas liaison offices of Beijing's Zhongguancun Science Park have been established in Minsk in Belarus, Paris in France, and Berlin and Heidelberg in Germany, bringing the total to 14," Dai added.

Gao Zhiyong, deputy director of the Foreign Affairs Office of Beijing, said: "Beijing now functions as an international communication center that has hosted a slew of top-level international events, such as the 22nd APEC Economic Leaders' Meeting, the Belt and Road Forum for International Cooperation and the Beijing Summit of the Forum on China-Africa Cooperation.

"It is home to 37,000 international institutions and 142,000 expats."

Beijing Mayor Chen Jining said at a recent conference celebrating the 70th anniversary of the People's Republic of China: "Beijing made history as the only city chosen to host both the Summer and Winter Olympic Games, and 56 Fortune 500 companies are headquartered here, topping the world ranking.

"It has forged sister-city ties with its 56 cities in 51 countries and it is now more open to the world."