CHANGSHA SEES FRUITS OF DEVELOPING FRIENDLY BUSINESS ENVIRONMENT

Investment

Booming foreign-funded enterprises have become an important force for the high-quality development of Changsha. In 2019 and 2020, foreign direct investment in Changsha reached $809 million and $1.067 billion respectively, up 24.6 percent and 31.9 percent year-on-year and accounting for three-fourths of the province's proportion. Changsha City's Measures to Further Expand the Utilization of Foreign Investment to Promote High-Quality Economic Development focuses on the four aspects of "expanding the use of foreign capital", "enhancing the effectiveness of attracting foreign investment", "improving the facilitation of foreign investment" and "creating a first-class business environment", with a total of 16 measures.

Changsha in Hunan province is experiencing significant growth in its use of foreign capital and becoming a key destination for global investment thanks to its friendly business environment, open market and favorable policies.

According to data from the Changsha bureau of commerce, the city utilized $1.1 billion in foreign capital from January to July, accounting for 84.7 percent of the province's total.

The growth rate was 56.4 percent year-on-year, 25.5 and 14.9 percentage points higher than the country and the province respectively.

The booming foreign-funded enterprises have become an important force for the high-quality development of Changsha.

Changsha has established 143 foreign-funded enterprises, a year-on-year increase of 38.8 percent.

Changsha has also continued its strong momentum in stabilizing foreign investment since last year.

In 2020, Changsha's actual utilization of foreign capital was $7.28 billion, a year-on-year increase of 14.3 percent. Foreign direct investment was $1.08 billion, a year-on-year increase of 31.9 percent.

At this year's 2021 Global Cities Investment Promotion Conference, Changsha was awarded the title of China's Most Attractive City for Investment as well as a spot in China's Top 10 Most Satisfying Cities for Foreign Investment.

"Changsha's actual utilization of foreign investment still maintains double-digit growth after deducting the effects of the epidemic," said an official at the Changsha bureau of commerce, adding that increasing foreign investment in Changsha is directly related to the continuous improvement of the city's economic situation.

To promote foreign trade, Changsha has established a sound investment service mechanism, introduced support policies and further optimized the business environment.

On Aug 1, the Changsha City's Measures to Further Expand the Utilization of Foreign Investment to Promote High-Quality Economic Development was formally implemented. It focuses on broadening the use of foreign capital, facilitating foreign investment and creating a first-class business environment.

On Aug 26, the "one-stop" service contact point for foreign-invested enterprises in the Changsha area of the Hunan Pilot Free Trade Zone was officially listed. It will provide foreign investors with services such as investment consulting, establishment guidelines, coordination, information reporting guidance and complaint handling.

These moves will strengthen full-process services for foreign-invested enterprises and create a fair, stable, efficient and convenient investment environment.

Improved quality of foreign investment

The quality of investment and efficiency of foreign-funded projects in Changsha has made an impressive leap.

The Zurbrueggen China Headquarters Project in the Yanghu Headquarters Economic Zone is expected to be completed and open at the end of this year.

It will be transformed into a German-style shopping mall, which is an urban commercial complex that integrates well-furnished apartments and German-style blocks.

Zurbrueggen is a century-old German company and currently the largest office and household products business group in Germany.

As the first China headquarters project of a foreign-funded enterprise in Hunan, its total investment reached 2.1 billion yuan ($325.4 million).

As of the end of 2020, 173 Fortune 500 companies have invested in Changsha.

"The booming foreign-funded enterprises have become an important force for the high-quality development of Changsha," said an official at the Changsha bureau of commerce.

The use of foreign capital is mainly concentrated in modern service industries and advanced manufacturing.

Since the beginning of this year, GAC Fiat Chrysler, Deutz, Lens Technology and Wharf have invested in projects with capital of more than $20 million.

The newly increased foreign investment is concentrated in State-level parks such as the Changsha High-Tech Zone, the Changsha Economic Development Zone, the Liuyang Economic Development Zone and central urban areas such as Furong and Yuelu districts.