East China’s Jiangsu province has overcome the adversities caused by the covid-19 epidemic since the start of this year by making every effort to ensure the resumption of work and production, and stabilize foreign investment, so that the province's foreign investment has shown a growth momentum of incremental expansion, stable stock, and improved quality.
Headquartered in Australia, Spenders is the world's leading manufacturer of ultra-high-speed electric motors. In May last year, the company invested 60 million yuan to settle in Kunshan to build its headquarters and R&D and manufacturing center in China.
The company is now in the process of arranging production lines. This production line will achieve an output value of 500 million yuan a year.
Full of confidence in Kunshan's complete industrial facilities and good business environment, the company decided to increase its capital by about 50 million yuan this year to lay the foundation for further expansion of its business in China.
"Kunshan's auto industry is probably the best in the country and even in the world. Kunshan is our best choice from the perspective of market potential, future development and supply chain," said Wu Zhengliang, General Manager of Spenders Energy Technology (Suzhou) Co., Ltd.
Spenders is not alone. From January to July, Kunshan reported foreign direct investment of US$1.08 billion, an increase of 119.1%, ranking first among county-level cities in the province.
Relying on a complete manufacturing system, Kunshan reported an increase of US$1.88 billion in registered foreign investment in the manufacturing industry from January to July, accounting for 70% of the annual total.
Facing the adverse impact of the epidemic, at the beginning of this year, Jiangsu issued the "Three-Year Action Plan to Encourage Profit Reinvestment of Foreign-Invested Enterprises between 2022 and 2024 in a bid to guide qualified foreign-invested enterprises in the province to expand the scale of profit reinvestment.
The Department of Commerce has established a foreign-invested working group to supplement and extend the chain and strengthen the chain, sorting out and improving 222 key foreign-funded enterprises and 100 key foreign-funded projects in 2022, and assisting foreign-funded enterprises and projects to accelerate their development.
Changzhou Economic and Technological Development Zone has relied on cloud video to ensure continuous investment promotion, strengthened the management of the whole process of the project, and further relied on administrative power to ensure the early start, early production and early effect of the project.
"During the epidemic the Changzhou Municipal Government and Changzhou Economic and Technological Development Zone gave us a lot of support in logistics and land planning, which shored up our confidence in investing in China," said Asier Zarraonandia Ayo, Chief Executive Officer of the Belfisa Group.
Statistics show that from January to July, Jiangsu reported an actual use of foreign capital of US$22.07 billion, a year-on-year increase of 24.3%.
The foreign investment in manufacturing industry increased by 48.0% year-on-year, and its proportion in the province increased to 36.5%. Profit reinvestment increased by 163.9% year-on-year.
"Jiangsu has a strong manufacturing supporting capacity. We will increase the use of foreign capital in the service industry, especially in the field of research and development, and hope to gather more innovative and high-end elements in Jiangsu to match Jiangsu's strong manufacturing capabilities, to enhance industrial competitiveness," said Sun Jin, Deputy Director of Jiangsu Provincial Department of Commerce.
