Foreign investment surging amid pandemic
A bird's eye view of Taicang in Jiangsu province [Photo/WeChat account: tcfbgw]
In the first quarter of 2020, Taicang in Jiangsu province attracted $636-million-worth of contracted foreign investment, and its paid-in foreign capital reached $427 million, up 55.45 percent and 110.59 percent year-on-year respectively, local media reported from the municipal bureau of commerce on April 23.
The surge came from the 23 newly introduced projects focusing on automobile parts and high-end equipment. Most of the investors are from Germany, Singapore, and the Hong Kong region.
The Singapore-invested Renli New Technology Co was founded on January 10 with a total investment of about 4 billion yuan ($565 million). The company will focus on developing new energy vehicles, internet of vehicles, 3D printing, and maker spaces.
"After a comprehensive evaluation of multiple Chinese cities, we finally chose Taicang due to its strong industrial foundation, innovative atmosphere, ideal location, and business environment," said Xin Deguo, director of Renli New Technology’s investment and development department.
The Taicang branch of Ruize Technology was established in March by a Hong Kong investor with a contracted capital of over $100 million. The branch will cover an area of 105 mu (7 hectares) and reach an annual production capacity of 13,000 automobile parts and 2,000 sets of vehicle-mounted devices. It is expected to generate 1.27 billion yuan in output and at least 100 million yuan in taxes.
Since the first German company set up operations in Taicang in 1993, an increasing number of German companies have come to the city, engaging in a wide range of fields such as high-end equipment manufacturing and auto parts.
The trend has not been slowed by the pandemic, statistics from the municipal commerce bureau showed.
From January to March, contracted investment from Germany totaled $103.83 million, up 132.71 percent compared with the same period of last year. Newly launched projects from German investors, including Schmalz, Burkert, Brose, Schaeffler, and Mahle, contributed $46.4 million in paid-in foreign capital, up 172.35 year on year.