Something is up this summer in Wuxi. The heat of 2023, coupled with a local spirit of entrepreneurship and, it has to be said, some smart government thinking, has generated a perfect storm in which foreign enterprises are literally queuing to join the party.
First up was the Chinese headquarters for Atlas Copco’s industrial compressor R&D centre in Wuxi. The Swedish giant put a total investment of nearly ¥3 billion in to the deal made public on 26 June.
Then just 3 days later, the German Nobilia/Raumplus Asia Pacific Production R&D Headquarters project saw the light of day in Wuxi, with a total investment of €200 million.
But Wuxi was far from done. Japanese sweetened-probiotic milk beverage, Yakult, opened its second factory in Wuxi on 14 July. Cue another US$300 million into the Wuxi coffers.
Then, as this publication reported at the time, 18 July saw the launch of the Chinese-French (Wuxi) Industrial Cooperation Park, aiming to be the preferred destination for French companies coming to China.
So what has brought all this about in a city that 3 decades ago was a provincial backwater?
Taking Wuxi High-tech Zone as an example, an insistence therefrom to link global resources through opening up to the outside world has been a key driver. The Zone has also intensified efforts to attract foreign capital, and strengthened exchanges and cooperation with foreign companies.
While well aware that global trade has been impacted in recent years, Wuxi High-tech Zone clearly understands that European and American companies still lead the way in terms of capital, industry, technology and talent. Their investment into Wuxi creates opportunities for employment and innovation. That’s a powerful lever for economic development.
No wonder then that as soon as COVID controls were relaxed, Wuxi High-tech Zone was on a plane. In the early morning of 6 January, a delegation set off on its first overseas investment promotion for quite some time. An 8-day trip saw visits to more than 50 companies and the inking of deals worth over US$1 billion.
Then, just after the Spring Festival, they were back at it, travelling to 10 cities in Spain, Belgium and Germany, to contact and cooperate with European high-tech enterprises and scientific research institutions.
Hong Kong and Macau were next in February, as Sohu has reported. The 2023 Wuxi-Hong Kong Science and Technology Innovation Industry Integration and Development Exchange Conference saw, on paper at least, another ¥7.5 billion on the table.
But something has in fact always been up in Wuxi. It’s just that the rest of the world didn’t know about it.
A Chinese expression states that like-minded people are never far away from mountains and waters. Wuxi has ample of all three, as well as a history of its people being entrepreneurs.
During its 30-year history, Wuxi High-tech Zone has gathered approximately 1,800 foreign-invested enterprises of various types. Fully 68 of the world’s top 500 companies have invested in 126 projects in Wuxi, while foreign companies contribute some 70 percent of the region’s total industrial output value.
Speaking at the 18 July launch of the Chinese-French (Wuxi) Industrial Cooperation Park was Consul General of France in Shanghai, Joan Valadou. “Wuxi occupies an important strategic position in the Yangtze River Delta region, with strong industrial strength, strong innovation drive and profound cultural heritage. It has always been a highly valued partner of France”, said Valadou.
And adding that he hoped the Park will accelerate cooperation between Wuxi and France as to low-carbon transformation efforts underscored the urgency of the task at hand, given the climate-change-induced heat waves in many parts of the world during this, the summer of 2023.
