Guangdong province’s manufacturing powerhouse an enticing target for foreign investment
Thanks to its well-deserved reputation as an export-oriented economic powerhouse, Foshan of South China’s Guangdong province has become an investment magnet for foreign enterprises.
According to official statistics, the city is home to 6,738 foreign-funded businesses, involving a total investment of $101.7 billion. Among them, 71 Fortune 500 companies have invested in 154 local projects, including renowned giants like Honda, Toyota, Aisin Seiki and Siemens.
Siemens, a German multinational conglomerate that focuses on electrification, automation and digitalization, has cooperated with local Stateowned enterprises to launch several joint venture projects in Foshan, including a testing center for an automated unmanned driving signal system and digital innovation laboratories and exhibition halls.
“Over the past two years, Siemens has continuously expanded its investments in Guangdong,” said He Wei, senior director for ecological development at Siemens China and vice-president of Siemens Digital Technology (Shenzhen).
“Foshan has a first-class business environment, good policy support, excellent location and attentive corporate services. We look forward to further cooperation with Foshan in areas such as energy conservation and emissions reduction to explore more development opportunities,” He said.
Prioritizing protection of the legitimate rights and interests of foreign enterprises and service work has underscored Foshan’s renown as an investment hot spot. In 2023, as part of its effort to promote stability while improving foreign investment, the city rolled out 15 measures to support foreign-invested businesses through expanding market access, supporting business upgrades and facilitating trade liberalization. In addition, it released a working plan to implement the Catalogue of Encouraged Industries for Foreign Investment, as well as a three-year action plan for improving the quality and efficiency of services for foreign-invested businesses.
The city has issued its first Service Guide for Foshan Foreign-invested Enterprises to provide guidance on investment policies, comprehensive services for businesses, protection of foreign investment rights and interests, and encouragement of foreign investment in technological innovation and talent services. The goal is to improve service work for foreigninvested enterprises while promoting their healthy development.
Danish brewer Carlsberg Group, which has been deepening its roots in Guangdong for decades, recently increased its investment in Foshan. In August 2022, the company broke ground on its Foshan beer produccquiring tion base shortly after acquiring the land and subsequently poured in an additional 462 million yuan ($64.18 million), bringing its total investn ment to 3 billion yuan in the same year. Carlsberg Groupp said the project is expected to be completed in the second quarter of 2024, with an annual production capacity of 500,000 kiloliters and an annual output value of about 2 billion yuan.
“The Foshan beer production
base project has achieved multiple global firsts for Carlsberg, and it will become one of our most important production bases,” said Xie Ying, deputy manager of corporate affairs of Carlsberg China. “In the future, the group plans to establish the first research and development center outside Europe in Foshan, providing services for new product development, packaging design, and testing for the Chinese and Asian markets.”
Boasting a strong base for real economic entities, complete industrial support facilities and a dedicated opening-up market, Foshan continues to attract foreign-funded businesses. The Foshan Association of Enterprises with Foreign Investment, which was established in 1989, has developed nearly 200 member companies and provides services to the whole city, with industries ranging from advanced manufacturing such as automobiles, machinery and equipment and food and beverages to modern services.
“Foshan is the source of our confidence in the face of changing times. It allows us to root ourselves here, find the right timing, and believe that the city will definitely foster new opportunities,” said Wang Xu, executive president of the association.