China Daily Global Edition (USA)
Wuhan’s profile and preferential policies big draws for investors
The Wuhan Economic and Technological Development Zone has become a desirable destination for foreign investors by continuously upgrading its business environment and preferential policies.
Located in Wuhan, capital of Hubei province, the development zone is the city’s largest industrial area. According to official data, total output value from industrial enterprises in the zone with annual revenue of at least 20 million yuan ($2.77 million) reached 360 billion yuan in 2023. Known as China Auto Valley, it is one of the country’s most concentrated regions for the automotive industry.
In 2023, the development zone rolled out a pair of three-year action plans, targeting pure electric, hybrid, and hydrogen energy technologies. They prioritize auto parts, accelerate the development of intelligent automobile software industries, and aim to establish more resilient new energy automobile industry supply chains by introducing over 30 key auto component projects.
In March, Aptiv, a Fortune Global 500 company and globally renowned auto parts supplier, invested 2 billion yuan into the construction of a connector systems factory in the development zone, marking the company’s third major investment in the area. The factory is expected to begin operation in the first quarter of 2025, producing products such as high-voltage charging sockets for new energy vehicles and high-voltage connectors for such vehicles.
Bill Presley, vice-chairman and chief operating officer of Aptiv, said Wuhan boasts many advantages, including abundant scientific and educational talent, strategic transportation location, strong industrial foundation, and rich ecological resources. He said Aptiv will accelerate project construction and collaborate with local universities and research institutions to stimulate aggregation of more innovative resources in the zone.
The development zone is one of the most concentrated areas for foreign-invested enterprises in Hubei province. Since 2022, established businesses including French manufacturers EFI Automotive, Valeo Group and Faurecia, Germany’s ZF and Cummins Inc of the United States have increased their investment and operations, and in 2023, a
total of 30 foreign-funded businesses increased their investment in the zone by more than 100 million yuan.
With industry structural upgrades, foreign investment in Hubei is no longer solely focused on profit, but rather on continuously enhancing competitiveness in the local industry chain with a commitment to long-term development.
Last year, ZF Group, one of the world’s three largest transmission system providers, announced an additional investment of 150 million euros ($161.62 million) to establish its largest airbag production base in the Asia-Pacific region and a new airbag product sample trial center in the development zone. Establishment of the new base in Wuhan responds to the need for business growth and optimization, and brings a clustering effect of talent, supply chain and industry chain, said Renee Wang, president of ZF China.
Increased foreign investment in Hubei can be attributed to the development zone’s constant efforts to provide foreign investment and businesses with dedicated services and preferential policies. In 2022, the zone issued 10 measures for foreign investment, covering areas such as enterprise registration, headquarters incentives, site support, research and development innovation, talent attraction and international lifestyle support, providing comprehensive support for foreign-invested enterprises seeking to invest and operate in the zone.
The zone has also released 10 “golden measures” to accelerate talent development, including policies for training, innovation of management systems and protection guarantees. These measures aim to attract and train 100 leading talents, 1,000 highlevel professionals, and 10,000 science and technology talents for the automotive industry, cementing Wuhan’s reputation as a national industrial innovation hub.
In recent years, the zone has also implemented a strategy of developing itself into a talent-strong hub, investing more than 800 million yuan annually to support talent innovation and development. So far, it has attracted and nurtured 31 academicians, 38 high-level talents at the national and provincial levels, and 136,000 professionals and technicians, according to local officials.