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Nanjing shows promise for industry: PwC

By Hou Qingyang (chinadaily.com.cn)
Updated: 2009-09-01 14:36

Huang Jia, a PricewaterhouseCoopers parner in China, releases the Nanjing Investment Environment Report at a conference on cooperation and development of high-end industries held in Nanjing, Jiangsu province, September 17, 2009. [chinadaily.com.cn]

Nanjing has all the makings needed to lure more foreign investment as it seeks to become a leading industrial base for the manufacturing and modern service sectors, according to a new report by PriceWaterhouseCoopers (PwC).

The report released earlier this week credited the provincial capital of Jiangsu for its convenient location and transportation system, established international markets, ample human resources, sophisticated financial service and its efficient local government as ideal factors for foreign investors in eastern China.

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According to PcW's director Kelvin Lee, Nanjing has most established industrial connectivity in its advanced manufacturing and modern service sectors like software, outsourcing, pharmaceuticals and financial services.

Lee added that Nanjing also boasts a well-educated workforce with a low turnover rate compared to other Chinese cities, which further makes the city attractive to foreign businesses looking to hire steady and capable hands.

The report also praised the Nanjing government for its ability to plan accordingly, especially in dire economic times. Like the larger urban cities of Beijing and Shanghai, which have adjusted policy toward foreign companies to encourage the continuation of foreign investments during the global financial situation, so too, has Nanjing's municipal government acted, offering various financial break and incentives to foreign investors.

Bernhard Weber, vice president of Bosch and Siemens Home Appliances (China) Co, said the government, concerned about the liquidity and operations of locally based foreign entities, offered his company financial support during the crisis. He added that he would never receive this kind of government aid if he were running the business back in Germany.

Zhang Qiang, deputy secretary general of the China Council for International Investment Promotion, agreed with the findings of the PwC report. He said recent moves by the municipal government, which are strategically geared to target more foreign investment, should help the city become a strong industrial hub in the future, particularly given its advantageous location just east of Shanghai, where foreign investment in a number of industries is booming.

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