Who is the King of the Midwest? Chengdu, Wuhan and Chongqing are the leaders in attracting foreign investment

category:Society
 Who is the King of the Midwest? Chengdu, Wuhan and Chongqing are the leaders in attracting foreign investment


Urban competition is increasingly fierce, especially in attracting investment.

Among them, the rising momentum of cities in the central and western regions is fierce, and their performance is more and more eye-catching. So, which cities attract the most foreign investment in this continuously heated competition? What are the motivations behind it?

The central and western regions catch up with the eastern regions

Data from the Ministry of Commerce show that in 2018, the actual use of foreign capital in China was 88.56 billion yuan, an increase of 0.9% (134.97 billion US dollars, an increase of 3% over the same period). Data on banks, securities and insurance are not included. Among them, the actual use of foreign capital in the central region increased by 15.4% and in the western region by 18.5%.

First financial journalist based on open data calculation found that from the growth rate, the central and western region is significantly higher than the eastern region. In total, there is still a big gap between the central and western regions and the eastern regions.

The imbalance within the central and western regions also needs attention. Compared with Chengdu, Chongqing, Wuhan and other cities, other western regions such as Gansu, Qinghai and other places, the actual level of foreign capital utilization is still very low. In 2018, the actual amount of foreign direct investment in Gansu Province was only $50.41 million, while that in Quanzhou, Fujian Province, a prefecture-level city, was more than $600 million.

From the specific situation of the central and Western regions, the growth of foreign investment mainly comes from the provincial capital cities. This shows that the first choice for foreign investment to enter the central and western regions is its central city. Therefore, the amount of foreign capital in major cities in the central and western regions is an important basis for measuring and investigating the level of foreign capital in a province.

The first financial reporter selected 10 major cities in the central and western regions of Chengdu, Chongqing, Kunming, Guiyang, Xian, Wuhan, Changsha, Zhengzhou, Nanchang and Hefei as samples.

Among these 10 cities, not only did six cities maintain double-digit growth in the actual utilization of foreign capital, but their total level could also catch up with the first-and second-tier cities in the eastern coastal areas.

In 2018, the actual utilization of foreign capital in Beijing and Shanghai was 17.31 billion US dollars and 17.3 billion US dollars respectively. There is still a gap between the above-mentioned 10 cities in the central and Western regions. However, compared with other first-and second-tier cities, such as Guangzhou, Shenzhen, Hangzhou, Qingdao and Tianjin, the data of 10 cities are close to each other. In 2018, the actual use of foreign capital in Guangzhou, Shenzhen, Hangzhou, Qingdao and Tianjin was 6.611 billion US dollars, 6.83 billion US dollars, 8.203 billion US dollars, 8.69 billion US dollars and 4.851 billion US dollars, respectively.

The reasons for the rapid growth of foreign capital in central and western cities lie in the improvement of infrastructure construction and business environment, a large number of industrial transfers and population aggregation brought about by new urbanization. These 10 cities have large population, large radius of market radiation, and many market opportunities, which are favored by investors.

Wuhan, Chongqing, Chengdu

Among the 10 cities in the central and Western regions, Chengdus actual use of foreign investment reached 12.03 billion US dollars in 2018 (according to the data released by the Chengdu Development and Reform Commission), up by 20%, ranking first in the total amount; Wuhans actual use of foreign investment in 2018 was 10.927 billion US dollars, up by 13.3%, ranking second; and Chongqings actual use of foreign investment in the whole year was 10.273 billion US dollars, up by 0.9%.

It should be noted that because of the differences in the statistical calibre of each city, there are slight differences between the data published by different departments over the years. First, after combing the relevant information according to the comparison of public data, the above data are finally used in the comparison of these cities.

From the overall data, it also shows the competition pattern of Chengdu, Chongqing and Han in the central and Western regions.

From the source of funds, most of them come from Asia. Among them, Hong Kongs capital ranks high in all places, and also shows the characteristics of their respective investment. Chongqing cooperates with Singapore in China-Singapore interconnection projects, and Singapore has a large share of capital.

These funds are accompanied by a large number of multinational companies entering the mainland. By the end of 2018, 287 top 500 enterprises in the world had settled in Chongqing, 285 in Chengdu and 266 in Wuhan.

As far as the growth rate is concerned, Xian, Guiyang and Nanchang are growing rapidly. In 2018, the actual utilization of foreign capital in Xian was 6.354 billion US dollars, an increase of 14.9% over the previous year; Guiyangs actual utilization of foreign capital was 1.589 billion US dollars, an increase of 18.1% over the previous year; and Nanchangs actual utilization of foreign capital was 4.582 billion US dollars, an increase of 18.6% over the previous year.

The Samsung project in Xian has led to a large number of South Korean investment, accounting for about 43% of the total actual utilization of foreign capital.

Guiyangs performance deserves our attention. In the past 10 years, the actual growth rate of foreign capital utilization has been maintained at more than 20%. In 2009, Guiyangs actual utilization of foreign capital just exceeded $100 million, and by 2018 it had exceeded $1.5 billion. In recent years, Guiyang takes big data as the engine of development, and its economic growth rate has been the first in the provincial capital cities of China for six consecutive years.

In addition, although Chongqing has led the way in attracting foreign investment in the central and Western regions, its growth rate shows a weak trend, slowing down - only 0.9% growth in 2018. Over the past few years, Chongqings actual utilization of foreign capital has maintained a relatively high level. Thanks to the large amount of capital settled in the electronic information industry, automobile industry and strategic emerging industries, Chongqings actual utilization of foreign capital in recent years has been maintained at more than $10 billion.

However, under the influence of economic situation, uncertain investment expectations and intensified regional competition, capital is more prudent and it is more difficult to attract investment.

Local governments regard investment promotion as their top priority, and external competition is becoming more intense. For example, in 2019, Chengdu will take the construction of an international business environment as the lead to launch a 100-day Taiwanese Racing Competition, striving to introduce more than 440 major projects under new contracts, utilize more than 13 billion US dollars of foreign capital, and settle in 300 top 500 enterprises in the world.

Source: First Financial Responsibility Editor: Zhang Xianchao_NN9310