Jiangxi Seeks More Foreign Investments


September13,  Channel NewsAsia - China has had a number of slogans to drive progress into lesser developed parts of the country, from the "Go West" to the "Rise of Central China" strategies.

Our correspondent visits developing Jiangxi, north of Guangdong, for a look at what this central province has to offer.

28-year-old Jin Feng is a lot happier working his 8-hour shifts these days since his company, a former state-owned enterprise in Jiangxi province, entered into a joint venture with German Getrag Transmission.

Jin Feng, Production Operator, Nanchang Gear, says: "We're getting better overtime pay and our overall pay package has improved. The working environment is better."

His fellow colleague, Qian Lin, who works in the same line to produce vehicle transmissions sees the difference too.

Qian Lin says: "Higher quality is expected, and we take our work more seriously."

Last year, Jiangxi attracted about US$2 billion in foreign investments, up 15 per cent over the previous year.

The province is seeking more investments in infrastructure sectors, like roads and railways, food products and financial services.

Some companies have chosen to move to Jiangxi to flee what they call "cut-throat competition" in Guangdong, which they say is crowded with foreign and Chinese enterprises.

Others are attracted by the low costs.

Still there are some companies which are hesitant due to unfamiliarity and what they say to be a difficulty of getting managerial staff willing to relocate here.

Ding Yongli, Vice Director, Nanchang Foreign Trade and Economic Cooperation Committee, says: "We still lack suitable housing and schools for Europeans and Americans. We're aware of this."

Interestingly, the bulk of foreign investments are not in joint ventures.

About 80 percent comprise foreign companies going it on their own.

However, Jiangxi is selective about the investors it accepts.

Ding Yongli says: "It's not because we only want big enterprises or those dealing in new technologies. If we can't support our investors, they won't attain good results, and we'll have problems on our hands."

With a market of about 430 million within an eight-hour radius, Nanchang has plenty going for it.

Hu Xian, Mayor of Nanchang, says: "Nanchang's advantages are manpower resources, low costs, a good water and electricity supply and transport network. These attract investors from the eastern seaboard cities."

In fact, Nanchang has been named one of the 10 most vibrant cities in the world.

Puzzling to some who don't know where Jiangxi is.

But it seems to be just a matter of time before investors will reach this part of China in droves.