Suzhou tops rankings on foreign investment in China

October 01, 2006 | BY

clpstaff

Suzhou, located in China's Jiangsu province (80 kilometres west of Shanghai), tops the rankings in the list of 'China's 20 Most Attractive Cities for Foreign…

Suzhou, located in China's Jiangsu province (80 kilometres west of Shanghai), tops the rankings in the list of 'China's 20 Most Attractive Cities for Foreign Investors', which was released by the Chinese Academy of Social Sciences (CASS) and China Business News (CBN). Suzhou is famed for its ancient gardens and most recently for its high-tech industrial development zone.

China Daily reports that CASS and CBN evaluated 290 Chinese cities over a four-month period to arrive at the ranking. The criteria used to assess the cities included the amount of foreign investment the city has absorbed since 2003, the proportion of foreign investment to total investment in the city and the average annual growth of foreign investment in the city over the past three years.

Figures from the National Development and Reform Commission show that between 2001 and 2005 China received US$286 billion in foreign direct investment, of which US$20 billion was invested in Suzhou.

A previous CASS survey shows multinational companies are more concerned about the administrative efficiency of local governments than with favourable tax policies. Li Peiju of CBN says the ranking could serve as a valuable reference for international investors in China.

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