On October 16th, the 10th Western China International Economy and Trade Fair began in the city of Chengdu in Sichuan province. At the ceremony, Premier Wen Jiabao stressed the need to increase development and strategic opening-up of the historically poorer western regions of China. Chengdu, which was hard hit by an earthquake in 2008, is now a major economic hub of Western China. Also represented in the fair were the autonomous regions of Xinjiang, Ninghai, and Inner Mongolia as well as most Western Chinese provinces.
Corporations seem to share premier Wen’s confidence in the economic expansion of the west, specifically in Chengdu. By the close of the fair, 133 Fortune 500 companies had set up offices in the city, according to the World Bank. In addition, many MNCs already have assembly and manufacturing bases there, such as Toyota, Sony, and Intel.
Contracts signed during the fair – with a total investment of over 300 billion RMB – further reflect this region’s strong economic growth and future potential. At the fair, the German company Siemens signed agreements to establish a Global IT Operation Center in the city, while the Taiwanese electronics manufacturer Foxconn will set up a major industrial base. Major retail enterprises such as Wal-Mart are also jumping at investment opportunities, planning to establish its fourth Chinese logistics center in Chengdu. Local resources, equipment manufacturing, service, and technology were the most popular areas of investment. In the first half of 2009, GDP grew to almost 12 percent, reflecting the improving conditions of the area.
