China's old industrial base opens wider to foreign investors
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E-mail Xinhua, October 12, 2018
Old industrial base regaining shine
Northeast China -- made up of Liaoning, Jilin and Heilongjiang provinces -- has been struggling with growth due to shrinking resources and industrial overcapacity.
"Investment does not go beyond the Shanhaiguan Pass," it is said, referring to a geographical division between northeast China and the rest of the country.
But BMW Group is a pioneering foreign investor going beyond the Shanhaiguan Pass and doing well in Shenyang.
It set up the joint venture BBA with Brilliance China Automotive Holdings in Shenyang in 2003, when China launched the first round of its strategy to turn its rust belt into modern industrial zones.
The city has become the German carmaker's largest production base worldwide. In total, BBA employs more than 18,000 employees. Since its founding, the supplier network has expanded to over 350 companies. More than 80 suppliers have set up locations in Liaoning so far.
"Fifteen years of BMW Brilliance is a joint success story that we share with our partners and over 18,000 associates. With this additional investment, innovation and job creation, we will continue our high-quality development and drive economic growth in Liaoning Province," Johann Wieland, president of BBA, was cited as saying in a press release.
The central government rolled out new measures to revitalize its old industrial base in northeast China in 2016, and set up a free trade zone in Liaoning last year.
The economy of Liaoning is now showing signs of recovery, and a growing number of global investors have started taking root or increased investment there.
Last year, Michelin, the world's leading tire maker, invested 300 million euros to expand its factory in Shenyang, while New Zealand company Richina started a leather industry project with a total investment of 900 million U.S. dollars in the city of Fuxin.
Statistics released from the provincial department of commerce showed that Liaoning's actual use of foreign investment reached around 3.7 billion U.S. dollars in the first eight months of this year, up 15 percent year on year.
Wieland added that China's wider opening up has sent positive signs about foreign capital and has brought new opportunities for BMW.
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