Doing Business in Wuxi

An Outstanding Regional Economic Center in the Yangtze River Delta

Wuxi becomes a significant regional economic center enjoying flourishing business and nationwide fame as “Shanghai Jr.” Today Wuxi contributes 2% to China’s economic aggregate with only 0.05% land and 0.4% population of the country’s total.

Wuxi’s Economic Status:

• Listed as one of China's 10 most economically dynamic cities by CCTV

• One of China's top 10 cities in the most competitive manufacturing industry in 2006

• No.4 of Chinese Mainland's cities in terms of its business enviroment by Forbes in 2006

• No.7 of Chinese Mainland's cities in terms of its GDP in 2006

• No.7 of China's cities in terms of its comprehensive competitiveness in 2007

• One of China's cities with the best investment environment,

• One of China's 10 major tourist cities.

Industry Structure

Wuxi now has more than 7,000 producer-service type companies and over 5,000 service agents. In 2006, the modern service industry of Wuxi, including modern logistics, business services, technology services, and finance, developed rapidly and realized an added value of 128 billion yuan, up 15.5% over 2005 and taking the lead among large and medium-sized cities in China. At present ,Wuxi is pushing ahead with the strategy of further updating its industrial structure. It is commited to the building of three advanced industrial clusters of IC, LCD, and pharmaceutical industry. In the moment in Wuxi Five Pillar Industries exist: New Materials& New Energy (14%), High-grade Textile Apparel (17%), Electronics&IT (31%), Electro Machinery& Auto Parts (22%), Biotechnology& Pharmaceuticals (5%).

Foreign Direct Investment

Wuxi has a total of 115 approved overseas investment projects up to 2005. 51 of them were approved in 2005. All ranked first in Jiangsu Province. The overseas investment value totals 112.77 million dollars. Among of them, Chinese investment accounted for a value of 64.02 million dollars.

The overseas investment fields involve 15 of industries, such as Textile and Garment, Light Industry, Machinery, Metallurgy, Chemical, Pharmacy, Electronic, Construction Material, Agriculture and Timber, Science Research, Restaurant, Advertisement, Export and Import Trade, Storage, service, etc. 40% of investment projects deal with manufacture, resource development and Science Research.

The overseas investment spread in 5 continents and 34 countries or regions. 115 of overseas investment projects include 72 in Asia, 16 in Europe, 20 in America, 4 in Africa and 3 in Oceania.

In first half year of 2006, 34 of overseas investment projects were approved, and Chinese investment was valued at 23 million dollars. Both reached new history level.

International contracted projects and labor services are also growing rapidly.

Wuxi’s turnover of international contracted projects and labor services reached up to 120.53 million dollars in 2004, reached to 159.43 million dollars in 2005 and reached to 112.32 million dollars in first half year of 2006.

There are 12 companies of foreign economic cooperation, which has contracted projects. Two of them established sub-company in Hungary and United Arab Emirates respectively. At the end of June of 2006, there was 1170 Personnel Overseas; Labor service value accounted more than 7 million dollars per year.

Wuxi’s dynamic economy, fine potentials and unsurpassed opportunities have attracted hundreds of multinationals to choose Wuxi as a base for their global operation. By the end of 2005, 64 “Fortune 500” companies have secured tenancy in Wuxi in 121 projects with a total investment of 2.93 billion USD. In 2005 alone, 13 projects were set up.