China’s local governments, hit by property market slowdown, court foreign investment to steady growth
- In recent weeks, a number of local governments have released investment plans worth billions of dollars to help steady economic growth
- Many are hoping to make up a shortfall in property spending with investment in manufacturing, especially advanced technology
Competition is heating up between local governments in China to lure foreign investment in advanced technology, amid growing pressure on the economy and competition with the United States.
In recent weeks, a number of local authorities have released investment plans worth billions of dollars and rolled out a host of incentives in a bid to steady growth.
Though many are seeking to upgrade technological capabilities, there is continued emphasis on infrastructure investment, with targets for fixed asset investment growth generally ranging between 6 to 10 per cent for the year.
Shanghai on Friday announced it had signed off on 53 foreign investment projects with an overall value of US$5.44 billion.
The investment growth targets shouldn’t be viewed too seriously
Many of the new deals cover advanced tech, including a US$30 million investment from German optics and optoelectronics company Carl Zeiss AG. The firm will establish manufacturing facilities for optical systems, industrial measuring instruments and medical equipment in the city, the Shanghai government said.
