The city has been ranked first in the nation for its investment environment
LONG KNOWN FOR its natural beauty that inspired generations of poets and artists, the ancient city of Hangzhou now has another distinction - as the best place to do business on the mainland.
According to the Forbes China ranking of 100 cities published last September, Hangzhou beat out Beijing, Shanghai, and Shenzhen to be named No. 1 for investment. In making the announcement, the business magazine sited the city's top-notch work force, low business costs, excellent infrastructure and strong market potential. In a World Bank survey of 23 mainland cities last year, Hangzhou was also ranked first for its investment environment.
The city is the dragonhead leading Zhejiang's rapid economic growth, accounting for 22.7 per cent of the province's GDP, 26.4 per cent of its exports, and 36.8 per cent of imports. The city's GDP rose to US$25.3 billion in 2003, up 15 per cent over a year earlier, marking 13 consecutive years of double-digit growth.
It's no wonder that the capital of such a booming province has been so successful in attracting overseas investment. Foreign businesses in the city include big international names such as Otis Elevator, Siemens, Motorola, Electrolux, Nokia, Mitsubishi, Samsung and Mary Kay. Hong Kong's Vincent Lo, who developed Shanghai's upmarket Xintiandi bar and restaurant area, has a similar project along scenic West Lake.
Foreign investors are attracted by several factors. First, Hangzhou has one of the best-developed infrastructure networks in China, providing companies with convenient channels for getting their goods around China and out of the country.