Chengdu to Be Economic Engine

The inland city of Chengdu, the capital of Sichuan province in southwest China, is expected to become one of the country's economic powerhouses over the next decade, as it restructures its economic growth model and develops further links with the West.

Considerable investment has already been made in the city by Western companies, including by DHL, one of the world's leading logistics companies.

Zou Yin, DHL's supply chain managing director for China, told an investment promotion event, "Invest in Chengdu", held in December in Shanghai, that China's western region will be prioritized in its investments in the country, calling Chengdu the company's "favored destination".

He added: "The city will enjoy great development opportunities as China restructures and upgrades its economic growth pattern in the next five years."

DHL has invested about 100 million yuan (US$16.04 million) in a warehousing and distribution base in Chengdu, which will be developed into its regional as well as countrywide distribution center, according to Zou.

Given the city's strategic position, other international logistics firms have also chosen Chengdu as the center of their China operations.

Higashi Michihiro, managing director of the China branch of Global Logistic Properties Ltd, one of the world's largest providers of modern logistics facilities, said: "Chengdu has the ability to attract foreign enterprises as its local services are highly efficient.

"It's not an exaggeration to say that if you want to succeed in China's western region, Chengdu is the first choice."

Brenda Foster, president of the American Chamber of Commerce in Shanghai, added she considers Chengdu as the preferred city for American businesses wanting to invest and expand their operations in central China.

Similar investment events for the city were held in Beijing and Shenzhen in December, and many state-owned enterprises and private companies used it as an opportunity to showcase their investment plans for the city.

According to organizers, some 42.25 billion yuan worth of investments were announced during the event, and 50 projects were launched. Of those, 12 were foreign-funded projects involving US$736 million worth of investment.

Chengdu was listed as one of the fastest growing cities of the next decade by Forbes magazine in 2010.