An improved investment environment is luring US
investors to China's second- and third-tier regions, according to
the 2007 White Paper released by AmCham yesterday.
"The investment climate of the second- and third-tier
regions has improved, and represents an opportunity for US firms
seeking to build domestic market share," said the
It attributed US investors' interest in second-tier
markets to the increasing demand created by urbanization and
improved infrastructure and logistics in new inland cities.
Two-thirds of AmCham members surveyed said they wanted to increase
market reach, when asked why they were expanding beyond the main
"As the current (Chinese) leadership shifts emphasis
to a more balanced economic agenda, China has renewed its emphasis
on building infrastructure and stimulating the economies of poorer
inland regions," said AmCham, adding the policies had encouraged
investment in central and western China.
In 2006, China had amassed about US$70 billion in
foreign investment, with most funds still going to large cities
like Shanghai, Guangzhou and Beijing.
Between 1991 and 2000, almost 22 percent of registered
foreign firms were located in China's central and western regions,
but the number dropped to about 15 percent between 2001 and 2004,
according to statistics from Global Insight China Regional
The White Paper noted an increasing proportion of
registered foreign firms have chosen to return to coastal regions
after venturing out to China's central and western
AmCham suggested officials in central and western
China ensure the necessary conditions to stimulate a healthy
business environment, consistent with China's coastal
(China Daily April 28,