Tianjin takes the lead in attracting high-tech investment from Europe
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Volkswagen, Novozymes, Danfoss, Novo Nordisk, Alstom and Kerneos are European companies that are market leaders in their respective segments. Though their lines of business are as different as chalk and cheese, one key to their global success lies in the port city of Tianjin, China.
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It is not unusual for a European company to have manufacturing facilities in China, the growing cluster of such firms in the one area is highly attractive from a foreign direct investment perspective.
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Industry experts often cite Tianjin's proximity to Beijing as a compelling reason for FDI along with its rich legacy in manufacturing. But it also has a crucial role to play in the Bohai Economic Rim, China's third engine of economic growth and it is one of the fastest-growing cities in China.
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"We expect the Bohai Economic Rim to be the next hotspot for economic growth after the Pearl River Delta in the 1980s and the Yangtze River Delta in the 1990s," says Thomas Koniordos, president of Danfoss China.
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The Danish company, one of the world's largest suppliers of energy efficiency technology, has its largest global manufacturing base in the Asia-Pacific region in Wuqing, Tianjin.
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Over the past 14 years, the Tianjin Economic-Technological Development Area has consecutively topped the list of company destinations in China with the best investment environment and also figures among the top national development zones under the Ministry of Commerce. TEDA's FDI has been growing fast at double-digit rates. The area's FDI in 2012 is expected to reach $5 billion (3.81 billion euros), up 15 percent year-on-year. This year, eight new investors from Europe have joined around 165 other European companies in the area.Â
