Foreign investment guideline for regions revised

The regions remain attractive to foreign investment funds.

In the first four months of this year, the use of foreign funds in central and western areas rose 5.7 percent and 25.7 percent respectively, while it fell 1.1 percent in eastern regions, although the absolute amount was still relatively small.

Combined foreign investment in central and western provinces totaled $19.2 billion in 2012, around 17.2 percent of total investment, a significant increase on the 4.2 percent it accounted for in 2008.

Besides their relatively lower labor costs, investing in the western markets "provides investors with a connection to Southeast and South Asia, and Eurasia", said Liu Shiqing, a researcher with the Sichuan Academy of Social Sciences.

Using Chengdu as an example, he said the city has become a bridgehead for foreign investors entering the market.

According to a survey of 420 US companies operating in China, conducted by AmCham Shanghai, Chengdu is the most popular second-tier investment destination for US companies.

Another report, by Chinese and Singaporean researchers, highlighted Sichuan province, Chongqing, and the Inner Mongolia and Guangxi Zhuang autonomous regions as the destinations in western China, as the country shifts its economic model.