Chapter 9 and Lecture 8 (The Opening Process)

In Chapter 9 and Lecture 8 we learned about China's opening process, including the increase of foreign direct investment in China. I subsequently researched information regarding Xian's development in response to this opening process, and according to multiple sources, Xian has recently become a magnet for foreign investment. According to an article published by China Watch, a supplement to the Washington Post, on October 25, 2012, and written by Li Fusheng, Xian's stance as a rising economic center in China has recently improved substantially in the eyes of foreign high-tech firms. In September 2012, South Korea's famous electronics firm, Samsung, launched a $7 billion investment in Xian as it decided to open a microchip plant in the Xian's High-Tech Industries Development Zone, which is 307 squ. km. and is home to more than 16,800 enterprises. According to Fusheng, the construction on the Samsung facility is already underway and it is planned to be fully operational by the end of 2013.

Xian's High-Tech Industries Development Zone:


Construction of the Samsung facility in Xian:


Samsung's investment is not only significant for Xian, but for China as a whole as well, as Fusheng stated, "the $7-billion plant is the largest single foreign investment China has ever received in the information and electronics industry." This incredible development has caused the international high-tech community to look to Xian as a prospective destination for foreign investment. Zhao Hongzhuan, head of the administrative committee of the Xi'an High-Tech Industries Development Zone, described in the article how a major United States chemical engineering company once refused to invest in Xian, but following Samsung's investment has committed to launch a $200 million project in the city.

Other foreign high-tech companies have followed Samsung's lead and have recently invested in Xian, including the U.S.-based Moses Industries and Applied Materials firms. The city is already home to over 2,600 electronics enterprises, including operations managed by Intel, and city planners are hopeful that the Samsung facility will assist in " paving the way for Xi'an to realize its dream of becoming another major semiconductor industrial base, following the footsteps of those in the Yangtze River Delta, the Pearl River Delta and the Bohai Economic Rim." The Samsung facility promises to provide at least 10,000 employment positions as well as internship opportunities for students at local universities, which will help provide them with hands-on technical experience.

Ultimately, the article cites several reasons for Xian's development as a magnet for foreign investment, including its low costs, geographic location, strong government support, and "rich talent pool" from its nearly 100 universities and colleges. I am happy to see that Xian is experiencing such an boom in foreign investment, since this will undoubtedly improve its citizens' quality of life due to an increase in employment opportunities and improvements in modernizing technologies. As Lou Qinjian, deputy governor of Shaanxi province, stated regarding this increase in foreign investment in Xian, "As more foreigners are coming to Xi'an, the government will try its best to make their lives here easier and enjoyable as well as to provide good schools for their children...This will help bring momentum to the city, which has set a goal of becoming an international metropolis by 2020." If current trends continue, I have no doubts that Xian will have little difficulty in meeting this goal.

(Source: http://chinawatch.washingtonpost.com/2012/10/top-tech-firms-follow-samsung-to-xian.php)