In recent years, foreign inward investment has been increasingly focused on inland locations as well as coastal cities, with the result that in 2006, Changsha attracted nearly USD 1.2 billion of foreign direct investment. Investments have been made in a variety of sectors, including hi-tech manufacturing, food production and services.

 

Foreign investment trends

Foreign Direct Investment (FDI) in China is having a growing impact on Changsha's economy

．The first foreign-invested enterprise (FIE) was established in Changsha in 1984. In 2006, 206 new FIEs and/or representative offices were set up, including more than 82 FIEs with an investment of over USD 10 million each

． Changsha’s utilized FDI from 2002 to 2006 has grown on average by roughly 38 percent each year, five times the national rate. In 2006 Changsha utilized USD 1.2 billion in foreign direct investment

 

Changsha is a “magnet” for foreign investment within Hunan province

Changsha’s 2006 new projects in 2006 represented almost half of Hunan Province’s total utilized FDI in 2006; to date, Asia has accounted for most of the FDI into Changsha.

．From 1984 to 2006, the majority of FDI to Changsha has been from Asian and Oceanian countries, particularly Hong Kong SAR, South Korea, Singapore and Japan, accounting for 64 percent of total FDI.

．The US and Europe have been the other major investors, accounting for 28 percent and 8 percent, respectively.