Chongqing: A hotspot for foreign investment

Cummins sets up a production line and a technological center in Liangjiang New Area for high-horsepower engines. [Photo provided by Cummins] 

Chongqing authorities reported a 61 percent year-on-year growth in the use of foreign capital in the first three quarters of this year. 

This growth was exemplified by the inauguration of the Cummins China Microgrid Innovation Center in Liangjiang New Area. Following the Cummins Power Integration Center in Minnesota, US, this is Cummins' second technological center that focuses on the research and development of new energy power generation applications. 

"This is a critical investment for Cummins Global, where we can configure, integrate, and test a number of existing products and systems, such as diesel generator systems, photovoltaic power generation systems, and energy storage systems, and thus provide tailored solutions to meet different needs of clients," said Sai Junfeng, vice-president of Cummins Global and CTO of Cummins China. 

As one of the earliest foreign-funded enterprises to settle in Chongqing, Cummins established a joint venture to manufacture engines in 1995. It has achieved 53.8 billion yuan ($7.37 billion) in above-scale sales. 

Optimistic about the development prospects in Chongqing, Cummins invested another 1.5 billion yuan to build a production line and a tech center in Liangjiang for high-horsepower engines. 

Guan Rong, chief engineer of Cummins Chongqing, said his company would maintain its close ties with Chongqing, create a new global benchmark for high-horsepower engine design, development, and intelligent manufacturing, and export new products to Europe and the US.

Cummins, founded in 1919 and headquartered in the United States, is a global leader in power solutions. It designs, manufactures, and distributes a diverse range of power solutions and offers comprehensive service support.

Experts believe Chongqing's increasing attractiveness as a national central city explains why it has become a hot spot for foreign-funded companies. With its solid industrial foundation, well-established international logistics channels, and continuously optimized first-class business environment, Chongqing offers a broad space for development.

"The city implements national strategies such as the Western Development Strategy (WDS), the Belt and Road Initiative, the New International Land-Sea Trade Corridor, the Yangtze River Economic Belt, and the Chengdu-Chongqing Economic Circle. This is a crucial advantage for foreign investment to enter the Chongqing market,”said Li Ran, director of the Department of Applied Economics at Chongqing Technology and Business University.

Chongqing is currently home to 319 Fortune Global 500 companies. In the first three quarters of 2024, the municipality added 277 foreign-funded companies, up 13.5 year-on-year.