TEDA Moves up the Value Chain as Reinvestment from New and Old Partners Pouring in

By the end of 2021, TEDA has accumulatively attracted 6,362 foreign investment projects from 97 countries and regions, with actually utilized foreign investment totaling US$66.48 billion. 117 of the Fortune 500 Companies have invested in 523 projects here. The figures are still growing. In 2022, TEDA’s actually utilized foreign investment grew by 22.5%, with more high-quality projects joining the region. In the automotive sector, foreign investors are shifting more resources to R&D and new energy vehicles as they continue expanding capacity. In 2022, FAW-Toyota’s first NEV plant settled down, and FAW-Volkswagen North China Base’s new photovoltaic project became operational. In the field of high-end equipments, intelligent manufacturing and digital production added more value to the industry chain. Vitesco Technologies opened multiple new production lines. Otis’ first intelligent elevator testing center in China was put into use. DMG MORI’s first green factory in China started operation. In the field of next-gen information technology, new projects of NXP, Denso Electronics and Samsung kicked off. In the field of chemical new materials, industry ecosystem kept expanding, as Nippon Paint locating its China headquarters in TEDA, Vestas launching new generator plant, and Nouryon initiating its globally biggest organic peroxide base. In the field of healthcare, Novo Nordisk, Nestlé, among other long-term investors of TEDA, redoubled their local investment and capacity several times, while Meiji Dairy and Mars Pet Food accelerated their new plants construction. As more foreign financial institutions such as Coller Capital and Hanwha Investment join TEDA, the region began to see a better clustering effect of financial institutions, which translates into stronger financial empowerment for real economy.

“TEDA offers sound industrial groundwork and the right atmosphere for smart manufacturing. These are the source of our confidence for the region.” said Zhang Wei, a senior executive of Otis Elevator (China) Co., Ltd. Through sustained technological innovation, foreign companies keep boosting their capacity and efficiency, with their TEDA plants setting more records in China, Asia and the world. With their collective efforts, the region’s industry innovation ecosystem are improving day by day.

TEDA Gaining Innovation Momentum as Foreign-funded R&D Centers Gather

More multinationals like PPG, Laird, Vitesco Technologies and Honeywell chose to locate their R&D centers in TEDA in recent years. As the technology powerhouses of these great companies, these R&D centers not only fueled up the growth of their parent companies but also introduced more cutting-edge technologies and high-end talents to TEDA. They are contributors to technology advancement and quality-oriented growth.

For Cathy Yan, General Manager of PPG Asia Pacific, the location of R&D centers reveals a company’s development priority. During its 30-year presence in TEDA, PPG continues to increase investment. During the past two years, it started construction of the PPG Global Coatings Innovation Center and the Innovative Application Center for Electric Vehicles and Smart Mobility, showing strong confidence and commitment for the region.

The Vitesco Technologies Tianjin R&D Center is the group’s R&D base for hybrid and electrified powertrain technologies, playing a highlighted role in the Asia-Pacific region. “In Tianjin, we can better integrate the R&D of new technologies with production. Furthermore, we see a fully-fledged supply chain in Tianjin. Our customers and upstream suppliers are both in TEDA. These factors are very helpful to us”, said Gregoire Cuny, President of Vitesco Technologies China.

Ever-optimizing Business Environment Making TEDA a Super Magnet for Foreign Investment

Foreign enterprises in TEDA never ceased their steps of progress in production and R&D. “Tianjin offers unparalleled geographic location. The local government provides us with very friendly policies. TEDA is home to so many auto companies. These combined is the reason why Nippon Automotive Paint China headquarters has come to the region. As an industry front-runner, we need a strong partner, and TEDA is a natural choice. We plan to locate our production, R&D, and future sales function all in Tianjin.” said Cai Yinghua, President of Nippon Paint China.

Facing the Bohai Bay, TEDA offers superb geographic location as well as a series of strategic opportunities with its unique role in the Belt and Road Initiative and the Collaborative Development Strategy of Beijing-Tianjin-Hebei. It is also the first Pilot Free Trade Zone in North China and one of the country’s Demonstration Zones for Indigenous Innovation. Solid industry groundwork and infinite potential attract more foreign investors to build on their presence in the region. Moreover, vigorous policy support also facilitates business growth and boosts investment confidence. In recent years, Tianjin has issued a series of policy documents including Measures to Strengthen and Improve Investment Promotion Work in Tianjin and Measures to Stabilize the Fundamentals of Foreign Trade and Foreign Investment and to Promote Innovative Development of Foreign Trade to minimize access restrictions, optimize business environment, and encourage enterprises to introduce new technologies and new channels to boost competitiveness on the international market. All these efforts are meant to foster a sound growth environment for foreign businesses in Tianjin. Making the best use of these policies, TEDA gives full play to its dual advantages of Pilot Free Trade Zone and TEDA Comprehensive Bonded Zone to help foreign enterprises in goods customs clearance and bonded functions. “We need expedited access for imported materials and equipments, and the government does offer a lot preferential policies to help us adapt to market changes faster”, said a managerial staff of a foreign intelligent manufacturing company.

Solid industrial base and ever-improving business environment attract foreign enterprises to continuously build on their presence in TEDA. Today TEDA is home to a variety of industrial clusters and specialized industrial parks, as its gigantic industrial ecosystem gradually taking shape. In recent years, TEDA has promulgated a series of substantial innovative initiatives. As the earliest Chinese development zone to adopt an industrial business environment index system, TEDA sets up an example for high-quality industrial development and China’s industrial business environment research.

At the end of 2022, the TEDA International Chamber of Commerce was established, bringing together a galaxy of foreign-funded enterprises and contributing to the region’s ever-improving business environment. It is a platform for information and resource exchanges between government and enterprises, and among enterprises. It expects to facilitate the growth of foreign enterprises and serve the overall economic and social progress of TEDA.