A night time view of the downtown CBD of Hangzhou, Zhejiang province [Photo/VCG]

A sound business environment, booming internet industry and innovative technologies have made Hangzhou, capital of Zhejiang province, a strong magnet for global enterprises and foreign investment.

According to statistics from the Hangzhou municipal government, Hangzhou foreign investment showed an upward trend in 2018, with 744 new foreign-invested enterprises and 224 over-$30-million foreign funded projects landing in the city. The actual use of foreign capital amounted to $6.83 billion, up 3.28 percent compared with the previous year.

Foreign companies optimistic about Hangzhou

Toshiba Carrier Corporation, an air-conditioning joint venture between Japan's Toshiba and the USA's Carrier Air Conditioning & Refrigeration Limited, established their Chinese air conditioner production base in Hangzhou.

After five years of development, the company poured 400 million yuan ($57.97 million) into building a larger base in Hangzhou last year which will serve as a regional headquarters and a center for production, research and development (R&D).

"The huge potential demand in the Chinese air conditioning market and the sound business climate in Hangzhou persuaded us to expand investment and build a global R&D production base," said an official from the company.

A keen focus on innovative technologies is another key reason why foreign companies are entering Hangzhou.

Singapore-Hangzhou Science & Technology Park, a joint venture between Ascendas-Singbridge Group, Asia's leading provider of business space solutions, and Hangzhou, is currently home to a range of leading research institutions, such as Sougou and the University of Auckland Innovation Institute China and others in the areas of artificial intelligence, information technology, biopharmaceuticals and the e-commerce industries.  

"We are honored to witness and be a part of the rapid economic development of Hangzhou,"said Miguel Ko, executive director of the group, adding that the company will continue to expand its business in China and provide quality services and products for customers.