Participants at the March 28 opening ceremony of the Zhongshan Trade and Investment Fair under a statue of revolutionary leader Sun Yat-sen, who was born nearby. Qiu Quanlin / China Daily

Businesses in the Pearl River Delta manufacturing hub of Zhongshan are being encouraged to invest in emerging markets, especially member states in the Association of Southeast Asian Nations, during the ongoing Zhongshan Trade and Investment Fair that began on Wednesday.

Organizers have invited representatives from seven overseas industrial cooperative zones, six of them from ASEAN, to participate in the annual event in Guangdong province.

The overseas zones are promoting their favorable policies during the fair, hoping to attract investment from Zhongshan-based businesses.

"In the 'go global' strategy, ASEAN will particularly become a key investment destination for local businesses," said Feng Yurong, vice-mayor of Zhongshan.

Products made in Zhongshan that are increasingly popular in Southeast Asia range from electronics to lighting, gas appliances, machinery and electronic entertainment goods, Feng said.

The ASEAN bloc is now Zhongshan's fourth-largest foreign investor and fifth-biggest trading partner with $439 million already invested in the city.

ASEAN investors are mainly engaged in food, daily necessities, electronics, chemicals, furniture and shipping equipment made in Zhongshan, according to the local government.

Booming ASEAN industrial zones participating in the fair are seeking cooperative projects making small home appliances, hardware, electronic audio equipment and lighting.

"Projects promoted at the fair cater to local businesses that have been encouraged to transfer their manufacturing bases from Zhongshan to other areas," Feng said. "It will be key new approach for both sides."

Also attending the fair are about 200 business representatives from the United States and Japan, and officers from 13 foreign consulates and seven consul generals based in Guangzhou, capital city of Guangdong.

While the city's traditional investment partners come from Hong Kong, Taiwan, Macao, Japan, the US and European Union, emerging markets have become key outbound investment destinations for Zhongshan businesses, Feng said.

"Local businesses need to diversify their products and investment to avoid negative impacts brought by the uncertain global economy," Feng said.

International trade barriers and rising domestic production costs have lowered profits for many local traditional manufacturing businesses.

"Overseas investment is expected to help domestic businesses avoid international trade barriers and increase their competitiveness in the global market," Feng said.

By March 20, some 255 foreign and domestic projects had confirmed deals during the annual Zhongshan fair, with investment totaling up to $7.4 billion, according to sources at the local government.

Some 707 export deals worth $1.9 billion will also be inked at this year's event.

Since it started 22 years ago, the fair has helped attract more than $30 billion combined in foreign and domestic investment to Zhongshan, according to government statistics.

At this year's fair, the local government held a special event to promote Zhongshan's industrial development environment, with a highlight on a new zone in Cuiheng village, hometown of China's late revolutionary leader Sun Yat-sen.

"Cuiheng will not only be an industrial cluster area, but also a new city concept combining industry and recreation," Feng said.

qiuquanlin@chinadaily.com.cn

(China Daily 03/30/2012 page11)