BASF announces new Guangdong site as province relaxes investment rules

 

 

Guangdong Province in Southern China has announced changes to its rules on foreign direct investment. It is hoped that the new framework, which allows foreign investors to establish solely foreign-owned enterprises in a number of industries, will attract multinationals and move the province’s productivity up the value chain.

The new rules focus on attracting investment in aviation, design, new energy vehicles, the manufacturing and maintenance of ships, drones, gas-station construction and railway technologies.

Foreign investment in Guangdong has grown by 3.1% year-on-year (0.8% higher than the national average) to 88.93 billion RMB. Investment from Britain grew at a rate of 93.8% between January and July of this year.

CBI Member and German chemicals giant, BASF is one of the first companies throwing their financial weight behind Guangdong Province’s initiative to improve the investment environment, along with another CBI Member, ExxonMobil.

BASF will invest $10 billion over 10 years to build a chemical production site in the province, this site will be the company’s largest investment project to date.

Please read more here.