Foshan in Guangdong province might be famous to keen martial arts fans as the ancestral home of Kungfu movie icon Bruce Lee, but today its reputation increasingly rests on its attraction to globally known multinational companies.

Dozens of projects by global giants from various industries received construction permits or became operational in Foshan in 2007 alone, says Zhang Jianhui, head of the Foshan Foreign Trade and Economic Cooperation Bureau.

Seventeen were funded by companies on the list of the world's top 500.

One is United States-based Invista, a leader in artificial fibers and polymers, and the owner of the trademark Lycra known worldwide. The company recently announced it will invest another .6 million to expand its spandex factory Foshan.

The investment comes just a year after the opening of its 8 million facility in the city.

Brewer Anheuser-Busch, another global leader based in the US, announced recently that it will build a million production facility in the city's Sanshui district.

The brewery is expected to yield 2.6 million hectoliters of beer annually in its initial stage, with sufficient room set aside for future expansion.

Long a hotspot for foreign investment, other global giants that have begun large-scale operation in Foshan include Kohler, a world leader in bathroom and kitchen fixtures, and Tyco Electronics, a leader in engineered electronic components, network solutions and systems.

Retail giant Wal-Mart, banking powerhouse HSBC and AIA, the life insurance business of worldwide insurance and financial services leader AIG, also have operations in Foshan.

Zhang says more than 7,000 foreign investors have to date established projects in Foshan, with their total foreign investment surpassing billion.

"The fact that Foshan has been heating up finds obvious expression in the rapid increase of foreign capital in 2007," remarked Zhang.

Latest statistics show that foreign investment earmarked for the city reached .66 billion in 2007, soaring 50.36 percent from the year previous.

Actual foreign investment realized in 2007 was .57 billion, rising 38.33 percent over 2006.

Unique advantages

The official attributes Foshan's popularity among foreign businesses primarily to its geographical advantages, the attractive business climate and cost of living and a mature industrial chain. The city also has well-developed infrastructure, effective services for investors, rich human resources and huge market potential, Zhang adds.

Neighboring the provincial capital of Guangzhou, he notes businesses in Foshan have easy access to the transportation hubs including Guangzhou Baiyun International Airport, Guangzhou Nansha Port and Guangzhou Railway Station.

The city is also famous for its chefs and their mouthwatering delicacies, and has more than 70 star-rated hotels, eight golf courses, international schools, convenient shopping and sports facilities, as well as international-class medical facilities.

"Foreign investors living in Foshan can also get convenient access to the tertiary industrial facilities in neighboring Pearl River Delta cities including Guangzhou, Zhongshan and Jiangmen," Zhang says.

"In short, they can spend less but enjoy more here compared to Guangzhou or other Pearl River Delta cities."

Manufacturing base

He says Foshan has grown into a key manufacturing base for China and even the world, with its annual output of household appliances comprising 15 percent of the nation's total, building ceramics contributing 32 percent and aluminum alloy and stainless steel building materials from Foshan fully 40 percent of the national total.

Its output of microwave ovens tops all cities nationwide and its annual production of 15 million cameras is 15 percent of the total worldwide.

"The industrial chain has been well developed for household appliance manufacturing, optics, mechanical and electrical integration, IT equipment manufacturing, ceramics and other building materials, textiles and garments, metal processing, plastics, fine chemicals, medicines, food and beverages and household necessities," the official says.

He adds that the city will continue to enhance its efforts to lure more foreign investors this year.

"We are seeking the opportunity to secure super-large and quality projects as well as those conducive to the city's industrial optimization and improvement of the industrial chain this year," he says, noting Foshan will be particularly interested in hi-tech industrial projects and those related to saving energy and environmental protection, bio-medicine and high-end services industry.