170 European enterprises thrive in Wuxi National Hi-tech District

Foreign technicians visit a new energy testing center of TLD Group in Wuxi, east China's Jiangsu province. (Photo by Qian Zhengxian)

Wuxi National Hi-tech District (WND) ranks among Jiangsu province's hubs for foreign-invested enterprises in eastern China. It hosts 170 European enterprises from Germany, France, Poland, the Netherlands, and Sweden, with cumulative European investment exceeding 15 billion euros ($17.14 billion).

Recent insights gathered by People's Daily reporters reveal key factors behind European companies' successful partnerships in WND.

"Twenty years ago, when executives from our German headquarters visited China, the country's auto industry was still in its infancy," said Erich J. Koch, general manager of Gaudlitz Precision Technology (Wuxi) Co., Ltd. (Gaudlitz Precision).

"What attracted us was the immense potential of the Chinese market, and in 2004, our headquarters made the strategic decision to invest in China - our very first overseas production base," Koch said.

"China's auto industry has since experienced rapid growth, with the number of vehicles on the road rising sharply," Koch noted. "Our judgment was spot on. The decision to invest in China has proven to be absolutely right."

China's transition from automotive scale to strength has reinforced Gaudlitz Precision's commitment to the market. Since its establishment, this automotive parts manufacturing company's annual revenue has grown by 5 to 15 percent, making it a leader in its niche segment.

At the same time, WND has continuously improved its business environment, offering strong support and practical solutions to help enterprises grow with confidence.

Photo shows smart shelves of Schneider Electric. (Photo provided by Wuxi National Hi-tech District)

Bucher Hydraulics (Wuxi) Co., Ltd., a subsidiary of Switzerland-based Bucher Industries, settled in Wuxi in 2018, drawn by China's vast market potential in sectors such as construction machinery, automotive aftermarket, and materials handling.

"Some of the pro-business policies in Wuxi are incredibly convenient. For example, updating business registration details requires only a photo of the passport holder, a fully digital process eliminating the need for multiple visits. The entire process can be done online, saving us the hassle of multiple trips," said Reinhold Frank Muehlon, an executive of Bucher Hydraulics.

Zhang Xiaojun, general manager of Hunting Energy Services (Wuxi) Co., Ltd., a subsidiary of a UK-based technology firm, emphasized the importance of intellectual property protection for tech companies. "Wuxi boasts a market-oriented and world-class business environment governed by a sound legal framework. We've received strong legal protection and the confidence to innovate," he said. "We can truly feel that intellectual property is respected and protected here. That's the fertile ground where companies can thrive."

French company TLD Group, a global leader in airport ground support equipment, established its Wuxi manufacturing base in 2008. The facility now serves as TLD Group's primary Asia-Pacific production hub. Chief operating officer Wu Jianqiang of the company believes the district's sound industrial ecosystem is a key factor in the company's growth.

"China is the world's largest manufacturing powerhouse, with the most complete industrial system globally. The Yangtze River Delta region, in particular, has one of the most comprehensive manufacturing landscapes," Wu said.

Take a cargo loader for instance, he explained, it consists of thousands of components — including the frame, cab, covers, and brackets — supplied by around 100 first-tier suppliers. All of these key suppliers can be found in China, and 95% are located within Wuxi and its surrounding one-hour radius.

Photo shows a business center and a sci-tech exchange center in Wuxi National Hi-tech District, east China's Jiangsu province. (Photo by Zhang Yuanyun)

Today, WND boasts a comprehensive range of industries and a robust industrial ecosystem, attracting an increasing number of multinational corporations to scale up their presence. Many are building flagship factories and headquarters here, accelerating the formation of world-class industrial clusters.

In March 2023, Schneider Electric launched its China research and development (R&D) center in Wuxi, the company's fifth R&D center in China. In November of the same year, it broke ground on a green smart industrial park in Wuxi. The first phase will cover 68,000 square meters and is scheduled to be put into operation by the end of 2025.

"Wuxi is driving industrial growth through technological innovation, with a strategic focus on frontier technologies such as artificial intelligence and emerging industries," said Hu Xiao, senior vice president of Schneider Electric. "It is working to build a globally influential high-tech hub. This gives us a great opportunity to innovate and reinforces our confidence in the Chinese market."

WND has seen each of its pillar industries — including the Internet of Things, integrated circuits, biomedicine, and intelligent equipment — surpass the 100-billion-yuan ($13.93 billion) mark. High-tech output now accounts for over 80% of the total industrial output of enterprises above the designated size in the district.

Over three years, WND has provided comprehensive talent support policies and incentives to 35 European enterprises, benefiting nearly 2,000 employees. It has also helped high-level talent resolve issues such as children's education, enabling them to settle down. With its strong industrial foundation, vibrant innovation ecosystem, and abundant talent pool, WND is fast becoming a powerhouse of innovation.