The Tianjin Port Free Trade Zone has received approval from the Ministry of Commerce to open a trade and industrial park in the United States.

The industrial park, located in Greenville, South Carolina, will provide a base for overseas investment by companies in Tianjin and other regions in China.

A spokesman from the Tianjin Port Free Trade Zone Investment Co Ltd, an operating company of the park, said an agreement has been signed with the United States Pacific Development Co Ltd and the initial investment will be US$2 million.

"The industrial park will be a great platform for Chinese companies who want to go global," he said.

South Carolina has the highest per capita international investment of any region in the United States and is one of the country's most important manufacturing bases.

The state is known for the industries of textile and garment, furniture, tobacco and automobile, which fits in well with Chinese companies, he said.

He said the park will be home to companies which plan to have production, distribution and trade promotion in the state.

He predicted there will be 30 to 50 Chinese trading agencies and 10 manufacturing companies entering the park in two or three years.

Tianjin Port Free Trade Zone is the largest free trade zone in northern China and has a sister-city relationship with Greenville.

Over 4,000 enterprises from more than 100 countries and regions have invested in the zone, including more than 40 transnational corporations of Fortune 500.

Experts say they believe the industrial park or trade centre for Chinese companies and products will be a popular mode for Chinese investment.

China is currently constructing a large-scale trade centre for the nation's products in the United Arab Emirates, which is planned to open later this year.

The Dubai-based centre will be the largest trading platform China has ever established overseas with a total investment of US$300 million. It will accommodate about 4,000 Chinese companies.

The United Arab Emirates, which has a regional position comparable to Hong Kong in Asia, has strong trade links with the Middle East, Africa and East Europe.

Dubai, a port city, is the world's third largest harbour for entrepot trade, after Hong Kong and Singapore.

It is also planned that a Chinese business centre and a Chinatown will be built in Moscow and St. Petersburg respectively.

Jin Bosheng, an expert on investment from the Chinese Academy of International Trade and Economic Co-operation, said industrial parks and trade centres, where there are a cluster of Chinese companies, is an appropriate way for Chinese companies to fulfil their global strategies.

Parks and centres especially for Chinese investment can provide a more convenient and safe environment, he said.

He said he expected the government would help further establishment of such business modes to promote China's outward investment.

The world has recognized Chinese enterprises are at the threshold of becoming major foreign direct investors in Asia and beyond because of their financial strength and exposure to international business.

China's outward investment reached US$2.1 billion last year, a small amount compared to its potential but a year-on-year rise of 112 per cent.

Developing countries are mulling setting up special development zones for China to attract increasing outward investment. For example, Sri Lanka has already opened a special area.

The Chinese Government recently published the nation's first industry-based guideline to help Chinese firms make better choices when they invest in overseas markets.

Covering 67 nations and a wide variety of industries, the guideline offers suggestions to domestic companies on the selection of investment destinations and industries. Among them, agriculture, mining, manufacturing and service sectors are highlighted.

Source: China Daily