Chongqing, China's youngest municipality is eyeing an investment upsurge from overseas thanks to a strategy launched by the Chinese government in 2000 aiming to develop the country's vast western area.

The policy brought a sound investment environment for both domestic and overseas investors, said Eric Chan, general manager of Chongqing Sino-French Water Supply Co., Ltd (CSFWS). In his opinion, western China is luring many foreign investors who want to invest in the country.

CSFWS, a joint venture with registered capital of 1.23 billion yuan (148 million US dollars), was established by Chongqing Municipal Water Works and Sino-French Water Works, supplying water for around one million local residents.

According to Chan, Sino-French Water Works owns 16 joint ventures with a total investment of 188 million US dollars, serving water for over 10 million Chinese since it entered the market in 1992.

Sino-French Water Works selected CSFWS as a standing point to expand business and is trying to be a good example among numerous foreign participants in answer to the strategy, said the general manager.

Compared with Sino-French Water Works, US-based Briggs & Stratton (B&S) came to Chongqing earlier and has seen more deep-seated changes there.

B&S (Chongqing) Engine Co., Ltd, the first Sino-US joint venture in the municipality, was established in 1986. A minitype gasoline engine product line with an output of 1 million per annum has been under construction as its largest manufacturing base in Asia.

"We have invested there for many years and have deeply felt the changes brought by the strategy, covering renewed concept of locals, government's more active attitude on service and improved investment environment," said James Marceau, vice president in charge of B&S's operations in Asia.

He said not only the obvious opportunity going with Chongqing's status as an engine manufacturing center but also the municipal government's opening-up mind made them settle down.

Last year, a local company was severely punished for counterfeiting B&S products. The government's efforts at intellectual property protection helped B&S make up its mind to enlarge investment in the city. B&S then decided to move its most-advanced product line and global purchasing office to Chongqing. James Marceau said he thought the company's investment would be "well repaid."

Nearly 3,700 foreign-funded companies contracted more than 6.7 billion US dollars in investment in Chongqing by last September. Among them were 29 firms set up by 26 of the Global 500 corporations.