A shining light of economic growth(2)

Diverse industries

Its success can be measured by the vast array of high-tech industries based in the city, he adds, with companies from such sectors a IT, new energy, new materials, bio-pharmaceuticals, aviation and aerospace, automobiles, and petrochemicals.

With its target on attracting more foreign investment, the Chengdu government has invited some of the world's leading enterprises to settle in city.

Take automobile industry for example. There are 139 automobile enterprises in Chengdu, including Volvo, FAW Volkswagen and FAW Toyota.

At the Chengdu Economic and Technological Development Zone, more than 50,000 workers are involved in various activities related to the auto industry, from trade, exhibitions, research and development, to the manufacture of spare parts and whole vehicles.

In 2011, the total output value of automobile enterprises in Chengdu reached around 50 billion yuan ($8 billion).

By 2015, that figure is expected to reach 275 billion yuan, with an annual production capacity of 1.5 million vehicles.

Chen Xiaoming, deputy director of the Automobile Investment Service Bureau at the development zone, said low logistics costs and easy access to other parts of China, coupled with the fast access to Europe and Southeast Asia, have proved irresistible for many global auto companies. "In addition, the presence of key players like China FAW Group, Volkswagen, Toyota and Geely, has brought many auto-related business and industries to the area," he said.

Over the past 12 years, Chengdu has been at the forefront of western development in China, and its average annual economic growth rate is amongst the highest of the 12 provincial capital cities in central and western areas.

As a trade and logistics center and transportation and communications hub, Chengdu also boasts the most developed aviation and railway networks in those regions.

Many executives from international companies also say the city's talent pool has been a major attraction.

"We chose Chengdu for the cultural environment, forward-looking government and excellent labor resources, not for its labor costs," said Bian Chenggang, general manager of Intel Products (Chengdu) Co Ltd.

Chengdu mayor Ge Honglin says he has often been asked what hosting the Fortune Global Forum means for the city.

He compares the upcoming event to the 1999 Forum, held in Shanghai's Pudong New Area, which he attended, adding that it played a key role in raising the international profile of what was then a newly developed economic area.

"It's a great opportunity for the world to better understand Chengdu and for Chengdu to go international," Ge said.

Xu Fengxian, a senior researcher with the Institute of Economics at the Chinese Academy of Social Science, said that Fortune's choice of Chengdu illustrates how China's economic development is moving to the west of the country, and how the region is being opened up to the world.

Wang Zhile, a researcher at the Chinese Academy of International Trade and Economic Cooperation, added that Chengdu's development is a clear example of the country's efforts to "go global".