Foreign investors are setting up an increasing number of research and development facilities in China, according to the Chinese Ministry of Commerce.

There are about 750 of these centers in China, mainly distributed in Shanghai, Beijing and Shenzhen where foreign investment is concentrated.

In response to China’s hunger for advanced overseas technologies, many multinationals have re-deployed their global strategy and have made China one of their priority locations for R &D centers.

The ministry said the centers mainly focus on high-tech industries such as electronic and telecommunications equipment, manufacturing of transport equipment, pharmaceuticals and chemical materials.

Multinationals such as Microsoft, IBM, Motorola, Nokia and Toyota have all established R&D centers in China.

With the expansion of the China market, many multinationals have kept increasing investment in their China R&D centers. Statistics show that the investment of companies like General Motors, Philips, Motorola and Siemens to their Chinese R&Ds have all exceeded 10 million U.S. dollars.

These foreign R&Ds also employ a large proportion of Chinese talent. The ministry said high-school graduates and students, who have returned from overseas, have been the main target for recruitment.

The R&Ds also have close ties with Chinese universities and scientific research institutions, said the ministry.

Many centers have combined with Chinese scientific institutions to work on new products and technologies, with both sides reaping the rewards.

Economic observers said by attracting more and more localized foreign R&D centers, China can climb the hierarchy within the global economy and the technological innovation of Chinese companies can be improved.

Source: Xinhua