Overseas high-tech sector eyes West China

The first phase of the tech firm totaled $7 billion while the second phase is expected to reach $30 billion, both the single largest investment by Samsung in China, and the largest foreign high-tech project West China has attracted since the start of the country's reform and opening-up.

Foreign enterprises are also attracted by West China's plentiful talent reserve.

The Chicago-based software company Thoughtworks shifted its China office to Xi'an after operating in Beijing for four years.

"Xi'an's human resources in information technology and the market opportunity are the reasons why we came," said Hu Kai, general manager of Thoughtworks's Xi'an office. Hu said he feels an atmosphere for technological innovation and exchange in the city.

"Xi'an offers technical personnel in aviation, chemical engineering, as well as energy sectors that GE innovation center needs," he added.

With nearly 100 universities sending 250,000 graduates to the job market annually, Shaanxi province is able to support six National High-Tech Industrial Development Zones, 683 science and technology programs and over 900 research institutes.

"Dell set up its global operations facility in Chengdu because we believe the city's mature education system can nurture and retain talents," explained Huang Yunfei, head of the program for Dell.

However, foreign enterprises are expecting more from regional governments in West China.

"As a foreign enterprise, we want the opportunity to earn special research funding from the government, and participate in the country's major research projects in science and technology, just like what domestic enterprises do," said Xu.

He said this will encourage foreign enterprises to pump additional investment into China and move more research and development projects to the country.

"Foreign enterprises in turn contribute to the country's scientific and technological progress. It's a win-win solution," according to Xu.

He added that a more service-oriented government is needed to attract foreign businesses. "The regional government can carry out its policy with more transparency and execution."

Another big thing on the wish list for foreign enterprises is a better transportation system.

"Better transport including interprovincial highways and urban subways is a must if the region wants to attract more foreign investment," believes Park Dong Sik, China branch president of Sandeul Information Communication Co Ltd.

The "go west" drive, initiated in 2000 to boost the less developed west, covers six provinces, five autonomous regions and Chongqing municipality, accounting for more than 70 percent of the mainland's area.

China's western development strategy involves infrastructure construction, attracting foreign investment, and increased efforts in ecological protection, education and talent retention.