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China: Foreign-funded companies ramp up reinvestment in China

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[Voiceover] China remains dedicated to business-friendly policies that allow foreign companies to invest in factories, research and development centers and more in the country. In east China’s Suzhou Industrial Park, German car parts manufacturer Vorwerk Autotec recently announced plans to use 70 million U.S. dollars of profit reinvestment to boost production capacity and R&D. The company makes rubber and metal parts, chassis components, and noise, vibration, and harshness solutions, working with automotive OEMs like BMW and Volkswagen, but also Chinese brands, like BYD, Geely, and Great Wall. The manager of Vorwerk Autotec's global operations says they’ve always had confidence in China. [Soundbite] Martin Gluchowski, manager of global operations, controlling systems, Vorwerk: "We are also now building a second building on the other side of the street, a second factory to fulfill the demands of our customers." [Voiceover] With the rapid development of the Chinese automotive market, the company's annual sales have increased from an initial 28 million U.S. dollars to roughly 140 million. Executives say expansion has been become imperative for the company. [Soundbite] Huang Wenbiao, general manager, Vorwerk Autotec Suzhou Limited: "I use a lot of data to discuss our product direction and customer needs with the executives at headquarters, focusing on how to align these aspects, which is crucial. The executives believe that, given the rapid development in China, there is a need to better meet local demands." [Voiceover] A survey by the American Chamber of Commerce in South China from February shows that 58 percent of foreign companies surveyed still consider China one of their top three global investment destinations. [Restrictions: No access Chinese mainland]

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