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In recent years, Pinghu, a county-level city of Jiaxing in East China's Zhejiang province, has become an attractive destination for foreign companies looking to establish a presence in China. This has been evident in the rapid increase in new projects and investments in the region.

A total of 31 agreements for new projects have been signed to date in Pinghu. By June, actual foreign investment in Pinghu is expected to reach $370 million, placing Pinghu at the top spot in terms of foreign investment among all cities in Jiaxing.

One successful example of a foreign-invested company in Pinghu is KSK Automotive Components (Pinghu) Co Ltd, a Sino-German joint venture specializing in the development and production of automotive wire harnesses and engine wire harnesses.

The company's new project went into mass production last month. Catering primarily to General Motors, it is projected to have an annual output value of 100 million yuan ($14.01 million).

Since its establishment in 2012, KSK has increased its registered capital from an original 10.5 million euros ($11.79 million) to the current 55 million euros. Despite an overall slump in the automotive market in recent years, the company achieved an output value of approximately 150 million yuan in 2022, a year-on-year growth rate of over 23 percent.

Foreign companies' confidence in Pinghu comes not only from its favorable location, market potential, and talent pool but also from its strong business environment.

In 2017, Thermofin, a German leader in industrial heat exchangers, decided to build its exclusive manufacturing base for the Asia-Pacific region in the Pinghu Economic Development Zone with the help of custom-built factory buildings provided by Pinghu. During the pandemic, Pinghu also provided the company with professional services.

This year, Thermofin plans to increase capital investment by $16 million to acquire over 30 mu (2 hectares) of land and expand its production facilities.