2.1International Manufacturing Base
Foshan has solid industrial foundation, and has formed the industrial development pattern composed of such ten preponderant industries as household appliances, equipment manufacturing, electronic and information technology, ceramic materials, metal processing and metallic products and emerging industries including auto parts, biomedical and advanced display units. In 2007, the gross value of industrial output of Foshan was up to RMB 935.8 billion, increased by 28.2% year on year.

2.1.1 Household Appliance
Foshan holds a leading position in China in terms of the scale of household appliance industry and products quality. It is the most important manufacturing base of household appliances in China with the output of household appliances accounting for 60% of that in Guangdong Province. The industrial output value of household appliances and equipment manufacturing industries accounts for one third of the city’s total.

Well-known household appliance manufacturers in the world, such as Toshiba, Panasonic and Sanyo from Japan as well as Whirlpool from America, have invested groups of household appliance projects in Foshan. Numerous enterprises with annual output value over RMB 1 billion have come into being For instances, Media, Kelon, Glanz, Sampo, Sienhua and Chigo. The output of micro-wave ovens and fridges in Foshan respectively accounts for 48.6% and 80% of that of the whole country. The output of air conditioners accounts for 50% of that of Guangdong Province.

2.1.2 Equipment Manufacturing
Foshan is one of the three largest equipment manufacturing bases in Guangdong Province. The gross output of ceramic machineries accounts for 85% of the nation’s total. It is the largest manufacturing base of ceramic machineries in China.
Owing to the investment by American Caterpillar Company and Austrian Andritz Company, a batch of manufacturers of leading products such as ceramics machineries, electric machineries and equipments, pressing machines, woodworking machineries, plastic machineries, textile machineries, auto parts, glass machineries and printing machineries have been formed in Foshan.

2.1.3 Metallic Material Processing and Manufacturing
Foshan is the most important metallic material processing and manufacturing base in China. The industrial output value in such sector accounts for 15% of the industrial output value of the whole city; and the output of aluminum sections respectively accounts for 61% in Guangdong and 40% in China, the one of stainless steel products accounts for 35% of that in China, of which the output of stainless steel pipes accounts for 80% of that in China, and the output of metal fittings accounts for 20% of that in Guangdong Province.

Four brands of metallic products from Foshan are listed in the Chinese Top Brand: Jianmei, Asia, Xingfa and Guangya.

2.1.4 Ceramics and Other Construction Materials
Foshan is the largest ceramics manufacturing base with the largest production scale in the world. The annual output of architectural ceramics is up to 1.5 billion cubic meters, and the gross output accounts for 60% of that in China and 25% of that in the world. The industrial output value in the sector accounts for 9% of the gross industrial output value of the whole city.

Kohler from America and Icot from Japan have established factories in Foshan. The Chinese ceramics brands include Eagle, Dongpeng, Diamond, Newzhongyuan, Mona Lisa, New Pearl and Jinduo.

2.1.5 Electronic Information
Foshan is the national electronic information industry base as well as the production and supporting base for electronic information products of Guangdong Province.

Currently, there are more than 600 electronic information enterprises in the city. The products manufactured by these enterprises cover such sectors as IT telecommunication, electronic parts and components, optical information storage, complete machines for consumption electronics and auto electronics. The industrial output value of the industry accounts for 6% of the gross industrial output value of the whole city.

So far, such well-known enterprises as Thomson and Tyco from America, Nortel from Canada, Mitac and Chi Mei Optoelectronics from Taiwan have invested in Foshan.

2.1.6 Textile and Garment
Foshan is one of the 12 exporting bases of textiles approved by the State Council. The industrial output value within this industry accounts for 7% of the gross industrial output value of the whole city.

So far, such manufacturing bases and specified market as Xijiao Textiles, Yanbu Underwear, Zhangcha Knitting, Huanshi Children’s Wear, Junan Jean and Lishui Sock have been established.

There are more than 6200 textile garment manufacturers in the city, among which, there are respectively 34 enterprises with output value exceeding RMB 10 million and 5 ones with output exceeding RMB 50 million. In addition, there are 250,000 employees in these enterprises.

Well-known textile garment manufacturers include Esquel and Yihua Polyester in Foshan.

2.1.7 Plastic Products Manufacturing
Major plastic products produced in Foshan include packing materials, sheet materials, piping sections, artificial leather, compounding materials for plastic knitting, packing containers, daily plastics as well as such further processed products as aluminum plating, bronzing, compound paint, color painting compounds and tapes. The industrial output value within this industry accounts for 5% of that of the city’s total.

Well-known local enterprises include Foshan Plastics Group, Shunde Liansu Scientific Industrial Co., Ltd, Guangdong Goody Plastics and Synthestic Plastics and Hardware Co., Ltd.

So far, Dupont Company and Invista Company from America, Sumitomo Corporation and Teijin Group from Japan have established joint ventures with Foshan Plastic Group.

2.1.8 Petrochemical Processing and Pharmacy
Gross value of industrial output in Foshan’s petrochemical processing and medicine industry accounts for 6% of the gross industrial output value of the whole city.

Foshan’s petrochemical processing and medicine industry includes such sectors as petrochemical processing, chemical materials as well as chemicals and rubber manufacture. So far, BASF from Germany, Atofina from France as well as Rohmhaas and Kosa from America have established factories in Foshan.
There are more than 300 painting manufacturers in Foshan. The annual output of paintings produced by these enterprises has topped over 300,000 tons, accounting for 10% of that in China. Well-known Chinese painting brands in Foshan include Huarun and Carpoly.

31 pharmaceutical companies have been endorsed in Foshan, mainly including American Alpharma, Japanese Otsuka as well as Hongfuloi, Shunfeng, Fengliaoshen, Dezhong and Global from Hong Kong, all of which have been certified by the GMP system.

2.1.9 Food and Beverage
The gross value of industrial output in Foshan’s food and beverage industry accounts for 4% of industrial output value in Foshan City.

Local and foreign-funded enterprises include Jianlibao, Haitian Flavoring, Samiguel Beer, Tsingdao Beer, Yanjing Beer, Taiji Wine and Jiujiang Wine.

2.1.10 Furniture Manufacturing
Longjiang Town and Lecong Town in Shunde are famous for furniture making. Longjiang Town is honored as “No. 1 Town of Furniture in China” and Lecong is honored as “Trading Center of Furniture in China”. The industrial output value in this sector accounts for 2% of the gross industrial output value of the whole city.

There are numerous furniture companies in Foshan. All of them have complete industrial chains and supporting facilities. There are more than 2000 furniture factories in Longjiang and Lecong. Among them, there are a group of renowned enterprises such as Lanbond, Mejazz, Empire, Louvre and Golden Unicorn.

2.2 Ideal Place for Auto Parts Industry
So far, Toyota, Honda and Nissan have established auto plants in Guangzhou. As Foshan is only 1 hour’s drive from the three auto plants in Guangzhou, it is an ideal place for auto parts industry.

All together, there are more than 200 auto parts factories in Foshan, with a total investment up to RMB 11.636 billion. Among them, foreign-invested enterprises have topped over 100. Japanese auto parts manufacturers, as Honda Motor, Denso, Toyota Textiles, Toyotsu, Aisin Seiki, Toyoda Gosei, Toyoda Kouki, Tokai Rika, Aisan Industry, Koyo Seiko, Sumitomo Corporation, Kobelco, Metal One, Gdyuasa, Honda Access, Otsuka, Adiya, hanatairiku and Yazaki, have established plants in Foshan. Furthermore, Foshan also has a group of private auto parts companies with abundant capitals and marketing strength, which bears mature possibilities and conditions for cooperation with foreign companies.

Products manufactured by auto parts manufacturers in Foshan are various and form the considerable supporting capacity. Major products include clutch assembly, brake assembly, hydraulic torquemeter, auto exhaust assembly, cylinder, transmission case, mould, bearing, wheel frame, auto alloy material and auto electric installation as well as auto supplies such as vehicle air conditioner, acoustics, filter cleaner, brake strip, muffler, vehicle lamps, electric equipment, leather, interior decoration. A complete system has been formed in the supply chain of auto parts industry. Many foreign-invested enterprises enlist on local enterprises for providing materials and relevant fabricating work.

Furthermore, there are more than 350 enterprises engaged in the distribution of auto parts in Foshan. As a result, a vast and special market and logistic system of auto parts has been formed.

2.3 Infinite Business Opportunities in Modern Service Industry
The powerful manufacturing industry in Foshan has brought tremendous potentials for the development of modern service industry. The logistic industry, exhibition industry and commercial service industry have witnessed fast development and obtained infinite business opportunities. Oversea purchasers can freely purchase their desired high quality and inexpensive commodities in Foshan, Furthermore, investors can enjoy the perfect supporting industrial facilities here, and freely choose their cooperative partners.

2.3.1 Solid Supports from Government to Logistic industry and Commercial Service Industry
Considerable economy volume in Foshan has created vast space for the development of logistic industry. In 2005, the added value in Foshan’s logistic industry was RMB 40.095 billion, which accounted for 46.7% of that of the service industry.

Foshan Municipal Government has specified the modern logistic industry as the leading industry for the development of service industry in Foshan as well as the supporting point for the further improvement of industrial facilities, so as to provide supports for the strategy of improving the strength of Foshan by means of industrial development. The Foshan (International) Logistic Cooperation Fair, held annually in Foshan, has provided an access platform for cooperation between manufacturers and logistic enterprises. Furthermore, Foshan Municipal Government will also support the introduction of the third-party domestic and foreign logistic enterprises of high quality and well-known brands by more incentive packages.

In addition, Foshan will put great effort to develop such commercial service sectors as financing, insurance, legal consultation and accounting to provide optimized supporting service facilities for industrial development.

2.3.2 Specialized Trading Market Extending to South China
Foshan is one of the most important trading centers in PRD. Depending on the concentrating effect formed by towns with characteristic features and industry cluster, Foshan has established a group of logistic trading and dispatching centers with considerable size and high radiating capacity. Currently, there are 129 wholesale markets of different types in Foshan, covering a total area of 5.67 million m2.
General View of Some Specific Markets in Foshan

2.3.3 Special Exhibition Fair in Diversified Development
Foshan, depending on the predominant industrial clusters and special markets, vigorously holds various fairs. Ceramics Fair, Household Appliance Fair, Furniture Fair and Flower fair are fairs with high popularities in China, which serve as a cooperative platform for exhibitioners, purchasers and special customers to conduct exhibitions, business negotiations and communication of information.

3. Fast Development of Export-oriented Economy
3.1 Hotspot for International Investment
Foshan is a region with intensive foreign investment. There are more than 8000 foreign-invested enterprises (including the ones from Hong Kong, Macao and Taiwan) with a total foreign investment of more than USD 23.7 billion in Foshan. 77 projects invested by 39 enterprises among the Global 500 have been endorsed in Foshan. Foreign-funded enterprises have significantly reduced the costs of manufacturing operation, successfully expanded the potential market in China, and have obtained expected investment yield (diagram for introduction of foreign investment and source of foreign investment).

3.2 Annual Import & Export Volume Exceeding USD 30.98 Billion
The continuous increase of foreign-invested enterprises in Foshan has greatly promoted the development of international trade. The gross value of import and export in Foshan in 2007 has topped USD 97.85 billion, up by 22.2%, of which the annual gross export value has reached USD 26.19 billion.

Major Products Exported from Foshan include: (Diagram for Commodity Types and Nations )

Commodity species: