"We are going to double the size of our current factory to 40,000 sq m. And there are still 9,000 sq m reserved for further expansion," says Christian Besnard, general manager of Valeo Transmissions China, located in the Jiangning development zone.

Valeo chose Nanjing as a manufacturing base for its clutches in 1997, largely due to its logistic advantages. It is well connected to clients in Shanghai, and in Anhui and Guangdong provinces, by expressway and railway.

Nanjing is 380 km from the East China Sea and a key link between the regions north and south of the Yangtze River, as well as a major stop on the Beijing-Shanghai high-speed rail route.

"It turned out to be a wise decision. Jiangning is a huge industrial area with a lot of space. And the governments of both Jiangning district and Nanjing city have been very efficient and helpful," Besnard says.

Local government efficiency, together with the talent produced by its universities and research institutions, a solid industrial foundation, a rich culture and a harmonious environment make this city an ideal place for investment, investors say.

"There was a big question for us in 1997 whether we should have the headquarters in Shanghai or Nanjing," says Roland Gerke, president and CEO of Bosch and Siemens Home Appliances Group, China. They found good reasons to choose Nanjing.

"Nanjing has a very good geographic location, which makes it easy to reach almost every location in China. And the local government was very helpful in welcoming us and helping us settle, and gave us clear guidance and a professional explanation of regulations," he says.

Then in 2004, when BSH Home Appliances entered a second round of investment, seeking to establish a research center, a new production base and logistics base with high added-value, they once again chose Nanjing.

"The city is close to our manufacturing bases - one in Wuxi in Jiangsu province, and one in Chuzhou, Anhui province. University graduates and research institutions here are significant to R&D," Gerke says.