Foreign money

Lower land cost, cheaper labor, ample energy supply and improved infrastructure and logistics have already started to lure companies to move westward in China.

But foreign multinationals seem keener to perceive the opportunities coming with the massive western development strategy.

"China is attempting to create a growth mode based on domestic consumption and innovation, a change which looks very attractive for us," said Bian Chenggang, general manager of Intel Products (Chengdu) Ltd, one of the three largest chip assembly and testing plants for Intel Corp in the world.

Intel, a computer chip giant, made its first investment in Chengdu as early as 2003, which was also among the first large investments by foreign multinationals in China's western area. Last year, Intel closed its chip assembly and testing plant in Shanghai and moved it to Chengdu, making it the biggest such facility in a single city.

Intel's investment in Chengdu to date is over $600 million, with a staff of about 3,300, which will grow to 3,500 by the end of this year.

"Compared with coastal cities, the infrastructure here might still have some room for further improvement, but the local government agencies are always ready to listen to our problems and active to resolve them and we can see progress here every year," said Bian, 45, a Shanghai native and father of a six-year-old boy.

Bian said he has bought a couple of apartments in Chengdu and is determined to send his son to one of the best local primary schools in the city.

"We've decided to settle down here."