The ancient capital of Nanjing builds on historic strengths to position itself as location for overseas investment

The roads are being widened, the airport is being expanded, and public services are being improved - there is a lot going on in Nanjing, "the capital of six dynasties" whose history dates back to the 5th century BC. Now, as the capital of Jiangsu province, the ancient city wants to spread its influence in modern ways. It seeks to upgrade its economy at a time when more developed regions such as Shanghai are losing labor and investors to inland areas.

"There are a lot things going on nowadays in this city, and we see more companies from Europe coming here, or who are very interested in this city," says Patricia Enzmann, general manager of the Nanjing office of the European Union Chamber of Commerce in China.

There are 11,783 projects in Nanjing with a total investment of $32.4 billion (25 billion euros) from 2,960 overseas companies, the local government said.

Located in one of the most prosperous economic hubs in China - the Yangtze River Delta, with Shanghai at its center - Nanjing is developing vigorously. Remarkable growth is taking place not only in traditional sectors such as electronics and petrochemicals, represented by Ericsson, Siemens and German chemical giant BASF, but also in high-end services and other fields.

"Regarding places for investment, no doubt Shanghai is always top of the list, but Nanjing is very competitive among the second-tier cities," says Wu Zhe, administrative director of Nanjing's investment promotion commission.