Why did foreign investment increase in Jiangsu after the 1980s?

Foreign investment in Jiangsu increased significantly after the 1980s as a direct result of China’s national policy to reform and open up the country to the international economy.1

Following the adoption of the Four Modernizations as a national priority in 1978, the Chinese government sought to attract foreign capital to accelerate modernization. To create an inviting environment for this investment, the state enacted various legal frameworks, including joint-venture laws and patent regulations.23

Jiangsu benefited from this broader national strategy, which included the designation of specific cities as "open" to foster foreign trade and investment. These cities established economic and technical investment zones to facilitate industrial growth. By leveraging these policies, Jiangsu transformed into a major industrial center, prioritizing sectors such as machinery, electronics, and petrochemicals, and utilizing provincial ports like Nantong and Lianyungang to handle increased export activity.1