Chengdu, widely known as a home to giant pandas, has become a top destination for multinationals wishing to invest or expand their operations in China, with the support of national strategies and its own advantages in economic strength, strategic location and market potential.

The latest charm added to the city is the Tianfu New Area. The new area, approved by the State Council in October as the country's 11th national-level development area, aims to become a major modern industrial base and an engine for Chengdu's future growth.

The 1,578-square-kilometer new area, which stretches from the southern part of Chengdu, the Sichuan capital, to the neighboring cities of Meishan and Ziyang, will encompass six key industries: information technology, vehicle production, clean energy, new materials, biopharmaceuticals and finance.

"Preferential policies for a national-level development area will lead to a surge of investment and projects," said Deng Ling, an professor of economics at Sichuan University.

Deng added that Chengdu is also driven by the country's national strategy of western development, and the Silk Road Economic Belt and the Yangtze River Economic Zone projects.

By mid-November, 110 projects worth 106.6 billion yuan ($17.3 billion) had been introduced to the Chengdu section of Tianfu New Area, including Volvo’s hybrid electric vehicle project, China Railway’s southwest headquarters and rail track design center, and a business aircraft base of Commercial Aircraft Corporation of China Ltd.

Raymond Greene, the new US consul general in Chengdu, said he has recently met with more than 100 companies from the American Chamber of Commerce, most of which have already set up offices in the Tianfu New Area.

"There is a growing trend that industrial infrastructure relocates and investment redirects to inland western regions in recent years as the western development strategy deepens," Deng said.

Joerg Wuttke, president of the European Union Chamber of Commerce in China, said, "Although chances may decrease in China's eastern region with the slowdown of the country's economic growth, the western region still provides vast development potential for foreign companies."

"As an inland city, Chengdu has made close connections with European countries thanks to its convenient transportation and full opening-up," he said, adding that numerous members of the EU chamber are planning to establish partnerships with Chengdu.

According to the chamber's 2014 European Business in China Business Confidence Survey, 45 percent of European companies in China are considering expanding their operations, and Sichuan ranked first choice of location for two consecutive years.

"With Chengdu's rapid development and fast-increasing market demand, American companies in Chengdu are continuing to add investments and expand their presence in the city," said Benjamin Wang, chairman of the American Chamber of Commerce in southwest China.

AmCham China's 2014 American Business in China White Paper and the American Chamber of Commerce in Shanghai's China Business Report 2013-2014 show that Chengdu is favored by American companies expanding their business in China.

The city has continued to be the most favored destination for American companies for six consecutive years, followed by Wuhan, Hubei province, and Suzhou, Jiangsu province.