Zhangjiagang's consistent efforts to transform itself has resulted in 20 large companies listed on the main board of the Chinese stock market, another 20 companies in the growth enterprise market, 400 companies that have qualified for the government credential for high-technology enterprises, and thousands of small and medium-sized enterprises, said Zhu Lifan, mayor of the city of 1.6 million.

Zhu Lifan, mayor of Zhangjiagang [Photo?provided to?chinadaily.com.cn]

The extensive buildup in industrial power has allowed the city to not only transform its traditional industries, but also to exploit more new opportunities.

The local government, meanwhile, has decided to concentrate on what it does best, supporting the local economy in a systematic way, Zhu said.

"In the beginning of China's opening-up, our selling point to foreign investors was simply cheap labor," he said.

"And in the early days of village enterprises, all you needed to start a venture was to pay for a Shanghai engineer to visit your workshop on Sundays."

However, times have changed. Foreign investors come to China to seek help in accessing its domestic market and newly rich middle-class consumers. And local companies cannot compete, especially in the global market, without innovative power. Both kinds of businesses need people with knowledge, good managerial acumen and international experience.

Heavy investment is being made in talent programs, like on international teachers in the chemistry lab of the Ivy Leagure Experimental School. [Photo?provided to?chinadaily.com.cn]

"Talent" has become a buzzword. But again the city government is not following the conventional strategy; it is not lavishing public funds on building a new university, or a university town. Instead it is concentrating on creating an attractive environment for the professional workers it needs.

Overseen by the city government, Zhangjiagang has developed a number of ways to attract talent, said Mayor Zhu, a native of Hebei province, 900 kilometers north of Zhangjiagang.

These include an evaluation system for company-level innovative activities, a credit system for migrant workers, a housing-subsidy system for newly settled young professionals, a "mini-road show" system for inventors to present their ideas and designs to local potential investors, and some government funding for technology startups.

Along with moderate house prices, friendly neighborhoods, good schools, high income levels, the coziness of its compact downtown area and light traffic, these measures will almost certainly allow Zhangjiagang to achieve its future goals.