Daimler is probably aware of the burgeoning retail sector in Chongqing, where fast moving consumer goods and fast fashion retailers are flourishing.

And China's fast-developing rail network with its links across Central Asia and onward to Europe contributed to Daimler's decision.

Chongqing is the terminal of a rail link opened in 2011 that stretches across six countries, all the way to the German city of Duisburg.

Companies based in or near Chongqing have an easier, cheaper and quicker transfer of their goods to the lucrative markets of western Europe. Moving freight via this rail link typically takes just 16 days, compared with about 22 days from one of China's coastal ports.

Chongqing also boasts a proud and distinctive history and culture. Often referred to as the "city of heroes", it was the city of Chongqing that became the temporary capital soon after the Japanese invasion during World War II.

And it attracts tourists from around the world, especially for its famous for spicy food.

Daimler has done its homework well. Further investment by global brands is expected to fuel the exponential rise of western China.

The author is a visiting professor at the University of International Business and Economics in Beijing and a senior lecturer on marketing at Southampton Solent University's School of Business. The views do not necessarily reflect those of China Daily.