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Besides, the usage time of commercial land is only 40 years, while that of residential land is 70 years. Electricity and water charges at long-term rental housing projects are also double that of regular residential projects. In addition, there is the cost of renovation, he said.

Bertrand Austruy, Danone's executive vice-president, said there is tremendous mid- to long-term growth potential in the Chinese market, given rising incomes and greater urbanization. Such factors encourage consumers to prefer top-quality, healthful foods, he said.

Being at a strategic location, the new city project will receive support from the two cities' governments and attract attention from investors home and abroad, according to Zhong Wei, director of Financial Research Department of Beijing Normal University.

Bernard Dewit, chairman of the Belgian-Chinese Chamber of Commerce and an expert on China, said the result of the 40 years of arduous reforms is astonishing — China has upgraded from a "poor and isolated" China to a "prosperous and interconnected" China.

Berghorst said Fonterra is committed to integrating into the Chinese dairy industry, and providing safe and quality dairy products for Chinese customers and consumers.