The city's major industries include textiles, paper-making, fine chemicals, machinery, steel and forestry products. The city has more than 4,000 textile and apparel companies with combined annual sales of RMB50 billion. The paper-making industry has attracted more the US$15 billion of FDI. 

More than 2,000 foreign enterprises have invested in Changshu including big names such as Sharp and Dunlop. Of the contracted investment at least one-third has come from Taiwan – more than 500 Taiwan enterprises have invested more than US$100 million in the city. UPM-Kymmene from Finland has been running a paper mill in the city since 1999 and now has an annual capacity of 200,000 tons of coated and 600,000 tons of uncoated fine paper.