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Business Beijing's Support of Reform “Invaluable”

As we are celebrate the 100th issue of Business Beijing I would like to congratulate its staff for reliably and accurately reporting on the activities of the Beijing Municipal Development and Reform Commission and for its support of Beijing's development. Our commission is charged with formulating policies for Beijing's economic and social development and with coordinating the development of the various economic sectors. At the same time, we serve as a watchdog in the restructuring of our economy. Business Beijing has been an invaluable source of support for this process. - Liu Zhi, deputy director of Beijing Municipal Development and Reform Commission

Success in Utilizing Foreign Capital

The Beijing Municipal Development and Reform Commission estimates that Beijing will obtain at least US$2.36 billion in foreign direct investment (FDI) in 2004, yet commission Deputy Director Liu Zhi said, "The figure may be a bit conservative; we are actually expecting to get US$2.5 billion in FDI for the whole year, 20 percent more than in 2003."

Liu said he was also pleased that the structure of FDI coming into Beijing is being improved.

"This means that investors are giving priority to the city's modern manufacturing and service sectors, the "priority fields" under Beijing's development plans. And this has effectively promoted the restructuring of our industrial establishment in its entirety."

Beijing's service sector, in particular, is more open to foreign capital investment than ever before.

"The first tourist agency under solely Hong Kong proprietorship has won approval to operate in Beijing," the deputy director said. "We also have the first wholly foreign-owned shipping agency, the first cinema construction and management company with a Hong Kong investor acting as the holding party, and the first company engaged in the retail sales of audiovisual products in which the Hong Kong investor also holds a majority stake."

The Chinese capital is also accelerating the development of port facilities and an international logistics system in a bid to improve local investment conditions. The municipal government is providing a range of policy privileges to transnational corporations that intend to base in the city or to set up research and development centres there. It is also encouraging local companies to "go global" by investing in foreign countries.

"By doing all this, we are expecting a rapid upgrading of our own industries, the manufacturing and service industries in particular."

Role of Business Beijing "Invaluable"

Liu said he respects Business Beijing for playing an "invaluable role" in promoting Beijing's development under the State's policy of reform and opening to the outside world.

"Back in 1994," he recalled, "we were launching a mammoth programme seeking foreign capital. Business Beijing came just in time to meet the needs of potential investors for information about central and local governmental policies and conditions in the city. That's why we did not hesitate to be one of its sponsors."

Other Business Beijing sponsors include the Information Office of the Beijing Municipal Government, the Beijing Municipal Bureau of Commerce and the China Council for Promotion of International Trade Beijing Sub-Council. Liu said Business Beijing has lived up to the high expectations of its sponsors. Take for example the Beijing-Hong Kong Economic Symposium, an annual event over the past eight years. Business Beijing, on its part, has launched a special issue for it each and every year.

Business Beijing and the 2008 Olympics

The magazine has provided extensive coverage about Beijing's preparations for the 2008 Olympics, including information about the "Olympic economy." This involves the progress of Olympic-specific projects and the city's efforts to obtain investment to finance them. On April 18, 2004, nearly 1,000 VIPs from some of the best known Chinese and foreign companies gathered in Beijing for a meeting to promote business opportunities expected to arise because of Beijing's hosting the Olympics. Business Beijing launched a special issue for the meeting, in which officials and experts agreed that the capital's "Olympics market," may be valued at as much as 3 trillion yuan or US$362.7 billion. During the successful meeting, contracts worth 134 billion yuan or US$16.2 billion were signed.

"Business Beijing could not have been more helpful to us in making the meeting a success," Liu said.

Even Greater Expectations

In 2005, the Municipal Development and Reform Commission will focus on improving the quantity and quality of FDI available to the city, which is expected to open even more areas to foreign investment.

"While using foreign capital to develop our high-tech industries and to upgrade our manufacturing and service sectors," Liu said, "we hope to lure in more foreign investment in urban infrastructure development, social undertakings, agriculture, energy conservation and environmental protection."

In China's official terminology, "social undertakings" refers to not-for-profit institutions needed to help develop the general public needs, including schools and hospitals.

"We will place even greater trust in Business Beijing in the years to come," the official said. "We have full confidence in it."