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100 Editions Promoting Investment in Beijing

One only has to cast an eye about the city to tell that the Beijing Bureau of Commerce has succeeded in its efforts to attract foreign investment, foreign personnel and multinational corporations to the capital city. Many of the bureau's numerous achievements and pro-investment, pro-business strategies have been noted in Business Beijing magazine, which began publication under the co-sponsorship of the bureau in 1994. The magazine's staff has worked hard over the past ten years to play a positive role in Beijing's economic development by publishing authoritative news concerning the city's laws, regulations, and policies, by providing important business information, and by chronicling the city's rise to world prominence not only as a national capital and cultural centre, but as a world-class financial capital as well.

Li Zhao, the director-general of the Beijing Commerce Bureau, accepted an interview from our reporter in his office in November.

Today: Beijing's Investment Trends Show Promise

The Beijing Bureau of Commerce has worked tirelessly and effectively to pursue the foreign investment that fuels Beijing's economic development. Referring to the agency's statistical analyses, Li said the bureau's efforts are paying off. The overall scale of foreign investment is growing, trending upward, and accelerating (especially since January 2004); the structure of investments is being optimized; and the quality of investment is improving.

During the first nine months of 2004, 1,333 new projects with foreign investment were approved with total investment valued at US$9.78 billion, an increase of 32 percent. Of that, US$4.84 billion of contractual foreign investment has been absorbed and US$2.56 billion has been used, an increase of 50.2 percent if compared to the same period last year.

Foreign-direct investment (FDI) dominates Beijing's absorption of foreign investment in general. During the past five years, the actual investment of solely foreign-owned enterprises amounted to US$5 billion, accounting for 48 percent of the total FDI of that period, and solely foreign-owned enterprises dominated the incremental increases of foreign investment in Beijing.

The industrial structure of foreign investment in the city is changing in two respects; the sequences of the top three industries thriving with foreign investment changed. The social service industry overtook the real estate and manufacturing industries and ranked first in foreign investment absorption with a total foreign investment of US$3.32 billion during the previous five years Social services accounting for 31.9 percent of the total. real estate industry attracted US$2.61 billion, accounted for 25.1 percent, with the manufacturing industry attracting US$2.59 billion of foreign investment, or 25.8 percent. But foreign investment also began to expand into other areas of the economy by the end of 2003.

Beijing Statistical Bureau figures indicate that the business performance of 5,729 foreign-invested enterprises operating in the city improved markedly from January to August 2004. Foreign-invested enterprises operating in the city realized 259.93 billion yuan in sales income, an increase of 39.9 percent and realized 2.59 billion yuan in total revenues, an increase of 69.8 percent over the same period in 2003.

Yesterday: An Important News Channel

Li said that through its 100 publications Business Beijing has assumed its responsibility and done well in providing policy explanations, authoritative news releases and coverage of major annual economic and trade activities. Business Beijing has constructed an unblocked channel of communication between the government and the magazine's readers by providing following-up reports of events and by explaining the economic development process to readers.

He said Business Beijing's coverage of the Beijing International High-Tech Expo, with articles such as "Gathering of Leading Producers and Distinctive Products" and "Beijing Olympics: Business Opportunities for China and the World," has enhanced and assisted the success of the Expo.

Li said he also recalled that during the annual Beijing-Hong Kong Economic Co-operation Symposium, Business Beijing issued articles like "Win-win for Common Development of Beijing and Hong Kong," "Competition, Having Been Staged in Logistics Between Beijing and Hong Kong," which offered individual opinions of Beijing-Hong Kong co-operation opportunities.

He lauded the full-length, all-sided reports published by Business Beijing concerning the Athens Olympic Games, with a view to the 2008 Beijing Olympic Games.

In assessing Business Beijing's worth as a business tool, the commerce department head said, "it is irreplaceable."

Tomorrow: Caring for the Economies of Districts and Counties

Beijing's improved investment environment and upgraded level of services has indeed brought in a new influx of foreign investors. These foreign investors have played a role in promoting Beijing's efforts to adjust its industrial structure, enrich people's lives, and to enhance the competitiveness of enterprises in the market. On the basis of mutual promotion, Beijing accelerated its internationalization.

Li said that with the deepening of China's entry into the World Trade Organization and with the expansion of foreign investment in more economic sectors, the economies of Beijing's districts and counties will become more prominent and important. The economies of Beijing's districts and counties contain immense business opportunities, which means the development of the economies of districts and counties will become a bigger issue in Business Beijing in the future.

Since Business Beijing was started to attract and assist foreign investors, the Beijing Bureau of Commerce has worked closely with other departments such as the Beijing Development and Reform Commission, CCPIT (China Council for the Promotion of International Trade), the Information Office of Beijing Municipality and others to market Beijing's business credentials. This has been accomplished by creating classic brands favoured by foreign investment, bridging the communications gap between foreign investors and the government, and by establishing an information platform to attract foreign investment, so as to constantly improve the quality and standard of services provided by the city foreign investors.

"In this regard, Business Beijing has served our cause well," the director-general said.