Open­ing the Door to In­vest­ment

Business Traveler (USA) - - DESTINATIONS -

But China is not the easi­est place to do busi­ness. It of­ten has a higher cost of en­try for in­com­ing busi­ness than other mar­kets, and plen­ti­ful reg­u­la­tion. Even in­di­vid­u­als are im­me­di­ately struck by re­stric­tions on In­ter­net, news sites (in­clud­ing The New York Times), and for­eign so­cial me­dia us­age. Luck­ily, some savvy trav­el­ers know that us­ing cell phone data or down­load­ing a VPN (vir­tual pri­vate net­work) dis­guises the location of your com­puter’s IP ad­dress, which avoids these gov­ern­ment-im­posed mea­sures.

China knows it can­not be an eco­nomic pow­er­house com­pletely on its own. While its me­te­oric growth may have stalled, the slow­down has prompted lo­cal of­fi­cials to re­think the way they ap­proach out­side in­vest­ment and op­por­tu­nity.

In 2013, a gov­ern­ment ex­per­i­ment launched the Shang­hai Free Trade Zone. The re­sult brought in sig­nif­i­cant over­seas in­vest­ment that pumped much needed energy into the econ­omy. With nearly 46 square miles along theYangtze River where it emp­ties into the East China Sea, Shang­hai’s free trade zone is one of the first in main­land China.

The ex­per­i­ment’s tem­pered suc­cess has proven that for­eign in­vestors are an im­por­tant part of what keeps the re­gion’s eco­nomic en­gine hum­ming. Do­ing busi­ness within the trade zone re­moves fi­nan­cial stip­u­la­tions and min­i­mum in­vest­ment cap­i­tal re­quire­ments usu­ally im­posed to set up shop in the coun­try. Du­ties on im­ported goods are also re­duced for US in­vestors. These are among sev­eral mea­sures ini­ti­ated by the mu­nic­i­pal com­mis­sion to ex­pand trade and man­u­fac­tur­ing busi­ness.

The lat­est five-year plan from the gov­ern­ment aims for an eco­nomic growth tar­get of be­tween 6 and 7 per­cent per year, which takes into ac­count the re­cently slow­ing econ­omy.

The Shang­hai Daily re­ports that for­eign di­rect in­vest­ment most re­cently grew by 1.6 per­cent, and con­tracted for­eign di­rect in­vest­ment (thanks to the free trade zone) bil­lowed to an 86.5 per­cent growth rate as a re­sult of new trade poli­cies.

This is en­cour­ag­ing more for­eign in­vestors in­clud­ing many Amer­i­can com­pa­nies. Shang­hai boasts ma­jor op­er­a­tions from nearly 100 world brands in­clud­ing HSBC and Citibank, among oth­ers – a feat that would have been con­sid­ered far more dif­fi­cult less than a decade ago.

The city has ev­ery­thing from man­u­fac­tur­ing (es­pe­cially elec­tron­ics) and trans­porta­tion in­dus­tries to in-

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.