Selling Shenyang

Article Abstract:

The Chinese city of Shenyang is eager to attract foreign investment. When the reform-minded central government stopped subsidizing state-owned enterprises and compelled them to survive on their own, about 20 million jobs disappeared throughout the country. Located in the north-eastern province of Liaoning, the industrial city of Shenyang was heavily affected because the public sector accounts for 85% of its economy. It has about 53,000 registered unemployed and 230,000 laid-off workers while its state factories are falling into ruin and burdened by bloated payrolls and enormous unpaid debt. Shenyang Mayor Mu Suixin is trying to stimulate investor interest in the city, emphasizing such advantages as its promixity to the industrial center of Manchuria, the giant steel works Anshan and the leading port of Dalian. However, there are still important issues that must be resolved before substantial investment can flow into Shengyang.

Economic aspects, Economic development, Shenyang, China

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Waiting for the barbarians

Article Abstract:

Foreign investment in China is declining due to the unfavorable investment climate. The first 11 months of 1997 saw contracted investment plunge 27.14% to $48.46 billion. While actual foreign investment posted an 8% growth exceed the $40 billion mark in 1997, trade officials foresee a 25% decline in 1998. The waning interest of overseas investors is being attributed to the fact that they have yet to see the opening of the large, yet tightly closed Chinese market. Foreign investors have been investing heavily in the market, injecting about $200 billion since that late 1970s, with the expectation of eventually being able to break into this market. So far, however, 'strategic' industries continue to be strongly protected by regulations that make foreign participation nearly impossible. Even in non-strategic sectors, non-Chinese companies are encountering numerous barriers, including corrupt bureaucrats.

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Perseverance a prerequisite

Article Abstract:

Tianjin, China, is not an obvious choice for foreign investment because of its image as an industrial and commercial backwater. Compared to the country's other coastal cities, it offers less attractive expatriate packages, limited world-class accommodation, and few educational and recreational facilities for foreign executives and their families. However, upon closer scrutiny, Tianjin appears to be leaving behind its reputation as an introverted satellite town. Its most promising district is the 33-sq.km. Economic Development Area, which was named China's 'best managed' investment zone in a 1993 survey conducted by the Economist Intelligence Unit. It offers competitive land use rights to foreigners, is linked to the Chinese capital through high-standard expressway and is connected to the Tanggu port.

Enterprise zones, Tianjin, China

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