No time to rest on laurels as investment outlook flags
0 Comment(s)
Print
E-mail Shanghai Daily, May 3, 2012
Adjust font size: 
Gateway to inland
Well, one reason comes to mind. Shanghai can serve as an efficient gateway to the inland Chinese market with its vast untapped potential. The city has traditionally been a starting point for foreign companies wanting to do business in China.
It enjoyed a good reputation among foreign investors for the transparency of its commercial laws and regulations, for its large pool of skilled labor, for its convenient transportation and for its educational and medical amenities.
On a more personal level, Shanghai people are renowned for their hospitality toward foreigners, and many can speak English, Japanese, French, Russia or Spanish.
I heard of cases from friends in the Shanghai Commission of Commerce where multinational companies have returned to Shanghai after enduring less-than-favorable experiences in inland cities. They had left Shanghai in search of cheaper production costs but found that such price advantages come at other, sometimes intangible, costs.
One simple example. A foreigner taking a standard taxi ride is much less likely to be overcharged in Shanghai than in other cities. In far-flung places like the northeastern city of Harbin, there are tales of cabbies dumping passengers who won't pay more.
It's nice to rest on laurels but also dangerous.
In the five years to 2011, Shanghai attracted US$46.7 billion in foreign investment, roughly US$9.3 billion on average each year. From that perspective, the goals set for the current Five-Year Plan through 2015 look a bit overly ambitious. To realize its goals, the city needs to work harder to make itself an even more attractive magnet for investment. It is striving to do that.
Ambitious plans
Municipal officials are undertaking ambitious plans to reshape underdeveloped areas into major projects such as the Hongqiao Business Zone, the Pudong post-Expo Business Cluster, the North Bund area and Lingang New City.
Shanghai is also working hard to recast itself into a global financial center. Nothing attracts money like a money center. The planned International Board in Shanghai, which will allow foreign companies to list in yuan-denominated shares, will certainly be a source of further capital incentive. Programs allowing foreign funds to invest in yuan-denominated assets have been expanded, and new futures and derivatives markets will provide diversified channels of investment.
Foreign investors are being invited to join in the growth of venture capital, equity investment, financial leasing, financial guarantee and other programs.
Which all brings us back to Disneyland. It was a coup for the city to get the first Disney theme park on the mainland. Construction there and development around the site have been a big shot in the arm for capital inflows. But what happens next?
As the late Walt Disney once said: "All our dreams can come true, if we have the courage to pursue them."
Go to Forum >>0 Comment(s)