IS BEIJING A VIABLE CENTRE FOR FOREIGN BUSINESS ACTIVITY?

As the nation’s capital, Beijing is first of all the centre of political control. In addition, it acts as a model for the rest of the country and as a showcase for the outside world. The most significant change in Beijing in the past decades has been its rise as one of the most important industrial centres in China.

Modern textile industries, iron and steel plants, petrochemicals and machine-building factories changed the old cultural capital into a new industrial city. Beijing did not fully exploit the Open Door Policy of the reform era until early 1995 when the State Council finally granted Beijing the right to enjoy all the preferential policies formerly given to open cities in the coastal regions.

Beijing has a total of 29 development zones, three of which are controlled by the municipal government while 26 are administered by various sub-city governments. As the city attempts to attract more foreign trade and investment, it has developed an advanced infrastructural network, and is placing much emphasis on information technology, bio-engineering, pharmaceuticals and new materials.

Beijing’s geography and its industries are not particularly attractive for foreign investors. But its political position in China has helped the city to gain a considerable amount of foreign investment. The total export value in 1997 was US$2.5 billion, and imports were valued at US$3.3 billion.

This solution offers information on:

§ a detailed geographic, demographic, economic and governmental profile of Beijing;

§ the legal framework for local law-making;

§ the legal framework for foreign business organisation and administration;

§ local tax incentives and measures for encouraging foreign investment;

§ regulation of contracts, labour management and land use rights; and

§ other activities or special areas.