IS TIANJIIN A VIABLE CENTRE FOR FOREIGN BUSINESS ACTIVITY?

Back in the early 20^th century, Tianjin was an important trading hub and the largest financial centre in northern China. But for decades, Tianjin has to arrange its economic development strategy according to Beijing’s plans, not only following the instructions of the central government, but also the urban planning of Beijing.

For Tianjin, reform has meant more autonomy in decision-making and an opportunity to escape the shadow of Beijing. The designation of Tianjin as one of China’s “coastal open cities” was widely considered an important watershed in Tianjin’s post-Mao development.

However, the real development started after 1992 when Tianjin abandoned its old role of serving Beijing and gradually formed its own strategy to base it future development on the creation of a new coastal district and rebuild its role as a principal gateway between northern China and the outside world.

By 1997, Tianjin had climbed to second place in the nation in terms of foreign investment. In less than 20 years (from 1980 to 1997), a total of 10,497 foreign funded enterprises from 96 countries had been approved. Accumulated actual foreign investment had reached US$14.3 billion. The total export value in 1997 has increased by nearly six times that of 1981, to US$5 billion.

This solution offers information on:

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

§ 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.