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Small city to lure more global investors
By Zhao Guangzhong and Fu Qiang (China Daily)
Updated: 2004-05-08 14:42

Though small and at first glance ordinary, Liaoyuan City in Northeast China's Jilin Province has gradually received more and more attention of domestic and foreign investors with a continuous offering of promising projects.

Since the beginning of the year, Liaoyuan has welcomed a steady flow of companies from across the globe, including the Netherlands and Japan.

Domestic investors from Beijing, Shanghai and Xiamen have also arrived to test the marketplace.

"Through creating a sound investment environment and providing satisfying services, we are able to build a win-win situation," said Zhao Zhenqi, secretary of the Liaoyuan Municipal Committee of the Communist Party of China.

In Zhao's eyes, global investors will keep rushing to Liaoyuan only provided that the city maintains breakthoughs in putting forward a number of well-designed projects with excellent market potential.

That is why the local government for three years running has held themed activities such as "Industrial Project Years" to encourage local enterprises, as well as the public, to contribute good ideas or projects to the city.

It has paid off, with the city assured of the new materials sector as a pillar industry, with up to 50 planned projects.

This year, Liaoyuan has collected a fund of 2.5 billion yuan (US$302.2 million) to foster 11 new industrial projects, each of which involves investments of more than 100 million yuan (US$12 million).

Thanks to the local government's acute response to the market, two of Liaoyuan's projects have been included in the list that is pushed by the State.

In addition, Liaoyuan government officials have made personal efforts to promote projects, choosing some developed cities in China's southern areas and then going there to attract investment.

For example, Shanghai Shuangfeng Group has established a joint venture with a Dutch company. It is a beef-processing project proposed by Liaoyuan Jinchang Group with an investment of 134 million yuan (US$16.2 million) in building up a production line for export purposes.

And last November, the Xiamen Taiwan Investors Association took a special trip to Liaoyuan to examine some projects and finally reached an co-operative agreement on an oxhide processing project.

Besides carefully presenting a number of profitable projects, Liaoyuan has also sunk money into improving the city's infrastructure.

So far, the local government has invested more than 2 billion yuan (US$241.8 million) in upgrading its transportation network.

Today, it is among the cities that have the largest number of first-class roads in Jilin Province.

It takes no more than two hours to drive from Liaoyuan to Changchun, capital city of Jilin.

The newly-built 42-kilometre circular road has expanded the city's development space, with an investment of 420 million yuan (US$51 million).

Liaoyuan is currently constructing an industrial belt that circles the city proper.

So far this year, the city has invested more than 1 billion yuan (US$120.9 million) in strengthening the city's infrastructure construction.

A number of new construction projects, such as an emergency water supply plant, a railway station, two squares and a bridge, have all completed to pave the way for Liaoyuan's long-term development.

Liaoyuan has also taken the lead in the province to carry out a land resource sale system.

In the mean time, it has established a land resource reservation centre.

Both ideas helped the city finance its construction efforts.

The local government also attaches great importance to the city's appearance.

Various activities and rules have been launched to keep the city tidy and clean, which proves to have contributed to investment promotion.

"The best way for investment promotion is to really aid an investor in his business establishment and set an example for others," Zhao stressed.

Following this idea, the city has established a special office for upgrading the local software environment.

A centre has been set up to manage the 226 items that investors have submitted for examination and approval.

Government officials will meet in person every investor and follow-up services are offered, inspiring the investors to clinch investment agreements with the city.

Another important idea the city has included is to accept companies or industries that have transferred from big cities and at the same time are at the same pace with local development.

With all the measures, Liaoyuan has attracted a good number of domestic and foreign companies to make investments, such as Shanghai Huayuan Changfu Pharmaceuticals Ltd, Shenyang Yinji Group, Beijing Jingtian Company and Mitsubishi Motors from Japan.

The city has witnessed considerable business growth in recent years within creasing investment.

Between January and October last year, the city's gross domestic product rose by 12.6 per cent compared with that of the same period in the previous year.

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