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Biz leaders offer mayor suggestions
(chinadaily.com.cn)
Updated: 2004-05-21 09:06

Building a well-structured industrial mix should be highlighted for the sustainable and healthy development of an international metropolitan city like Beijing.

At the Sixth Annual Meeting of International Business Leaders Advisory Council for the Mayor of Beijing yesterday, some senior leaders of world-leading enterprises offered a series of suggestions for Beijing administrators and Mayor Wang Qishan.

"While manufacturing has been the backbone of Beijing's economy, the city has transformed itself into a service-oriented economy," said Christine Lagarde, chairman of the executive commission of Baker & Mckenzie.

The tertiary industry accounted for 61.4 per cent of Beijing's gross domestic products (GDP) in 2003, the highest percentage of any major city in China, official statistics showed.

"We applaud the regulatory efforts that Beijing has implemented to enable holding companies in the city to be recognized as regional headquarters," Lagarde said.

She pointed out that there was a need for more co-ordination between Beijing and the central government regarding regional headquarters.

"Applicable regulations should be drafted clearly and the Beijing municipal government should work with central government authorities to ensure that regional headquarters can operate on a region, cross-border basis, particularly in the area of financial support services," Lagarde said.

By the end of November, foreign-funded enterprises registered in Beijing totalled US$37.6 billion in contracted investment, of which US$19.9 billion has actually been realized. Of the world's 500 largest multinationals, 160 have invested in Beijing. More than 6,000 representative offices of foreign companies have registered in the city and 25 multinational groups have moved their regional headquarters to the capital.

Moreover, Beijing is home to 49 research and development centres established by foreign companies.

"As an intellectual capital, Beijing is a natural site for R&D institutions and high-tech companies," said Procter & Gamble (P&G) Company President and CEO Alan G. Lafley.

P&G relocated its R&D centre from Guangzhou to Beijing for the best opportunities to recruit and maintain skilled scientists and researchers, as well as a convenient site to enter into collaborative work with advanced universities and research institutions.

However, Lafley pointed out that, in P&G's operation in Beijing, they still face many bureaucratic challenges. He suggested the establishment of a specific department which would help current investors resolve many of these bureaucratic challenges, and urged the government to actively review existing regulations to clear out those that are irrelevant to modern manufacturing practices, including unnecessary audits.

The advisers also suggested that the city should increase development of the cultural industry, including tourism and exhibitions.

"Thanks to its wealth of historical and cultural resources, Beijing should enjoy a definite advantage for culture industry," said Hong Kong Trade Development Council Chairman Peter Woo.

Echoing the advisers' suggestions, Mayor Wang said that Beijing will make full use of its unique advantages in its fiscal and financial decision-making and information platform, give full scope to the cluster effect and service functions of central business district and the Financial Street.

Other tasks include developing the headquarters economy by attracting multinationals, Chinese and overseas financial institutions, and big enterprises and consortiums to choose Beijing as the location of their headquarters or R&D, operational or procurement centres.



 
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