Though Beijing's investment environment has improved over the years, foreign entrepreneurs expect the municipal government to further enhance administrative efficiency and create an arena of fair competition for international businesses.
Compared to developed countries, business in China is still relatively complex and time-consuming, said Wu Jiguo, deputy general manager for Beijing Capitel Nokia Mobile Telecommunications. The convoluted registration, commercial examination, customs and foreign exchange procedures increase production costs and reduces their competitiveness in the world market, he added.
"As an export-oriented company with large amounts of goods to be transported to foreign countries and regions annually, time is really valuable for us," said Wu.
Last year, the export volume of the company, a joint venture between Nokia and China's Capitel Group, reached US$1.123 billion, nearly a quarter of Beijing's total exports. The company has also been ranked the No 1 exporter in Beijing since 1998 for three consecutive years.
The municipal government is currently overhauling and simplifying its administrative services in line with international practices and requirements of the World Trade Organization (WTO). An e-customs system is under construction aimed at enhancing efficiency and facilitating export operators.
In addition to increasing administrative efficiency, Ernst H. Behrens, president of Siemens Ltd, China, called upon the city government to provide a more fair competitive environment for foreigners.
"There are many special zones in Beijing, and they can offer a series of preferential treatments to the investors registering or settling there," Behrens said.
However, since Siemens Ltd, China is not in those special zones, it does not enjoy these benefits, such as tax-cuts, preferential land prices, as well as streamlined administrative procedures.
Siemens officials said the company has invested a total of 400 million euros (US$355.72 million) in China since it established its holding company in the nation in 1994. The sales volume of the Siemens Ltd, China reached 3.5 billion euro (US$3.11 billion) last year.
While many foreign entrepreneurs appreciate the investment environment in Beijing, they also called for a convenient system of dialogue between them and the municipal government.
While the existing International Business Leaders Advisory Council to the Mayor of Beijing gathers together chief executive officers of leading enterprises, many said they believed a second-level body is also necessary.
This lower-level body may offer chances for the senior management at foreign companies, who have lived in Beijing for a longer period of time and understand local conditions, to exchange ideas with municipal officials.
(China Daily April 29, 2002)
