Shenyang's place in the sun

Fast development, location and investment incentives top draws for overseas firms

Shenyang is fast becoming the place to be for German companies in China.

With economic growth rates of nearly 10-15 percent, North China is experiencing a boom. Its development, location and investment incentives are proving to be major draws for German companies.

The German Chamber of Commerce North China has decided to increase its activities in Shenyang to support the existing German business community and new members.

In 2003 the Chinese government decided to revitalize North China, aiming to minimize the power of state-owned enterprises, foster private companies, diversify the economy and push investment.

With annual growth higher than 10 percent, North China has become increasingly attractive for foreign enterprises. Shenyang, the capital of Liaoning province, has successfully positioned itself as an emerging and ambitious town.

It is well connected to Germany; with direct flights between Frankfurt operating three times a week. High-speed railway connections to Dalian, Changchun, Beijing and Tianjin have accelerated the integration of China's north and brought several logistics advantages.

More than 80 Fortune 500 companies have set up shop in Shenyang. It has become a gateway to China's north for German businesses.

In comparison to coastal regions Shenyang offers investment incentives, a big but unsaturated market, lower labor costs and easy access to workforce.

About 850 German companies have set up businesses in North China. Nearly 200 of them are based in Shenyang. Most are in the automotive industry, nevertheless machinery, mechanical engineering and electronics industries are well represented too.

As the official representative of German businesses in China, the German Chamber plans to increase its activities so it can support German firms on site.

This year the chamber plans to organize conferences to initiate closer cooperation between German companies and Chinese vocational schools.

The upcoming Germany-Day in Shenyang on April 19 is another example of the close political, economic and cultural relationship between Germany and Shenyang. The activity aims to inform people about Germany and its language, culture, study and work opportunities.

The outlook for German companies in Shenyang is bright. According to the Business Confidence Survey conducted annually among the members, more than half of German companies in China's North plan to increase their investment. Another optimistic sign is the regular inquiries from German companies that plan to invest in Shenyang.

The author is regional manager for Tianjin and North China at the German Chamber of Commerce in China

(China Daily European Weekly 04/11/2014 page16)