 London wants to 'learn' from Beijing Olympics
(China Daily)
Updated: 2008-08-27 08:04 As London takes the baton from Beijing to become the next Olympic city, officials in England's capital are already preparing for the 2012 Games. Think London, the investment agency for the city, is about to kick off a road show in 11 cities in China, in order to encourage Chinese enterprises to bid for business opportunities in the run-up to the London Olympic Games. Michael Charlton, chief executive of Think London, spoke with China Daily reporter Wang Xu about how the agency will help businesses from China and other countries to tap opportunities in London. Q: Besides watching the Olympics, what was the other purpose of your trip to Beijing? A: We want to learn from what Beijing has done, and also from the Chinese companies who successfully supported BOCOG. Not only the sponsors, but also those that took advantage of the business opportunities related to the Games, such as the construction companies and media companies. We believe the experience of these Chinese companies serving the Beijing Games will give them a head start in bidding for the opportunities in the 2012 Games. I am also here to introduce our program the "Road to London", a road show through 11 cities in China which will run from the day after the closing ceremony to the end of November. Think London's goal is to encourage as many Chinese companies to choose London as their gateway to globalization. London already receives more Chinese investment than any other city in Europe. Q: Over the years, how has Chinese investment benefited London's economy?
A: Every new foreign direct investment job in London accounts for $230,000 contribution to London's economy. In any given year, foreign investment in London accounts for 27 percent of its economy. So foreign investment is very important for London's development. Last year, 12 Chinese companies established operations in the city, creating 205 job opportunities. In the past five years, we helped over 60 Chinese businesses to set up operations in London, many of which are large enterprises. Recently, we began to see privately-owned, medium-sized Chinese companies coming to London. Chinese companies have been growing very quickly in London, although their operations are usually small initially. Overall, there is only one city in the world that attracts more foreign investment than London. And that's a Chinese city -Shanghai. Q: Which kind of Chinese companies are better positioned to take advantage of opportunities related to the London Games? A: Chinese companies in all disciplines. Regarding to the London Olympics, all of the business opportunities will be available through an open and transparent procurement process. And overseas companies from around the world could compete with British companies. Actually a Chinese company making souvenir pins has already won the contract from London Olympic Organizing Committee. And the contract for land remediation was awarded to a Dutch company. We will visit Chinese construction, technology, software companies and so on to encourage them to bid for the opportunities connected with the 2012 Games. London's economy as a whole is forecast to grow by $80 billion from now to 2012, and the Olympics and Paralympics will contribute 10 percent. Q: Protectionism is on the rise recently. Do you think Chinese companies should worry about the issue when they come to London, especially in terms of M&A? A: Not in the UK. We do not put up protectionism barriers like our colleagues in the US or continental Europe. The UK is a very open market, if not the most open one for foreign direct investment. As I said before, 27 percent of London's economy is made by overseas businesses. We are proud of our tradition of welcoming businesses from all over the world, whether they are privately-owned companies or sovereign wealth funds such as China Investment Corp (CIC). Actually we have been actively working with the CIC to encourage them to set up their first overseas branch in London. Q: What are the basic requirements for Chinese companies to invest in London, such as scale or business revenue? A: There are no special rules or regulations for Chinese businesses, or any other overseas businesses. When they come to the UK, they have to follow the same regulations as British companies. Once they establish operations in the UK, they are treated no differently to British companies.  (China Daily 08/27/2008 page15) |
