Fuzhou prepares to take initiative

China's Belt and Road Initiative is expected to bring more opportunities and open new markets for enterprises in Fuzhou.

"Fuzhou has been actively encouraging local enterprises to go out, to carry out investment and trade, and start business in the countries and regions along the maritime Silk Road," said Fuzhou's mayor Yang Yimin.

Yang said the city has been an important maritime Silk Road hub for many centuries and expressed confidence in the future development of Fuzhou because of China's Belt and Road Initiative and the city's unique location and advantages.

According to local government figures, there are more than 4 million overseas Chinese that can trace their origins to Fuzhou.

Their understanding of local markets and international business regulations, as well as their close links to their ancestral homeland, mean that they can help Fuzhou enterprises set up operations in overseas markets, according to a local official, adding that they are expected to play an important role in helping Fuzhou enterprises enter overseas markets.

Yang added that Fuzhou's active international trade and cultural exchanges, as well as the city's advanced level of opening-up, have given the city's enterprises a solid platform from which to launch their overseas expansions.

Chen Geng, president of Fuzhou Shangfei Clothing Co, said China's Belt and Road Initiative is aiding Chinese companies as they look to operate businesses in countries along the maritime Silk Road.

His company established a new clothing factory in Ethiopia last year with an initial investment of $12.5 million.

"Over the years, our company has been looking for more effective ways to develop," Chen said. "With the rising labor costs in China, we discussed building new factories elsewhere."

He said labor costs in China are now roughly six or seven times higher than in Ethiopia, and the company will continue to invest in its Ethiopian factory over the next 10 to 15 years.

"Ethiopia is stepping up its infrastructure construction to drive growth, which will help attract more Chinese enterprises," Chen said.

A number of enterprises from countries and regions along the maritime silk road have also come to Fuzhou to establish businesses. The establishment last year of the Fuzhou area of the Fujian Pilot Free Trade Zone has attracted a large number of foreign companies to the city, according to Yang.

"To implement the Belt and Road Initiative, Fuzhou should promote more trade and cultural exchanges with countries along the maritime Silk Road," Yang said.

"This will help Fuzhou improve its level of opening-up and accelerate local economic growth," he added.

(China Daily 05/18/2016 page7)