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Shenyang attracts foreign capital
By Wu Yong (China Daily)
Updated: 2004-12-16 15:30
SHENYANG: Foreign direct investment (FDI) in Shenyang is expected to reach
US$2.3 billion this year, a record high for the past decade, Mayor Chen Zhenggao
told China Daily.
Statistics from the local Foreign Trade and Economic Co-operation Bureau show
the capital of Liaoning Province attracted US$1.47 billion in foreign investment
in the first 10 months of this year, up 52.9 per cent from a year earlier. Among
foreign-funded projects approved between January and February, 38 were large
enterprises each involving over US$10 million. Most of this capital came from
South Korea, Japan and the United States.
Chen predicted Shenyang may become one of the three largest foreign capital
users among all Chinese cities this year.
The city's economic achievement, multiple sources of capital, rich natural
resources and close links with the outside world give the mayor confidence.
"I believe Shenyang will be among the 3S group," he said.
The idea of the 3S group was created by Chen. It stands for three large
Chinese cities with names beginning with S: Shenzhen, Shanghai and Shenyang.
Shenzhen, China's first special economic zone, was an economic development
pioneer in the 1980s, and Shanghai witnessed fast development in the 1990s due
to the opening of its Pudong area. "Now it is the golden period for Shenyang,"
Chen said.
"Compared with the south, Shenyang has many advantages such as energy
resources and a vast market. It is hard to resist this temptation no matter
whether it is foreign or domestic funds," said Song Zhongyu, professor of
Liaoning University.
Besides fresh capital input, many foreign-funded enterprises have expanded
investment and launched new projects in Shenyang. They include Japan's Toshiba
Elevator and US-based General Electric (GE).
"The new joint venture is another milestone for GE. With product
localization, we can better meet burgeoning local demand," said Bill Cooney,
general manager of GE China's gas turbine programme.
Despite the positive aspects, there are also some drawbacks. US shaving goods
tycoon Gillette stopped co-operation in Shenyang in October. It was, at the
time, one of the oldest joint ventures in Northeast China.
"This is normal economic activity. Just like the birth and death of human
beings, it would be abnormal if there were no deaths," Chen told China Daily.
In addition to its industrial area, Shenyang has also achieved great progress
in international financial services.
Early last month, Hana Bank from South Korea set up a branch in Shenyang.
Furthermore, Shenyang opened up for foreign financial institutions in terms
of local currency services one year in advance.
And another five foreign banks would make their presence felt there next
year, Chen said.
"Our final goal is to build Shenyang into a central city and a financial hub
in Northeast China," he said.
To become a central city, the environment cannot be neglected. "A city can
never catch international attention without a good environment," Chen said.
Shenyang has input 25 billion yuan (US$3 billion) into environmental projects
in the past three years. Over 3,000 chimneys have been pulled down in the past
three years and the city has established a central heating system in major urban
areas.
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