 |
|
|
|
|
|
|
International Trade/Offshore Manufacturing/Sourcing/Export/Import/Consulting The Chinese OpportunityBy Paul Sayers
Changchun, northeast Asia, is an alien land to someone with western sensibilities, a border region melting pot of cultures. A peaceful place, welcoming to outsiders. A strange place of weird sounds, queer odors, strange ideas.
Several different groups of ethnic Chinese live alongside small representative communities from every area of the globe. The desire to independently establish free trade has been suppressed. That was a privilege
until now enjoyed by the government. Times are changing.
Changchun is the political and geographic heart of influential old Manchuria, the cultural center of the three northeast provinces. It is a recognized home of standard Mandarin, the official language of China. An urban population approaching four million, almost everyone with a cellular phone it seems.
Changchun was founded only 200 years ago. It was the home of the Puppet Emperor, Pu Yi. The Japanese built two palaces for him and much of the city. It is an industrial powerhouse sited on a great plain two hours from a forested mountainous reserve. It is only a few hours these days from Beijing by the new fast electric trains, a similar distance from the international port of Dalian and its restful beaches, within easy reach of the tourist-friendly Harbin and close to historic Shenyang.
In possibly the greatest real-estate scam in history, Changchun (Long Spring) was so named in an effort to induce migration into what had previously been empty wilderness.
Spring in Changchun is noteworthy, but it is the beautifully cold winter that lasts nearly half a year, dipping to as low as minus 35 degrees Celsius. But the winters are getting warmer. Summer can peak at a little
over 35.
Your U.S. dollar or Euro can buy you around eight Chinese RMB. A street-level office, shop or workspace might be found for around 2,000 RMB per month in a good area. The Shangri-La Hotel provides serviced suites for companies like Ericsson. Some shops will enter into commission-based arrangements for the right to sell from their premises or may charge a flat fee.
Food is cheap and plentiful. Internet and telephone service is not expensive and is maintained at an acceptable standard. Travel and freight costs are low. A common three-roomed, fully serviced apartment can cost 1,000 RMB per month. The cost of living and of doing business can be less than in Beijing or the other larger more usual destinations.
Trade fairs are a regular fixture, good entertainment even if you do not buy. Art, agriculture, education, technology and automotive shows draw great crowds to purpose-built exhibition centers. It is sometimes so
crowded that even the locals complain.
Along the borders to the north and east there are towns that have long enjoyed special official status as free trade zones. To the west lie autonomous regions stretching toward Mongolia. At the large border trading markets, one can find many interesting things.
Changchun airport has regular flights to many destinations. Investigative car, bus, train or donkey tours to outlying areas can be arranged. Guides, Chinese and/or Russian and native English speakers can accompany you.
Special economic zones, entire city districts, have been constructed in Changchun. Overheads are low and there are other incentives offered by the authorities. At first sight, it looks inviting and safe, even competitive. The official and the common hope was and remains to attract more business, more investment.
The plan is achieving success.
Other major centers of the northeast are Harbin, Shenyang and the port of Dalian. Harbin is richly endowed with Russian architecture and is a busy commercial center. Shenyang is the main supply market for the entire northeast. Traders flock there and return home with bulging baggage. Dalian is the more desirable location for someone concerned about aesthetics, but the cost of living and of doing business is higher there, though the economy is warmer than in the other cities.
The northeast has a largely agricultural economy based on wheat, corn, rice and forestry among others, including oil, coal and gas, augmented by tourism, art, film, education, light and heavy industry. Traditional natural medicines, wine, chemicals, technical equipment, cars, trains, ships and steel are made there.
A cultural heartland of the communist revolution, the northeast was protected from the first wave of the new freer market economy. The opening up began in the 1980s and has until now largely influenced the south. The northeast was initially spared the experiment with market reforms because much strategic industry is based there, like the huge First Automobile Works, now in partnership with Volkswagen.
Historically important, the large Changchun Film Studio is still busy creating more art and less propaganda than was once the case. Along with the city and provincial television stations, their labor and modern facilities are competitive and open to hire.
Decades of invasion, oppression and domestic political instability have bred a peculiar breed of businessman, one totally absorbed by self-interest. Only slowly, as relationships develop, is it possible to achieve an even-handed treatment. If a friend can introduce you, so much the better.
It is advisable to follow the local practice and watch closely over any work that you have asked to be done. This is expected. If your business is important, you will be there. This is still the general rule even now, particularly in those areas less influenced by international business practice, though the situation is improving.
In the last four years, Changchun has become a much cleaner city. A massive building project that includes the relocation of many of the largest university campuses, along with creating a new fully serviced technology manufacturing district has shifted the center of the city several kilometers.
There seems a little more hope for the poor these days. There is employment for most and accelerating economic development, new challenges, and fresh opportunities. A newly electrified high-speed rail link makes travel even more of a pleasure. There are now more varieties of cars and world-class buses. Electric vehicles are becoming commonplace. Solar and other renewable energy resources have been embraced.
China has placed a man in space. The Olympics are coming. Deregulation of the banking industry has opened up competition with outside financial institutions, stimulating reform of the local industry. Free trade is becoming a reality.
To set up shop there alone or in partnership is a difficult undertaking. There are many hurdles to overcome, such as communication and, in some cases, official approval. These barriers are not impassable.
There are, by some estimates, more than 500 people from other lands living and working or studying in Changchun. The number includes the German community connected to the Volkswagen joint venture, British engineers, backpackers, teachers, students and businesspeople from other Asian nations (many who speak English), Africa, North America, Europe, Australasia and the Middle East.
English or Mandarin Chinese are the preferred languages.
Work and business visas can be obtained on your behalf by one of the companies or government offices authorized to do so. It is becoming more difficult to transfer a visitor’s permit into a renewable residence and work permit.
Changchun is the center of Jilin Province, center of the northeast region. The official Jilin Provincial Government Web site can be found at http://www.jl.gov.cn and a quick letter to AsianExchange@softhome.net will put you in contact with the established foreign community, employment opportunities, guides and advice. At least one independent U.S.-based consulting firm offers a fee-based service for businesses seeking to set up shop. You could make Changchun your doorway into the northeast or into the rest of China. |
