Foreign Firms to Go China's Southward for 'Gold Rush'

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Last updated at: (Beijing Time) Tuesday, February 25, 2003

Foreign Firms to Go China's Southward for 'Gold Rush'

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"Going to Greater Pearl River Delta", "Going to Greater Pearl River Delta" -- seeking strategic development opportunities in Greater Pearl River Delta (GPRD) in next few years have become the aspiration of foreign businessmen from the United States, Japan and European countries.

The Chicago-based Association for Corporate Growth (ACG) announced here that it is making preparations for the opening of its HK-GPRD branch later this spring to seek more business chancesin the region.

Representing over 2,500 companies throughout the United States,Canada, Britain and Mexico, ACG believed that the ACG's business promotion in the GPRD will help put GPRD on the world business mapand ACG members will also benefit a lot from its cooperation projects in the region.

Jack Chen, Asia-Pacific Director of ACG said here last week that they have observed the rapid and steady economic growth in China and they especially noticed the vitality of the Greater Pearl River Delta region.

With ACG member's advanced technology and administration experience and GPRD's low labor and raw material cost, the production bases there would create their own brands and compete with bigger international companies in several years.

In a related development, a leading senior US journalists delegation is to visit Great Pearl River Delta region this March, and HK's East West Strategic Development Commission will also arrange a GPRD business delegation to the United States to probe cooperation opportunities.

Shigeru Kimura, director general of Japan External Trade Organization, Hong Kong (JETRO HK) -- a government investment promotion body, said south China will be a reasonable place for investment of Japanese small and medium enterprises (SMEs) and more and more Japanese SMEs are looking for business opportunitiesthere.

He said the number of Japanese companies in Guangdong Province has witnessed a 10 percent up last year and automobile, precision instruments and chemical industry are among the most profitable sector for Japanese investors in China.

Shigeru Kimura said over 50 percent of the Japanese investors in China have made profits last year and they see a much brighter future in 2003.

He said apart from cheap labor, low raw material costs, the Pearl River Delta region's geographical locations and close relations with HK is also a reason for consideration for Japanese investors.

He believed that if more international schools and hospitals are built in the Pearl River Delta region, where about 3,000 Japanese invested ventures are established, more Japanese businessmen will invest in the region.

Marc Battaille, president of Brussels-based International Public Affairs Center (IPAC), said here during his visit to Hong Kong last week that IPAC will lead a major EU investment delegation to Hong Kong and Pearl River Delta region this autumn, stressing "European interest in the Chinese market is growing by leaps and bounds."

He said the visit will crystallize business opportunities both for both sides.

Businessmen from Japan, the United States and European believed that Beijing's winning the bid for hosting 2008 Olympic Games and Shanghai's hosting of 2010 World Expo are good opportunities for China for greater development, as for most foreign firms without chances for taking a share in the related projects, they would rather to go southward in China for bigger chances.

In a world of slow economic growth today, who neglect China will surely loose its strategic opportunities for future development, foreign businessmen here agreeed.

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