Beijing Olympics Creates Huge Business Opportunities: Analysis

Around 180bn yuan for infrastructure construction, 142 key projects, 9m square meters refurbished housing --- all these mammoth plans will be carried out in future seven years since Beijing has won the 2008 Olympics bid. Economic exports say Beijing's hosting of the Games would bring great business opportunities.

According to Beijing's announced plan, 90bn yuan would be spent on building subways, light rails to form a high-speed transports network; 45bn yuan put to use for environmental improvement to make sky bluer, land greener and river more limpid. Shiyi Pan, general manager of Red Stone Co. Ltd, said the 2008 Games would inject tremendous vitality into Beijing's real estate market, which will surely grow in value because of improved infrastructure and environment and heat up posing attraction to people both at home and abroad.

Vice-president of Air China Group Zhang Xueren says Beijing's successful bid would boost personnel exchanges and make aviation market more vigorous, so we must seize the golden opportunities in future seven years. People from CITS and CTS tell the Games would also boost tourism in Beijing.

Following Beijing's investment plan, 30bn yuan will be earmarked for informationization construction to build a "digital Beijing". Yang Mai, president of Ericsson China, says the "hi-tech Olympics" proposed by Beijing indicate more investments in hi-tech fields and they are quite ready for the competition.

US investors jump for joy

Most US businessmen are no less excited than Chinese people, for they have seen the profits can be netted from Beijing's Olympic Games.

CNN says US investors have no reason to ignore the 1.3bn population market after they have paid two thirds of the US$20m bidding funds.

Vice chairman of US-China Business Council says he believes US businessmen could by their strong capability sign contracts with Chinese counterparts on Olympic projects.

General Motors tells frankly it did provide funds to support Beijing's Olympic bid, and would further support Olympic ads, but refused to breathe any details.

Olympics attract Taiwan investments

Financial experts and bankers in Taiwan say after Beijing wins Olympic bid the mainland will surely launch huge projects for infrastructure construction which will lead a northward flow of Taiwan investments as the mainland steps up opening of its markets.

Chung-Shu Wu from the Institute of Economics of the "Academia Sinica" tells that Beijing's successful bid will exert a positive impact on Taiwan's economy as the mainland expands infrastructure construction.

Finance officials point out that for a booming mainland economy funds from Asia-Pacific regions have been attracted there and this time's bid will also bring opportunities to Taiwan enterprises.

Olympics auspices also opportunity

In world business circles, experts share the view that though they have extensively paid attention to China's market, objectively, the success of Beijing's bidding for 2008 Olympics will speed up the process of China's opening, as well as the progress of WTO entry.

The holding of world biggest sports gathering in the Capital of the country with the largest population will unavoidably push the marketing of consumer goods and financial service. Sponsors of Beijing's Olympics have seen a much brighter prospect in this and they have actually set about many a varied brand-name strategy. At present, world famous conglomerates like Koda and Coco-Cola have inked auspice agreements with Beijing's 2008 Olympics.

Olympics Games is more than a sports arena, but also a battlefield for international multinationals. Koda entered the Japanese market taking advantage of Winter Olympics in 1998, thus breaking Fuji's domination in Japan, while US VISA did successfully develop its credit business during the 1988's Seoul Olympics.

Most sponsors of Sydney Olympics concede that they have reached supporting agreements totaling 120 million US dollars covering local infrastructure and news broadcasting.

HK's economy to benefit

Beijing's success in bidding for 2008 Olympics will bring about business opportunities for Hong Kong and help its further development.

Donald Tsang Yam-kuen, administrative secretary for the Hong Kong Special Administrative Region, said the Special Administrative government will take active participation in this grand sports match and it will designate some relevant governmental departments to make appraisal on development opportunities and the cooperation with Beijing.

Antony Leung, Finance Secretary of the HK Special Administrative Region, hailed that as China's largest window for opening-up, as well as financial, freight, business center in Asia, Hong Kong will obtain positive effect and boundless business opportunities from Beijing's Olympic Games hosting.



By PD Online staff member Li Heng


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