 |
|
¡¡
¡¡
|
¡¡
¡¡ The President of an Australian company in the energy sector contacted Silk Road Advisors¡¯ (SRA) Suzhou office directly: one of his staff had used SRA¡¯s China Industrial Park Online Directory (CiPod) to determine the general location of their first Wholly-Owned Foreign Invested Enterprise. Within minutes of using CiPod the company realized it was not in the company¡¯s best interest to land the investment near Shanghai, something many Western companies were still doing. The Shanghai municipality was becoming over-crowded, the infrastructure strained so that shipments out of factories were becoming delayed due to congested roads. The cost of building leases was also increasing, and the cost of buying land was becoming prohibitive. Shanghai was becoming a victim of its own success. ¡¡ The Australian company needed to move beyond Shanghai; but where to in Greater China? The closer in to Shanghai any company invested, the more costly the investment became. But the further out from Shanghai a company looked the infrastructure, the professional talent and the professionalism of the administrators of the economic development zones all seemed to lessen. Land and building leases were cheaper farther west from Shanghai; but the hidden costs were prohibitive. How then to achieve a balance between less expensive overhead costs and professional attention? ¡¡ The Australian president needed to research, select a site and sign an agreement with government officials within a week. He would be arriving at SRA¡¯s Suzhou office within a couple days to perform on-site inspections of facilities. ¡¡ The Australian company already had investments in the North of China and in the deep South. The investments were a couple years old. Both projects were joint ventures with local government-owned Chinese companies; the northern partner was selling off its northern investment within a matter of weeks; the southern partner was simply unproductive and, the Australians suspected, at some level corrupt. Several years before in their industry, it made sense for the Australians to enter China through joint ventures. Now, with the Chinese economy having opened up and the energy sector liberalized, it made more sense for the Australian company to form its own joint venture. ¡¡ SRA staff quickly mobilized to perform a deep search of China economic development zones through its China Industrial Parks Online Directory (CiPod) and library of materials from over fifty economic development zones throughout China. When the Australian president came to China SRA had identified about twenty economic development zones west of Shanghai in Jiangsu Province that met the President¡¯s qualifications for building rental prices. SRA made appointments with six of the Zones for the two days the President had to review investment areas. ¡¡ By the end of the first day the President felt confident two of the zones in Jiangsu Province would meet his company¡¯s requirements for low infrastructure costs and a high level of professional service. By the end of the second day the President settled on two of the investment areas with which to begin negotiations. By the fourth day SRA and the President concluded negotiations with a China investment zone that was a little over an hour¡¯s drive from Shanghai with one-quarter the costs and a staff of Chinese professionals that spoke English and had extensive experience working with Western companies. ¡¡ Within a month of using SRA¡¯s China Industrial Park Online Directory to identify viable economic development zones, the Australian company had its business license, a facility with a fully furnished office space and had already deposited over half its registered capital. The Australian President was weeks from disengaging the Chinese partners of his company¡¯s joint ventures and was now ready to control his own destiny in China. ¡¡ For more information ... ¡¡ Or email us at sradvisors@gmail.com . ¡¡ ¡¡ |
The
China Industrial
Parks Online
Directory: Key to
Expediting China
Manufacturing
Investment