Official: Task IS to get rid of all kinds of bureaucracy

Florian Schmied, Shenyang chairman of the European Union Chamber of Commerce in China, is enthusiastic about an agreement the chamber recently signed with the Liaoning Foreign Trade and Economic Cooperation Bureau to facilitate investment.

"What we care about is communicating with local governments smoothly when we have difficulties in the investment process and if the governments can solve these problems for us. Liaoning is getting better," said Schmied.

Data from the Liaoning Foreign Trade and Economic Cooperation Bureau shows more than 2,000 European enterprises have invested in the province, with their combined investment reaching $20 billion by the end of 2012.

"China is calling for transformation with a highlight on building a service-oriented government. This requires us to get rid of all kinds of bureaucracy to better serve enterprises," said Wang Liwei, head of the bureau.

To accelerate the process and highlight services, the bureau is working hard on reform.

While improving efficiency and quality of services such as project approval and business registration, the bureau has made special efforts to promote investment, said Wang.

He noted the bureau has established seven offices to attract investment staffed by professionals with rich experience in developing and maintaining connections with foreign investors or overseas investment agencies.

Their efforts have paid off.

Many big names have been attracted to Liaoning including BMW, Michelin, Lear, Sekisui and General Motors. Most have expanded their businesses in the province in recent years.

Liaoning province now has operations by 97 Fortune 500 companies that have to date invested nearly $22.5 billion.

Wang said Liaoning no longer attracts investors solely by offering preferential policies, but by building industrial clusters.

"A full industry chain that demands the support of many related industries is more attractive to investors," he explained.

With the development of clusters, many industries are growing fast, "like snowballing", said Wang.

The provincial capital Shenyang is promoting development of an automobile industry cluster that has attracted not only automaker BMW, but also many component and parts suppliers including Wrth, Bekaert and Parkerizing.

International metal galvanizing and casting company Kopf established its first wholly owned enterprise in China in the city of Yingkou. Its facility that produces magnesium alloy castings for Mercedes-Benz and BMW became operational in August.

Some 50 European companies will come to Shenyang over the next three years to form an industrial park in the city's Hunnan New District, said Schmied.

Proposed by the Chinese government and supported by EU Ambassador to China Markus Ederer two years ago, the park focuses on clean-energy projects, energy-saving solutions and high-tech industrial and construction materials.

Tax cuts, rent-free land and other incentives for innovation are also offered by the local government to attract companies, said Wang.

Contact the writers at wuyong@chinadaily.com.cn and liuce@chinadaily.com.cn.