The Qingdao Administrative Approval Center offers one-stop services to investors. Photos provided to China Daily

Business environment enhanced by less red tape

The local government of Qingdao is improving services for foreign-funded enterprises to strengthen the coastal city's role in regional efforts to create a more open economy.

"We are creating a fair and transparent business environment for enterprises, which is a significant force driving economic growth," said Zhang Xinqi, mayor of Qingdao, located in East China's Shandong province.

He said the city government recently issued a new document requiring its various agencies and organizations to further improve administrative services and provide greater support to foreign-invested companies.

The document contains 10 mandatory policy changes that identify the responsibilities of each organization, said Ma Weigang, director-general of the Qingdao Bureau of Commerce.

He added that the changes were the result of research on the demands of foreign-invested companies.

One example is that in the past it might have taken at least five working days to process a request by a foreign-invested company to change its address, but in the future the process can be completed within one day.

And expatriates will enjoy greater aid when applying for and renewing visas as well as access to financial support for business expansion.

Reducing costs

To help companies cope with challenges, such as rising operational costs, the government has also decreased administrative fees.

Since July 2012, 11 kinds of administrative fees for companies have been suspended, and 16 other kinds of service fees have been reduced by about 20 percent on average.

In addition, new companies settling in the city's major industrial parks are exempted from any charge in the process of business registration and approval.

In 2012, Qingdao approved 947 foreign-invested projects with a total pledged investment of $6 billion, up 13 percent from 2011.

The Qingdao Foreign Investment Service Center offers a one-stop shop for services to foreign investors. Its director Wang Jiyuan said the center has been expanding its network to improve service efficiency.

"Our hotline and email assistance are now available 24 hours a day, and most of the complaints will be replied to and processed on the day they are received. For complex issues requiring investigation, we will respond to companies within five days," he said.

Growing confidence

The new initiatives and improved business environment in Qingdao have been praised by foreign businesspeople.

Matthew Bruno, managing director of ReSource Pro (Qingdao), said his company was first founded in Qingdao by its US-based parent, and now it has grown into an important provider of outsourcing services for the insurance industry.

He added that the company's success story is a living example of the city's prime investment environment.

"The local government has been very open to us. They always listen to our needs and provide help for our development, which enables us to focus on our core business," Bruno said.

Grease Monkey is a US-based car maintenance franchise that has successfully landed in the Chinese market through Qingdao.

Chris Wachendorfer, president of the company's Chinese operations, attributed the success to the strong demand in China's auto market and also the support of the local government.

"Qingdao's efficient administration has greatly facilitated our expansion and development. The approval process for our new project construction and operation plans was smooth," he said.

Further recognition

The enhancement of administrative services has attracted an increasing number of foreigners to invest or work in Qingdao.

Currently, there are 100,000 foreigners living in Qingdao.

Its excellent investment environment has won recognition from the international business community.

In 2012, Qingdao was recognized by Fortune Magazine China as a "Top Emerging Chinese Business City".

Manuel Rimkus, chief representative at the State of Bavaria's office in Qingdao said Qingdao's lower resources costs compared with Beijing and Shanghai, strong economic strength - which ranks 11th among all the Chinese cities in the mainland - and sound infrastructure such as its well-connected transportation system, have provided unique competitiveness to the city.

"In addition, its highly efficient administration, high-quality human resources have all made the city so appealing to German enterprises. And the German-Sino Eco Park which is strictly constructed and operated in accordance with German standards has a special significance in demonstrating the success of bilateral cooperation," he said.

"We love the culture combining German and Chinese elements here, as well as the beautiful environment," he added.

Now a large number of foreign companies are located in the West Coast Economic New Zone and east Qingdao's Blue Silicon Core Area as well as the Qingdao High-Tech Zone in the north.

Qingdao mayor Zhang Xinqi said the city has new plans to retool its industrial layout, and a number of international partnerships are on the horizon, which will provide enormous opportunities for foreign-invested companies.

xiechuanjiao@chinadaily.com.cn

(China Daily 01/31/2013 page24)