In the "Doing Business 2012" published by World Bank and International Finance Corporation, the mainland China is recognized as one of the emerging market economies that could make the most sustainable adjustments to business environment. China's business environment becomes the focus of the world. Therefore, GRIIS recently has published the "Questionnaire Survey on the Legalized and Internationalized Business Environment of Guangdong Province", which reflects objectively the comments to government environment by 562 domestic and foreign enterprises in Guangdong. The results show that the enterprises are least satisfied with the examination and approval system of the government, especially on the land procedure. "Is it possible to promote the simplification of the government departments?""Could the joint examination and approval system be established?""Could government encourage intermediary service agencies?" These questions are given by the research team to provide enlightenments to the building of legalized and internationalized business environment of Guangdong.
Turn to marketization
On the China-International Small and Medium Enterprises Fair closed in September in Guangdong, Han Bo, deputy director of South–South Global Technology Property Right and Exchange, said that it was irresistible for the 4.5 million small and medium enterprises in Guangdong to "go out" because of the RMB appreciation and labor restriction. However, their business activities are easily misunderstood overseas due to their lack of understanding and training on the laws and systems of foreign countries.
The Canton Chamber of Commerce of Germany made analysis to the investment business environment of China and Pearl River Delta and pointed out that the government failed to give appropriate training to small and medium enterprises. Li Yongning, PhD of University of Kassel of Germany and professor of GDUFS, suggested China learning from the "seamless connection" pattern of German government and enterprises by noting the support from the government, such as the training, innovation encouragement and tax reduction.
In fact, some of the local governments are doing such attempts. The journalist learned from the Confederation of Guangdong Industry that Dongguan city would open training courses to small and medium enterprises on "extending international market" for free. Jieyang city is going to organize 115 local excellent private entrepreneurs to receive training in Peiking University.
Li Yongning stated that Chinese government was set as the director for the development and decider for plans and policies. However, it has realized to turn to marketization since the 12th Five-year Plan. Guangdong, as the frontier of reform and opening-up, should take the lead.
He also thought the Germany intermediary agents, such as the Chambers of Commerce, were professional in technology, talents and market advisory, which could offer help to the training of professional engineers in Guangdong. The similar Chambers are not popular in Guangdong and many of them are nongovernmental and under slow development.
The Canton Chamber of Commerce of Germany reminded that some places did well in internationalized business environment, such as Yangtzi River Delta under segmentation management.
Current Situation
Maturity of PRD Market Taking the Lead of China
When it comes to the reason why the business environment of Pearl River Delta(PRD) is so attractive to foreign investment, is pointed out that PRD, adjacent to Hong Kong and Macau, owns superb infrastructure and industrial distribution. Apart from the advantages above, there also exists a research hot spot. The scale of PRD, according to some German experts, is appropriate to be a model for research on the global economic zone.
Li Yongnin said,"The German experts have been reminding us that we shouldn't lay aside the traditional manufacturing industries for new ones. We should develop advanced manufacturing industries on the basis of the traditional ones. It shows clearly that, to withstand drastic changes in market, the manufacturing industry doesn't have to be large in scale but should be powerful."
In addition, Germans are fascinated by the PRD culture. Li Yongnin stated,"The German experts have compared it with that of Italy in South Europe, where the cultural base of citizens is quite decent. This region owns a tradition of doing business and the lifestyle is relaxed and pleasant, greatly resembling PDR in terms of climate and cultural environment. Therefore, in their points of view, Guangdong has laid good foundation of the business environment and set up a relatively fare market system since the opening-up policy was raised 30 years ago.
Experience
What to Learn from the Indian Government?
As is indicated by the research team, the experience of India is really worth learning for Chinese local government.
It is known that private equity investment attracted by India ranks the second in Asia.From 1999 to 2004, the equity investment that India had received was increased from 5.12 billion to 11.5 billion dollars. The return on investment of India is said to be able to rival any other country in the world.
The features of the business environment in India are distinct, according to Shao Renwei, a member of the business environment research group of GRIIS. As long as sufficient documents are provided, any foreign investment that meets the requirements can be automatically approved after 30 days without the government permission.
University think-tank is the "running water"
It is reported that the International Trends published monthly by GRIIS is sent to the leaders of Guangdong Province regularly. It covers all the latest movements in the world. The Institute is appointed by the government to "give advice and suggestions" because of its consistent focus on internationalization.
Prof. Li said, "Our main task is to do primary research. However, one of the difficulties for think tank is that some of the issues are regular while some are emergent". The business environment and transferring and upgrading are regular issues, but the report on global industrial adjustment after the Japanese earthquake last year was emergent.
Prof. Li though think-tank had two types. One is consumption type, whose talents are always changing,such as local Social and Scientific Academies which provide the government with policy-making suggestions. The other is "running water" type, which promotes the role of the new research results in the decision-making process of government. The think-tank in university follows the up-to-date trends and management.
