British companies eye investment in Hangzhou

Many second-tier Chinese cities are becoming ideal places for overseas investment. Sir David Brewer, Chairman of the China-Britain Business Council, recently visited Hangzhou, capital of eastern China's Zhejiang Province, to explore the city's investment environment. He says he was impressed by Hangzhou's ability to accommodate foreign investors. Xiao Hong brings more details.

The British delegation, composed of a group of entrepreneurs, was quite impressed with Hangzhou's sound investment environment after a visit to the city's Hi-Tech Industry Development Zone.

Sir David Brewer, Chairman of the China-Britain Business Council, who heads the delegation, says more British companies are increasingly eying investments in China's second-tier cities such as Hangzhou, rather than in big metropolises like Beijing and Shanghai.

"If we are talking to British companies in the UK about where they can go in China, increasingly now they don't think of Beijing or Shanghai. They want to go to other places. In fact, last year, the China-Britain Business Council commissioned a report on so-called second-tier cities, including Hangzhou. British companies were saying, 'If I am going into China for the first time, I don't want to go to the cities where everybody is located.'"

Brewer says his council have listed and recommended 35 second-tier cities in China to his council members. These cities' conditions can meet the ambitions and specializations of British companies. He says Hangzhou in particular has certain advantages.

"Hangzhou is already moving towards being a financial and professional services center. We like the fact that it is concentrating on SMEs (small and medium-sized enterprises), and private equity companies. So we like that side. In fact, 86 percent of the members of the China-Britain- Business Council are SMEs. (So) we think those are the areas (we are) moving toward these days."

Brewer also highlights China's role in helping the world economy recover from the financial crisis.

"I suppose we have seen the risks recently with the collapse of the economy around the world, with the recession that affects everybody. (But) I think we've been hugely helped by China when China reacted. We've seen the major role (it has) taken in the G20 talks now, and China's just taken out 50 billion dollars of bonds with the IMF. That's something it was asked (to do) by some other leaders at the G20 meeting, and China has done that. I think it's (one of the) major things that China (has done to) help the world economy."

Brewer also welcomes more Chinese companies to invest in Britain. He encourages young Britons to go to China to seek job opportunities as Chinese language instruction is now available in many schools and institutions in Britain.