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ASIA AFRCA ECONOMIC AND INVESTMENT FORUM 2021. Seoul Korea

 

ASIA AFRCA ECONOMIC AND INVESTMENT FORUM 2021.

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Buchi George on Asia Africa Economic & Investment Forum and strength of Globe Chamber of Commerce and Industry

Hon. Nwabueze Buchi George has revealed that the broad nature of the Globe Chamber of Commerce and Industry board, has been the strength behind their ability to organize events across all continents of the world.

Speaking in Abuja, Nigeria as the organization rolls out plans for Asia Africa Economic & Investment Forum said being present in all the continents of the world makes it easier for them to achieve their set goals.

Siting the event as one of the plans of the organization for 2021, Hon. Buchi George said having a wonderful team is often the untold part of every success story. 

He hailed the board members from around the world for everything they have put into the organization, adding that they make things easier.

“We have an amazing team around the world. Wonderful people who have dedicated their time to building a better world through development, trade, and investment”

“With a pragmatic board and team members, you can get things going easily. We look forward to achieving a whole lot in 2021 and that will be via momentum we have set in place at the moment”

Talking about Asia Africa Economic & Investment Forum, Hon. Buchi George said the event has been scheduled to kick off in Tokyo Japan, from June 5 to 10, 2021.

“The goal has always been to connect continents through development, trade, and investment. After Tokyo, we will be moving to other countries in the continent”

“We understand that Africa needs to be involved globally when it comes to trade and investment. Africa needs to play alongside big players and Africa needs to be portrayed as a genuine contributor to the global trade and not as ordinary receivers”

 “We are not alone in this and we also understand that one tree cannot make a forest, but if the seeds are planted some distance apart, we’re sure to have our forest in no distant time”, he said, added that they have made plans to manage the ripple effects of all the intercontinental fora they are organizing.

With headquarters in Abuja Nigeria, and branches in more than 20 countries of Africa, Europe, and Asia,

The Globe Chamber of Commerce and Industry is established for the promotion and development of both local and international trade. The organization designs strategies that will build trade and investment bridges to connect countries and continents in mutually beneficial trade and investment agreements.

Trade Nigeria, FG, Toyota, Nissan partner on Nigeria National Automobile Training program 2021

As one of the plans to lift Nigeria’s economy in the post-covid-19 era, the Federal Government of Nigeria will be partnering other agencies to train 500 Nigerian Youths, in automobile engineering.

The programme which is put together by Trade Nigeria, so far, has three ministries, JICA Nigeria, Toyota, and Nissan automobile Japan as partners. It is expected to take place in 2021.

The President of Trade Nigeria, Hon. Nwabueze Buchi George said the programme is one of the many programmes they have lined up to alleviate the lots of Nigerian Youths especially as the world prepares for life after the covid-19 pandemic.

Hon. Buchi George said the Nigeria National Automobile Training program 2021, is part of their Train-Nigeria, Learn-Nigeria Project for 2021, adding that he is excited with the number of endorsements the programme has seen so far.

Federal Ministry of Special Duties and Inter-Governmental Affairs; Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development as well as the Federal Ministry of Niger Delta Affairs are the three ministries involved with the programme, with Hon. Buchi George saying that their presence will further solidify the international partnerships and help in maximizing the missions of the programme.

“The mission is simply, to reduce unemployment among youths in the country, on the other side,  it  will be a revolution for the service sector of Nigeria”

“There are other programmes in the bag and kicking this off with Japan will open doors for what we have in other countries like Germany, Taiwan, France, Korea, Turkey, Sweden, China, and the UK”

“What we want to achieve is to train people who are good enough to work in any part of the world. With that kind of workforce, one thing we are sure of in Nigeria is standard. As the knowledge is passed down, we will witness a high level of change in the way things are done here”, he said.

Hon. Nwabueze Buchi George added that saving the undermined service sector will be of huge benefit to Nigeria’s economy, hailing Toyota and Nissan automobile Japan who have agreed to absorb 300 and 200 Nigerians respectively in the programme.

“Training 500 Nigerians in Japan alone is a huge step for us and the country as a whole. One thing that is very important now is to ensure that all the necessary preparatory works are done on time, while we are also working towards securing other necessary partnerships that will ensure our goals are achieved”, he added.

Profile Brazil

Brazil has a developing mixed economy that is the twelfth largest in the world by nominal Gross Domestic Product (GDP) and eighth largest by purchasing power parity in 2020. According to International Monetary Fund (IMF), Brazil's 2020 nominal GDP was R$7.348 trillion or US$1.363 trillion. Brazil is the 83rd country in the world in GDP per capita, with a value of US$6,450 per inhabitant. The country has an estimated at Int$20.18 trillion worth of natural resources which includes vast amounts of gold, uranium, iron, and timber.

As of late 2010, Brazil's economy is the largest in Latin America and the second largest in the Americas. From 2000 to 2012, Brazil was one of the fastest-growing major economies in the world, with an average annual GDP growth rate of over 5%. Its GDP surpassed that of the United Kingdom in 2012, temporarily making Brazil the world's sixth-largest economy. However, Brazil's economic growth decelerated in 2013 and the country entered a recession in 2014. The economy started to recover in 2017, with a 1% growth in the first quarter followed by a 0.3% growth in second quarter compared to the same period of the previous year, and officially exited the recession. Brazil has remained stuck in the "middle income trap" and also faces high unemployment.

According to the World Economic Forum, Brazil was the top country in upward evolution of competitiveness in 2009, gaining eight positions among other countries, overcoming Russia for the first time, and partially closing the competitiveness gap with India and China among the BRIC economies. Important steps taken since the 1990s toward fiscal sustainability, as well as measures taken to liberalize and open the economy, have significantly boosted the country's competitiveness fundamentals, providing a better environment for private-sector development. In 2020, Forbes ranked Brazil as having the 7th largest number of billionaires in the world. Brazil is a member of diverse economic organizations, such as Mercosur, Unasul, G8+5, G20, WTO, Paris Club and the Cairns Group.

From a colony focused on primary sector goods (sugar, gold and cotton), Brazil has managed to create a diversified industrial base in the 20th century. The steel industry is a prime example of that, with Brazil being the 9th largest steel producer in 2018, and the 5th largest steel net exporter in 2018 Gerdau is the largest producer of long steel in the Americas, owning 337 industrial and commercial units and more than 45,000 employees across 14 countries.

Investment Opportunities in South Africa

While a financial pandemic sweeps over the rest of the world, South Africa set new investment records last year, with its private equity funds growing to R103 billion, or 3.2 percent of its gross domestic product (GDP), compared to the global average of 2.7 percent.

Private investors are taking a chance on South African start-ups, especially in Internet related industries. (Internet access in the country is set to double in the next five years and a recent study found that 80 percent of South African Internet users shop online.) However, investors are finding great opportunities to fund a wide range of start-ups, such as businesses specializing in healthcare, crafts and communications technology. There has also been a movement to invest in “green” businesses, like renewable energy and sustainable technologies.

South Africa also has a growing film industry. With its beautiful landscapes and low production costs - 40 percent less than in Europe and the US; 20 percent less than in Australia.

All this makes South Africa a market that many angel investors from all around the world have started to keep a close eye on.

Competitive Economies in Latin America and the Caribbean

In order to keep up the positive economic momentum of recent years and boost competitiveness, Latin America and the Caribbean implement further structural reforms and strengthen investment in infrastructure, skills development and innovation.

Top 10 performers in the region.

1. Chile remains the most competitive economy in Latin America, with a strong institutional set-up, low levels of corruption and an efficient government. It also boasts solid macroeconomic stability with a small public deficit and low public debt. Although there are some rigidities in its labour market due to persistently high redundancy costs, its markets are on the whole efficient. The decline in the price of minerals, however, highlights the need for Chile to diversify its economy and move towards more knowledge-based activities. Flaws in the country’s education system, especially in mathematics and science, mean the workforce generally lacks the skills required for innovation and this, together with low levels of investment in innovation, could jeopardize Chile’s transition towards a knowledge-based economy.

2. Panama again follows Chile in the regional rankings and remains the most competitive economy in Central America, despite a fall in the global rankings driven by a slight dip in perceptions of its institutions, especially regarding its ability to fight corruption. There are also concerns about a skill shortage, which threatens to undermine Panama’s transition towards more knowledge-intensive activities. However, the country has an impressive infrastructure, with some of the best port and airport facilities in the world, and it is proving to be a strong adopter of technology.

3. Costa Rica continues to rise in the rankings, improving three positions in the past year thanks to a very stable profile and strong institutions. It has one of the best education systems in the region, a fairly high ICT uptake and a reasonably well-developed capacity to innovate, making it well-placed to move towards knowledge-based activities. However, some persistent weaknesses are holding back its overall competitiveness. These include poor transport infrastructure, difficulties accessing finance, concerns about its macroeconomic performance and high budget deficit.

4. Barbados has slipped eight places down the global rankings, as it continues to suffer the consequences of the global financial crisis. Within the region it  ranks fourth for overall competitiveness. The credit crunch is severely hindering the capacity of local businesses to finance their activities or develop innovative projects. Concerns about macroeconomic conditions also persist, as Barbados has one of the highest public deficits in the world, one of the lowest savings rates and high public debt. The country does, however, have a fairly skilled labour force thanks to a high-quality education system and high enrolment rates in secondary and tertiary education. It also has solid infrastructure and generally well-functioning institutions.

5. Brazil drops one position in the rankings this year to 57th globally, due to insufficient progress in fixing its poor transport infrastructure, and a perceived deterioration in the functioning of its institutions. It has had a weaker macroeconomic performance this year and a further tightening of access to financing. Its poor education system is still failing to provide workers with the necessary skills for an economy in transition to more knowledge-based activities. The country has also faced headwinds due to a drop in the international price of commodities and potential outflows of capital. That said, Brazil has significant strengths, most notably its large market size and its fairly sophisticated business community, with pockets of innovation excellence in many research-driven, high-value-added activities.

6. Mexico has made important structural reforms in the past year aimed at increasing the level of competition and efficiency of its markets, though the benefits of these have not yet materialized. Competitiveness will improve as these reforms start to have an impact. There has been a fall in the perceived functioning of Mexico’s institutions, and the Mexican education system does not seem to deliver the skills that its changing economy requires. In its favour, however, is a stable macroeconomic environment, large internal market, good transport infrastructure and a number of sophisticated businesses ‒ uncommon for a country at its stage of development.

7. Peru’s competitiveness gains in recent years, driven by a very strong macroeconomic performance and highly efficient financial and labour markets, seem to be losing momentum. There are concerns about the functioning of its institutions, along with insufficient progress in improving the quality of its education and lifting levels of technological adoption. Although Peru has recently benefited from strong growth thanks to the rise in the price of minerals, the country should build its resilience by addressing its most long-lasting challenges: it needs to strengthen its public institutions by increasing government efficiency, fighting corruption and improving infrastructure.

8. Colombia climbs three positions in the global rankings this year due to an increase in its level of technological adoption and the development of its infrastructure. However, more progress needs to be made with infrastructure, as this is still the second most problematic factor for doing business in Colombia, after the high level of corruption. The country has stable macroeconomic conditions, but as is the case across much of the region, it needs to diversify its economy and become less dependent on revenue from mineral resources. To do so it must improve education and foster an environment that fuels innovation.

9. Guatemala climbs eight places to the middle of the global rankings this year, due to improvements in its level of competition in the goods market ‒ thanks to the reduction of red tape for new businesses ‒ and better infrastructure, although more progress here must be made.

10. Uruguay has improved its performance this year. GDP per capita has been growing at a faster rate in Uruguay than the regional average for several years, and the country performs well on measures relating to technological readiness, its institutions and its education system. Restrictive labour regulations are the biggest obstacle to doing business in the country.

10 BEST CITIES FOR DOING BUSINESS IN CHINA

China has a huge market with more than one billion people. The country presents near endless opportunities to investors. China's economy has increased dramatically due to which it is considered a prime destination for foreign investors.

business in China_Shenzhen  China had overtaken the US as the largest recipient of foreign investment. A growing economy, thriving capital markets, and favorable business environment create the perfect opportunities to invest in China.

Ten best cities that are the best places for foreign investors to do business in China.

1. Shanghai

Shanghai ranks as the best city for investing in China, according to FDI Intelligence’s report. The city has been ranked fifth best city to invest in the Asia-Pacific region. It is becoming one of the most progressive cities in the world when it comes to creating investment opportunities. This is the reason why most foreign investors prefer to do business in China.

Also popularly called the 'Shen', Shanghai had received around $6 billion foreign investment in the free trade zone last year, an increase of 6 percent. The city is an international port and contributes the most to the Chinese economy. The most important sectors in the city include:

• Transport

• Economy

• Science and Technology

• Exhibition

• Trade

• Shipping Center

The city envisions itself to be the top destination for finance, trade, and transport in the world. Among other incentives, the city has canceled the requirement of minimum registration capital for setting a business in the free trade zone.  Moreover, under the free trade zone, international investors are not required to contribute capital within two years of setting up a foreign-invested enterprise (FIE).

2. Guangzhou

Another famous port city that is the best place to invest in China is Guangzhou. Also known as the Ram City, Guangzhou presents a lot of investment opportunities to investors.

For the past two millennia, the city has remained the financial, political, and cultural center in China. Today the city is known as the Millennium Business Capital due to being one of the centers of commerce, trade, finance, and transportation in China. It attracts a large number of global investors due to attractive investment environment.

Guangzhou has developed an industrial chain with ten key sectors. These include:

• Fine Chemicals

• Trade Exhibition

• Automobile manufacturing

• Modern logistics

• Financial

• Information Technology

• New materials

• Biological medicine

• Environment protection

• New energy

You can invest in the above industries by setting up a business in China. Consider partnering with a local firm to invest in China in any of these industries. The city has a highly educated labor with 2.88 million people having a college degree and above 1.41 million with management and technical expertise.

Guangdong free trade zone was established to promote foreign investment in China. The free trade zone has introduced a number of incentives for foreign investors to invest in China. Some of the investment incentives include support for financial exchange, cross-border business, trade, shipping logistics, and government services.

After the introduction of trade reforms in Guangzhou, the city has attracted a lot of foreign investment. Foreign trade is prospering in the region while the economy has skyrocketed increasing at the rate of 13 percent per annum. 

3. Beijing

The capital city Beijing is also a great place to invest in China. The city is the political, scientific, educational, and cultural center in the country and houses the official seat of the Chinese government.

Beijing is one of the most competitive and dynamic regions in the world. The city is a prime city to invest in China due to its world-class and cohesive communication and transport infrastructure. The city is connected to every major region in China. Employers will find it easy to find qualified professional since it is the most educated region in the country.

The city's management gives preferential treatment to foreign investors. It is the major recipient of the regional development strategies, and is the center of the Bohai Economic Rim, which is an economic zone that consists of Beijing, Heibi, Tianjin, Shanxi, Shandong Peninsula, and parts of inner Mongolia. Its geographical advantage includes close location to land, international shipping routes and natural resources.

Beijing is also the financial and commercial hub of the country. The city has undergone accelerated development in the past few years. Today, it has around 40 percent of the financial clearances business and 60 percent of the financial assets.

The city has three state level and 16 municipal level trade zones with different industrial functions that meet the needs of foreign investors. State level zones include Beijing Tianzhu Free Trade Zone and Beijing Economic and Technology Development Area.  These zones are home to many foreign-owned companies in China.

4. Wuhan

Wuhan is a central education and industrial base in China with a developed transport infrastructure. It is one of the top-rated metropolises for investing in China. Having a population of more than 10 million, it is the largest city in central China. The city has been ranked as one of the most dynamic cities in the context of investment opportunities similar to Shanghai, Shenzhen, and Beijing.

Global conglomerates and startups alike have recognized the city as having a prospering and attractive economy due to which they are investing heavily in the region. Innovation and economic development has been driven by a mix of industry and academia. The city provides access to research and development resources that will derive innovation. The urbanity of the city along with efficient transportation networks including high rail services provide definite advantages for investors to invest in China.

5. Hangzhou

Yet another great place to invest in China is Hangzhou. The capital city of the Zhejiang province is an economic, science, politics, transport, media, and finance center in the country. Moreover, it's the metropolitan economic center's main point for commerce.

With a population of around 9.46 million, Hangzhou presents lots of investment opportunities for investors in China. The economy of the city has undergone great transformation after opening up for foreign trade in 1992. The city is considered to be an important logistics and manufacturing hub.

6. Shenzhen

Also known as the Peng City, Shenzhen is yet another great place to invest in China. The city is considered to be one of the top countries to invest due to investment-friendly climate. The special economic zone in the city creates incentives for investors to do business in China.

The city is an important air and transport hub being an international port. It is also the fiscal and economic center in the city. Foreign investors are offered various incentives like no income tax for the first 2 years of operations in the high-tech industries and half income tax for the subsequent 8 years.

In addition, new export oriented foreign enterprises have to pay only half for the land that is used for setting up an industry. Certified projects related to certain technologies have to pay half for the use of land for up to five years. No fee is charged for the transfer of land-use that is used for setting up high-tech business in Shenzhen.

Foreign businesses in Shenzhen have long been provided preferential treatment. The production of goods is not restricted by any quota. No permit is required to produce a large number of goods. Foreign firms are given freedom to fix production levels according to demand. Foreign workers living in the city are offered the same standards as the locals. They can enjoy equal services and are charged at the same rate as the local population when it comes to seeking medical help or purchasing of houses.

7. Chongqing

Located in the southwest of China, Chongqing is a great place to invest in China. The city is one of the major industrial bases in the country. The port city is located at the confluence of the Yangtze and Jialing rivers. It is currently the biggest inland city in China that presents attractive opportunities for foreign investors.

Newly conferred the status of municipality, Chongqing is considered one of the best business destinations in China. There is a lot of potential for business development since only about half of the population is urban.

The city is well placed at the upper Yangtze economic belt thereby serving as a gateway to the largely untapped potential of the western areas. It serves as a key transition point connecting the developed east coast with the largely untapped western regions. This makes the city occupy a central position as a regional manufacturing, logistics, and financial hub and is poised to play an important role in the development of western China.

Being twelve times the size of Shanghai, the city has abundant resources. Companies can tap into the low-cost labor base thereby gaining cost advantages. The market within the city also has huge potential for investors as an investment will result in an improved standard of living.

8. Tianjin

Being one of the most economically developed cities in China, Tianjin provides great opportunities for investors. The city was one of the earliest ports that were opened to foreign investors. Today the port city occupies an important financial, trade, and economic position.

Tianjin is the second largest city in China and the largest trade port in the northern part of the country. Similar to the capital city Beijing, Tianjin is situated in the Bohai-rim Economic Circle. In addition, the city is the sea gateway of the northwestern parts of the country. It serves as an important position in the national and regional economy of the country.

9. Suzhou

Suzhou is also a good place to invest in China.  The city is located about 100 km away from Shanghai in the southeastern part of the country in the Jiangsu province. It has a large manufacturing base producing electronic and IT devices, iron and steel and textile products. The city has a well-developed service sector that primarily caters to tourism.

10.  Chengdu

The state council of China has designated Chengdu as the western center of finance, science, logistics, and commerce. The city has a well-developed transport and communication infrastructure. In addition, it is an important base for agriculture and manufacturing.

Chengdu is the fourth largest technological hub in China. The city is the innovative capital of the country making it one of the best places to invest in China. The city has a high-tech zone that stretches for more than 130 km and supports more than a thousand foreign enterprises. Notable tech zones in the city include the Tianfu Software Park, Chengdu High-tech Zone, New Tianfu Areas, and Eastern Chengdu Manufacturing Hub. Foreign business can benefit from investing in Chengdu's innovative technological hubs.

China’s Economic Rise

Since opening up to foreign trade and investment and implementing free-market reforms in 1979, China has been among the world’s fastest-growing economies, with real annual gross domestic product (GDP) growth averaging 9.5% through 2018, a pace described by the World Bank as “the fastest sustained expansion by a major economy in history.” Such growth has enabled China, on average, to double its GDP every eight years and helped raise an estimated 800 million people out of poverty. China has become the world’s largest economy (on a purchasing power parity basis), manufacturer, merchandise trader, and holder of foreign exchange reserves. This in turn has made China a major commercial partner of the United States. China is the largest U.S. merchandise trading partner, biggest source of imports, and third-largest U.S. export market. China is also the largest foreign holder of U.S. Treasury securities, which help fund the federal debt and keep U.S. interest rates low.

As China’s economy has matured, its real GDP growth has slowed significantly, from 14.2% in 2007 to 6.6% in 2018, and that growth is projected by the International Monetary Fund (IMF) to fall to 5.5% by 2024. The Chinese government has embraced slower economic growth, referring to it as the “new normal” and acknowledging the need for China to embrace a new growth model that relies less on fixed investment and exporting, and more on private consumption, services, and innovation to drive economic growth. Such reforms are needed in order for China to avoid hitting the “middle-income trap,” when countries achieve a certain economic level but begin to experience sharply diminishing economic growth rates because they are unable to adopt new sources of economic growth, such as innovation.

The Chinese government has made innovation a top priority in its economic planning through a number of high-profile initiatives, such as “Made in China 2025,” a plan announced in 2015 to upgrade and modernize China’s manufacturing in 10 key sectors through extensive government assistance in order to make China a major global player in these sectors. However, such measures have increasingly raised concerns that China intends to use industrial policies to decrease the country’s reliance on foreign technology (including by locking out foreign firms in China) and eventually dominate global markets.

In 2017, the Trump Administration launched a Section 301 investigation of China’s innovation and intellectual property policies deemed harmful to U.S. economic interests. It subsequently raised tariffs by 25% on $250 billion worth of imports from China, while China increased tariffs (ranging from 5% to 25%) on $110 billion worth of imports from the United States. Such measures have sharply decreased bilateral trade in 2019. On May 10, 2019, President Trump announced he was considering raising tariffs on nearly all remaining products from China. A protracted and escalating trade conflict between the United States and China could have negative consequences for the Chinese economy.

China’s growing global economic influence and the economic and trade policies it maintains have significant implications for the United States and hence are of major interest to Congress. While China is a large and growing market for U.S. firms, its incomplete transition to a free-market economy has resulted in economic policies deemed harmful to U.S. economic interests, such as industrial policies and theft of U.S. intellectual property. This report provides background on China’s economic rise; describes its current economic structure; identifies the challenges China faces to maintain economic growth; and discusses the challenges, opportunities, and implications of China’s economic rise for the United States.

Top most industrialized State and regions in china

In China, lower-tier cities are challenging the dominance of first-tier cities like Beijing and Shanghai for attracting foreign investment.

In recent years, the increasing cost of labor, housing, and land in first-tier cities has led many Fortune 500 companies — especially those in the computer, software, information technology, and e-commerce sectors — to settle in second- and third-tier cities.

Lower-tier cities are continuously announcing business incentives to attract investment and promote pillar industries, while also offering a variety of entrepreneurship and housing subsidies to attract talent.

China’s next generation of workers are aware of these trends. According to the 2018 Research Report on the Employment Market for Graduates, 40 percent of the 90,000 graduates surveyed hope to work in so-called “emerging first-tier cities” such as Chengdu, Hangzhou, and Chongqing, while only 27 percent hope to work in first-tier cities.

To understand how these lower-tier cities are performing compared to established first-tier cities and to identify those with the greatest economic potential, China Briefing examined all cities in mainland China with a gross domestic product (GDP) of more than RMB 500 billion (US$74.1 billion) in 2017 and calculated their GDP growth rates between 2012 and 2017.

1. Hefei, Anhui

Hefei is the fastest growing city in China, with its GDP rising from RMB 416.4 billion (US$65.9 billion) in 2012 to RMB 721.3 billion (US$106.8 billion) in 2017 an increase of 73.2 percent.

A survey by the State Administration of Foreign Experts Affairs titled ‘2017 Charming China’, revealed that Hefei was the third most attractive Chinese city in the eyes of foreign talent, placing just behind Shanghai and Beijing.

The city currently has eight core industries: automotive, equipment manufacturing, home appliances, chemicals, new materials, software and electronic information, biomedicine, and food processing.

Last year, Hefei was selected as a pilot city under the Made in China 2025 initiative, and as a result increased its investment in the manufacturing sector. To this end, in June 2018, Hefei announced subsidies of up to RMB 20 million (US$3 million) to eligible newly settled businesses in the circuit and software industries to promote investment in both these sectors.

Further, Hefei has ramped up efforts in targeting Fortune Global 500 companies in the equipment manufacturing, new energy vehicles, and logistics sectors in order to attract more foreign businesses and high-end human resources. The city has also committed to improve incentives targeting overseas professionals.

Earlier, in 2014, Hefei launched a system to promote industry development, introducing five specific measures to advance industrialization, innovation, agriculture, services, and culture.

By 2020 Hefei aims to realize a GDP of more than RMB 1 trillion (US$150.9 billion).

2. Yangzhou, Jiangsu

Ranked as the second fastest growing city, Yangzhou’s GDP rose from RMB 293.3 billion (US$46.4 billion) in 2012 to RMB 506.4 billion (US$75 billion) in 2017, an increase of 72.65 percent.

Traditionally, the dominant industries in Yangzhou have been automobile, machinery, tourism, software, and food processing.

In 2017, the city released plans to strengthen strategic emerging industries such as new energy, new medicine, novel materials, energy conservation, high-end manufacturing, information technology, and biotechnology. The objective is to generate an output value of RMB 700 billion (US$105.6 billion) from these industries by 2020.

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Furthermore, Yangzhou is the bedrock of the software and information service industry in Jiangsu. Accordingly, analysts acknowledge that the city is well-positioned to influence regional industry development and industrial transformation.

In April 2018, the government announced generous incentives to attract high-end professionals, including a monthly rental allowance of up to RMB 3,000 (US$452.10) and a one-time housing subsidy worth up to RMB 2 million (US$ 301,390).

Yangzhou is also the only city in Jiangsu province to be awarded “pioneer” status as a result of its support for small and micro-enterprises.

Yangzhou, acknowledged as a highly livable city, is likely to continue its progression of economic growth and talent retention, as it continues to stimulate its economy through innovation and industry expert input.

3. Shenzhen, Guangdong

Shenzhen is the only first tier city that continues to expand at a country-leading pace. The city has seen GDP growth of 72.1 percent from 2012 to 2017, rising from RMB 1,295 billion (US$205.1 billion) to RMB 2,228.6 billion (US$330.1 billion).

For the first time, Shenzhen has overtaken Guangzhou to become the city with the third-highest GDP in mainland China in 2017, behind only Shanghai and Beijing.

As the fastest growing first-tier city and the most successful special economic zone, Shenzhen owes its success in part to its proximity to Hong Kong.

Shenzhen’s pillar industries are the cultural and creative industries, high and new technology industries, modern logistics, and finance.

In the future, the government will focus on developing emerging industries, including new energy and materials, life and health, robotics, intelligence equipment, and aerospace and aviation.

In recent years, the secondary (manufacturing) sector has received increased attention so as to avoid industrial hollowing-out due to the relocation of manufacturing caused by rising production costs.

Shenzhen is also known for its dynamic and booming startup scene. Unlike Beijing and Shanghai, which have more state-owned enterprises, Shenzhen is home to younger, private companies.

In 2016, Shenzhen had the highest density of startups of all the mainland cities. The government plays an important role in promoting these companies by providing abundant resources and funds for entrepreneurs to invest in the various sectors.

For example, qualified leading e-commerce enterprises setting up headquarters in Shenzhen may be awarded RMB 5 million (US$748,875.0), while qualified individuals or teams who establish startups may be awarded up to RMB 1 million (US$150,690.0). In addition, in June, the city announced housing policies that provide qualified Chinese citizens with substantial subsidies for renting or buying a home.

The drawbacks of doing business in Shenzhen is that the monthly cost of living is relatively high – an average of RMB 7,000 (US$1,056.2) – meaning that land and labor is expensive.

4. Chengdu, Sichuan

Chengdu’s GDP grew from RMB 813.8 billion (US$137.1 billion) in 2012 to RMB 1,388.9 billion (US$205.7 billion) in 2017, amounting to a 70.66 percent increase.

In late 2017, Chengdu announced that by focusing on six aspects of the new economy (digital, intelligence, green, creative, mobile, and shared), it aims to reach a new-economy output value of RMB 500 million (US$75.4 million) by 2022.

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Analysts believe that Chengdu is a strong candidate for developing the new economy because of its many comparative advantages, including being a logistics hub for the Belt and Road Initiative, boasting a huge consumer market, having abundant scientific and technological talents, and being a highly livable city. However, some observers argue that Chengdu’s new economy is currently still capital intensive and lacks innovative capabilities.

The government has also rolled out key measures to support new economy-related companies, including the establishment of an RMB 10 billion (US$1.5 billion) new-economy development fund and subsidies of up to RMB 40 million (US$6.0 million) for financial institutions and their headquarters that are newly-established in Chengdu.

In addition, this year, the city introduced a series of measures to further attract foreign investment. If the regional headquarters of newly registered multinational corporations (MNCs) are located in Chengdu for at least a year, they can receive establishment funds of up to RMB 500 million (US$75.4 million).

Chengdu’s continuous efforts to attract investment have proven fruitful. According to Yicai’s 2018 Business Attractiveness of Chinese Cities Ranking, Chengdu is the most attractive emerging first-tier city for businesses in China, ranking at the top in its concentration of commercial resources, the vitality of its people, its urban pivot ability, and urban plasticity.

5. Nantong, Jiangsu

Nantong’s GDP grew from RMB 455.8 billion (US$ 72.2 billion) in 2012 to RMB 773.4 billion (US$ 114.5 billion) in 2017, representing a growth rate of 69.67 percent.

Nantong continues to develop its mainstay industries – such as high-end textiles, electronic information, and marine engineering – while nurturing the development of emerging industries, including intelligent equipment, new materials, new energy, and new-energy vehicles.

Located on the Yangtze River Delta, Nantong has fostered greater cooperation with other cities in the region, especially Shanghai. In 2017, the government published details of a strategic policy aimed at escalating the construction and development of Nantong, which will improve its integration with surrounding areas.

By integrating and collaborating with Shanghai’s capital, technology, and human resources, Nantong aims to become the economic and transportation hub of the north wing of the Yangtze River Delta. The two cities complement each other: Nantong utilizes Shanghai’s resources to accelerate industry innovation and transformation; while Shanghai expands its market share and advances industry development through Nantong.

Nantong offers generous subsidies to attract top-end talent. Nevertheless, the measures taken to attract graduates and youth are proving ineffective. This was reflected in the 2017 China Urban Research Report, released by Baidu Map, which revealed that Nantong’s ranking in terms of attractiveness to the urban population has steadily dropped.

In recognition of this, a city official announced in June that developing Nantong as an innovative city that appeals to young professionals is a priority. Analysts pointed out that it is vital to deliver what matters most to potential residents, particularly a housing and cost-of-living subsidy, a reduction of hukou restrictions, and opportunities for career development.

Capitalize on regional dynamics

Aside from government support, the driving forces behind the five cities’ are strongly related to their location and their efforts to join China’s macroeconomic trends to innovate pillar industries.

In our ranking, three of the five cities are located in the Yangtze River Delta, and one is in the Pearl River Delta. The government has been creating city clusters and super-regions to facilitate urbanization, which may be positively correlated with GDP growth.

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Notably absent from the list are cities from northern China, where much of the economy is struggling compared to China’s dynamic eastern and southern regions and booming west.

The rise of lower-tier cities has also brought huge investment opportunities in the daily consumption, education, and elder care markets. Consumption growth in second-, third-, and fourth-tier cities is nearly 1.5 times larger than that of first-tier cities, according to the 2017 Consumption Upgrade Big Data Report.

However, some analysts claim that, for the short term, second- and third-tier cities will continue to suffer from talent and capital disadvantages over emerging and first-tier cities, which have more abundant cash flows.

Nevertheless, as the government continues to restrict population growth in first-tier cites, many businesses and talented individuals may still choose to settle in lower-tier cities as they continue to offer lower living costs and a variety of investment incentives.

Japan - Africa Economic & Investment Forum

Trade Nigeria in partnership Government of Nigeria, Ministry of Foreign Affairs (Department of Trade) with Globe Chamber of Commerce and Industry.

Present:

Japan - Africa Economic & Investment Forum and Business Delegation of Industries, Investment and Commerce to Asia

-Tokyo, Japan on 5th - 10th June 202. 1Grand Hilton Tokyo, Japan

-South Korea 25th-30th April

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-1st-5th September MALTA

-25th - 30th November Australia

Programme Highlight:

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- Business & Investment Forum

- Build Own Operate and Transfer, Trade Exhibition and Expo

- Multilateral Trade Talk & International Business Agreement

- Economic Exchange and Trade Cooperation

- Business Agreement.

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