China's Best Provinces For Business

Recent Article in the People's Daily discusses a recently released report from China's Provincial Economy Report on Comprehensive Competitiveness on China's provincial competitiveness in 2007. According to the article, this study uses "a mainstream method of study accepted internationally for regional economic research" and analyzed data from 31 administrative districts, covering 215 items, with levels of competitiveness levels classified into 4 categories.

Here's how it went:

According to the statistics, the most competitive provinces are Shanghai city, Beijing city, Guangdong province, Jiangsu province, Zhejiang province, Shangdong province, Tianjin city, Liaoning province, Fujian province, and the Inner Mongolia Autonomous Region.

Shanghai, Beijing, and Guangdong continue to hold their places as the most economically competitive, performing outstandingly in 8 second-grade items. The role of the government in Shanghai, the intellectual competitiveness of Beijing, and economic development environment in Guangdong are all ranked highest. However, in terms of government competitiveness, Beijing is ranked 11th. In terms of sustainable development competitiveness, Guangdong lags behind and needs to improve. In 2005, the highest ranking provinces in terms of sustainable development were: Liaoning province, Heilongjiang province, Shandong province, Beijing city, Zhejiang province, Tianjin city, Fujian province, Sichuan province, Jilin province, and Henan province.

Since 2004, seven districts from western China have increased their competitiveness in terms of economic development. Sichuan province moved 8 places up the list; Shaanxi province, Chongqing, and Qinghai province moved three places up the list; Yunnan province by two places; and Inner Mongolia and Guangxi by one place. Districts that have fallen on the list include Xinjiang Uygur Autonomous Region, Ningxia Hui Autonomous Region, and Gansu province.

Having no clue what data this study actually examined, its value cannot extend beyond fodder for cocktail party conversation (am I the only person who has not been to a cocktail party in about a decade?). Towards that end, is Inner Mongolia Autonomous Region on there because it deserves to be or because Beijing wants to see more development there?

Comments

I haven't been to a cocktail party for ages either. I just find them fundamentally boring - I'm rubbish at small talk. Give me a game of football on a big screen and a pint of bitter any day of the week.

This People's Daily report is a load of nonsense - the work of bureaucrats with too much time on their hands desperately trying to look busy, and wangle a free jolly or two to some sunny province if possible.

Posted by: Charlie | March 19, 2007 12:31 AM

Beyond the murky stats are the two most important questions: where are your major suppliers located and can you actually live (and remain sane) in a smaller city for a year or more.

When we set up in China 5 years ago I visited 8 different cities to looked for suppliers for our major products and also checked out what it would be like to live there long term. Outside of first tier cities on the east cost I really wouldn't want to live anywhere else in China for more than a month. And for us, Guangdong province had more suppliers in a general area (4-5 hour dive) than anywhere else at that time.

The stats may make the cities look good, but if you are sourcing small electronics, for example, you don't want to be in Beijing, Inner Mongolia or Chongqing no matter what the stats say.

PS. I've lived in Chongqing and you don't want to live there ever, for any reason.

Posted by: David Dayton | March 19, 2007 1:24 AM

Charlie --

Thanks for checking in. I'm guessing if we two were ever to find ourselves either at the same cocktail party or were to meet for a pint of bitter, we probably would agree that the "Making of a Bureaucratic Society" had it right.

Posted by: China Law Blog | March 19, 2007 10:18 PM

David --

Thanks for checking in. I agree (not that I know this stuff as well as you do), that the location of those with whom you do business is critical. But I disagree about the quality of life in cities other than first tier cities on the East Coast. I really like Qingdao and Dalian is not so bad either. I could see living in either place.

Posted by: China Law Blog | March 19, 2007 10:20 PM

I agree with CLB's point and I think that is one of the main reasons Shandong and Liaoning are as high as they are on the list. I am from Beijing, but if the right opportunity came along, I'd be more than happy to ditch the capital and move to Qingdao. Unless David has a wider definition of first tier cities beyond just the usual (Beijing, Shanghai, Guangzhou, Shenzhen(?)), he does a disservice to a lot of fine cities. Beyond Qingdao and Dalian, I think Harbin (maybe I'm stretching with this one), Chengdu, and Nanjing are all cities that most expats would find "up to par."

Posted by: b. cheng | March 20, 2007 12:40 AM

b. cheng --

I agree. In fact, I know of many expats who would not only find those cities up to par, they would prefer them Put Hangzhou on that list also.

Posted by: China Law Blog | March 20, 2007 9:10 AM