A dialogue between Chengdu, Xi'an on opening inland cities (5)

Showing sincerity by saying "no"

Last year Chengdu introduced administrative measures on new industrial projects, under which a new project must pass strict review before it is approved.

Xi'an requested business invitation on five major industries, which exclude common processing trade projects.

Both cities shifted from simple "bringing in" to "picking" projects.

X: Once, local governments, out of their thirst for foreign capital, competed by all means, some even going down the bottom line, such as by giving "zero land price".

C: This is what we call "bad competition", for it gives rise to arbitraging between various preferential policies. Before the Maersk Group decided to settle down in Chengdu, it met other cities who promised to accept all its terms and conditions, but Chengdu didn't do so. In fact, a city able to say "no" shows more the sincere side.

C: Indeed. Xi'an also adjusted its business-invitation principle, focusing on high-end, specialized projects that come in line with local realities and help drive local industries. The local authorities determined on five pillar industries: high-tech, modern equipment manufacturing, tourism, culture and modern service. Only investment in these fields can be allowed in and common processing trade projects are not considered. In a word, the business invitation must be highly targeting and carried out in a steady way.

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