He admitted: “We suffered great losses during the financial crisis. The US printed more bank notes that devalued Chinese bonds in the US. But we’re confident the economy will flourish. Our Government has been more pragmatic to lead the people to a better road of consumption.”
An example of the appetite for such consumption is Linyi Wholesale Market.
What began as roadside stalls in 1981 is now a mini-retail city of 12 sq miles selling anything from floor tiling to auto parts and chemicals, and open to foreign investment.
One of the latest tenants is a New Zealand investment worth £17m selling home decorating materials.
By 2012 Wholesale City will support 60,000 businesses turning over £10bn.
About 50 miles from Linyi City, with access to four coastal ports, is the Lingang Industrial Zone.
Established only 10 months ago it is part of a strategic plan by Shandong Province to create an economic coastal area and covers 300 square miles, taking in four towns with a total population of 190,000, mostly farmers, which the Government sees as a workforce in waiting for investors.
There are plans for a vocational college and a private school to train skilled workers.
And although only 10 months old there are already 15 businesses in situ with a further 33 under construction, including a solar panel manufacturer.
The scale is immense and the zone has been split into specific areas for construction materials companies, steel processing, hi-tech products, logistics, timber processing, chemicals, and farm products, including an existing tea plantation.
To the north is an 11.5 sq mile area set aside as a tourist and holiday park providing golf, horse racing, mountaineering and watersports facilities by the Hong Kong-based East Asia Company.
Xing Jia Wang, Linyi Lingang Industrial Zone Management Committee deputy director, welcomed LCBA’s interest and offered tax breaks and growth opportunities in the four sectors the team outlined during their talks.
He said: “This visit of yours has been much attended to by very high-ranking officials. I hope this visit will accelerate or facilitate the best contact between us and establish very close business relations between us and lead to a very fruitful result.
“This visit and the publicity you will make in the UK itself is a great contribution to us.
“I have got a glimpse of your proposed areas for co-operation and we have designed related areas for such industries. We’re open to discuss related projects.
“We have already good investors from South Korea and Hong Kong. Of course, we would like to have more overseas investors and offer them the best possible benefits in terms of tax reduction and also in terms of service.”
Linyi Economic Development Zone Investment Service is probably the longest established agency, since 2003, which offers land close to the city centre for industrial or residential development – one project yielded an 18-hole golf course on reclaimed land from the Yihe River.
Projects include garment factories – including the Guoren company making £200 suits for domestic consumption – furniture makers, a bonded warehouse, a software developer and SDLG, a heavy plant joint venture with Volvo.
The zone’s vice director Mr Fashun Liu revealed its total output soared 33% last year to £2.5bn and investment in the zone was 32% ahead at £930m. He said: “I hope this is the starting point of a good relationship and we can achieve a win-win situation for all of us.”
Mr Seatwo declared his delight with the delegation’s reception: “Linyi is full of potential. It has a fantastic infrastructure and its investment policy is flexible.
“So for any businessman this is an opportunity that can’t be missed. We had a fantastic reception. The economic zones and bureau are very passionate about what they do. They have a lot of optimism about their future and their professionalism left a strong impression with us – and that’s important for any investor.”
He added: “It has been a very successful trip and paved the way for more business collaborations between our region and the municipal government of Linyi in the future.”
