The US-China Business Council has regularly published research reports on a variety of Chinese commercial topics, especially in areas such as distribution, retail, human resources, and the environment.

Now that China has entered the World Trade Organization (WTO) and is promoting the development of areas beyond the coast, a forthcoming Council report reviews China’s provinces, autonomous regions, and province-level cities in an attempt to answer one of foreign investors’ most frequently asked questions: “Where can we find information on different regions of China to help us evaluate, and plan strategically, where our companies should set up operations after China’s WTO phase-ins take place?”

China-based company representatives who have tried to obtain such information can appreciate how difficult it is to find. So far the primary options have consisted of hard-to-read provincial brochures, expensive specialist research reports, or, for the less commercially oriented, the Lonely Planet guidebooks.

A handy reference
The report aims to be a reference for the experienced China trader as well as the new market entrant. Each profile features key information on the region and its major cities, as well as statistics and contact information for relevant provincial and municipal officials.

Our researchers sought information from the respective authorities as if they were corporate staff taking a first look at potential investments in or trade with China. After jumping the initial hurdle of gaining the mandatory National Bureau of Statistics approval for our study, they sent a lengthy questionnaire in Chinese to each provincial and major city government. They followed up with countless phone calls to clarify submitted information. All conversations took place in Chinese.

The researchers had to deal with a matrix of officials at a variety of bureaucratic levels and systems (xitong) in each region. Some of these officials were prompt and professional in their responses. Others were surprisingly reluctant to provide even the most basic information; in many cases providing such information was among these officials’ responsibilities. Moreover, the Council’s Beijing office regularly hosts visitors from the governments of all of China’s provinces and major cities who are anxious to promote their local investment opportunities.

Tempting as it may have been at times, the Council deliberately did not reach out to its contacts in the regional leadership to make the lower levels of bureaucracy respond. Such an approach would have defeated the basic premise of the research. Rather, we contacted the specific departments in charge, just as any company would have to do.

Contrary to popular belief, not all Chinese data are incorrect. The Council compared the numbers provided by each region with central-level information. In the event that there were significant discrepancies, we used the central government’s numbers, all of which were checked and re-checked from multiple sources. Skeptical readers, however, might opt to consider the numbers as indicative of trends.

The report refrains from regaling readers with war stories and colorful anecdotes, because the Council has found that every business has a different experience in China based on its approach. Indeed, China is what you make of it—with a well-planned strategy, the right people on the ground, and above all, persistence, a company can be successful even in the toughest PRC commercial environments.

—Patrick J. Powers        

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Patrick J. Powers is director of China Operations at the US-China Business Council in Beijing.