China THE INSIDER’S VIEW
Yates Fei, director of sales and account management, HRG China, Shanghai
Guangzhou: home to the world’s largest trade fair
“Lots of secondary cities are hoping to attract flights from Europe or North America, particularly western China, because they want to drive the economy in that area. Chengdu and Chongqing are seeing a lot of businesses open there. Labour costs are cheaper and it is closer to Europe. “The biggest growth among our client base is in pharmaceuticals – each year they need to hire 1,000-2,000 sales staff – and IT industries, too, because they are changing daily life here. There are many mergers and acquisitions among Chinese companies. “In big cities like Beijing and Shanghai there are probably too
many five-star hotels, and the chains now plan to open more boutique-style properties. Because of this, it can pay to use a local travel management company to book accommodation, and the same goes for domestic flights because there are a lot of discounted tickets sold locally.”
Benson Tang, regional director, Asia, Association of Corporate Travel Executives (ACTE), Hong Kong; Tang was formerly Asia travel buyer for Goldman Sachs
Wuhan: the Detroit of China
GUANGZHOU Formerly known as Canton, this city can no longer really be regarded as secondary, but it does still live in the shadow of near neighbour Hong Kong, around 90 minutes by train. Guangzhou’s hi-tech airport, the home hub of China Southern and the country’s second busiest, with 45 million passengers, is a clue to the city’s importance – as are the scores of factories that line the roads and railway lines into it. Guangzhou is home to the
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twice-yearly China Import and Export Fair, commonly know as the Canton trade fair. It is the world’s biggest and where Chinese manufacturers meet buyers from around the globe. During the event, 22,000 exhibitors and 165,000 visitors swell the city’s 11 million urban population, which explains western hotel brands’ appetite for Guangzhou. Among those now present are Ritz-Carlton, W and Four Seasons.
CHONGQING Lying on the Yangtze River and powered by the Three Gorges dam, Chongqing boasts that it
is the megalopolis you’ve never heard of. The debate over the size of the Chongqing area’s population, which some put as high as 33 million, gives an idea of the power of this financial, trading and industrial centre. However, the actual city itself is a fraction of this size. Since 1997, Chongqing has
had preferential tax rates for investors, which has fuelled its enormous growth. The city has taken the twin-town concept to extremes, launching a business partnership with the whole of Wales, which has a government office there. As a massive iron and
steel centre surrounded by vast mineral wealth, vehicle manufacturing is of great importance, with Ford breaking ground on its third plant in the area in summer 2012. Chongqing is now the company’s biggest producer outside Michigan. Links with the west are
improving, with Finnair launching flights in May. A Hyatt Regency opened in August 2012 near the new Expo International Centre, China’s second largest.
“There are so many secondary cities with a population of more than 10 million – at least 20-30. The one everyone talks about is Chongqing, one of the municipalities that reports directly to central government. The size and population are huge – Chongqing’s entire area is bigger than Hainan province. “There are a lot of cities that could benefit from direct air links
to Europe, but there are no existing rights and the government’s view is that direct flights sometimes affect political stability in some areas by bringing in foreign visitors. “Doing business in China is all about trust and relationship management. Business etiquette, like how to react and what not to say, is really important. Here, business is not just about money, it’s about respect and how to get to the heart of the other party.”
CHENGDU Volkswagen opened a plant in Chengdu, the capital of Sichuan province, in September, and it will produce 450,000 cars annually. It joins Volvo, which chose Chengdu for its first Chinese venture in 2011. The city is also known for communications and pharmaceutical industries and, in 2011, was the country’s top investment location. Chengdu’s airport, the
biggest in south-west China, is already on a KLM route due to recent growth of other industries such as electronics and IT, with Sony, Intel and Motorola among those having plants there. Another big employer is the Chengdu Aircraft Company, a major manufacturer of military aviation technology. All these industries are serviced by
the city’s urban population of around 7 million and by a surrounding area rich in minerals, including titanium, gold and copper. One of China’s five largest
exhibition centres, the city has attracted investment from Reed Exhibitions. British Airways is starting flights from Heathrow to Chengdu in September.
WUHAN Air France opened a route to Wuhan, arguably the most populous city in the central region, in spring 2012. Wuhan, with 10 million people, sits at the confluence of the Yangtse and Hanshui Rivers and is sometimes dubbed the Detroit of China, as it has been a vehicle manufacturing centre since the 1950s. Unlike its US counterpart, it is not in decline, with thriving joint ventures
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