At the third meeting of the RAUIE expert council, held online, the results of the study “The Index of Prospects of Chinese Regions for Doing Business by Russian Companies” were presented. President of the RAUIE Vitaly Mankevich noted: “a full-fledged policy of encouraging foreign investment is a logical part of continuing the exports supporting policy. We believe that Asia should become a springboard for building Russian transnational companies of a new type in the field of non-resource non-energy exports. For this reason, we conducted a study to determine the most attractive Chinese regions for Russian business. "
The study includes an analysis of 39 different indicators characterizing the economic development level of China's regions, the dynamics of economic development, the intensity of the current level of interaction with Russia, the level of financial infrastructure development, tax regime, and social development. The group of indicators related to the intensity of business ties with Russia had the greatest weight, including such indicators as the presence of offices of large Russian companies, subsidies to Russian exhibitors, the cost of opening an office, the presence of special economic zones focused on cooperation with Russia, large bilateral investment projects , the presence of Russian companies on the stock exchanges. The study is based on 2019 data and will be updated with 2020 data as early as Q2 2020.
As a result, Hong Kong topped the rating with an integral indicator of 128.42 points, the second place was taken by Guangdong province with a score of 116.16 points, and the third place was taken by the centrally subordinated city of Shanghai with 104.85 points. Also in the top 10 in descending order were Beijing, Zhejiang, Jiangsu, Shandong, Heilongjiang, Anhui and Fujiang.
Hong Kong's leadership is associated with a number of factors: a high level of economic development, a high level of consumer spending, the status of a financial center, a special tax regime, and an abundance of subsidized exhibitions. There are many Russian companies in Hong Kong, such as VEB, Alrosa, Aeroflot, S7. However, Hong Kong has the highest cost of opening a representative office, which limits the prospects for SMEs.
The result of Guangdong is due to the huge size of the economy, which in 2020 for the second time in the last 10 years surpassed the size of the Russian one, as well as the high popularity of the Canton Fair, in which more than 7 thousand participants take part each session in the pre-pandemic period. In a pandemic, even more participants attended the online session.
The places in the rankings are discussed primarily by the level of economic and social development, and their dynamics. Places above their economic potential were given to two provinces: Anhui and Heilongjiang, which is associated with the presence of special political programs and projects for cooperation with Russia. Anhui, in particular, is the leader among the Chinese provinces in the Volga-Yangtze program, and Heilongjiang has special economic zones focused exclusively on Russia, located in the border zones.
The outsiders in the ranking were Tibet Autonomous Region, Jiangxi, Nianxia Hui Autonomous Region, Qinghai, Yunnan and Hainan.
The RAUIE ranked the most prospective Chinese regions for Russian business
17 February 2021
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