Gavin Crombie

Gavin Crombie is the Founder and Managing Director of Idrawfast International – a company specialising in architectural presentation material – computer generated imagery and animations – with a staff in excess of 350 worldwide. Previously he ran a business consultancy introducing foreign companies into Chengdu. He is also the author of the best selling book on doing business in China ‘The Way of the Dragon’.

Q1: Lets start at the beginning, the obvious question is how long you have been in Chengdu?
I arrived in Chengdu in 1994 and lived continuously in Chengdu until 1999, after which I spent 5 years living half time in Sydney and half time in Chengdu. I returned to Chengdu a few years ago permanently

Q2: And running on from that – what brought you to Chengdu – what’s your business here?
Initially I came to Chengdu as a teacher, but that was only a means to learn about the business environment here before plunging into business for myself. My wife and I set up a business consultancy business helping foreign companies into the Chinese market. From there we got the idea to set up our current business which a company creating computer generated imagery for the property industry – we have 16 offices worldwide and three production sites in China now with about 350 staff. The reason for coming to China in the early nineties was a belief that china was on the verge of an economic explosion and was an exciting and challenging place to do business. Nothing has happened that has changed my mind on those assumptions.

Q3: What are the reasons that you chose Chengdu to run your business – are there any particularly compelling reasons why you chose this part of China rather than another part?
To be perfectly honest, Chengdu chose me – it was where I obtained a position originally – I was hoping for somewhere closer to the coast but the choice has been absolutely vindicated with my experience here. A year after coming here the National Party Congress moved all the incentives that were given to the coastal cities to this area and the whole place took off like a rocket – seeing a city transform itself from a sleepy hollow with only one building over 7 stories into a modern metropolis has been quite frankly astounding. Being part of that transformation has been very exciting. I think that on reflection I could not have chosen a better place for a variety of reasons. Firstly, there is a huge educational structure in Chengdu – more universities per head of population than anywhere else in China, which supports a very well developed technology sector.

Q4: Can you tell us what it is you find attractive in the Chengdu business market and what things you have found to be a challenge?
Ready access to staff with the skills we need, low cost base for business, great help from the local government.

Q5: Do you find the local business environment conducive to development and growth and what are your/your businesses plans for growth over the next few years?
We plan to increase our business at least 3-4 fold over the next 5 years – we are aiming for 100 offices worldwide. The support for this growth will undoubtedly come from developing production in other areas in China but the main focus will be on this area because of the advantages we have here – the education and infrastructure of the Chengdu area is a huge plus – getting things done here is relatively easy – the city is easy to navigate and costs are lower

Q6: Is your business doing well – are you happy with the level of business and profit or are you facing any particular challenges in your business that perhaps people looking at coming to Chengdu should be aware of?
We are starting to find staff harder to find, which is being resolved by setting up a training school in-house. We are also now moving more focus into the Chinese market – the time is now right for the marketplace to be able to pay the prices we require for our services and this in itself is exciting.  For people coming here my advice is to seriiuosly consider the benefits of being in a city with the excellent infrastructure and low costs coupled with the ready access to a really good talent pool for technology services.

Q7: - Has Chengdu lived up to your expectations – is the type of place you have enjoyed doing business in or has it not lived up to the expectations you had?
Chengdu has far exceeded my expectations.

Q8: How do you find the government rules and regulations here – does the government promote and assist you in your business – how about incentives – do you get any incentives from the government (tax breaks etc)?
Yes – we have various tax advantages from being sited within the High Technology Zone – the local government has a well structured plan and focus on development of low footprint industries such as ours and are very keen to see the outsourcing of technology services grow in the city. The Commerce Bureau is well appointed to assist new and existing businesses here and the Mayor of the city is an extremely able and go ahead person who has initiated many proposals for improving the business environment for foreign companies here.

Q9: If you could ask the government to change anything what would that be?
Give us longer visas, improve customs formalities and processing time, get the hospital better organised.

Q10: How do you find the local infrastructure – the health system, the housing market, the schooling – for your children (if you have any)?
The health system needs some improvement – the talent is here – but the organisation needs some improvement, housing is much cheaper than other parts of China – perhaps half or less of Beijing or Shanghai. Schooling is also very acceptable if not with a particularly high choice of foreign school. My wife and I have a 14 year old in school and he is doing extremely well with a very good pupil teacher ratio.

Q11: How about the actual physical environment here in Chengdu – do you find it pleasant or otherwise?
The city itself suffers from being in the bottom of a basin which creates a cloudy inversion layer – so don’’ expect the sun to be shining very much – probably a bit on a par with London – however half an hours drive brings you into the really nice Sichuan countryside – mountains, lakes, forests, ancient villages, beautiful fields. I think perhaps one of the most beautiful parts of the world – China’s best kept secret

Q12: If you had any advice for the readers of this interview who were thinking about coming here, what would that advice be?
Come – you will not regret being here

>> back to top

Q1: Lets start at the beginning, the obvious question is how long you have been in Chengdu?
I have been in Chengdu nearly 8 years.

Q2: And running on from that – what brought you to Chengdu – what’s your business here?
Originally I came to Chengdu to work in Xindu for Everhot Water Heaters - that business is doing well and is profitable. Since leaving that job I have had a few positions and done some contract work. I now work for a private investment company that specialises in Real Estate. That has been progressing slowly, but is on the verge of becoming very successful.

Q3: What are the reasons that you chose Chengdu to run your business – are there any particularly compelling reasons why you chose this part of China rather than another part?
For the existing business the owner was born in this area and is a very successful business man in the USA and Latin America. With the business environment in the USA slowing down he saw China as an ideal area to continue the growth of his company. Apart from his natural links to Chengdu, he saw Chengdu as the perfect gate way to optimize opportunities in China, especially with the central governments emphasis on developing Western China.

Q4: Can you tell us what it is you find attractive in the Chengdu business market and what things you have found to be a challenge?
The sheer pace of development in an enormous number of industries, especially the hi-tech and high value added sectors that rely on the wealth of natural talent in people resources make Changdu an extremely appealing place to invest. The challenges relate to the ever changing rules and regulations, and whilst this understood, there is still often long time delays in gaining all appropriate approvals and gaining general information on the implications of the new legislation.

Q5: Do you find the local business environment conducive to development and growth and what are your/your businesses plans for growth over the next few years?
The local business environment is very conducive to development, with the continual growth and upgrading of infrastructure facilities and government support. We see nothing but growth for the next few years and beyond.

Q6: Is your business doing well – are you happy with the level of business and profit or are you facing any particular challenges in your business that perhaps people looking at coming to Chengdu should be aware of?
As I said above, our business is developing slowly, some are internal issues as we continue to refine our business model and the second is brought about by changing rules and regulations that cause us to make changes especially in the area of how we finance our investments with off-shore financing.

Q7: - Has Chengdu lived up to your expectations – is the type of place you have enjoyed doing business in or has it not lived up to the expectations you had?
Chengdu has exceeded my expectations as a place of true opportunity.

Q8: How do you find the government rules and regulations here – does the government promote and assist you in your business – how about incentives – do you get any incentives from the government (tax breaks etc)?
The various levels of local government are very supportive in every area they can be. Where possible they accommodate our every need in line with central government guidelines. We do enjoy some incentives, but to promote the very large investments we are seeking, there is always room for more. It is a difficult situation due to the industry we are in and the ever increasing burden of protecting land resources which is again understood; same with the ever increasing restrictions of bringing in foreign money - again fully understood in controlling "hot" money.

Q9: If you could ask the government to change anything what would that be?
I would ask that we be given the opportunity to prove we are not bringing in hot money and therefore could continue to work with the largest foreign suppliers of financial resources, so that we could expand our level of operations at a greater pace.

Q10: How do you find the local infrastructure – the health system, the housing market, the schooling – for your children (if you have any)?
Currently I don't have any school age children. The local health system is always improving, but still has opportunities to improve in private health care facilities. Housing is no problem, but public transport needs to continue to grow and improve an area I know the government is putting a great deal of emphasis on.

Q11: How about the actual physical environment here in Chengdu – do you find it pleasant or otherwise?
Pollution is improving, but traffic is growing at a rate faster than the road systems can handle, especially down town. The subway will be of great benefit to the community and I hope it can help reduce the number of buses on the road. (Personally I hate buses they seem to be able to ignore even basic traffic rules such as red lights)

Q12: If you had any advice for the readers of this interview who were thinking about coming here, what would that advice be?
My advice would be to do your home work thoroughly on the business opportunity you are thinking about and then act quickly as the market can and does change very quickly. Many large companies have failed initially as their original business study and hence business plan are based on out of date information. You need to develop a flexible plan that can adapt quickly to changes and new opportunities as they arise, Don't come in thinking because your business model worked some where else (even in China) you can simply replicate that success with the same tools. Each market in China is slightly different so get to know the local conditions as quickly and as thoroughly as possible - talk to as many local foreign businesses as possible, even if they are not in the same industry.

>> back to top

Pascal Hermandesse

Pascal Hermandesse is the Chairman of Atexis Corporation, based in France. Atexis is backed by experience acquired over nearly one century in measuring temperature from -200°C to 2000°C and producing sensors, ATEXIS places at your disposal its policy on quality and service in order to develop and manufacture products adapted to your needs. Solid values, a flexible and dynamic organisation, as well as an effective international sales force enable ATEXIS to handle projects for medium or large scale series in all fields of application (cars, household appliances, calorimetry, the medical sector, capital equipment, etc)

Q1: Lets start at the beginning, the obvious question is how long you have been in Chengdu?
Since July 2005

Q2: And running on from that – what brought you to Chengdu – what’s your business here?
Lower cost that in other place in China, Nice environment, good support for SME, go west policy…. I don’t like to do like everybody

Q3: What are the reasons that you chose Chengdu to run your business – are there any particularly compelling reasons why you chose this part of China rather than another part?
Lower cost, employees stability, easiness to start, university environment, nice life style……I don’t like to do like everybody

Q4: Can you tell us what it is you find attractive in the Chengdu business market and what things you have found to be a challenge?
Difficult to have Chinese customer (very difficult), price competition is unfair, my business is not linked to Chengdu but National and International. Finding staff is difficult in Chengdu.

Q5: Do you find the local business environment conducive to development and growth and what are your/your businesses plans for growth over the next few years?
Is the cost advantage remain, I will double or triple my company in the next three years.

Q6: Is your business doing well – are you happy with the level of business and profit or are you facing any particular challenges in your business that perhaps people looking at coming to Chengdu should be aware of?
You can start in Chengdu with low investment not like SH or SZ. What you need is your own staff to start and have a key manager here. The rest is quite positive. The legal communication must be improved (ie Taxes, custome rules, etc)

Q7: - Has Chengdu lived up to your expectations – is the type of place you have enjoyed doing business in or has it not lived up to the expectations you had?
If we exempt the increasing traffic congestion, which is becoming a nightmare, life and business is good here

Q8: How do you find the government rules and regulations here – does the government promote and assist you in your business – how about incentives – do you get any incentives from the government (tax breaks etc)?
Very good support from local governments and great motivation. Communication, information and training could be improved a lot.

Q9: If you could ask the government to change anything what would that be?
Improve information system for the region to be able to have easy access to company data base for suppliers, partners and so on. This is the weak point in this region. No yellow pages, no professional address books.

Q10: How do you find the local infrastructure – the health system, the housing market, the schooling – for your children (if you have any)?
The level of the doctors are quite good but hygiene in the hospitals are really poor.
Housing price are increasing too much compared to the quality, this is a risk for Chengdu development.
Schooling is improving.

Q11: How about the actual physical environment here in Chengdu – do you find it pleasant or otherwise?
This is a very nice city under development.
City should take care of the environment more, pollution and traffic as well as security on the road

Q12: If you had any advice for the readers of this interview who were thinking about coming here, what would that advice be?
Just come

>> back to top

William Gormley Enterprises LLC. is a licensed Manufacturing Consulting & Services Company with Headquarters in Palm Beach Florida.

It's wholly owned subsidiary, Chengdu William Gormley Consulting Company(CWCC), is also a legally licensed Consulting, Contract Manufacturing & Services Company based in Chengdu, Sichuan, China.

The bulk of CWCC consulting & Contract manufacturing activities are based in Sichuan & Chongqing Provinces and Western China.

CWCC provides a wide range of consulting, educational & service activities from AS9100, AS9120, ISO 9100-2000, ISO14001 & OSHAS 18001 certification to manufacturing engineering, quality engineering, manufacturer marketing representation, product mechanical inspection services and distribution world-wide.

CWCC's clients cover a wide variety of manufacturing specialties from OTR Tires, large aerospace machining & fabrication, aerospace fuel nozzles and manifolds, to micro-machining of aerospace electronic control and accessories devices.

Q1: Lets start at the beginning, the obvious question is how long you have been in Chengdu?
First arrived in Chengdu in 1992 and started living here in 1995.

Q2: And running on from that – what brought you to Chengdu – what’s your business here?
Back then, I was working for Pratt & Whitney Aircraft Engines. Our 3 member site team, after surveying Shenyang, Xian & Chengdu Aerospace Engine Companies, decided that our best possible partner was located in Chengdu.

Q3: What are the reasons that you chose Chengdu to run your business – are there any particularly compelling reasons why you chose this part of China rather than another part?
Pratt & Whitney had been doing Offset manufacturing business with all three, but we found Shenyang to be just too backward and polluted, whereas Xian was more advanced than Chengdu, but was doing major projects for our engine competitors GE and Rolls Royce. In the end we selected the Chengdu Engine Company as our partner and formed the 1st Aviation Joint Venture in China.

Q4: Can you tell us what it is you find attractive in the Chengdu business market and what things you have found to be a challenge?
Back in 1995 there was nothing attractive about the business climate in Chengdu. Although it was certainly not a hell hole like Shenyang with the pollution from its steel industries, nor as dusty as Xian, it did present attractive staffing, land & utilities that met our needs.
Infrastructure was a REAL problem back in the beginning and a simple overseas phone call was like an Olympic marathon event. You never knew when you would be able to make a successful call and then you had to pray you did not loose your connection before business was completed.
Western food was unavailable and everything you did have was something you carried in by the suitcase. If you didn't enjoy Chinese food, you were in real trouble and even if you did like Chinese food, one had to be real careful about food poisoning. I got it twice back then.
Things have changed so dramatically since then that is hard sometimes to explain tough & adventurous one had to be.

Q5: Do you find the local business environment conducive to development and growth and what are your/your businesses plans for growth over the next few years?
I think today that Chengdu presents a totally conducive business environment with Government being and getting more seamless as each day progresses. Infrastructure is good and continues to improve. Educated talent is pumped out out each year by its 22 Universities. Logistics has greatly improved, but still represents a distance problem when goods have to be shipped surface but if it is planned well enough, things move at a good pace. Air shipment are a non issue.
Since retiring from Pratt & Whitney, I have entered a few different businesses. My first was organizing Chinese tour groups to the USA. It has been successful and continues to improve. My second was manufacturing consulting for Chinese manufacturers to bring their quality & manufacturing standards up to ISO levels. We have qualified a number of Chinese manufacturers, who are now doing international business. We have also assisted a number of foreign firms to locate in Chengdu from both the US and England.
My third endeavor was contract manufacturing for foreign firms. Although a struggle at times, I believe in the long run, we will do well. We are working with companies both in Chongqing and Sichuan Province to satisfy customer needs and many sample parts are currently undergoing field test in the USA. Also happy to say that we have had no failures to date.

Q6: Is your business doing well – are you happy with the level of business and profit or are you facing any particular challenges in your business that perhaps people looking at coming to Chengdu should be aware of?
The travel business has always done well. Consulting has had a marginal return, but the manufacturers we have brought along now represent our manufacturing base for contract manufacturing, so I consider my time as an investment for my own companies future. I firmly believe that the Year of the Pig will be a good one!
Lets admit that Westerns do not think like Chinese and that is a fact. Face (ones personal reputation) means everything to them. If you really think about it, they believe that death to dishonor is number 1 in life!
In any simple meeting everyone will understand everything but in reality maybe nobody understood anything, but will fail to admit before their peers and lose face. Understanding this simple issue can head off certain disasters in the making. Communications with employees needs to be clear and detailed and allow them an avenue to feed you back when they really don't understand without their seeming stupid to ask. They ravage detail and take more notes than any other people on this planet as they never want to be wrong and thus lose face.

Q7: - Has Chengdu lived up to your expectations – is the type of place you have enjoyed doing business in or has it not lived up to the expectations you had?
Chengdu has exceeded my expectations. I enjoy doing business here as my business base and its a great city to live in. The people are certainly more friendly here than that of the East coast of China and they are willing to learn at an amazing rate.
If you don't enjoy Chengdu then you will never enjoy China!

Q8: How do you find the government rules and regulations here – does the government promote and assist you in your business – how about incentives – do you get any incentives from the government (tax breaks etc)?
As you know, we have been assisting the local government to develop a web site that answers all the questions for current foreign investors in Chengdu as well as potential investors. Rules and Regulations, as well as changes to them are published in Chinese, but it has always been months behind in getting them into English or other foreign languages. We have to remember that we are in China and any official business must be done in Chinese or it is simply not legal. One may have a written agreement with a Chinese firm in English but only the Chinese version is legally acceptable in a court of law.
Investment incentives are certainly offered by the local government but they vary by investment amount. Just like in the USA, if your a big player, the local government will bend over backwards to get you to move to their town. Same thing here.

Q9: If you could ask the government to change anything what would that be?
The first thing I would ask is that police and military vehicles be made to obey traffic laws like everybody else! Unfortunately this is a national issue that the local government has little control over. 

Q10: How do you find the local infrastructure – the health system, the housing market, the schooling – for your children (if you have any)?
Local infrastructure is fine and getting better. The Gold Clinic provides me with adequate medical coverage and can actually be credited with saving my life in 2003, so no complaints there. Although if I ever need surgery, I would prefer to have it done at Bumrungrad Hospital in Bangkok.
The housing market has taken off like a bottle rocket and an investment made 5 years ago would have returned 100% and still climbing. Housing in Chengdu when compared to the coastal cities is still probably 1/3 the cost, so you can see where future investments are going.
With 12 grand children I certainly don't need any more kids. Chengdu does however need a lot of work in this area.

Q11: How about the actual physical environment here in Chengdu – do you find it pleasant or otherwise?
The last few days have been typical dog days in Chengdu with overcast skies and generally lozy weather but considering when I first got here "things are grand". With the closing of all factories in Chengdu that do not meet ISO 14001 standards, the continued closing of coal fired generating power plants and the conversion of all buses and taxis to natural gas or propane has greatly improved the air quality and Chengdu is one of the best in China.

Q12: If you had any advice for the readers of this interview who were thinking about coming here, what would that advice be?
Firstly, come here and walk the walk. You can read all the BS people publish, but until one sees it first hand, meet with the local government and investors that are already here, your just caught up in what people feed you. Foreign investors continue to think they need to be on the coast but in reality their costs are so much higher there. Labor turnover rate are double or triple on the coast as are wages. Brigham Young said it best "Go west young man"

>> back to top

Nathan Hu

Nathan Hu is the Managing Director of MaesInfo.

Q1: Lets start at the beginning, the obvious question is how long you have been in Chengdu?
I left Chengdu in 1995. After 10 years living and working overseas, I returned to Chengdu in 2005.

Q2: And running on from that – what brought you to Chengdu – what's your business here?
We are Global IT Service Company and we provides software development for clients all over the world.
 
Q3: What are the reasons that you chose Chengdu to run your business – are there any particularly compelling reasons why you chose this part of China rather than another part?
Reasons are : 1) Low cost and rich talent pool; 2) Low attrition rate; 3) Chengdu Government support and 4) Comfortable and enjoyable life style

Q6: Is your business doing well – are you happy with the level of business and profit or are you facing any particular challenges in your business that perhaps people looking at coming to Chengdu should be aware of?
We are doing well, but not enough

Q7: - Has Chengdu lived up to your expectations – is the type of place you have enjoyed doing business in or has it not lived up to the expectations you had?
I largely enjoyed doing business in Chengdu

Q8: How do you find the government rules and regulations here – does the government promote and assist you in your business – how about incentives – do you get any incentives from the government (tax breaks etc)?
YES. We do

Q9: If you could ask the government to change anything what would that be?
Help to bring more foreigners here and hopefully consider dual citizenship.

Q10: How do you find the local infrastructure – the health system, the housing market, the schooling – for your children (if you have any)?
So far so good

Q11: How about the actual physical environment here in Chengdu – do you find it pleasant or otherwise?
It is pleasant

Try to make some local friends or if you plan to set up a business here, working with local partner will help you a lot.

>> back to top

Johnny Browaeys

Johnny Browaeys is the Chengdu Manager for ERM - The ERM Group works around the world with the private sector assessing how their business is likely to be impacted by environmental and social issues, new regulations, consumer concerns, and supply chain issues and help companies develop appropriate policies and management systems to manage these business risks.

ERM China has been operating in China since 1994 and has an unrivalled record of providing environmental services to multinational companies, local industry, government and international development agencies. ERM in China became a wholly owned foreign enterprise in 2002, and the first foreign company with an Environmental Impact Assessment (EIA) license, certified by the State Environmental Protection Administration (SEPA). It now has over 80 highly experienced professionals with offices in Shanghai, Beijing, Guangzhou and Chengdu. Their key focus is in assisting foreign companies to set up, expand, maintain and divest themselves of businesses, facilities and services within China’s ever-changing regulatory environment. They have helped multinational companies with over 1000 EHS consulting projects in China including Merger and Acquisition Due Diligence, EIA, Site Investigation and Remediation, EHS compliance, Risk Assessment, Regulatory Consulting services.

Q1: Lets start at the beginning, the obvious question is how long you have been in Chengdu?
little over one year

Q2: And running on from that – what brought you to Chengdu – what’s your business here?
EHSS consultancy

Q3: What are the reasons that you chose Chengdu to run your business – are there any particularly compelling reasons why you chose this part of China rather than another part?
capital city of western china, and leading role

Q4: Can you tell us what it is you find attractive in the Chengdu business market and what things you have found to be a challenge?
clear vision forward, slow implementation

Q5: Do you find the local business environment conducive to development and growth and what are your/your businesses plans for growth over the next few years?
yes, double next year

Q6: Is your business doing well – are you happy with the level of business and profit or are you facing any particular challenges in your business that perhaps people looking at coming to Chengdu should be aware of?
we are doing better than expected and expectations were very high

Q7: - Has Chengdu lived up to your expectations – is the type of place you have enjoyed doing business in or has it not lived up to the expectations you had?
yes, very nice place to do business

Q8: How do you find the government rules and regulations here – does the government promote and assist you in your business – how about incentives – do you get any incentives from the government (tax breaks etc)?
I find the initiatives from the Chengdu government exemplary for China, few places set up and maintain a dialogue between government and investors as Chengdu does

Q9: If you could ask the government to change anything what would that be?
better healthcare management and emergency response planning
healthcare can be inaccessible for foreigners and emergency response planning seems to be non-existant (based on both personal and professional experience)

Q10: How do you find the local infrastructure – the health system, the housing market, the schooling – for your children (if you have any)?
healthcare see above, housing market: unexpectedly expensive

Q11: How about the actual physical environment here in Chengdu – do you find it pleasant or otherwise?
yes, absolutely, though air quality sometimes still bad (from burning off).

Q12: If you had any advice for the readers of this interview who were thinking about coming here, what would that advice be?
be quick, to make sure you are faster than the others

>> back to top

Alan Hughes

Alan Hughes is Operations Manager for Zetex (Chengdu) Electronics Ltd.

Zetex is a leading provider of high performance, analog semiconductor products for signal processing and power management. The company designs and manufactures a broad range of standard and application focused linear integrated circuits and discrete semiconductor products using a wide variety of wafer processing technologies.
Headquartered near Manchester in the UK, Zetex employs more than 750 people worldwide. The company has two wafer fabrication plants in the UK and carries out package development, assembly and test at its facilities in Germany and China and through subcontractors in Asia.

Q1: Lets start at the beginning, the obvious question is how long you have been in Chengdu?
Since 1995

Q2: And running on from that – what brought you to Chengdu – what’s your business here?
Joint Venture in Semiconductors

Q3: What are the reasons that you chose Chengdu to run your business – are there any particularly compelling reasons why you chose this part of China rather than another part?
Originally the partnership came from selling Silicon wafers to the Chinese partner, then it was realised that this could be a business opportunity.

Q4: Can you tell us what it is you find attractive in the Chengdu business market and what things you have found to be a challenge?
A wealth of hard working talented people, the negatives are still the logistics nightmares of trying to get the Customs Department to work 24 x 7

Q5: Do you find the local business environment conducive to development and growth and what are your/your businesses plans for growth over the next few years?
To transfer technologies from Malaysia and Germany to Chengdu.

Q6: Is your business doing well – are you happy with the level of business and profit or are you facing any particular challenges in your business that perhaps people looking at coming to Chengdu should be aware of?
Making profit on a 1 USD CENT component is tough, the technology transfers will have a positive affect on the business as it will reduce the overhead, although anything to do with expansions, improving profits is driven by the foreign partner NOT the Chinese partner.

Q7: - Has Chengdu lived up to your expectations – is the type of place you have enjoyed doing business in or has it not lived up to the expectations you had?
The selection of the Chinese partner, with hindsight, was not good, many of the people still have state owned enterprise mentalities, e.g. low salaries + high bonuses, which can have a negative affect on trying to recruit significantly better people that are currently employed.

Q8: How do you find the government rules and regulations here – does the government promote and assist you in your business – how about incentives – do you get any incentives from the government (tax breaks etc)?
OK as we need them

Q9: If you could ask the government to change anything what would that be?
Customs working 24 x7, or at least 24 x Monday to Saturday morning

Q10: How do you find the local infrastructure – the health system, the housing market, the schooling – for your children (if you have any)?
Housing getting better by the day, transport infrastructure worsening by the day, Metro delayed due to funds being transferred to Beijing for the Olympics, too many cars, stop private cars within the 1st ring road

Q11: How about the actual physical environment here in Chengdu – do you find it pleasant or otherwise?
Take away the food and there isn’t a great deal left

Q12: If you had any advice for the readers of this interview who were thinking about coming here, what would that advice be?
Wholly owned enterprises, or a minimum 5% from the Chinese to “open” the doors for you and make the introductions.

>> back to top