Saturday, September 15, 2007

Chinese economic development

We recently read that there is some amount of competition between cities in China who are trying to attract technology companies like Intel. While international companies have long located facilities in well-known Chinese cities like Beijing and Shanghai, rising labor costs and congestion are causing those companies to look at so-called second-tier cities.

While the Chinese central government plans their economic incentives, these second-tier cities compete against each other to attract technology employers, having historically been the location of high polluting manufacturing facilities. What are the ways that these cities distinguish themselves? Local educational facilities, to turn out the knowledge workers the information technology industry needs. Expansion and upgrades to transportation infrastructure, to overcome the congestion problems common to the larger cities. Upgrades to the electrical grid to avoid brownouts. Investments in public art, the environment, and other services that would be attractive to the foreign, English-speaking company representatives who would be coming in to set up facilities.

As the mayor of Dalian, China was quoted: "We have to keep moving forward. China has so many cities." Yes, Mr. Mayor, Florida has many cities as well.

1 comment:

Anonymous said...

I thought that was what the fountain was for? Three commissioners believe that the round-about fountain is the key to economic development. With a "pretty" new fountain, our city will be the talk of the next Florida League of Cities meeting.

Congrats...