China could leave the West in crisis

Dec 13 2002 By Nicholas Craig, The Journal

Travelling for three weeks in the Far East leaves you with a real buzz. The cities are alive with activity. Beijing's air of controlled frenzy as it builds towards the Olympics, and the pace of Shanghai's businesses are extraordinary to witness.

One of the highlights of my trip was an unexpected visit to the middle of China to see one of the 53 new Special Economic Zones. These are vast industrial parks in the first stages of construction.

The 20-acre Zone I visited with One NorthEast representative Ting Mae will be called the Changra National Hi-Tech Industrial Development Zone. It reminds me of a brand new Team Valley on a larger scale.

The fact that these Zones are being planned and built illustrates the way in which China is opening up to investment from other countries.

The Chinese are already well attuned to the benefits of setting up business in the UK and Europe. A good number are still keen to set up on our shores, particularly service sector concerns.

We gave a presentation to companies occupying the first phase of the Changra Zone, and I was delighted at the extent of interest and knowledge in UK business.

With a population of some 1.3 billion, China is the world's largest developing country. Now that it is a member of the World Trade Organisation it is actively engaging with other countries like never before in its 5,000-year culture.

There are concerns that Chinese goods will capture Western markets, especially in areas such as textiles and footwear.

In the coming few years, as China lowers its import tariffs and opens up once highly-protected sectors such as banking and telecommunications, Chinese consumers are likely to see many more products entering its market, and at lower prices.

* Nicholas Craig is a partner at Watson Burton law firm.