Foreign high street giants are being encouraged to set up shop in Beijing under new plans to expand commerce in the capital.
Beijing municipal government has listed several commercial fields as priorities for overseas investment, including supermarket chains and shopping centers.
The news was announced at the Beijing Forum 2001 for International Distribution Modernization, a two-day event opened on Tuesday in Beijing.
Lu Yan, deputy director of Beijing Municipal Commercial Committee, said foreign investment is welcome in large multi-purpose shopping malls, modern logistics zones, large wholesale enterprises, specialized outlets and chain stores.
"It is an important part of the city's commercial development during the 10th Five-Year-Plan period (2001-05)," Lu said.
According to the general plan, four large multi-purpose shopping centres will be built in different styles in the Northwest, Southeast, Northeast and Southwest around Beijing's Fifth Ring Road -- each covering an area of 200,000 to 300,000 square metres.
"Transnational companies with rich experience might participate in the design, construction, operation and management of these centres," Lu said.
Three large logistic zones outside central Beijing are expected to be established and global commercial enterprises will be allowed to become involved in the operation and management of the zones.
"We will give priority to foreign firms to set up large wholesale enterprises, which can provide services to the retail industry and specialized products," Lu said.
Large supermarkets should be located within the Third Ring Road, while medium-sized supermarkets, chain stores and small discount stores are encouraged in central Beijing to satisfy the daily needs of citizens.
The organizers of the forum revealed it had promoted 23 related projects to domestic and foreign investors, especially international commercial giants.
In accordance with the five-year plan, the government will focus on the development of network commerce, including e-commerce, to keep up with international trends.
Experts, insiders and professionals from home and abroad have offered suggestions and put forward proposals to the government.
Huang Hai, director-general of the Market Bureau of the State Economic and Trade Commission, said Beijing should speed up the merger and reorganization of commercial enterprises to enhance integrated competitiveness and prevent multiple construction.
"The city should actively explore the development of chain stores selling books, newspapers, audio and video products, as well as medicines," Huang said.
He suggested Beijing make full use of IT to promote the progress of commercial technology and renovate traditional commerce.
Tom McLaughlin, vice-president of the merchandising and marketing arm of Wal-Mart China Co Ltd, said his company has introduced its inventory management system to China.
"With the growth of Wal-Mart in China and the development of the nation's commerce industry, the need to develop an 'integrated logistics' system will ensure we will continue to bring new innovations and advanced technologies to China," McLaughlin said.
(China Daily November 7, 2001)
