Han Ximin

    Ximhan@126.com

    GUANGDONG must create a better environment for foreign investment as European investors overlook South China in favor of Beijing, Hong Kong and Shanghai, according to a report by European Union Chamber of Commerce in China released in Guangzhou on Thursday.

    Guangdong has been hit by rising labor costs, economic difficulties and increasing competition from a growing number of other potential investment destinations both across the globe and within China, though it remains the richest province in China.

    The government needs to provide up-to-date information in English on websites and hire qualified foreigners to work as contacts for potential foreign investors, the report said.

    The report also noted the difficulty of getting the proper visa in China. The report said reducing processing time and simplifying the application procedure for visas and work permits would improve Guangdong’s attractiveness to foreign companies.

    The report pointed out that slightly more than 1 percent of Guangzhou’s population are foreigners, while 5 percent of Hong Kong’s population comes from foreign countries.

    A survey conducted by the chamber showed 73 percent of member companies reported a year-on-year increase in revenue. Only 7 percent reported a decrease in revenue from 2014.

    Intellectual property rights (IPR) are also a concern for member companies, with 63 percent saying IPR enforcement is inadequate.

    The report showed that 73 percent of companies agreed that rule of law is important for businesses to operate. Rule of law was the central theme of the 4th Plenary Session of the 18th CPC National Congress.

    nufacturing to one based on high-tech industries, the report suggested Guangdong improve “three flows”: the flow of people, the flow of goods and the flow of information.

    “Guangdong has been a victim of its own success and excess, having benefited from a sheer endless influx of cheap migrant workers from all across China and an effective-albeit increasingly disrupted-supply chain within the region. However, it now needs to reinvent itself in order to face up to the many challenges,” said Chamber Chairman Alberto Vettoretti.