TEDA tempts companies away from the capital
Updated: 2014-12-08 07:50
By Zhang Min and Lyu Shuang in Tianjin(China Daily USA)
More than 800 companies have relocated from Beijing to the Tianjin Economic-Technological Development Area in a bid to reduce operating costs, according to a recent report released by TEDA.
The problems of air pollution, high cost of living and traffic congestion are making some companies in Beijing seek a new location to expand their business in a cost-effective way.
TEDA is attracting the attention of Beijing companies seeking to relocate because of its regional advantage as part of the Beijing-Tianjin-Hebei economic integration.
"Moving from the capital is not simply a regional migration, but more of a challenge and opportunity both to the companies and TEDA," said Ma Yunze, a professor at the Binhai Research Institute at Nankai University.
The incentives and facilities provided by local government have proved attractive enough for a cluster of high-tech, creative and financial companies, such as Souhu Video, 58.com and Liepin.com, to set up their headquarters or core business in the region, said Xu Hongxing, chairman of the TEDA Administrative Commission.
"After lengthy consideration, we found the Tianjin Economic-Technological Development Area to be the best place for us," said Xu Lili, chief financial officer of Liepin.com, China's leading online recruitment service.
The company located its Global Career Development Center at the TEDA Service Outsourcing Industry Park in July this year. The park is also home to high-tech companies including Tencent, HP and the National Super Computing Center.
Xu Lili said that government gave financial support and tax breaks to help companies cut costs. Rents in TEDA are one-third of rents in Beijing.
"Working conditions here are not hugely different from Beijing," said Liu Xiaodong, a software engineer at 58.com, China's online marketplace serving local merchants and consumers.
Liu's office is situated close to public primary and secondary schools and apartments for the workforce. TEDA also benefits from the Binhai Mass Transit.
"I feel living here is more comfortable," said Liu.
Xu Hongxing said the improved support facilities aim to attract more high-end talents and help large-scale companies effectively gain the benefits they need to succeed.
(China Daily USA 12/08/2014 page5)