Xiamen ranks second in China for quality of business environment

Xiamen is known for being one of Fujian province's most scenic spots with a rich maritime culture and slow pace of life. But few people know it ranked second in business environment among 22 major cities in China last year, and has attracted major startups in new economy seeking lower costs and a better working environment.

At Xu Long's new office in Xiamen, beyond the windows are blue sky and ocean. "The same rental cost will get you a single room back in Beijing, but it's enough for a whole apartment in Xiamen," Xu, senior vice-president of Chinese financial technology company Qudian, told Chinese newspaper 21st Century Business Herald.

"Our colleagues say the quality of life has improved."

The five-year-old startup moved its headquarters to Xiamen last year. Other newcomers include car rental service provider Ucar, coffee chain operator Luckin Coffee, online life services platform Meituan and tech company Bytedance.

In 2018, about 14,200 Chinese companies settled in Xiamen, along with over 1,200 foreign companies.

Lu Zhengyao, chairman and CEO of Ucar, told the paper that Xiamen has released a series of policies to benefit companies, including those concerned with taxation. He added the operation cost is lower and workers have a stronger sense of satisfaction, which means a more stable team which is good for the long-term development of the company.

"Here in Xiamen, a special economic zone and a city specifically designated in the State plan, the decision can be made quickly and companies can even talk to top officials in the government."

Lu said the company aims to expand upstream and downstream industries in the city.

Xu added the city has many internet and tech companies, which has created a strong pool of tech talent. After communicating with local officials, he learned the city's long-term plan to develop new economy.

Xu's company reported good business performance after the move - in the second quarter of 2019, the net profit of Qudian grew 57.1 percent to reach 1.16 billion yuan ($164 million).

According to a trial assessment of the business environment in 22 major Chinese cities conducted by the National Development and Reform Commission in 2018, Xiamen ranked second, following only Beijing.

The city will continue to build an open, fair, global and convenient market to optimize its business environment, help companies grow and boost high-quality development, said Hu Changsheng, Party secretary of Xiamen in a report from Xinhua Daily Telegraph newspaper in September.

The city is focusing on attracting investment and introducing more high-tech companies with great future potential. It has released more policies in terms of land use, financing services, human resources, civil affairs, taxation cuts and public services. It has also given more authority to district governments, development zones and important areas in order to benefit companies.

China Lithium Battery Technology signed an agreement with the city in June to build a lithium-ion battery production line. The branch was founded in July and the construction began in Xiamen in September.

It only took five days for Xiamen Silan Mingjia Compound Semiconductor to sign a land transfer contract and get its construction permit. Zeng Jianhong, director of the security department of the company, told Xinhua Daily Telegraph that it was the quickest he had ever experienced in government review and approval.

"Generally, it may take a month," he said, adding that it gave them confidence in the city.

During the 2019 China International Fair for Investment and Trade in September, Xiamen signed 202 agreements with a total investment of up to 180 billion yuan. More than 25 projects were from Fortune Global 500 companies.

For example, Chinese major voice technology and artificial intelligence service provider Unisound invested 1 billion yuan in building a scientific and technological companies' incubation park in Xiamen.

On the international stage, the city has established trade relations with about 200 countries and regions. A total of 119 Fortune Global 500 companies have invested in the city. From January to July, the number of newly-arrived foreign enterprises reached 781 with foreign direct investment of 7.96 billion yuan, up 13.8 percent year-on-year, data from the local government showed.