The Australia-China Chamber of Commerce and Industry of New South Wales
	ACCCI TRADE AND INVESTMENT STRATEGIES WITH CHINA Implementation of the Key Cities Strategy in China CONTENTS Introduction ACCCI Sponsored Activities Areas of Activities Appendix: Chamber’s Letters of Introduction and Invitations
Introduction:	This booklet is a companion document to The Network of Cooperative Agreements with Cities and Provinces in China, prepared by the Trade Policy Committee of the Chamber, explaining the ACCCI Key Cities Strategy as followed by the Chamber in establishing a network of cooperation with relevant organisations and authorities in China. The booklet is prepared by the Commercial Committee of the Australia China Chamber of Commerce and Industry of New South Wales, which is responsible for the implementation of ACCCI Key Cities Strategy by: v arranging for Chinese business delegations to visit Australasia with a view to investigating business opportunities, making contact with appropriate potential business partners and assisting in negotiating business cooperation arrangements, v organising Australian business delegations to visit China for a similar purpose of investigating business opportunities, making contact with appropriate potential business partners and assisting in negotiating business cooperation arrangements, and v arranging and/or providing business services for both Australian and Chinese enterprises to achieve their business objectives. The principal objective of this booklet is to describe how and when these implementation tasks will occur. The Chamber currently plans to sponsor six delegations to China each year, so that all of the key cities can be visited every three years. Incoming delegations from China are likely to be at least double than number. In order to maximise the benefits obtained from these organised delegations, each one will be fully planned and coordinated within the overall Key Cities Strategy.
ACCCI sponsored activities:	During the five-year period from 1989 to 1994, ACCCI of New South Wales hosted or participated in an average of about 120 trade delegations per year from China. Over the 15-year period from 1976, Chamber members have made approximately 20,000 person-visits to China. The activities described in this booklet are therefore planned and organised with the benefit of considerable experience. At the most basic level, the Key Cities Strategy is simple and straightforward. It is to share that experience with all Chamber members and with cooperating organisations in Australia and China. The Chamber has consistently adhered to three basic objectives: v To promote Australian business, in general, within the context of two-way trade and investment with China. v To promote the Chamber and the businesses of its member companies with businesses and organisations in China. v To promote various Chamber projects, such as Rugby Union Football and Dragon Boat Racing in China and Australia, which have the principal purpose of bringing the business communities together. The Chamber recently consolidated strong relations with the following organisations in China: v The China Chamber of International Commerce (CCOIC), also known as the China Council for the Promotion of International Trade (CCPIT) v The Chinese People’s Association for Friendship with Foreign Countries (CPAFFC) v The China Economic and Trade Consultants Corporation (CONSULTEC) of the Ministry of Foreign Trade and Economic Co-operation of China (MOFTEC) In addition, negotiations are underway to establish closer institutional co-operation with the following organisations in China: v The All-China Federation of Industry and Commerce, also known as the China Chamber of Commerce v The China Academy of Urban Planning and Design v The China Sports Administration Centre v The China Society for Strategy and Management Research
Key Cities Strategy:	All of these connections will assist the implementation of the Chamber’s Key Cities Strategy wherein the ACCCI State Council targeted 25 Chinese cities for signing cooperative agreements. The reasons for the selection of specific cities in China are discussed in the previous booklet in this series entitled, The Network of Cooperative Agreements with Cities and Provinces in China. These cities are listed in business zones in a subsequent section of this booklet. During 1995, the Chamber received the honour of being invited to sign a cooperative agreement with the Beijing Sub-Council of the CCPIT. Because Beijing does not have a Sister City Agreement with any Australian city, unlike Sydney-Guangzhou, Melbourne-Tianjin or Brisbane-Shanghai, ACCCI with its headquarters in Sydney has now accepted such an agreement with Beijing. Signing the agreements is only the beginning of the process of mutual co-operation. During the next several years, the Chamber intends to implement the agreements with a view to ensuring that two-way trade and investment between Australia and China grows at an increasingly rapid rate.
Key personnel in China:	Committees of the Chamber are currently maintaining a database of names, titles, addresses, phone and fax numbers in each of the 25 cities for: v mayors and senior government officials, v heads of CCPIT branches and sub-branches, v Communist Party Secretaries and related committee personnel, and v managers of major industrial enterprises and subsidiaries. This task has been given a high priority by the ACCCI State Council.
Trade and investment opportunities:	The Chinese economy has expanded rapidly since the open-door policy was initiated in December 1978. The pace of development, however, has not been uniform in all industries nor has it proceeded evenly among the various regions in China. As a result, keeping track of the latest developments in an effort to determine the most advantageous trade and investment opportunities has become increasingly more difficult. Through contact with the cooperating organisations in China, the ACCCI expects to accumulate a wider range of information relating to these opportunities than can be obtained by any other means. This information will be made available to Chamber members in the following ways: Workshops in selected areas of trade and investment will be conducted for the purpose of canvassing members’ interests and commitments in those areas. Follow-up work will include a request for similar information from the Chinese counterpart organisations. Seminars for members and friendly organisations will be convened for the purpose of announcing recommended strategies in particular aspects of two-way trade and investment with China. These seminars will include a variety of participants, each of which will possess special knowledge and experience that will be of value to other member companies. Import/Export Forums represent the next tier in the planned exchange of information between the Chamber and its members. The basic idea of a forum is to bring together a wide range of people for the purpose of discussing common problems and considering common solutions to those problems. Forum topics will be general in nature, in the sense that they will apply to many types of enterprises, but each such topic will represent a practical aspect of trade and investment relations. Publications will be released from time to time containing information in a compact and useable form. Most of these publications will be available free of charge from the appropriate Chamber committee. However, larger and more extensive collections of information in the form of handbooks or other major reference books will most probably require payment of a fee to cover the printing costs.
Pre-visit briefings:	Past experience indicates that considerable time is wasted through inadequate preparation for Australian visits to China, for hosting Chinese delegations in Australia or for negotiations between particular enterprises. The Chamber intends to eliminate this problem by sponsoring extensive briefings prior to any of these activities. A full range of documents will be prepared in advance of departure dates. These documents and the discussions associated with them will comprise “homework” for the participating Chamber members and cooperating organisations. The nature of the briefings will depend to a large extent on the prior knowledge and experience of the participating companies and organisations. In each case, however, short biographical data will be available on key personnel and full descriptions will be made available relating to company or organisational profiles. The purpose of this information is to enable the “stage to be set” for mutually productive discussions and negotiations, thus avoiding the loss in time that would otherwise be required to obtain the information during the discussions or negotiations.
Market research:	The Chamber does not expect to participate directly in market research studies. Rather, it will act as a manager and administrator for Chamber members in association with various commercially oriented market research organisations. In addition to establishing cooperative arrangements with CONSULTEC, the Chamber has also established working relations with a number of consulting firms whose principal business is the evaluation of trade and investment projects with China. The role of the Chamber in these activities is to ensure that the quality of the market research services is maintained by those consulting firms receiving Chamber recommendation. The Chamber can also be of assistance in communicating the research needs of particular members, and thus to avoid misunderstandings relating to the market research tasks.
Customs and tariff advisory services:	As with market research, the Chamber will not be a direct provider of customs and tariff advisory services. These services tend to be highly specialised and require a considerable amount of attention to detail and to recent developments. The Chamber’s role will be to assist members by introducing them to enterprises or organisations that are able to provide such a service. Much information can generally be obtained from experiences of other Chamber members. One of the objectives of the Chamber’s Executive is to assist in avoiding the practice of “rediscovering the wheel” by encouraging a greater degree of cooperation among members.
Joint-venture opportunities:	The success of Australian joint ventures in China depends heavily upon the ability to obtain the ‘right’ partner. The necessary searching process generally takes considerable time, and is always associated with a level of risk. The Chamber can be of assistance in utilising its network of cooperating organisations to seek independent information and advice. The task of matching needs in China with Australian enterprises that can potentially satisfy those needs is an important as a first step in the search for joint-venture partners. Much assistance in performing this task will emerge from the exchange of information as described above.
Ritual, ceremony and protocol:	Chinese society, including the business community, still relies heavily on ritual, ceremony and protocol. It is important to have a general understanding, if not detailed expertise, in the ways in which economic relations, including trade and investment, are organised in China. To assist in this area, the Chamber has taken several initiatives: The first is to maintain a strong and active Cultural Committee within the Chamber. The second is to ensure that all members are sufficiently versed in these matters to avoid potential embarrassment. The third initiative is to keep Chinese visitors, as well as hosting organisations in China, informed of Australian practices so that different rituals, ceremonies and protocols are mutually understood.
Letters of introduction:	A major contribution of the Chamber to two-way trade and investment is the establishment of “Old Friend” status with important Chinese people and organisations. As a result of this status, the Chamber is frequently asked to supply letters of introduction to Australians visiting China and to provide letters of invitation for visiting Chinese. Since it has become clear that no other organisation in Australia has acquired the same degree of “Old Friend” status, that position entails a substantial responsibility. In order to preserve the status, which was acquired over a long period of time, care must be exercised in responding to these requests. To make the process clear to all who might desire such assistance, a few guidelines have been established and are described in Appendix 1.
Benefits to Chamber members:	The Chamber’s intention of promoting Australian business in general, in the context of two-way trade with China, will be realised by eliminating or minimising those aspects or situations that have impeded growth in two-way trade and investment in the past. Although such a strategy is likely to have less immediate effects than the direct promotional campaigns that are undertaken by the Chamber’s Public Relations Committee, a focus on longer-term relationships is the only way to ensure that the benefits from enhanced trade and investment can be sustained. Chamber members will also benefit from the more general, longer-term focus of building a solid basis for trade relations. Members will also receive a reduction in fees and charges for Chamber activities and services. Perhaps of greater importance is the advantage given to members as exclusive participants in small-group activities and in their ability to make first claims on the Chamber’s resources. The objective of promoting Chamber activities for the purpose of bringing the business communities closer together can succeed only with support from Chamber membership. In all cases, this support will be publicly recognised, both in Australia and in China. The resulting benefits are generally intangible, but they are nevertheless extremely important to business success in China. Support for these cultural activities will be interpreted as support for the objectives promoted by the Chamber. This will convey a stronger sense of organisational inter-linking than would otherwise be apparent. In Australia, this inter-linking is not obvious to outsiders and is generally less visible than efforts to appear individualistic. In China, however, organisational inter-linking is easily understood and appreciated, while attempts to downgrade it are often regarded with suspicion. Organisational ties are a fundamental part of joint ventures, and the willingness of Australian businesses to recognise these ties must be demonstrated to potential joint venture partners. The Chamber has painstakingly built up a superstructure of linkages, the purpose of which is to facilitate counterpart linkages between individual enterprises.
Areas of activity:	The State Council of ACCCI of New South Wales selected four areas of concentration in its strategic plans for trade and investment relations with the cities and provinces in China that are part of the network of cooperative agreements. These areas are as follows: Urban Services Rural Industries Infrastructure Commercial Culture The Chamber’s booklet entitled The Network of Cooperative Agreements with Cities and Provinces in China provides a basic definition of each of the four areas. For the implementation of the Key Cities Strategy, these areas form the basis of the commercial activities that are being sponsored by the Chamber. Urban Services Urban services applies to general services and all commercial activities in urban areas, except for public utilities and construction which are included in infrastructure. The concept of services is interpreted broadly to include activities of the manufacturing sector that are located in urban areas. Thus, a distinction is made principally between urban and rural locations, with infrastructure comprising activities that generally serve both locations. Since it focuses on the location of the market served by the respective enterprises, the distinction between urban services and rural industries is made with a view to facilitating trade delegations to China, as well as delegations from China to Australia. It is also likely to achieve greater common interest among businesses than normally occurs with the more traditional classification according to primary, secondary and tertiary industries. For example, rural-based manufacturing enterprises are typically more closely related to agricultural interests than to other enterprises normally classified as being part of the more widely defined secondary industries. Similarly, establishments supplying services to urban centres are normally different from those serving rural areas, despite the provision of a similarly classified service. Sub-divisions within this area of activity include the following: v manufacturing; v commerce, including wholesale and retail trades, hotels, restaurants, theatres and other entertainment services; v urban transport, storage and local-area communications; v finance, insurance and business services; v international trade services; v real estate and property; and v a range of government services, such as public administration and health administration. The implementation of the Key Cities Strategy in the area of urban services will adhere generally to these sub-divisions, with an expectation of a gradual narrowing of focus depending upon trade and investment opportunities in both Australia and China. For example, specific manufacturing industries would be designated as major areas of activity for the Chamber if sufficient interest is generated from both Chinese and Australian enterprises. Rural Industries This includes activities that are conventionally defined in terms of primary production, secondary industries that are either located in rural areas or have a heavy dependence upon rural output, and rural services. The importance of the rural sector to China is emphasised by the employment of about 68 per cent of the workforce. In Australia, the sector employs only 5.3 per cent of the workforce, but it is nevertheless recognised that Australia is a major producer of agricultural products. Both nations have about the same amount of land in agriculture – 470 million hectares in Australia compared to about 400 million hectares in China. The generally understood sub-groupings within rural industries include the following: v agriculture. v aquaculture, including fisheries and the processing of fish products, v livestock and animal husbandry, v forestry and timber industries, v mining and energy production, and v township and village enterprises. As noted in the previous discussion, many of these sub-groupings supply products and raw materials for manufacturing. Hence, the linkage between urban services and rural industries is generally strong. In developing strategies for rural industries, the Chamber expects to devote a considerable amount of attention to the differences among the various regions in China. For example, fisheries in China are located mainly along the coastal region, but 40 per cent of the annual catch of about 10 million tonnes of fish and shellfish comes from freshwater fisheries. Similarly, forestland in China is concentrated in the northeast (Heilongjiang, Jilin, and the eastern part of Inner Mongolia) and in the southwest (the eastern part of Tibet, Sichuan, Yunnan and clusters of mountainous regions to the east). Hardwoods in these forests are utilised in the production of high-quality hand-carved furniture for domestic and international markets. Mining and energy production in China is associated mainly with the western provinces, as well as the uplands of South China and the northeast. Because of its geologic diversity, China possesses an extremely wide array of mineral resources. The only minerals in which the country appears to be deficient are vanadium, chrome, and cobalt. Another important element in the Chamber’s Key Cities Strategy is the identification of both the differences and similarities between Australia and China that are likely to give rise to trade and investment opportunities. For example, despite having large amounts mineral resources, China relies on the importation of ore and scrap metals to satisfy the domestic demand for ferrous and non-ferrous metals, and to supplement local supplies. With some agricultural products, Australia and China are very similar. For example, in 1992, both nations produced nearly the same amount of barley (3,242,000 tonnes for Australia, compared to 3,230,000 tonnes for China). Both countries are major producers of wheat. China ranked first in the world in 1992, producing 91,002,000 tonnes, and Australia ranked 14th with 14,200,000 tonnes. There are other instances for which the two sectors are quite different. Australia is among the top 10 exporters of food and animals, whereas China’s agricultural sector is oriented principally to supplying food for its own population. This situation could change, however, as China is beginning to specialise in particular rural products and export them in exchange for other products for which it is unable to achieve global efficiency. The strong incentive for national self-sufficiency that occurred for several decades after 1949 is slowly being replaced by a desire to achieve international specialisation in production and trade. Although this desire is more apparent in manufacturing, it can be expected to occur also in rural industries. Infrastructure This refers to the framework or foundation of support for enterprises or public sector activities. Common usage of the word, according to Merriam Webster’s Dictionary of English Usage, is rather vague but typically includes such things as power supplies, sewers, bridges, roads and refineries. In more general contexts, it refers to a set of economic or social factors that contribute simultaneously to increased productivity in more than one enterprise. Intellectual infrastructure, for example, includes various skills and acumen that assist in achieving success in virtually all areas of business activity. Convenient sub-groupings for this category include the following: v land transport systems (rail and road), including passenger and freight facilities, railway and road construction, traffic control systems, and terminal security systems; v air transport systems, including airport passenger and freight facilities, aircraft take-off and landing facilities, aircraft ground and flight control, and airport security systems; v sea transport systems, including passenger and freight dock facilities, seaport construction, port control systems, port security systems; v telecommunications, including public switched telephone networks, local area network facilities, personal and business telecommunications equipment, microwave transmitters, optical fibre cable and satellite earth stations; v electricity supply, including generation, transmission and distribution; v gas supply, especially transmission and distribution; v urban and rural water supply and reticulation; v wastewater treatment; v solid waste disposal; and v pollution control. Although many of these sub-group activities are generally associated with urban problems, the nature of infrastructure is that its beneficiaries are widely spread and are not necessarily associated with a specific area. Infrastructure needs nevertheless vary according to region. In most parts of China infrastructure development has not kept up with the need for improvement. This has resulted from the rapid rate of economic growth and from the inability to assess infrastructure requirements associated with the faster pace of economic activity. Chamber strategies include the identification and monitoring of infrastructure needs of the key cities and their surrounding areas. The process will rely heavily upon information supplied from the cities and provinces that have entered into cooperative agreements with the Chamber. The task is then to match the needs of China with Australian enterprises that are able to meet those needs. Commercial Culture Commercial culture potentially includes all performing and visual art forms. Suggested projects are assessed jointly by the Chamber’s Cultural Committee and the Funding Committee in terms of their cultural integrity and their ability to attract major sponsorship. The notion of commercial culture recognises that the international transfer of cultural activities involves major costs in organising the transfer by way of remote exhibition, tour or demonstration. These costs arise from promoting the activities and giving them logistical support in the form of security, insurance, venue, travel, accommodation and payment to performers and other persons involved. The notion also recognises that a number of cultural activities are capable of generating sufficient funds to offset these costs. However, if outgoings cannot be recouped from box office takings, then supplementary funding in the form of sponsorship may be required. The Chamber has maintained over a long period of time that cultural and sporting exchanges with China provide an excellent means for facilitating business interests. The corporate world has long recognised that such sponsorship on a domestic basis yields excellent dividends in goodwill. The same should apply in the task of obtaining support for new international ventures. The Chamber’s principal role in this area of concentration is therefore one of assessment and administration on behalf of corporate contributors. In so doing, the Chamber provides a coordinating function that minimises duplication of effort and ensures that maximum benefit is obtained from these exchanges. In working closely with counterpart organisations in China, the Chamber is in a position to encounter a wide variety of commercial culture prospects.
Australian delegations to China:	As part of its Key Cities Strategy, the Chamber organises regular visits to China by Australian business executives to review at first hand available business opportunities and to meet with potential business partners in China. In order to achieve maximum benefit for participants, each visit concentrates on opportunities in a particular business zone (discussed more fully below). The Chamber has developed a process to enhance the value of these visits. The process involves the following: Participants are initially briefed on the opportunities available in China. Documents are provided giving details of specific needs and the current business activities of Chinese enterprises in each business zone. Workshops and seminars are conducted prior to the departure. These activities are intended to insure that each trade delegation to China ‘does its homework’, thus utilising the time in China more efficiently and effectively. Where possible, complete information is made available about the Chinese personnel who will be meeting the delegation. This generally saves considerable time in determining who’s who in China. Brief seminars are conducted on arrival in China for further briefing and initial discussions with Chinese parties to clarify particular issues. On-site inspections relating to opportunities of interest are arranged to suit the needs of the Australian enterprises that have joined the delegation. This information is generally compiled during the initial workshops, seminars and briefings and varies considerable from one visit to another. It reflects the Chamber’s desire to customise each visit for the purpose of achieving specific objectives and of providing the maximum assistance to the participants. Where appropriate, Chamber representatives participate in the initial business negotiations with translators and specialists in particular aspects of business support services. In most cases, the visits are accompanied by cultural activities including sightseeing. These are designed to improve the level of understanding between Australia and China and to allow an opportunity for discussions to extend beyond the main area of business interests. Participation in Chinese Trade Exhibitions The Chamber invites manufacturers and suppliers of machinery or other products or services to participate in the major trade exhibitions held in China on a regular basis. These exhibitions give wide exposure to potential buyers and joint venture partners. Prior to participation, the Chamber’s Commercial Committee makes every effort to obtain a genuine appraisal of market opportunities in China for particular products and services offered by Australian companies and to pre-arrange meetings with any interested Chinese parties. The Chamber liases directly with the Australian exhibiters and the Chinese exhibition organisers to ensure that all Australian exhibiters get maximum value for their promotional investment. This liaison is particularly important in making allowances for the substantial differences among regions in China. Since each exhibition must necessarily be directed toward local interests and needs, it is essential to determine these local conditions well before the exhibition takes place.
Business zones in China:	Business zones have been established in order to focus on regional prospects in China and to minimise internal transport during the visit. The differences among the various regions in China also include significant variations in climate, so that all zones cannot be visited comfortably during the same time of the year. The seven zones are as follows: v Beijing (and Hebei Province) v Northeast China v East China v South China v Central China v Northwest China v Southwest China Beijing Zone (Beijing, Tangshan and Handan) The best time to visit Beijing is from September to November, when autumn temperatures are relatively cool. It is neither hot nor humid and the foliage is always pleasant. Winter can be interesting but the temperature during those months can drop to as low as –20^oC, and most Australians consider that to be a disincentive for late-night strolling. Spring is short, dry and dusty. During April and May, the city experiences the “yellow wind” which brings fine dust particles from the Gobi Desert. In the summer (June, July and August) the average temperature is 26^oC. Although the temperature falls at night, the humidity often remains, especially in July. The Beijing Zone covers the province of Hebei (population 63 million) and the special municipalities of Beijing (population 11 million) and Tianjin (population 9 million). The two municipalities are considered equal to provinces in terms of the administrative arrangements in China. The Chamber has cooperative agreements with Beijing, Hebei Province, Tangshan and Handan. Tangshan is in the eastern part of Hebei Province, between Tianjin and the border with Liaoning Province. Handan is in the southern part of the province, not far from Henan Province. Another major city is Shijiazhuang (population 8 million). It became the provincial capital when Tianjin came under central government administration as a special municipality. It is about 250 km southwest of Beijing. Beijing and Tianjin dominate the industrial activities in the zone, but there is a substantial amount of new industrial development along the coastal strip from Tangshan to Qinhuangdao. Coal is a major resource in the province, and a main attraction is the Great Wall which spans the province to the north. Northeast Zone (Changchun, Hunchun/Tumen, Hailar and Fushun) The best month to visit is June when the average temperature is relatively comfortable at 10^oC to 20^oC, though May to September can be relatively pleasant. The very northern part of this zone holds the record for the coldest January temperature recorded in China, –52.3^oC. The Northeast Zone covers the provinces of Liaoning (population 40 million), Jilin (population 26 million), Heilongjiang (population 36 million) and the eastern half of the autonomous region of Inner Mongolia (population approximately 11 million in that portion). The Chamber has cooperative agreements with Changchun, (the capital of Jilin Province), with Hunchun/Tumen (along the China/North Korean border), Hailar (in Inner Mongolia) and is entering into an agreement with Fushun (near the capital of Liaoning Province). Other major cities in the zone are Shenyang, which is the capital of Liaoning Province, and Harbin, the capital of Heilongjiang Province. The zone is an important one for many reasons. Liaoning is highly industrialised, getting its start during Japanese occupation prior to World War II. Although the other two provinces lag behind, they are now beginning to develop rapidly. The northeast region is also rich in natural resources, with large deposits of coal, iron ore, magnesium and petroleum. East Zone (Ningbo, Changshu, Linyi and Yantai) The best months to visit are during the Chinese spring and autumn (April/May and September/October). The winter temperatures fall below freezing and the steady drizzle can be annoying. During summer, the region can be hot and humid, with temperatures as high as 40^oC. The East Zone covers the provinces of Zhejiang (population 43 million), Jiangsu (population 70 million), Shandong (population 86 million) and Anhui (population 59 million) as well as the special municipality of Shanghai (population 14 million). The Chamber has cooperative agreements with Ningbo, Changshu, Linyi, and Yantai. Other major cities in the business zone are: Hangzhou (capital of Zhejiang Province), Nanjing (capital of Jiangsu Province), Jinan (capital of Shandong Province), and Hefei (capital of Anhui Province). Other important centres in Zhejiang include the islands of Putuoshan and Zhujianjian as well as Wenzhou in the southern part of the province. In Jiangsu Province, Zhenjiang and Changzhou are important cities along the southern bank of the Yangtze River. In Shangdong, Qingdao is well known and Weifang, Zibo and Jining are important. Anhui is mainly an agricultural-based province, but manufacturing is developing in Anqing and other cities along the Yangtze River. The business zone is diversified and represents an exceptionally large population. This region has developed rapidly in recent years. South Zone (Shenzhen, Fuzhou, Nanning and Basuo/Sanya) The best months to visit are October through to March when the average temperature ranges between 10^oC and 25^oC. The climate from April to September is hot and humid, with a possibility of typhoons from July to September. The South Zone covers the provinces of Guangdong (population 66 million), Fujian (population 32 million), Taiwan (population 22 million), Jiangxi (population 40 million) and Hainan (population 7 million), Guangxi Autonomous Region (population 44 million) and Shenzhen Special Economic Zone (population 1 million). The Chamber has cooperative agreements with: Shenzhen; Fuzhou, capital of Fujian Province; Nanning, capital of Guangxi Province; and Basuo/Sanya in Hainan Island.