The formation of regional industrial clusters is the result of relentless efforts in regional investment promotion, as well as the spontaneous clustering of enterprises.

When a company decides to locate in a particular region or industrial park, it is a rational decision made after comprehensively evaluating various production factors, and the final outcome is often inevitable.

However, the process of regional investment promotion is fraught with uncertainty.

Factors such as the speed of obtaining project information, the degree of industrial alignment between the two parties, and agreement on the scale of investment all influence the final outcome of investment promotion.

This interplay of inevitability and uncertainty also foreshadows divergent paths for both parties. During the investment promotion process, enterprises seek a sense of security, while the government must maintain a sense of urgency.

Where does a company’s sense of security come from?

• Attention to genuine needs
• Fulfilling promised conditions

• Proactive response to changes

It is often said that attracting investment is like dating or getting married. In ancient times, when a man sought to marry a woman, he followed the "Three Letters and Six Rites," sending various betrothal gifts tailored to her family’s preferences to the bride’s home.

Applied to investment promotion, when a company—the “daughter” they’ve worked so hard to raise—is suddenly approached by a “hothead” who wants to “marry” her, shouldn’t that suitor also demonstrate some sincerity?

When companies choose a location for production, their goals boil down to revenue and growth.

When local governments interact with companies, many businesses may request “government procurement,” “inclusion in the bidding directory,” or “becoming a supplier for major projects.”

Local governments must not view these requests as “exorbitant demands,” because revenue generation is the top priority for companies establishing operations. In fact, when dealing with major or high-quality projects, such offers can serve as incentives to increase the likelihood of attracting these companies.

Once a company’s revenue grows, it can contribute tax revenue, industrial resources, and jobs to the local area, so local governments should also provide the necessary support for the company’s development.

Business needs include capital, talent, industrial chains, and professional services. Ultimately, the key is for local governments to identify their own strengths and the genuine needs of businesses, and to address these needs effectively.

Once a company has been “secured,” the government must fulfill its promises in a timely manner.

Many regions paint a rosy picture during initial negotiations, promising professional, efficient, and hassle-free services as long as the company agrees to locate there.

However, once the project actually brings in real investment, local officials seem to become completely different people. Incidents of extortion, passing the buck, interfering with normal production, and disrupting market order are all too common. The government may shrug it off as none of their concern, but it is the enterprises that suffer.

At the outset, companies were drawn by the “light,” only to discover along the way that the “light” had faded. Naturally, their sense of security vanishes into thin air.

The sustained development of a business cannot be separated from long-term, stable cooperation and support from local authorities.

In the past, there have been no shortage of companies affected or caught in the crossfire due to leadership transitions or policy shifts. Once leadership changes, previously negotiated terms and unresolved issues can instantly become a thing of the past—ignored and left unsolved.

When the policy direction from higher authorities shifts and various special subsidies are discontinued, local policies inevitably have to change. Faced with such changes, it can be said that while there are policies from above, there are no corresponding measures at the local level.

When changes occur, the less proactive local authorities are, the more insecure businesses become. Even when matters seem settled, companies may change their minds and decide that “leaving” is the best course of action.

There is a rule of thumb in investment promotion: 100-1=0. A single negative incident in the business environment can undo all the hard work of an entire region.

Where does the government’s sense of crisis stem from?

Gaps in Action and Execution

Gaps in mindset

Gaps in work methods

Anyone with experience in investment promotion knows that “a single delay leads to a chain of delays,” especially when it comes to the timeliness of initial project engagement.

Speaking of this, one region stands out: Suzhou.

People say that Suzhou officials don’t have blood running through their veins—they have gasoline. Though meant as a joke, it’s a true reflection of Suzhou officials.

In the 1980s, to attract investment, Suzhou officials would stake out major hotels and airports in Shanghai’s Pudong district, pitching their hometown to visiting foreign businesspeople and inviting investors from around the world to tour Suzhou.

Back then, Suzhou had already taken the lead in the race to identify and secure projects.

And today, in the era of precision-targeted, information-driven, and digital investment promotion, Suzhou officials remain far ahead of the pack.

According to data from the "Investment Network"—a popular platform for business matching—among thousands of verified users, investment promotion personnel from Jiangsu Province account for 16% of the total, far outpacing the other 30 provinces and municipalities. Within this group, Suzhou not only ranks first in Jiangsu but is also the city with the largest number of investment promotion professionals nationwide.

Suzhou officials are always on the front lines of project matching—it’s as if those who are already better than you are also working harder than you.

Visit the Investment Network’s business matching platform—connecting with companies is just a phone call away. If you are an investment promotion professional in Jiangsu and wish to learn more about projects or join the Jiangsu investment promotion community, scan the QR code to add [Investment Network – Wang Yuanyuan] on WeChat Work, noting “Community” in the message.

Today, most regions are optimizing their business environments to foster a more conducive ecosystem for enterprise development.

Measures such as “One-Stop Service,” streamlined land acquisition and construction commencement, and integrated licensing procedures are all designed to make it easier for businesses to “start up” and “thrive.”

However, deregistering a company is far more difficult than registering one. To deregister a company, the legal and regulatory application process is complex. Even when all taxes and debts have been settled and there are no disputes, it still costs tens of thousands of yuan to hire professionals to successfully complete the deregistration.

A healthy market environment must not only make it easy for businesses to “be born,” but also allow them to “die” with ease.

Beijing, for instance, allows businesses to suspend operations without necessarily having to deregister; Suzhou also explicitly proposed in 2021 to improve market exit mechanisms and enhance the efficiency of market entities’ withdrawal from the market.

The gap in mindset extends beyond the mere survival and demise of enterprises. Most importantly, it involves comprehensively reducing the costs and burdens associated with business operations.

The sense of urgency in government investment promotion also stems from differences in working methods, as illustrated by the examples of leadership transitions and policy changes mentioned above.

When local leaders transition, ensuring a seamless handover between outgoing and incoming officials and clarifying past responsibilities helps ensure that former officials made reasonable decisions within their authority. When departing officials leave with a clear conscience and incoming officials take over with a clear understanding, the new officials will have the confidence to address past issues.

When regional policies change, local governments generally have advance notice. At such times, they can promptly alert businesses to take advantage of industrial subsidies and other measures in advance, helping them adapt to subsequent changes.

Only when the government demonstrates a strong ability to embrace change and resolve crises promptly can businesses thrive locally and feel a greater sense of security.

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