Urban Development Today: Celebrating the 20th National Congress in Splendor

Industrial Upgrading Gains Momentum: "Made in China" Journey Across the Nation

Staying Ahead in Investment Promotion: Real Economy Achieves Outstanding Results

Investment Promotion as One Family, United in Building the Chinese Dream

Times have changed; it feels like a lifetime ago. Since I entered this field, more than a decade has passed in the blink of an eye.

Ten years ago, we went door-to-door seeking businesses; ten years later, we use big data for investment promotion. Ten years ago, we spoke our minds without reservation; ten years later, we must learn to adapt.

Ten years ago, we negotiated projects based on intuition; ten years later, we discuss investment promotion based on experience. Ten years ago, we honed our skills; ten years later, we’ve entered the arena…

Ten years of investment promotion have seen their ups and downs. Only by embracing innovation can we forge ahead.

Grasping the Market’s Ups and Downs

Industrial Transition and Transformation

Along this journey, industries have been reshuffled, technologies have evolved, traditional industries have undergone transformation and upgrading, and emerging industries have grown by the day. The key to local development lies precisely in the rise and fall of enterprises—where there is danger, there is also opportunity.

The enterprises that vanished over the past decade did not fail because their industries were outdated, but because they failed to embrace technological change in time. On the contrary, only after undergoing technological innovation—including R&D, testing, pilot production, and mass production—can a company truly shine and keep pace with the times.

Take mobile phones as an example. Faced with the major shift toward smart devices, some companies clung to traditional thinking, firmly believing they could maintain their market share. Little did they know that the landscape would change in the blink of an eye, and some feature phones were abandoned and phased out. By the time they wanted to switch to smartphones, they had been left far behind; time no longer allowed them to return to the front lines of the market.

In the past, when selecting a site, companies simply looked for a location with “sufficient space and convenient transportation” and that was all it took to start production. An ordinary site selection firm might have been able to finalize a decision after just a quick look around the neighborhood.

Nowadays, investors don’t just consider “timing, location, and human factors”; they also prioritize upstream and downstream supply chains and even demand “high-quality” supporting facilities—such as steam supply, grease traps, and cleanrooms. It must be said that these requirements are extremely “specific,” making investment promotion a far more challenging task.

Clearly, the days of “move-in-ready” enterprises are largely over. For investment promotion agencies, the era of simply carving out a plot of land and waiting for companies to come running is gone for good. Competition for investment is fierce now; it’s not uncommon for a company to receive multiple invitations to visit within a single day, and they immediately “grade” and evaluate these options after their site visits.

Consequently, local investment promotion agencies are racking their brains, devising every possible strategy to keep projects within their own “territory.” Faced with these aggressive campaigns from various regions, companies, however, are becoming increasingly “level-headed.”

Upgrades in corporate investment and production have inevitably forced a transformation in investment promotion strategies.

Deeply Understanding the Joys and Sorrows of Investment Promotion

Fresh Water from the Source: Going with the Flow

This is the best of times, and the worst of times.

We have experienced an era when attracting investment was easy—but that was certainly not the best of times. Later, fierce competition across regions descended into a “free-for-all,” making it difficult for anyone to attract investment—and that, too, was not the right path. Yet when both “investment transformation” and “investment promotion transformation” are advancing, the journey is certainly not easy, but we will not fall behind.

Standing at the turning point of the era, approach matters more than opportunity. Undoubtedly, the tide of technological innovation never ceases, and the pace of industrial development soars beyond the clouds. A transformation in investment promotion methods is imperative; by going with the flow, we can seize the initiative.

Ten years ago, when I first started in investment promotion, some locations were difficult to reach. It was common to spend over ten hours on a train, changing trains three or four times. Most of the time, I wasn’t at the office but traveling everywhere by various means of transportation. I was accustomed to keeping a travel kit at my desk, always ready to set off at a moment’s notice.

In the morning, we’d chase after flights; at noon, we’d chase after trains. Under the scorching sun, we’d navigate the city’s streets and alleys; braving the biting cold, we’d travel back and forth to meet with investors, pulling out all the stops to build networks and connections.

Once a project is approved, they run around handling paperwork; once construction begins, they run to the site; once the project is completed, they run to the production workshops. There was no such thing as “one-stop online services”—each different preferential policy required its own set of supporting documents.

Back then, seeking projects often involved the kind of “better to strain your body than your relationships” socializing typical of investment promotion. After the implementation of the Central Committee’s “Eight-Point Regulation,” the days of approving any expenditure as long as it attracted investors and capital were over.

However, the difficulty in attracting investment cannot be attributed to the “Eight-Point Regulations,” but rather to the complex economic landscape, shifts in market supply and demand, overcapacity, and land shortages. Furthermore, with stricter environmental requirements, even the best projects will not be approved if they fail to meet environmental impact assessment or safety evaluation standards.

With so many constraints in place, how are we supposed to find projects? Where should we look? Why do the projects we spend time searching for always turn out to be unreliable?

Indeed, projects are scarce, and so the information war for investment promotion has begun...

Uncovering project leads has become the “main event.” From municipal to ministerial-level leaders, and even the police, courts, and procuratorates, everyone has been assigned investment promotion quotas—with targets to meet, rankings to chase, and reward-and-punishment systems in place.

This lack of coordination and individualistic approach has led to superficial investment promotion efforts, reduced to a routine of “site visits—group photos—records.” Amid criticism that the “downsides outweighed the benefits,” this approach eventually faded from the view of investment promoters.

What followed were innovative investment attraction methods such as industrial chain-based investment, internet-based investment, performance-based investment, and capital-driven investment. With the emergence of these innovative models and shifts in mindset, these approaches became the “trendsetters” of investment promotion and gradually gained recognition and importance.

As one enters middle age, goji berries and thermos flasks become “standard gear.” It is precisely through these trials and tribulations that one can behold the captivating scenery on the other side: leading enterprises taking root, supporting businesses growing, and “hidden champions” along with specialized, refined, distinctive, and innovative SMEs emerging in droves.

To discern quality from mediocrity

Flocks of small birds; a hundred birds paying homage to the phoenix

Over the past decade, an investment promotion approach that prioritized quantity over quality—a “flood irrigation” method—has struggled to yield high-quality projects. Blindly following trends to launch projects and attract investment, adopting a “anything goes” mentality, may actually sow the seeds of future risks. It is important to recognize that today’s project structure shapes tomorrow’s industrial structure.

In this context, we often see investment promoters working around the clock, seven days a week, to court enterprises. Yet, when the year-end review comes, very few of these efforts result in signed contracts, secured funding, and actual project implementation.

This demonstrates that investment promotion is a science that tolerates no pretense. Once a project is identified as viable, spare no effort to secure it. Never judge success by the number of agreements signed or the number of handshakes exchanged. Instead, squeeze out the excess and focus on the actual number of projects that are implemented.

Therefore, don’t listen to what companies say; look at what they actually have. Some companies may appear to be thriving on the surface, but in reality, they never even get the chance to begin production. Worse still, some have already failed before they even officially enter the market.

Today, investment promotion is no longer just about scale; it is increasingly about quality.

There is no need to fixate on first-tier cities, competing in the “too many wolves, too little meat” environment of Beijing, Shanghai, Guangzhou, and Shenzhen. Instead, focus on deepening efforts in niche segments of leading industries and expanding partnerships with leading enterprises along the industrial chain. By adhering to the principle of “strengthening what is strong, attracting what is lacking, and supplementing what is weak,” we can help more projects “connect” along the industrial chain.

In particular, the 2022 Government Work Report once again emphasized the cultivation of “specialized, refined, distinctive, and innovative” enterprises. This implies that attracting and nurturing such SMEs may become the next main battleground for investment promotion.

For local governments, whether they are early adopters or latecomers, investment promotion follows the principle of “starting small before going big, and starting low before aiming high.”

First, there must be a “flock of small birds”; only then can we achieve a “hundred birds gathering around the phoenix.” The process inevitably begins with low-value-added industries. Through continuous attraction and cultivation, we gradually elevate the industrial tier, extend the industrial chain, and increase value-added—only then can local development achieve broad prospects.

Conclusion

On the front lines of investment promotion, no one is an island.

When you meet fellow travelers, the vast expanse of stars and the ocean lie before you.

A decade of investment promotion—time is the best witness.