Title

The Chinese local administrative measures for building up the 'headquarter economy' : a comparison between Pudong and Shenzhen

Document Type

Journal article

Source Publication

Journal of Contemporary China

Publication Date

1-1-2012

Volume

21

Issue

73

First Page

149

Last Page

167

Abstract

Why do large domestic and multinational enterprises choose one Chinese city over the others in which to set up their company headquarters? What could the Chinese local governments do in order to attract enterprises to establish headquarters in their localities? Following the Chinese commonly used term ‘headquarter economy’ and investigating the issue mostly from the local governments' perspective, this research examines two cases, Pudong and Shenzhen, to see how they have capitalized on their local advantages and attracted different types of large investments. Both the Pudong and Shenzhen governments provide preferential policies and administrative reforms to build a good investment environment and to develop a ‘headquarter economy’. Their preferential policies are similar in design but different in content, so as to attract different target investors. Their administrative reforms are similar in direction but with variations in pace and design for implementation. Our conclusion shows that ‘headquarter economy’ is a concept flexibly used and wisely adopted by Chinese local governments to develop local economies.

DOI

10.1080/10670564.2012.627671

Print ISSN

10670564

E-ISSN

14699400

Publisher Statement

Copyright © 2012 Taylor & Francis

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Full-text Version

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Recommended Citation

Chan, C.-P., & Poon, W.-K. (2012). The Chinese local administrative measures for building up the ‘headquarter economy’: A comparison between Pudong and Shenzhen. Journal of Contemporary China, 21(73), 149-167. doi: 10.1080/10670564.2012.627671