For several years Western news
papers have carried many arti
cles about the economic boom
in the People's Republic of China.
With its enormous population and its
double-digit economic growth, China
is a market that big businesses from
the West, Hong Kong, Taiwan and
Singapore are eager to invest in. But
is that optimism justified? According
to the press, success in China is virtu
ally guaranteed provided you invest
enough and in good time.
In reality, however, the situation is
more complicated. It is not just the
opportunities that are big, but the
risks as well. Local know-how there
fore remains essential for achieving
good results. Or, as Heineken Area
Export Manager Eric Nelissen in
Hong Kong puts it: "It is still a
question of pioneering".
Starting signal
The starting signal for the econ
omic push was given by China's
leader Deng Xiaoping in 1978 when
the decision was taken to set up the
Special Economic Zones; these were
regions designated by the gover
nment in an attempt to promote
exports by encouraging joint ventures
with foreign companies. In the early
1980s Deng's decision was implemen
ted. Eric Nelissen: "You could descri
be the Special Economic Zones as the
motors for kick-starting the Chinese
economy and also for experimenting
with capitalism."
During the 1980s these zones
flourished but that came to an abrupt
end in 1989 as a result of the student
riots in Beijing. Foreign companies
waited and watched intently to see
what would happen next and put their
investment plans on ice. The turning
point came at the beginning of 1992.
From that moment on the economy
has been growing strongly again, par
ticularly in the Pearl River Delta, the
area to the North of Hong Kong cen
tred around the major cities of
Shenzhen and Guangzhou.
According to Eric Nelissen the
economic development of China has
passed the point of no return.
"Developments in recent years have
moved too fast for that, especially in
the big cities, and the strongly
increased standard of living has put
down too many roots within the popu
lation." What worries him is the
growing gap in incomes between the
rural areas and the big cities as well
as the enormous inflation. Govern
ment curbs have not produced the
sought-after effect. At the end of last
THE WORLD OF HEINEKEN
