APRIL 2014 Chicago-China: Even Closer Relations China and Chicago continue to open up to each other with new potential calculated to expand trade, create jobs, and provide an enlarging Changchun Nanning Nanjing array of cultural and economic benefits. This issue of China Call Report notes some current developments: Chicago Mayor Emanuel signs a “Gateway Cities Agreement” to stimulate interaction between Chicago Shenzhen and eight dynamic Chinese cities; Chinese developers dominating the China Ranks Cities sky with ever-taller buildings turn to For Strengths, Competitiveness the history and architects of Chicago, where the skyscraper was invented; China’s new ranking of its cities Sixteen Middle Tier 2 cities: famed Chicago businesses such as in terms of overall strengths and Chengdu, Wuhan, Harbin, Shenyang, Motorola Mobility are bought to give competitiveness holds few surprises, Xi’an, Changchun, Changsha, Chinese firms like Lenovo entry into but draws attention to some cities Fuzhou, Zhengzhou, Shijiazhuang, new niches. not well known to the West, and Suzhou, Foshan, Dongguan, Wuxi, indicates where development might Yantai, and Taiyuan. Anita Tang, Managing Director be desirable or more feasible. Seven Lower Tier 2 cities: Hefei, Among qualities involved in Nanchang, Nanning, Kunming, ranks are many beyond size. They Wenzhou, Zibo, and Tangshan. include ability to influence and lead There also are third and fourth in a region, attract talents, support tier cities. information exchange, capability By 2025, it is estimated by the in technology innovation, utility as Ministry of Housing and Urban- transportation hub, and many other Rural Development that 300 million aspects that indicate, to some degree, Chinese now living in rural areas the cities’ importance in the current will move into cities. This fast pace China scheme of things. of urbanization will offer investment There are five Tier 1 cities: opportunities in building water Beijing, Shanghai, Guangzhou, supply, waste treatment, heating and Shenzhen, and Tianjin. other public utilities in the cities. Eight Upper Tier 2 cities: Hangzhou, Nanjing, Jinan, Chongqing, Qingdao, Dalian, Ningbo, and Xiamen. 2014 Lenovo's Motorola Buy Seen As Strategic Fit Lenovo Group Ltd., the world’s largest personal computer vendor, in February reported that because of strong global demand, its quarterly revenue for the first time broke through the $10 billion mark. Revenue in third fiscal quarter ending on December 31, 2013, stood at $10.8 billion, a jump of 15 percent year-on-year. Yang Yuanqing, Chairman and CEO of Lenovo, said business in PC- China Tackling Guangzhou Announces plus areas, including smartphones, tablets and servers, was driving profit Climate Change 10 Areas Of Investment growth. China, the world’s biggest Wan Qingliang, the Party He said server acquisitions from emitter of the greenhouse gases chief and top leader of Guangzhou, Chicago-based Motorola Mobility for that are blamed by some scientists Guangdong province, in March $3 billion from Google Inc. and those for climate change, is considering announced 10 major areas for from IBM “are a perfect fit with our selling bonds to raise funds to combat investment, noting also that the City PC-plus strategy.” that change, an official from the has 409 construction projects planned Motorola Mobility makes Android National Development and Reform by 2016. smartphones and Bluetooth accessories. Commission told a three-day climate The 10 areas are administrative Yang said the business will quickly conference held in March. district readjustment; urban area begin contributing to the company’s The conference was sponsored renovation; reform of State-owned performance. by the United Nations Foundation. enterprises; private economic “Buying Motorola Mobility is a Resolving problems associated with development; financial innovation; quicker way for Lenovo to access the climate change will be one of the science and technology innovation; premium smartphone market with a government’s “top priorities this development of an open economy; leading Android offering than trying to year,” the official told China Daily cultural system reform; ecological do it with its existing design teams and News. system reform; and public service brand reach,” observed Frank Gillett, To that end, a carbon-saving system reform. principal analyst at Forrester Research. market has just been launched in China’s third largest city, with a “Using Motorola Mobility, just as central Hubei province to cap carbon population of 16 million, Guangzhou Lenovo used the IBM ThinkPad brand, dioxide emissions from nearly 140 is continuingly active in securing to gain quick credibility and access of the biggest companies, each of investment. At a promotion fair also to desirable markets and build critical which will be given a set amount of in March, 136 contracts worth $41 mass makes a lot of sense.” pollution permits. Unused allowances billion were signed. They involved Lenovo was the second-largest may be sold while companies such sectors as automobiles, smartphone maker in China last year exceeding pollution limits must chemicals, new generation with more than 40 million shipments. purchase extra permits. information technology, bio-science According to its financial report, The Hubei market is China’s and healthcare, new energy and Lenovo’s revenue surged in the last sixth of seven planned regional environmental protection, finance quarter in Europe, the Middle East emissions trading schemes. The and modern logistics, according to and the Americas. Sales outside China seventh exchange will be in the Pan Jianguo, director-general of the contributed more than 60 percent in southwestern city of Chongqing. Guangzhou city development and revenue. reform committee. Catch Up On China Call Report. Visit Our Web Page www.rroots.net Obama Announces Lab For Chicago President Obama in February announced that Chicago has been Qingdao selected as the home of a new $320 million digital manufacturing lab. To be built on Goose Island, the lab will provide a top-of-the-line research and development facility for digital technology companies of all sizes, and will be funded by a $70 million grant from the U.S. Defense Department and $250 million in Shanghai Tower Wuhan Qintai Culture and Art Center Tianjin R&F Guangdong Tower private and state funds. The Digital Manufacturing and Mayor Rahm Emanuel Signs Agreement Design Innovation Institute will be For Cooperation With Eight China Cities managed by Chicago-based UI Labs – a group led by the University of Chicago Mayor Rahm Emanuel friends, and after today’s successful Illinois, in collaboration with other on December 23, 2013, in Beijing, signing, I believe Chicago and the universities such as the University of signed a “Gateway Cities Agreement” People’s Republic of China are on Chicago, Purdue University, and the that can have great impact on their way to a collaboration that is University of Michigan, as well as relationships between Chicago and stronger than ever before.” major corporations such as General China. The objectives of the Working Electric and Lockheed Martin. He met with the Minister Group resulting from the agreement Chicago Mayor Rahm Emanuel of Commerce from the People’s are to expand trade and investment observed that the lab is “going to be Republic of China, Gao Hucheng, the cooperation, strengthen communi- a center where all the research and Vice Minister of Commerce Wang cation, enhance trust, boost economic development in digital advanced Chao, and leadership representatives development, and create jobs so as manufacturing is going to occur – so of Beijing, Shanghai, Tianjin, to promote common prosperity and companies like GE, family-owned Qingdao, Shenyang, Hangzhou, growth between China and Chicago. businesses, and new startups can Wuhan, and Chengdu. all use that research and deploy in They signed a memorandum of creating new jobs, new factories, understanding fortifying Chicago’s or expanding existing ones… place as a gateway for Chinese This research facility puts Chicago investment in partnership with these at the very center for the United eight cities. States of the next generation of “I am pleased to announce this manufacturing,” he said. “It brings historic agreement with Minister brains and brawn together to secure Gao Hucheng and China’s most Chicago’s economic future.” vibrant cities,” said Emanuel. “This Chicago Mayor Rahm Emanuel will further advance Chicago as a signed a memorandum of under- destination for tourism, business and standing with Chinese Vice Minister transportation, and demonstrates of Commerce Wang Chao (photo by this administration’s commitment to World Business Chicago) being the most China-friendly city in the world. Over the years, we have forged robust cultural and economic relationships with our Chinese Anita Tang Addresses Meets West: Hong Kong Provides they’re in Chicago.” Hong Kong Group Business Freedom and Benefits,” He said that “By 2030 it is pointing out, for example, that the estimated China will have one billion Anita Tang, Managing Director development of Hong Kong as a people living in its cities. That’s one of Royal Roots Global Inc., shared Special Administration Region is out of every eight people on Earth. So insights into doing China business at bringing about changes in the ways it when the Chinese are trying to devise the February meeting of Hong Kong and mainland China interact. symbols of this urbanization, they’re Business Association of the Midwest