CHICAGO - Chicago is rated in the top three best business cities in the
United States by Chinese decision-makers who choose American cities in which to
invest. But a survey released on Tuesday also revealed that Chinese
executives are unaware of many of Chicago's key business strengths.
The survey, commissioned by World Business Chicago and the Chicago Council on
Global Affairs and coordinated by Northwestern University's Kellogg School of
Management, also
assesses Chinese business leaders' perceptions of different US cities.
The survey showed that Chinese leaders rely on specific criteria in identifying
a North American city in which to invest.
Of most importance (in order of importance) are: a strong technology center,
tax incentives, supportive local government, a large business center, a strong
distribution system, the number of corporate headquarters, and proximity to
supplies and buyers.
Less important attributes include a low cost of living, presence of other
Chinese businesses and cultural resources.
When asked which North American cities were "the best cities to do business",
69% named New York, 57% named Chicago and 40% named San Francisco - while
Washington, DC (35%) and Los Angeles (31%) trailed in the open-ended question.
Chicago was perceived positively relative to New York, Boston, San Francisco
and Los Angeles on factors identified as most important to the business leaders
surveyed, including a central location, tax incentives, a strong distribution
system and local government support.
Although the survey found that there is high awareness of Chicago, it also
showed that people lacked specific knowledge of the city.
Interestingly, Chicago was perceived as second to New York for being a tech
center, while San Francisco ranked fifth. Chicago was also perceived as second
for having the best business schools and the largest population (Chicago was
perceived to have a larger population than Los Angeles).
But the city was also thought to be not "in touch" with China and many felt it
was not centrally located and did not have a high quality of life.
Paul O'Connor, executive director of World Business Chicago, and Tim Calkins,
professor of marketing at Northwestern University's Kellogg School of
Management, presented the findings this week to more than 200 of Chicago's
business leaders at the Chicago Club.
"The good news is that Chicago has surprisingly high awareness in China as a
business city," said Paul O'Connor. "The bad news is that their understanding
of our business assets is shallow and vague. We need to do a much better job of
communicating the city's key attributes - largest airport, most non-stop
flights to Shanghai, most diversified economy, best railroad connections, and
two world-leading business schools."
The study noted the primary reason for selecting a particular US city was to
gain access to the US market and capital. Chinese business investors look for a
welcoming business environment and Pacific-oriented attitude.
"We are striving for the world to see that Chinese cultural and business assets
are abundant in Chicago," said Marshall Bouton, president of the Chicago
Council on Global Affairs.
"Foreign investors need to know that we have everything from the largest
Chinese-language program in the US in our public schools, to one of the most
business-friendly local governments, to an extensive list of authentic Chinese
cultural institutions and restaurants, all with tremendous access to the
American market."
Research for the study was done in phases and conducted by NuVista Strategies
Inc. Initially, secondary research was reviewed and qualitative interviews with
more than three dozen Chinese and American executives were completed.
The group then assessed perceptions of Chicago among mid-level Chinese
executives with a web-based quantitative survey completed by 200 Chinese
business executives. Finally, the group completed qualitative interviews with
Chinese business executives in Shanghai who are involved in foreign investment
decisions.
"This was an important project for Chicago, because the growth of China is one
of the key global trends of the 21st century," said Calkins. "The results are
very encouraging. This study is a call to action for business and civic leaders
of Chicago."
The survey was an initial step in branding Chicago for the Chinese market.
Research shows that if current trends continue, China will be the biggest
economy in the world by 2013. To date, most Chinese investment has been in
Asia, but investment in North America is set to rise sharply.
