- High Awareness, Solid Attributes, Weak on Specifics
CHICAGO, Nov. 14 /Xinhua-PRNewswire/ -- A new survey released today
showed that Chicago is rated in the top three best business cities in the
U.S. by Chinese business decision makers who will choose American cities in
which to invest. But it also revealed that the 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 U.S. cities.
The study was released this morning, when Paul O’Connor, executive
director of World Business Chicago and Tim Calkins, clinical professor of
marketing at Northwestern University’s Kellogg School of Management,
presented the findings to more than 200 of Chicago’s business leaders at the
Chicago Club.
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 the 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, D.C. (35%) and Los Angeles (31%) trailed in
the open-ended question.
Chicago was perceived strongly 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 for Chicago, it also showed that
knowledge of specific influential facts about Chicago has room for
substantial improvement.
Interestingly, Chicago was perceived as second to New York for being a
tech center, while San Francisco ranked 5th. 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). The
city was also thought weak on being "in touch" with China and not known for
its quality of life and central location.
"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 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 U.S. city
is to gain access to the U.S. 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, Chicago
Council on Global Affairs. "Foreign investors need to know that we have
everything from the largest Chinese language program in the U.S. 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."
The study’s research 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 Tim 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 to the Chinese
market. Research shows that at the current trends, China would be the
biggest economy in the world by 2013. To date, most of the investment has
been in Asia, but going forward, investment in North America is set to grow
sharply. China’s outbound investment provides an enormous opportunity for
Chicago, and through this initial study, Chicago is learning how to utilize
its compelling assets to draw China’s North American investment to the city.
For a copy of the complete survey visit
http://www.worldbusinesschicago.com , http://www.thechicagocouncil.org or
call 312.553.0500.
