Business alliance helps in winning favorable policies

The chairman of the Chinese consumer electronics company Aigo Digital Technology Co Ltd announced on Thursday that the Aigo Entrepreneurs Alliance will open offices in Europe on March 22.

Feng Jun, who is also a member of the Chinese People's Political Consultative Conference, said he suggested that Chinese private companies work together to seek business opportunities overseas in the months leading up to the 2012 London Olympic Games.

Rather than asking individually for favorable policies from foreign governments, the 500 members of the alliance, travelled to Europe as a group in December to lobby officials in Denmark, United Kingdom, Belgium, the Netherlands and other European countries.

The alliance shows that collective bargaining can be used to gain more favorable policies.

"Belgium offered us a one-year waiver of office rent, 40 consultants and 300 free air tickets and hotel rooms," Feng said. "We chose 50 Chinese businesses that would set up an office in Belgium and test the water on March 22."

Feng attributed the good results to the power of numbers. The alliance brings together a variety of companies, including some in the electronics, maritime, real estate and garment industries. Among them are the air-conditioner giant Zhuhai Gree Electric Appliances Co Ltd, the website Sina Technology Co Ltd and the juice maker Beijing Huiyuan Juice Drinks Food Co Ltd.

In response to the EU debt crisis, European countries have adopted various preferential policies in an attempt to generate employment and attract overseas investment. Among them have been offers of free housing rent, legal advice and translation and other language services.

"Our government has an ambitious vision to create favorable conditions for foreign business," said Pia Olsen Dyhr, Denmark's minister for trade and investment, at an Aigo Entrepreneurs Alliance event on Feb 25.

"We know that attracting business is the key to creating jobs and staying competitive."

Feng said the main tasks of the European offices will be promoting companies' brands and finding partners.

He said the alliance also plans to enter the United States market in October.