Businesses eye the Games

Considering possible business opportunities at the 2008 Olympic Games in China, Taiwanese entrepreneurs are making plans to capitalize on the events across the Strait.

"Now is the right time to explore the commercial opportunities of the 2008 Olympics," said Yao Shen-kuang (姚聲光), publisher of China Invest Magazine (中國招商雜誌), while holding a gathering yesterday in Taipei to attract potential investors.

Yao said that Beijing, starting in June, will begin to accept bids from domestic and foreign investors. The Beijing municipal government announced a plan to spend US$20 billion this year to modernize the city's infrastructure in anticipation of the games.

As a result, Taiwan's building material suppliers have been the first sector to capitalize on the games, to be followed by other small business such as eateries, clothiers and the entertainment industry, Yao said.

But analysts warned prospective entrepreneurs to carefully draft market strategies before rushing into the market.

"Seeking partnerships in Beijing may be the best way to win bids and beat out other foreign competitors," the magazine's editor-in-chief, Yang Wen-hsien (楊文賢) said.

He estimates that the Games could generate more than NT$1 trillion (US$28.6 billion) in revenue for China.

Yang said that there would be projects worth more than NT$80 billion that could be suitable for Taiwanese investors in Beijing's neighboring city, Qieng Huang Island (秦皇島) in Shandong Province, one of several soccer venues.

Though the self-proclaimed "explorers" painted a rosy picture for investors seeking to profit from China's Olympic bid, one businessman said that hurdles will have to be cleared before doing business across the Strait.

Chen Ming-da (陳明達), manager of Decor Construct Material Co, yesterday said that, for the past five years, his partners doing glass shelf projects in China "have problems in collecting payments there."

"You have to know what strings to pull before you get business deals and get paid when doing business in China," Chen said.

The semi-official China External Trade Development Council (外貿協會), which helps Taiwanese enterprises develop markets outside of Taiwan, urged caution.

"It's a big pie, but we are not sure how big a piece Taiwanese investors will be able to access," said David Liu (劉大俊), executive director of CETRA's market development department.

He advised investors to enter China in groups guided by professional consulting organizations, which could better deal with numerous bureaucratic hurdles and unpredictable Chinese officials.