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Name Game In Shanghai Trade Zone

2013-11-12 18:10:02 Release Author:cuyoo Read Flow:2472次

On a recent morning, Kitty Zhang stood in high heels and a pink blazer poised to jump into China's next big business opportunity. But first, she needed a company name -- any name.

The 21-year-old, hired to register a financial business, is part of a wave of tens of thousands of people seeking to stake a claim in the new Shanghai free-trade zone. Authorities inaugurated the 'testing ground for new policies' in late September, identifying it as a reform hub for the 21st century.

By the hundreds each morning, pioneers like Ms. Zhang press into the zone's administration office, near a power station an hour's drive from Shanghai's skyline. They aim to register a new company, and many use same refrain to explain why: cha yi jiao -- a foot in the door.

Economists portray the zone as a unique experiment, with freedom to trade currencies, import tax-free and much more. How it might actually work remains murky.

For Ms. Zhang, the mismatch between high expectations and low regulatory transparency is playing out over a name. She is looking for one that contains three Chinese characters. Yet the registration office rejects the choices if any two of the characters appear in the name of another already-registered company in Shanghai.

China watchers are keen to see whether the Communist Party will explicitly endorse the zone at the Third Plenum to conclude Tuesday in Beijing, which will establish economic priorities for the coming decade.

If the boldest ambitions take root, the zone would ultimately chart China's economic future like Shenzhen did in the 1980s and 1990s. China let that southern city adjacent to Hong Kong spearhead policies now commonplace nationwide, like letting locals buy apartments and foreigners run factories.

Shanghai Mayor Yang Xiong said questions about the zone dominated a brainstorming session last month with chiefs of companies including General Motors Co., Coca-Cola Co. and PriceWaterhouseCoopers.

For the confused, there are self-styled advisers thrusting strategy sheets into hands of newcomers, putting the price of navigating the bureaucratic shoals at $420 for Chinese and $1,300 for foreigners, on top of the $300 license fee.

Ms. Zhang was stuck at window No. 36, the first stop for registering a business. 'This is my third day here,' she said, clutching a brown envelope of documents, including lists of names that had been rejected.

Shanghai's government said the licensing office dealt with 36,314 would-be applicants during the first month, including 3,172 people who got as far as checking a potential name.

Yet, only 208 companies actually got registered, its figures show.

One new business belongs to Zhou Yuanshou, who registered Shanghai Yuzhuo Trading Co., a combination of rarely used characters that means Glorious Outstanding Trading. Gripping the oversize certificate with a big red stamp, the steel and tea dealer from Fujian province said he already has a business nearby and isn't sure how he will use the trading license. 'I don't see much difference in the free-trade zone,' he said. 'It's just there are more people here.'

The registration office is thick with property owners and their agents, who point out that a business license requires an address within the zone's nearly 11 square-mile perimeter. For an annual fee that several agents quote at around $3,380, the landlords offer 'virtual' offices, tiny spaces inside warehouses.

But window No. 36 remains a chokepoint [Company Registration].

'The name problem,' huffed a man in a blue suit. He slumped into a circular bench that already seated a garden-supply-company representative and a clothing maker, both at the name-check stage

Ms. Zhang points to a sheet scrawled with hundreds of sometimes nonsensical combinations of characters that she dreamed up watching TV, only to face rejection. 'The first day all failed,' she said. 'The second day I got one approved. Today, I got three approved.'

And even if a name passes muster it may not be one that makes business sense. The names Ms. Zhang got preliminarily cleared meant as little in Chinese as they do in English, including Ji Pu Ben, which translates as 'Season Ordinary Rush.'

On her fourth day, Ms. Zhang finally identified one workable name deemed acceptable for the free-trade zone: Jin Yan Feng, the characters for Gold Flame Mountaintop. 'It was longer than I expected but good enough.'

 

 


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