This report is based on an investment climate survey conducted in 2002 in five
Chinese cities (Beijing, Chengdu, Guangzhou, Shanghai, and Tianjin), and a follow-up
survey conducted in 2003 in 18 cities. We gratefully acknowledge financial support from
the United Kingdom’s Department for International Development (DFID), World Bank
Research Committee and the Multi-donor Funded Knowledge for Change Program. A
grant from DFID supported the collaboration of the Enterprise Survey rganization(ESO)
in this survey and fellowships for two ESO staff, Mr. Yang Yumin and Ms. Li Hui, to visit
Washington, DC, for analysis and preparation of an earlier report. We are especially
grateful to Director Song Yuezhen, Deputy Director Wang Wenying, and Deputy Director
Lei Pingjing. Director Lei has been the project manager for both surveys, and worked
with World Bank staff in piloting and training. The paper has benefited from useful
comments and help from Deepak Bhattasali, Milan Brahmbhatt, Philip Keefer, Axel
Peuker, Andrew Stone, Kong-Yam Tan, and Albert Zeufack. This project is part of a
larger effort in the World Bank Group to help countries assess their investment climates
and to identify reforms that will lead to higher productivity, more efficient investment,
and ultimately more job creation and growth.