A group of us managers were sitting in a British manager’s office in the greater Suzhou Industrial Park (SIP) recently when the British manager asked us all, “Where would you suggest to put an investment in China?”

We all looked at each other, all of us knowing we had our own opinions. Mike (not his real name), one of the Danes at the table, suggested, “Not SIP, and not a lot of places in Jiangsu Province any longer. Anhui, Xuzhou – in northern Jiangsu Province.” Henrik (not his real name), another Dane, suggested places like Changzhou, Changshu, smaller places. I suggested what I called “suburban” economic development zones near Suzhou, like Wujiang and Xiangcheng: the expat lives in SIP and then commutes out to their factory in the “suburbs.”

Jim, the British manager, uttered a sigh of relief. “I’m glad you didn’t say SIP. I’m finding them really difficult to deal with.” Jim had been a General Manager of a facility outside Beijing for seven years. “Everyone said when I took the job in Beijing that Beijing is such a political environment, so difficult to do business in. Actually, the administrators there were really easy to deal with compared to these guys in SIP.” Jim had become GM of the SIP facility just two years before. “Even though I had to explain the law to the Beijing guys – after all, they had all been farmers just ten years ago – they bent over backwards to make things work for me. SIP administrators just want to give you a hard time.”

I offered, “They’re not hungry any longer. They’re successful now, so they don’t have to listen to anyone.”

Jim explained how he had offered up for SIP inspection contracts that met Chinese law but that were not based on the standard SIP format. “They said, ‘No.’ That was it, just ‘No.’ No explanation, no alternative. I tried arguing with them, but they just ignored me.”

SIP’s claim to fame is that it put into practice what so many local governments in China find difficult to even pronounce in English – “transparency”. Also, SIP was among one of the first economic development zones in China to take serious account of the livability of the place to attract Westerners. Most economic development zones throughout China still cater to Asian investors with their KTV palaces, bathhouses, and houses of ill repute fronting as brothels. Most Westerners – Europeans and Americans alike – prefer bars, outdoor eating and drinking establishments, and some place in which to get a decent cup of coffee.

The promotion bureau at SIP – and in the Singaporean administered CSSD, in particular – are absolutely brilliant at presenting the Park in all its administrative, infrastructural, and livability splendor. However, as the place has become the most famous in China for foreign direct investment outside Shanghai, it has also become more selective about who it meets and who it administers. It follows the letter of the law to the exclusion of common sense (whereas most local Chinese laws ignore common sense and exclude the letter of the law). It’s become rather like the Singaporean government itself: intrusive while at the same time inaccessible; patronizing without being constructive.

And that’s really the difference out in places like a Xuzhou: they’re still hungry. They will do whatever it takes to attract appropriate investment and then to support it. SIP, on other hand, doesn’t have to work for it any longer. Mike told the story of a large Danish company that came to meet with SIP staff to learn about investment opportunities in SIP. The company had about a US$10 million investment to make. “They were assigned fresh graduate from university who delivered a Powerpoint presentation she read to them, and then was unable to answer their questions to their satisfaction. They did not invest in SIP.”

There are stories aplenty of this type floating around the expat community in Suzhou. But most agree, SIP is still amongst the easiest economic development zone in China in which to get a manufacturing facility started and to maintain an operation while building circles of great, enduring friendships.

Still, I do wonder if anyone in the SIP administration is listening. And if they even care.