ong, and is recognized for it preferential treatment for foreign investment. It has greater autonomy in approving foreign investment projects, reducing tax rates, and encouraging technological development. Many tourists visit Gangzhou because of its close proximity to Hong Kong. As well any operations could be managed directly from the existing Hong Kong operations. As well, Wang did not anticipate difficulty finding a supplier for chicken. Beijing - Beijing is the second largest city in China. It is the political and cultural centre and has relatively high levels of affluence and the education of its inhabitants. It is also the tourist centre of China, with many attractions located in and around Beijing. A Beijing location would also give a higher profile. This could be both good and bad. If they received approval from the central government, they would be able to enter the rest of the Chinese market without hassle. However, because of the higher profile, the government might decide that they would not fit in to the Chinese landscape, which would prevent them from ever succeeding. Outside of Beijing there were also numerous poultry farms. Wang knew that the location was the most important detail, and would decide whether KFC would succeed or not. There were currently no other competitors in the Chinese market, so now was the time to strike to take advantage of the situation. The risks were high, and Wang needed to weigh out these risks to estimate whether the expenses would lead to for a huge gain or a huge loss. In early February 1987, Wang decided to open operations in Beijing. This was decided because of Beijing's high amount of tourists and its autonomous municipal government. However, he was feeling more worried about the venture. KFC signed a joint venture partnership. Wang's worries were stemming from the difficulty he had been experiencing getting things done in a city governed by a bureaucracy that seemed impossible to eit...
