In starting its concept of special economic zones back in the seventies China was thinking inside the country. It was planning the industrialization of China.

Especially since the 3rd Plenary Session of the 11th CPC Central Committee in 1978, the PRC government reformed the national economic setup.

During the 1980s, the PRC passed several stages, ranging from the establishment of special economic zones and open coastal cities and areas, and designating open inland and coastal economic and technology development zones. It is a process the continues but is undoubtedly a massive success, albeit with attendant problems which are being dealt with in an orderly manner. The success of these zones has not escaped the attention of other countries.

In Peshawar, the administrative center of Pakistan, Provincial Minister for Industries Syed Ahmed Hussain Shah said a ‘national trade corridor’ would be established on N-35, Malakand, in the name of China City to enhance trade with China.

He said the establishment of the proposed ‘Reconstruction Opportunity Zones’ (ROZ) in the border regions of Pakistan and Afghanistanwould improve the provincial economy, generate employment opportunities, and help stem terrorism in the area.

Meanwhile Sindh Minister for Industries and Commerce in Pakistan, Rauf Siddiqui has suggested establishing a 100km long industrial zone on the land lying between Karachi and Hyderabad.

Syed Ahmed Hussain Shah said that to eliminate rising unemployment in the country and strengthening local economy, we had to convince foreign investors including China and other countries to invest in Pakistan.

Dr Junaid Ahmed, Advisor to the Finance Ministry called on the government to establish Pak-China, Pak-Korea, Pak-Iran, Pak-Arab Economic Zones, in which industrialists from these countries could be provided opportunities to invest. When China started special economic zones it started a world revolution.
Sources: The News and Trading Markets.

Sometimes it is difficult to understand all the terms used. This is a brief primer.

Special Economic Zones (SEZs) are, for the moment, always located in mainland China. The government gives SEZs special economic policies and flexible governmental measures. This allows SEZs to utilize an economic management system that is especially conducive to doing business.

All of which seems pretty clear. And it has been going on since 1978 when the government decided to reform the national economic setup. Our illustration shows Shenzen, an early starter.

Since 1980, the PRC has established special economic zones in Shenzhen, Zhuhai and Shantou in Guangdong Province and Xiamen in Fujian Province, and designated the entire province of Hainan a special economic zone.

In 1984, the PRC further opened 14 coastal cities to overseas investment: Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang and Beihai.

Since 1988, mainland China’s opening to the outside world has been extended to its border areas, areas along the Yangtze River and inland areas.

(For the record Hainan Island is China’s biggest special economic zone.)

Shortly afterwards, the State Council expanded the open coastal areas, extending into an open coastal belt the open economic zones of the Yangtze River Delta, Pearl River Delta, Xiamen-Zhangzhou-Quanzhou Triangle in south Fujian, Shandong Peninsula, Liaodong Peninsula (Liaoning Province), Hebei and Guangxi.

In June 1990 the PRC government opened the Pudong New Area in Shanghai to overseas investment, and additional cities along the Yangtze River valley, with Shanghai’s Pudong New Area as its head.

Since 1992, the State Council has opened a number of border cities, and in addition, opened all the capital cities of inland provinces and autonomous regions.

Now it get a bit complicated because the nomenclature changes along with the developments.

At that time 15 free trade zones, 32 state-level economic and technological development zones, and 53 new- and high-tech industrial development zones were established in large and medium-sized cities. What are the differences between these categroies. They tend to have different preferential policies although the general aim is always the same — building up trade.

The five special economic zones are foreign-oriented areas which are primarily geared to exporting processed goods, integrating science and industry with trade. In 1999, Shenzhen’s new-and high-tech industry became one with best prospects, and the output value of new-and high-tech products reached RMB81.98 billion, making up 40.5% of the city’s total industrial output value.

To sum up the attractions (and they have seriously worked because these zones have been a great success are:

1. Special tax incentives for foreign investments in the SEZs.
2. Greater independence on international trade activities.
3. Economic characteristics are represented as 4 principles:

a. Construction primarily to rely on attracting and utilizing foreign capital.
b. Primary economic forms to be Sino-foreign joint ventures and partnerships as well as wholly foreign-owned enterprises.
c. Products to be primarily export-oriented.

d. Economic activities primarily driven by market forces.

There are so many economic zones — sometimes slightly disguised with other names — that it is easy to get confused.

A bit of history may help put it in perspective.

Since 1980, China has established special economic zones in Shenzhen, Zhuhai and Shantou in Guangdong Province and Xiamen in Fujian Province, and designated the entire province of Hainan a special economic zone.
In 1984, China further opened 14 coastal cities—Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang and Beihai—to overseas investment.
In 1985, the state decided to expand the open coastal areas, extending the open economic zones of the Yangtze River Delta, Pearl River Delta, Xiamen-Zhangzhou-Quanzhou Triangle in south Fujian, Shandong Peninsula, Liaodong Peninsula, Hebei and Guangxi into an open coastal belt.
In 1990, the Chinese government decided to open the Pudong New Zone in Shanghai to overseas investment, and opened more cities in the Yangtze River valley.
This has ended up as a chain of open cities extending up the Yangtze River valley, with Shanghai’s Pudong as the ‘dragon head.’
Since 1992, the State Council has opened a number of border cities, and in addition, opened all the capital cities of inland provinces and autonomous regions.

In addition, 15 free trade zones, 32 state-level economic and technological development zones, and 53 new- and high-tech industrial development zones have been established in large and medium-sized cities.

It is massive. Huge. Almost beyond comprehension.

Not all of these zones are the same. Not all have the same abjectives. But effectively they all play multiple roles in developing the foreign-oriented economy, generating foreign exchange through exporting products and importing advanced technologies and as ‘radiators’ in accelerating inland economic development.

How well does it work? Take a single example in a single place. 78 Chinese and foreign-funded financial institutions have been set up in Lujiazui, Pudong, of which 24 foreign-funded banks have been approved to engage in RMB business.

Or, on a wider scale, there are at least 5,900 foreign-funded enterprises, with a total investment of nearly US$30 billion, and there over 5,000 major domestic enterprises across the country with a total registered capital of about RMB20 billion.
Source: China in Brief

China has embraced a new airport cities concept by setting a five-year plan in motion to develop all types of commercial space inside and outside the airport’s fences. The buildings are an offshoot of its annual growth in passenger and cargo traffic.

China is leading the world in the development of airport cities, with 15 in various stages of planning as support for an aeronautical pipeline calling for 95 additional airports by 2020 for the existing base of 149 facilities

Ping Wang, co-founder and EVP of Washington, DC-based Garfinkle & Wang Associates, and the general manager of GCW in Beijin gaid seven of the country’s existing airports, which include shared facilities with the military, are supporting 70% of the country’s annual passenger and cargo traffic.

The country is caught in an infrastructure race to build roads and high-speed rail to support office, retail, logistics, manufacturing and residential development, all airport-anchored and related. Ping Wang said, ‘The airport city program fits the People’s Republic of China’s airports extremely well.
Souce: Globest

China has announced approval for 20 national hi-tech trade bases to boost exports of hi-Tec products and improve competitiveness in international markets.

According to the Ministry of Commerce (MOC) and Ministry of Science and Technology the new bases, mostly hi-tech development zones in such major cities as Shanghai, Chongqing, Wuhan and Xiamen, have more than 300 national scientific research institutes each.

They included the information technology, biological medicine, manufacturing, fine chemicals, new materials and new energy sources sectors.

With 18 bases approved last year, the move brings the number of national hi-tech trade bases to 38.

MOC official Zhang Ji said the MOC would help these bases develop products for overseas markets by providing support in research funding, personnel training, export credit, commercial information and protection of intellectual property rights.

Official figures said China’s exports of hi-tech products jumped 31.8% year-on-year to $314.4 billion in the first 11 months of last year.
Source: People’s Daily Online

This is, as it were, part of a regular newsletter which tells how Chengdu is doing. Chengdu Investment News tells us that amorphous silicon solar cell project worth RMB600 million will be put into construction this July at Chongzhou Industrial Development Zone. Its main investor is Sichuan Guangliang Investment subordinate to Sichuan Kaimai Group.

The company will complete the building of the first production line within a year and of all the construction items within 30 months. The annual capacity of amorphous silicon solar cell will reach 300 megawatt by then, the biggest in China, with RMB45 million taxes to be paid annually.

So what are we talking about?

A solar cell is a device that converts solar energy into electricity by the photovoltaic effect. Assemblies of cells are used to make solar modules, which may in turn be linked in photovoltaic arrays.

Solar cells have many applications. Individual cells are used for powering small devices such as electronic calculators.

Photovoltaic arrays generate a form of renewable electricity, particularly useful in situations where electrical power from the grid is unavailable such as in remote area power systems, Earth-orbiting satellites and space probes, remote radiotelephones and water pumping applications. Photovoltaic electricity is also increasingly deployed in grid-tied electrical systems. However, you would need more than a few systems to light up Chunxilu in Chengdu shown in our illustration.)

So why amorphous?

Silicon comes in two types, crystalline and amorphous. One of the main advantages of amorphous, over crystalline silicon relies in its production technique, as thin films of it can be deposited over large areas.

Because fuel cells have no moving parts and do not involve combustion, in ideal conditions they can achieve up to 99.9999% reliability. Thus if they can also produce 300 megawatt you have seriously useful power.

And moving from the most modern of technology to the use of something which has been with us for centuries.

Chengdu’s technology of high-strength bamboo-type material which took eight years and cost nearly RMB10 milion. Ci Bamboo commonly seen in villages of Sichuan, has good tenacity and well-built fiber framework, whose endwise tensile strength is 5 to 6 times than that of carbon steel. After machining it becomes high-strength bamboo-quality molding material, with properties of high density, strong rigidity, good wear-resistance, waterproof, moisture proof as well as mothproof. It also weight much less than the equivalent in steel and is therefore called ‘vegetable steel’. One estimate is that using the Sichuan Ci Bamboo to make the high-strength bamboo-quality material could bring out an industry of RMB20 billion a year.

Finally a no-paper declaration is expected to be applied widely within the year at Chengdu Export Processing Zone. In practice, the export company only needs to fill in the customs declaration form on-line, and the customs e-system will examine and verify those digital data; later on the company can print through the e-port platform the Notice of Customs Check and Release Permit returned by the customs authorities, and then ask for checking pass at the port with real products.

It is reported that according to the early trials, the ‘direct’ mode of declaration, made Intel (Chengdu) company’s finished products pass through the customs in five minutes after completing the on-line declaration, saving 83% of time. Just like the non-use of airline tickets this can save a vast amount of paper.

Newsletters like this, letting the world how an industrial zone is progressing is a wonderful idea. We should see more of it.
Source: All Roads Lead to China

The China-Singapore Suzhou Industrial Park has made great progress in the past 13 years due to policies encouraging innovation and investment.

The park covers about 4% of Suzhou’s land yet produces 15% of the city’s GDP, 25% of its foreign investment and 30% of foreign trade.

It was built in May 1994 in the east end of Suzhou in Jiangsu province and operates under the principle of ’selective investment’.

It mainly targets capital-intensive, technology-intensive and flagship projects.

A joint project between the Chinese and Singaporean governments, the industrial park has set up a comprehensive network to attract investors and guarantee the park secures multibillion-dollar projects.
The park has recently put more emphasis on projects that highlight science, technology and service.

It has approved over 3,000 foreign-backed companies with total actual foreign direct investment of $13.4 billion. The park’s trade volume has increased to $56.7 billion from a mere several million when it first opened.

It has created more than ten policies to improve innovation and encourage investors to set up research and development centers. It’s also launched plans to encourage intellectual property right protection and lure skilled professionals. It may be a model for industrial parks.
Source: China Daily

Originally, as reported by Xinhua, the plan was that Nokia’s China new headquarters in Beijing would be completed and in use at the end of last year. Missed by a month or so but now it is open and the six-story building has a total floor area even larger that of its world headquarters in Finland.

Shen Jian, communications manager of Nokia China, said the new headquarters will house 2,000 research and development (R&D) and management staff.

The headquarters, R&D center inside and manufacturing base located in the Beijing Economic-Technological Development Area in Yizhuang, southeastern Beijing, will form the Nokia China Campus.

The headquarters building started construction in May 2006 with an investment of RMB450 million ($60 million).

The Nokia China Campus and the Xingwang Industrial Park, which is home to almost 20 other electronic companies led by Nokia, will form the most integrated mobile phone production chain in the world.

China has become the largest market of Nokia, the world’s largest mobile phone maker, whose sales and export volume in China exceeded $13 billion in 2006.
Source: China View

China is constructing another civil aerospace center in the Shaanxi province this year after the launch of the initial Shanghai base last year. This marks an increase in China’s effort in its civil aerospace industrialization. The State Development and Reform Commission approved the planning of Xi’an National Civil Aerospace Industrial Base on December 26, 2007.

According to Huafeng Yue, Xi’an deputy mayor of the National Civil Aerospace Industrial Base of Xi’an, it will, when completed, cover 23 square km and will focus on developing satellites, new materials, energies, IT and other technologies. It is stressed that these are all intended as civil applications.

In November 2006, Xi’an and the China Aerospace Science and Technology Corporation jointly set up Xi’an Aerospace Science and Technology Industrial Base.

Its focus has always been the development of the civil space industry.

Hongzhuan Zhao, a Xi’an official responsible for the planning of the base, said, ‘The main industries in Xi’an base include equipment manufacturing, software and service outsourcing, new materials and solar photovoltaics.

‘Xi’an base industry planning is consistent with the national strategic overall planning, which lays foundation for the upgrade of Xi’an base to a national base.’

A press release from deputy mayor Huafeng Yu, said, ‘The setting up of national aerospace base in Xi’an, an ancient city renowned for its terracotta warriors, is a firm indicator of China’s commitment to boosting the aerospace industry infrastructure beyond major cities. Xi’an will give full support to the national base through tax concessions, preferential policy in land use and infrastructure building.’

As the core of the Yangtze River Delta radiation region, Shanghai National civil aerospace industry base aims to drive regional economic development through market-oriented space industry operation. Xi’an officials expect Xi’an Base to exert greater influence.
Source: Emerging China

An amazing history of special and economic zones has been put online.

1978. The Chinese government embarked on a policy of opening to the outside world in a planned way.
1980, China started establishing special economic zones in Shenzhen, Zhuhai and Shantou in Guangdong Province and Xiamen in Fujian Province, and designated the entire province of Hainan a special economic zone.
1984, China further opened 14 coastal cities — Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang and Beihai — to overseas investment.
1985, the state decided to expand the open coastal areas, extending the open economic zones of the Yangtze River Delta, Pearl River Delta, Xiamen-Zhangzhou-Quanzhou Triangle in south Fujian, Shandong Peninsula, Liaodong Peninsula, Hebei and Guangxi into an open coastal belt.
1990, the Chinese government decided to open the Pudong New Zone in Shanghai to overseas investment, and opened more cities in the Yangtze River valley. In this way, a chain of open cities extending up the Yangtze River valley, with Shanghai’s Pudong as the “dragon head,” has been formed.
1992. Since this date the State Council has opened a number of border cities, and in addition, opened all the capital cities of inland provinces and autonomous regions. In addition, 15 free trade zones, 32 state-level economic and technological development zones, and 53 new- and high-tech industrial development zones have been established in large and medium-sized cities.

More. much more, by clicking on Source.
Source: China in Brief