Archive for the 'Shanghai' Category

On an unlikely site called I Think, Therefore I Am, Edward Anderson has a long essay which is well worth reading as another perspective on China and the effect of the economic zones.

It reads, in a much edited form:

The current leadership in China is the People’s Republic of China (PRC). The modern, average Chinese citizen has a mixed perception of Mao, but overall they view Mao as a nostalgic founder figure, much like an American’s view of George Washington.

Dong Xiaoping became the President of China in 1981 after Mao’s successor and took advantage of the economic and political foundations laid before him to bring the free market to China. Xiaoping was the driving force that lead China into the modern World economy.

Dong created special economic zones along the coast that allowed free market trade. These special economic zones were extremely successful, by creating new wealth and prosperity

China further realized the power of the free market.

Cities such as Shanghai and Shenzhen grew at break-neck paces, grabbing the World’s economic attention. Shanghai in about thirty years became the fourth largest city in the World and a major financial hub, mainly because of its special economic zone status.

The successes of these special economic zones showed the Chinese government that the direction of future economic success did not lay in Marxist economic planning, but lay in the free market.

China continued to implement free trade into its economy, but not too fast as to create social unrest and lose political power.

Today, China is increasingly gaining economic political power; with this power China is ever more on the minds of Americans. The perceptions of China by Americans are critical in understanding the relationship between the two countries.

From the perspective of many Americans, China is blamed for many of the World’s problems. Lately, there has been a growing American sentiment against China. China is looked as a threat to the American economy and therefore is given a negative label.

An examination of the economic growth trends in China will give a prediction of the future economic outlook of China. Growth in China will not look like growth in America, since the demographics of China are much different than in America.

The differences in demographics once again show how a new perspective is needed to understand China.

This article is long. It is, arguably, slightly biased. It is informative. It suggests new approaches. You can read the full article by clicking HERE.
Source: I Think Therefore I am

The original saying was: ‘Better to have a bed in Puxi than a house in Pudong.’ That has now changed.

A taxi driver said, ‘Nobody wanted to go to Pudong about 20 years ago. Pudong used to be farm land and the only mode of transport for people going from Puxi to Pudong was the ferry.’

Pudong is now the future of the metropolis being pushed forward by projects like the Waigaoqiao Free Trade Zone.

Against the backdrop of the Oriental Pearl Tower, this the a scene of a new development under way in the Lujiazui financial centre in Pudong, Shanghai.

On April 18, 1990, the Chinese Communist Party announced big plans for the 570 sq km area with a population of three million.

First, it was the emergence of the Lujiazui financial center, then key projects like the Waigaoqiao Free Trade Zone, Pudong International Airport and the World Expo 2010 site.

Over the past 18 years, Pudong has seen an average of 18% growth every year. Last year, it achieved a gross domestic product (GDP) of RMB275 billion ($123.9bil), a 14.4% increase over 2006.

The ultimate goal of the Shanghai government is to build a capitalist environment in Pudong, based on the socialist system.

Pudong New Area District publicity bureau chief Chen Gaohong said in briefing reporters recently on the 18 years of development in Pudong sqaid, ‘The federal government requests the Shanghai municipal and Pudong district governments to play a bigger role in this respect.

‘The late Deng Xiaoping said that the development of Pudong would have to be different from other coastal economic zones such as the Pearl River Delta.

‘We must start off with a complete package from manufacturing and research and development to marketing, and focus on high-tech production.’

Earlier this year, Pudong announced plans to build one million square meters of apartments to accommodate non-local professionals.
Source: The Star Online

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

Every time a government gets involved in business it gets a rush of acronyms to the head and does not explain them. Take NETDA as an example. It has a wonderful site but nowhere does it explain what NETDA means.

Eventually you discover that the Nantong Export Processing Zone (NTEPZ) is situated in Nantong Economic and Technological Development Area (NETDA).

NETDA is a state level development area with a planned eventual area of 2.98 square kilometers. The NTPEZ is close to the estuary of Yangtze River, and only eight kilometers to the new Suzhou-NangtongChangjiang Bridge which is under construction so that it is strategically positioned at the Gateway of the Yangtze River.

For logistics there could be not better position.

Ports along China`s coastline and famous ports worldwide can be reached via the river and seas; going up-stream along the river can get you to the provinces of Jiangsu, Anhui, Jiangxi, Hubei, Hunan and Sichuan, and further to Yunnan, Guizhou, Shaanxi and Henan.
As far as roads are concerned NETDA has links with Shanghai-Nanjing and Yanjiang Express-ways to its south and links with Nanjing-Nantong Expressway and the Yancheng -Nantong and Nantong -Qidong Expressways to its north.

NETDA is 100 km away from Shanghai Hongqiao International Airport, 150 km from Shanghai Pudong International Airport and 240 km from Nanjing Lukou Airport.

This is probably one of the top 10 development zones in China but it is not widely known because it is, perhaps, seen as part of the greater Shanghai connurbation.

There are plus points As an extension to Shanghai Port, direct customs- clearance station via water transport is in operation.

NETDA implements the system of in-advance declaration and in-advance on-line for processing trade. A computer system has been established to connect the Customs with the enterprises in NETDA through the Internet.
Source: NETDA

A blueprint for the redevelopment of Fengxian District in south Shanghai will increase the urbanization of the area, build new industrial areas and encourage tourism by taking advantage of the area’s natural beauty. Seems an ambitious plan. But if they could do it to Salford in England then anything is possible.

The new blueprint shows the district’s appearance will be greatly changed, introducing a more appealing environment for both residents and business.

Plans for the district aim to change Fengxian from a rural district into part of the urban area of Shanghai by 2020.

The 8,893 villages scattered around the district will be gradually merged, and 22 towns will be reduced to eight.

A new model introduces the Nanqiao New City which is a classic Chinese industrial city, seven towns and 30 central villages with distinctive water features. he new city of Nanqiao is being designed to an industrial city can accommodate 400,000, about 40% of the district’s population.

Foreign experts have been invited to submit designs for the residential area and central towns.

The town of Nanqiao new town as a very important industrial city is an important part of the development plan. Based on the concept of “new urbanism,” the district plans to bring residents quality lifestyle in a pleasant environment. The district government is working hard encourage some 100,000 farmers into the district’s new towns.

This has been done before.

The one the writer knows the best is Port Sunlight in England. It was purpose built by William Hesketh Lever (later Lord Leverhulme) starting in 1888 for the employees of Lever Brothers soap factory (now part of Unilever). The name is derived from Lever’s most popular brand of cleaning agent, Sunlight.

Port Sunlight contains 900 Grade II listed buildings, and was declared a Conservation Area in 1978. Port Sunlight has been informally suggested for World Heritage Site status to protect it from development. And the writer has worked there and it is a delight. So it is certainly possible.

In blueprints for the new round of development, industry will take a prominent role in the district’s economic development, with industrial zones to build electricity distribution equipment, fine chemicals, logistics and manufacturing.

These four industrial zones are expected to house 80% of the district’s enterprises by the end of 2005.

The 33.38-square-kilometer Fengpu industrial Park is designed to become a model to develop modern industrial. Shanghai Fengpu Industrial Park is the only one which includes the industrial park and export processing zone in Shanghai.
Source: China Industrial City

Volvo is expected to double the size of its parts storage in China.

Volvo Parts (Shanghai) now has a 4,600-square meter warehouse in Shanghai Waigaoqiao Free Trade Zone in addition to an adjacent 1,000 square meter area.

The company plans to expand a further 1,800 square meters in Waigaoqiao area in northeast Shanghai from April and another 5,000 square meters coverage is also under consideration.

Volvo Parts general manager Lu Zhonghang said, ‘China is a strategic market for Volvo worldwide thanks to its unexpectedly strong growth.’

The parts company in Shanghai is Volvo’s third largest parts base in Asia. It supplies 14,000 kinds of parts mainly for Volvo trucks for the domestic market in addition to marine engines, and industrial engines and construction equipment.

Volvo Parts (Shanghai) reported its sale revenue had an average annual growth of 50%.
Source: Shanghai Daily

Fengpu is in the Fengxian District of the South Shanghai and is one of the three key industrial parks in Shanghai. Historically Fengxian District used to be the industrial base of mechanism, electric, telecommunication and electron industries so that the talents and skills were already there.

In 2003, the State Council approved the Export Processing Zone in the Industrial Park. This is unique in that it possesses the municipal level industrial park and the state level export processing zone rolled into one.

Shanghai Fengpu Industrial Park is 33.38 square kilometers, including the 3-square-kilometer Export Processing Zone. During its ten years development it has stayed closed to its origins with its main industries being electronic and information industry, modern biology and medicine industry. There are about 130 foreign enterprises in the park as well as many major Chinese companies.

And it is probably going to become both larger and more important as a southward development which takes in Fengpu Industrial Park is the main direction of Shanghai’s economic strategy layout. Thus the investment the Da Xiao Yang Shan Deepwater Wharf and the Caojing Chemical Zone located in South Shanghai.

In a sense the park is based in an area of industry of yesterday, today and tomorrow.

Our illustration shows that there is a total of 56 kilometers of high quality commuter roads within the park. All the roads have 4 fast lanes and 2 slow lanes.
Source: Fengpu Park