Chengdu Hi-tech West Zone Chengdu Economic and Technological Development Zone Chengdu Hi-tech Innovation Service Centre Chengdu National Cross-Strait Technology Industry Development Park FOOTWEAR CENTRE OF WESTERN CHINA Xindu Satellite City Industrial Development Zone

Chengdu Hi-tech West Zone

The Chengdu National Hi-Tech West Zone, with approval of the Ministry of Science and Technology, is designed to implement the provincial and municipal ‘No.1 program’. Focusing on the hi-tech industry including electronic information and biopharmaceuticals, it is the strategic and important base in West China to realize a great leap forward. Located at the Pixian County – Chengdu’s satellite town, the zone is between the 3rd ring road and the around-the-city expressway, 6 km from the Chengdu downtown. Covering an area of 7 sq km, in its starting section are set up three national hi-tech industry projects, i.e. West China Software Park, National TCM Modernization Scientific and Technological Park, and China University Student’s (Overseas-returned Student’s) Business Starting Park.

The construction of the zone was kicked off in March 2001, with a total investment of 1.9 billion yuan in the urban infrastructure and public facilities. Its starting area with the urban infrastructure backed by roads 20km long is ready to receive investors. As many as 118 industry projects were by far signed (containing 90 electronic information projects and 28 biopharmaceutical projects), contracted capital totals 12 billion yuan, and actual inflow of investment amounts to 2.85 billion yuan. The presence of the world top 500 companies e.g. Intel Products (Chengdu) Ltd, Motorola Software Lab Centre, and base of Bruker in West China is unmistakably visible. Of all projects, 49 are being constructed, with a total investment of 5.6 billion yuan. 87 projects signed are deployed in the zone’s Business Incubator, totalling 500 million yuan, among which 56 are run into operation. At present, 52 enterprises running into production include Datang Telecom, Galaxy Magnets, Huiyuan Electronics, Yung Tat Electronics, Guangyue Radio Frequency, Dikang Pharmaceutical, Blue Sword Pharmaceutical etc, their sales revenues accumulatively stand at 7.67 billion yuan, value-added of industry 2.41 billion, and total pre-tax profits 740 million yuan, and export US$ 94.3 million.

Infrastructure

Water & electricity & gas supply, road, telecommunication, and sewage system hook up to the Chengdu’s network.

Chengdu Economic and Technological Development Zone

As the sole national level economic and technological development zone with approval of the State Council, the zone lies in the Longquan District, 13.6 km east of Chengdu, covering a planned area of 26 sq km. Located at the key area where Chengdu moves strategically toward east, the zone will be turned out to be the biggest scientific and technological and export-oriented industry base as well as new ecological town according to the Chengdu’s Master Plan approved by the State Council in June 1999.

Since its inception, the Chengdu Economic and Technological Development Zone has by far poured 1.5 billion yuan into infrastructure. Fundamental facilities and urban services focusing on road, telecommunication, water, electricity, and gas supply are in place, enabling the zone to be fitted with conditions necessary for the settlement of the large modern corporations. Currently, the zone witnesses 500-odd projects from more than 20 countries and regions including Europe, USA, Southeast Asia, HK, Macao, and Taiwan are being constructed, already forming an industry structure with the mechanical, electronic, new type building material, pharmaceutical, and food processing as the pillars.

Convenient Transport

Sophisticated Facility

Environment

Chengdu Hi-tech Innovation Service Centre

Chengdu Hi-tech Innovation Service Centre (hereinafter referred to as the ‘Centre’) is designed to facilitate transferring the scientific and technological results and nurturing the hi-tech company and entrepreneur. Comprising of the China Chengdu Overseas Scholar Pioneer Park, China Chengdu Ph.D Pioneer Park, and Chengdu Hi-tech Incubator etc, it falls into three incubators i.e. the Starting Area Base, West Zone Base, and Software Base. The centre was bestowed with the ‘National Hi-tech Business Starting Service Centre’, ‘National Overseas-returned Scholar Business Pioneer Park’, ‘Advanced Incubating Service Agency of National Hi-tech Zone’, ‘Leading Hi-tech Business Starting Centre’, ‘Advanced Unit of Talents Development of Sichuan’, ‘Excellent Business Incubation Centre’, and ‘Demonstrative Base Invigorating China through the Development of Science and Education’. It is also the first park of this kind jointly built by the Ministry of Personnel and local government.

The centre aims to offer the enterprise to be incubated with the shared facilities e.g. R&D, pre-production, operational site, and office as well as policy, management, law, finance, capital-raising, marketing, and training services for purpose of mitigating risk, reducing cost, heightening survival rate and success rate, and cultivating successful hi-tech enterprise and entrepreneur.

Incubation Base

The Starting Area Base, located at the starting area of the Chengdu Hi-tech Zone, consists of 6 incubation units with a total area of 41,000 sq m. As many as 338 enterprises settled down here by far, the base contains the China Chengdu Overseas Scholar Pioneer Park, China Chengdu PhD Pioneer Park, which is classified as the comprehensive incubator. Endowed with the advantaged location, it lies in the mature central area of the Chengdu Hi-tech Zone, fitting with a complete set of matching facilities for living, ideal for the newly-established enterprise. Scope of business covers electronic information, biopharmaceutical, opt-electro-mechanical (integration), new material, new energy, ecological tech, EP tech, and other hi-tech etc.

West Zone Base, located at the Chengdu Hi-tech West Zone, covers an incubation area of 25,000 sq m and houses 83 enterprises, which is classified as the comprehensive incubator. In possession of a nice environment and a complete set of matching facilities (e.g. central conditioning, automatic firefighting control system, 2,700 sq m patio garden, restaurant, large/medium/small-sized conference rooms, and business centre etc), its incubation units range from 58 to 600 sq m capable of meeting the different needs of the company. Scope of business covers electronic information and biopharmaceutical etc.

Software Base, located at the Hi-tech Incubation Park, southern extension of Tianfu Avenue of Chengdu Hi-tech Zone, covers an area of 500mu including a total floor area of 220,000 sq m and houses 200 plus enterprises. Containing the Software Incubator, Information Security Industry Base (Sichuan), Chengdu Digital Entertainment Industry Park, National Software Industry Base, and Technology Platform of National Software Industry Base, it is identified as the specialized incubation park. The base is in possession of 9 incubation units and comprehensive service buildings, fitness centre, building for experts, and the various conference centres etc. Apart from the ‘5A’ intelligent system, access to high speed broadband at a rate of kilomega from park and ten-thousand mega from desktop, central air-con, and automatic firefighting control system, it introduced the prestigious ‘five-star’ property management company to offer the state-of-the-art service. Scope of business covers software development, integrated circuit design, and information security technology etc.

Incubating Service:

Chengdu National Cross-Strait Technology Industry Development Park

Location—Wenjiang

Wenjiang, located in a place 16km away from west of center of Chengdu city, covers an area of 277sq.km., and has a jurisdiction over 12 towns, 3 townships, 178 villages, 14 community residents' committees as well as has a population of 326,700. Wenjiang is a cradle of Yufu kingdom of ancient Shu of 4000 years ago and has been a political, economic and cultural town in west Sichuan since the year of 555. It was changed from county to district on May 28 of 2002 and became an important part of metropolis Chengdu city.

Wenjiang’s urbanization course has been developed rapidly. Now an urban-rural integration pattern which takes urban area as a center, roads as links, small cities/towns as supports and central villages as bases has been formed preliminarily. Wenjiang has employed Atkins, a famous planning and design institute, to design 18.1 sq.km new urban area, thus a modern and civilized new urban area will emerge soon.

The tertiary industry in Wenjiang is developed rapidly. Some special markets and town/township agricultural trade markets such as Fresh Agricultural Products Market appointed by the Ministry of Agriculture, Provincial Flower Seedling Market, etc. have been built Wenjiang’s Yufu Village Ruin is a national key relic protection unit, there are Tomb of King Yufu, Tome of King Boguan, Chengjia Mast, Wen Temple of Song Dynasty, these ruins are assessed as Municipal relic protection units. Hot spring tourism ranks 1st in Wenjiang’s tourism.

Wenjiang’s social cause is developed rapidly. There are Southwestern University of Finance and Economics, Chengdu University of Traditional Chinese Medicine, Sichuan Communications Vocational Technology College, Chengdu Institute of Administration, Sichuan Normal University, Sichuan Agricultural Vocational Technology College, Sichuan Hydroelectric Power Vocational College, etc., which have provided sufficient science and intelligence supports for Wenjiang’s development.

Chengdu National Cross-Strait Technology Industry Development Park

Chengdu National Cross-Strait Technology Industry Development Park covers an area of 18.98 sq.km, so far, total 191 projects have been introduced from USA, Japan, Thailand, Australia and China’s Taiwan and Hong Kong, etc. In 2003, total 38 projects were introduced into this park, with funding of RMB 4.653 billion yuan, increased by 43.4% than previous year, allocated capital was RMB 1.08 billion yuan, increased by 54.3% than previous year, total industrial output realized in the whole year was RMB 5.694 billion yuan, increased by 25.1% than previous year, thus, three leading industries of food, medicine and printing/packaging have come into being.

FOOTWEAR CENTRE OF WESTERN CHINA

Information about Footwear Industry in Chengdu

Chengdu is famous for its ladies’ shoe industry. There is the quite developed shoe industry, the most advanced manufacturing technology and the latest industry information in West China.
Chengdu, one of the most important purchasing places for ladies’ shoe, is the best choice for buyers from more than 35 countries.

Chengdu, the centre of Sichuan shoe industry, assembles 80% of shoe enterprises in Sichan Province. There are more than 1500 shoe enterprises, 800 related enterprises, 300 registered shoe trademarks and 100,000 employees in Chengdu. The industry has an annual output of 120 million pairs of leather shoes, an annual output value of 10 billion Yuan and an annual export value of 1 billion Yuan. There are 1300 manufacturers which account for 85% of all the shoe enterprises in Chengdu. The women’s shoe output is the third largest in China. The shoes are exported to more than 35 countries and it accounts for one-third of the whole China. The title of “China Women Shoes Park” has been awarded to Chengdu.

Footwear Center of Western China

Established on May 6th, 2003, It aims at setting up the “International shoe trade centre in west China”. They focus on shoes and leather industry. The whole project is about 160 Chinese acres with a construction area of 150,000 m2, and will be completed in the end of 2007. The investment amount is USD 56 million. It is the key industrial base of West China and the key industry project of Sichuan province.

Located at the core area of shoe industry in Chengdu, It lies beside the national high way (Sichuan-Tibet Highway), and is 5km away from Chengdu to Shuangliu International Airport.
Footwear Center of Western China depends on the biggest shoes production base in West China—Chengdu, has polymerized shoes business" in China women shoes park", and has set up the biggest purchase place in West China for shoes product.

The president of Footwear Distributors and Retailers of America, Mr. Peter Mangione, commended that, “This is a unique platform which will connect the manufacturers and buyers, and create more chances for the shoe enterprises beyond Chengdu.”

Part of Partners for Trade

Part of Partners for Cooperation

Xindu Satellite City Industrial Development Zone

Xindu Satellite City Industrial Development Zone (hereinafter call “this zone”), located in golden location of entrance of Chengdu city, is only 10km away from downtown of Chengdu. Covering an overall planning area of 23 sq.km, this zone is divided into Electron Industrial Park, Machinery Industrial Park, Food Industrial Park, Pharmaceutical Industrial Park, Fuzhou Industrial Park, and Yiqi Qingdao Factory (Chengdu Branch) Industrial Park. More than RMB 300 million yuan has been invested into infrastructure construction in this zone, where auxiliary facilities of water, electricity, gas, road and communication are perfect. Four advantageous industries (electronic information, food & beverage, pharmaceutical, machinery manufacturing) have been formed. This zone has gathered a large number of domestic and foreign famous enterprises, e.g. Coca Cola, Australian Hot Stream Storage Water Heater, Taiwan President Package, Yiqi Qingdao Factory (Chengdu Branch), Shanghai Zijiang, Zhuhai Zhongfu, Shenzhen Yangzhiguang, Chengdu Xuguang Electric Equipment Factory, Sichuan Kelun Pharmaceutical Factory, Chengdu Engine (Group) Co.,Ltd, etc. There are one listed company and subsidiaries of 13 listed companies.

Preferential Policy for Investment
Enterprises established in this zone are entitled to enjoy preferential policies for west development issued by the central government and province (city) and key industrial zones, and other preferential policies provided by local government.
　　① Preferential policy for tax
Besides preferential policies issued by the central government and province (city) for encouraging investment, special preferential policy for development of west China and special preferential policy for provincial key development zones, policy of financial reward support with different proportions is granted to enterprises entering this zone within 1st to 6th year from the date when the sales income has been realized according to their paid taxes. Special policy of “one discuss for one project” is executed for special project.
　　② Preferential policy for land
Besides preferential policies issued by the central government and province (city) for encouraging investment, special preferential policy for development of west China and special preferential policy for provincial key development zones, policy of financial reward support with different proportions is granted to enterprises entering this zone within 1st to 6th year from the date when the sales income has been realized according to their paid taxes. Special policy of “one discuss for one project” is executed for special project.
　　③ Other preferential policies
Urban residence fee is exempted for administrative personnel, backbone technicians and their dependents of enterprises entering this zone.
Policy for children’s entry into school and employment shall be executed according to policy for Xindu’s residents.
　　④ Charging Policy
　　Water: price for industrial water is 2.07 yuan/m3, price for domestic water is 1.45 yuan/m3.
?Electricity: price for huge industrial electricity use is 0.42yuan/kwh, price for different electricity prices in dry/peak season are executed separately.
　　Gad: price for industrial gas is 1.15 yuan/m3, price for huge gas use is within 1 yuan/m3.
　　Fees for application for construction: reduced by half according to provincial and municipal standards.

Superiority
Superiority of building cost in industrial zone—This zone has a flat topography. Geologic, meteorologic and hydrographic data show that this zone is suitable for any building. Comprehensive costs of buildings of enterprises entering this zone can be reduced by 1%. This zone is located in West Sichuan Plain, average altitude is about 490m, relative height difference is 6m, average gradient from west to east and from north to south is 2.2%, this zone enjoys semitropical moistness monsoon climate, it is not very cold in winter and not very hot in summer. Good climate condition has created good engineering geologic condition in this zone, basic bearing capacity is [R]200-700KN/m2. This zone is suitable for building the industrial workshops and skyscrapers. Flat geology and physiognomy in this zone have avoided a lot of excavation and sand backfill during construction course, thus, investment costs of enterprises in earlier stage have been reduced to the greatest extent.

Cost superiority of infrastructure in industrial zone—enterprises entering this zone are entitled to enjoy preferential policy for infrastructure, this policy can reduce 3-5% of initial investment costs of enterprises.

Human resource superiority in industrial zone----Many universities/intuitions (such as Southwest Petroleum Institute, Sichuan Conservatory of Music, etc.) incubate nearly 10,000 various technological and comprehensive talents to the society every year. Xinjin’s good transport condition enables rapid connection of Chengdu’s center and Xindu’s urban area, human resources can flow freely to meet various demands, this has realized interaction of human resource.

Enterprise collaboration superiority in industrial zone----“focusing on industrial planning” and “emphasizing incubation of industrial chain” are principles during development course of this zone. There are over 100 basic auxiliary enterprises engaged in food, machine and electricity, etc. e.g. soft/hard package enterprises, such as Taiwan President, Shanghai Zijiang, Zhuhai Zhongfu, Chengdu Yuncheng Plate Making, etc; machinery manufacturing enterprises, such as Yiqi Qingdao Factory (Chengdu Branch), Chengdu Engine Group, Chengdu Oil Cylinder Factory, etc; these enterprises can provide instant design, fabrication, packing and processing services for new enterprises, thus the new enterprises can reduce logistical and transport costs. This zone has provided huge space and platform for enterprises to form industrial collaboration, auxiliary processing and cluster effect, etc. and has promoted industrial and intensivism development of this zone.

Transport cost superiority in this zone

Achievements
After ten years of development, some advantageous industries have been formed in this industrial zone, e.g. electronic information, food & beverage, biological pharmaceutical, machinery manufacturing, modern packaging, modern logistics, etc., these industries have attracted investors from nearly 20 countries and regions, e.g. USA, HK, France, Germany, Japan, Australia, etc. As of 2003, there have been 188 enterprises in this zone, the total planned investment has been RMB 7.25 billion yuan, the accumulated finished investment has been RMB 5.206 billion yuan. In 2003, this zone has realized total industrial output of RMB 3.996 billion yuan, sales income of RMB 3.867 yuan, and taxes of RMB 245 million yuan. The income from export for earning foreign currency has been US$ 14.44 million, and there have been 2 list companies and subsidiaries of 13 listed companies.