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A Demo of an Integrated Future

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A Demo of an Integrated Future COLLIERS FLASH REGIONAL PLANNING & DEVELOPMENT | RESEARCH | EAST CHINA | 02 JUNE 2020 A DEMO OF AN INTEGRATED FUTURE Yihong Song An introduction to the Ecological Demonstration Zone in Yangtze River Delta Senior Manager | Research | East China +021 6141 3602 [email protected] Insights & A BREAKTHROUGH OF Figure 1: Location of the Demo Zone Recommendations East China Sea YRD INTEGRATION Nantong The Ecological Demonstration Zone (Demo Zone) offers The integration of the Yangtze River Delta (YRD) has been one of China’s goals since November Changzhou institutional and policy 2018. As one of the largest mega city clusters, the advantages which attract Wuxi YRD involves most major cities in Jiangsu, Suzhou Hongqiao CBD headquarters, research Zhejiang, and Anhui provinces, and the city of institutions and R&D centers. Shanghai. In November 2019, as a joint effort of Shanghai Looking at the functional the three provinces and Shanghai, the Ecological Dianshan Lake Innovation Hub planning, industrial positioning, Demonstration Zone (hereinafter referred to as investment promotion and the "Demo Zone") was launched, which marked a The Demo Zone Jiaxing operation management, we breakthrough and milestone of YRD integration. recommend: Containing three regions from Jiangsu, Zhejiang Zhoushan and Shanghai that are adjacent to each other Hangzhou > The Demo Zone executive (Wujiang county in Suzhou, Jiashan county in Ningbo committee should set clear Jiaxing, and Qingpu district in Shanghai), the Demo industrial goals and Zone focuses on breaking bottlenecks to positioning, as well as integration such as the coordination of industrial development, collaboration in technology The Demo Zone identifying business need in Land area: 2,300 sq kms innovation, and the free flow of talent and capital. Hongqiao CBD advance to better attract Total GDP: 377.8 billion RMB Its pilot experience should also provide lessons for innovative industries and Qingpu the collaborative development of the entire YRD. GDP: generate economic synergies. Wujiang 116.6 billion Five towns, Jinze and Zhujiajiao in Qingpu, Lili in GDP: RMB 198.5 billion > We recommend green and Wujiang, and Yaozhuang and Xitang in Jiashan, RMB smart technologies be widely covering a land area of 660 square kilometres, Jiashan The Pilot Region adopted to help achieve the were selected as the Pilot Region. GDP: Land area 62.7 billion 660 sq kms Demo Zone’s goal of RMB balancing sustainability and economic development. Source: Public information, Colliers International COLLIERS FLASH REGIONAL PLANNING & DEVELOPMENT | RESEARCH | EAST CHINA | 02 JUNE 2020 Figure 2. Timeline for the establishment of the Demo Zone Access criteria for Industrial The Demo Zone plan approved by State Council The first batch of 33 key projects announced Projects issued May 2019 Oct. 2019 Nov. 2019 Feb. 2020 Apr. 2020 May. 2020 The Demo Zone plan announced The Demo Zone officially launched The Financial 16 policies issued NEW RULES SETOUT FOR TESTING Figure 3. The Demo Zone regional integration measures Objectives and measures Aiming at addressing barriers to increased synergy, the Demo Zone is testing out Concerted For preparing, approving and implementing of development planning governing innovations including collaborative management rules, facilitating free management For providing integrated services for industry development flow of resources, infrastructure improvement and deepening intra-government rules For protecting ecological environment connections via shared tax and public services. These new rules apply consistent • To push for consistent intra-regional financial intra-regional urban planning and industry development, a joint effort on services environmental protection, coherent financial and talent services, and improved • To pilot joint credit issuance railway and metro networks across the Demo Zone (see Figure 3). We foresee an Finance • To establish dedicated financial institutions for the Free flow of Demo Zone development additional series of pilot policies for further regional integration which will also build resources experience for future projects. • To issue coherent technical certifications • To establish a consistent talent evaluation system Talents • To provide one-stop registration service for foreign A SOLID PUSH FOR SUSTAINABILITY talent • To consolidate tax collection The YRD not only has strong scientific research outputs, but also specializes in Taxation • To pilot tax-sharing mechanisms commercializing them: new technologies such as big data, cloud computing and AI • To provide coherent basic healthcare insurance Deepened Public services • To establish an intra-regional hospital alliance are transforming traditional industries into new clusters of advanced manufacturing, connections biomedicine, new energy and new materials. This provides a solid base for • To improve intercity railway and metro networks innovative industries to grow in the Demo Zone. In February 2020, the first batch of • To provide 5G network coverage in key areas Infrastructure nine key industrial projects in the Demo Zone were announced, and they were all Source: Master Plan of the Demo Zone, the 16 Financial Policies of Demo Zone, Colliers International innovation-focused, including Huawei’s R&D center located near Dianshan Lake in Qingpu (see Figure 5). We foresee an increasing number of technology Figure 4: Industrial base of Qingpu, Wujiang and Jiashan, 2018 headquarters, research institutes and R&D centers would choose to settle in the region. Qingpu Wujiang Jiashan logistics exhibition integrated The Demo Zone is also positioned to serve as a role model of balancing sustainability circuits trading IT connected and economic development. According to the recently issued Access Criteria for Key industry intelligentintelligent intelligent vehicles Industrial Projects, only resource-saving and environment-friendly businesses were manufacturing manufacturing digital content allowed in the region, with the most strict standards imposed for emissions, energy No. of high-tech and water consumption. As the Hub of Green Innovation, the Dianshan Lake area is 382 488 177 companies positioned to be the main cluster of innovative businesses in the Demo Zone. No. of patents granted 3,085 5,492 2,324 Source: 2019 Yangtze River Delta Digital Integration Report, Colliers International 2 COLLIERS FLASH REGIONAL PLANNING & DEVELOPMENT | RESEARCH | EAST CHINA | 02 JUNE 2020 Figure 5: The Demo Zone’s first batch of key innovative CATCHING UP ON PUBLIC SERVICES industries projects In order to attract innovative businesses and global talent, the Demo Zone is catching up on Location Project Name Industry Terminal chips, wireless providing high quality services and amenities. The first batch of key public service projects in HUAWEI Qingpu R&D Center the region involves cultural tourism, education, healthcare and transportation. In the future, networks, Internet of Things Precision Measurement Park Integrated circuits more projects are planned to further improve the convenience and connectivity while Qingpu Kingfa Global Automotive facilitating economic growth. Materials Innovation and New materials for automobiles Development Center BOE Flexible Intelligent Display Electronic equipment (displays) RECOMMENDATIONS: TAKE ACTION EARLY Terminal Project Looking ahead, development in the Demo Zone should be higher quality. We therefore Wujiang Innoscience Gallium Nitride Project New semiconductor materials advise the government in four directions. Advanced Functional Fiber New fiber materials, high-end Innovation Center fiber materials > Set clear industrial goals and positioning. One of the main goals of the Demo Zone and Yaozhuang Luxshare Intelligent Consumer electronics, the entire YRD is to generate economic synergies. The Demo Zone executive committee Manufacturing Project automotive electronics Lithium Werks Lithium Battery and thus needs to promote a clear vision of the positioning and goals for industrial Jiashan New energy development by reviewing the value chains of key sectors that match the local industrial System Integration Project Smart healthcare, artificial base. YRD Future Town intelligence, digital economy > Work with industry to identify needs in advance. Business parks in the Demo Zone will Source: public information, Colliers International likely host most of the innovative industries in the Demo Zone. Therefore, the Figure 6: The Demo Zone’s first batch of key public management committees and landlords should actively reach out to potential tenants to understand their needs and special requirements for properties and supporting facilities services projects and refine their development plans accordingly. Industry Project Name Xitang Songcheng Performing Arts Valley > Apply green and health technology standards. Since promoting a green economy and Cultural tourism Beautiful Countryside Project sustainable development are two main goals of the Demo Zone, green technologies and Jiangcun Featured Country Projects standards such as LEED, WELL and Sponge City recapture rainwater projects should be Lansheng Fudan School Qingpu Branch used to improve sustainability and stay ahead of the competition to attract quality Education Suzhou University Future Campus businesses. Jiashan Fenghui School > Integrate smart solutions on planning stage. As smart cities are becoming more Fudan University Affiliated Obstetrics and prevalent, we advise landlords to adopt smart solutions and incorporate them early in Gynecology Hospital
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