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Research Report on the Investment Environment of City, Province

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20m Preface Foshan

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Located at the heart of the economically vibrant Pearl At a time of new opportunities, Deloitte China (here- n

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River Delta (PRD), the City of Foshan is conveniently inafter “Deloitte” or “we”) is honored with the request o

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a and to the south. It enjoys great strategic im- this Research Report on the Investment Environment y

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s portance as a significant part of the Guangdong-Hong of Foshan City, Guangdong Province for investors from s e

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g Kong-Macau (GDHKMC) Bay Area, the Guangzhou-Fos- an objective third-party perspective using specialized e r

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e han integration plan, the Guangzhou-Foshan- research and analysis methodologies. d Guangzhou Baiyun i c a International Airport t Car Travel (GZFSZQ) Economic Circle and the PRD Economic Zone, e In addition to information and data on the economic d

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in Expressway as well as a critical hub along the Belt and Road”. As the and industrial development of Foshan, this report also e n-Zhaoq 1h30m Guangzhou Baiyun third largest city in Guangdong Province, Foshan boasts ha in includes views and insights obtained through inter- s g Foshan Fo In - t International Airport u e 60km a strong economy, and was ranked 16th in the 2017 o r views with various government officials and companies’ c Sanshui h i t z

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rankings of Chinese cities by GDP. R

n management in the city, combined with Deloitte’s rich a

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G ine Ring Expressway L a During the 12 Five-Year Plan period (2011-2015), Fos- experience in the research of investment environment uangzhou lway

G H ai y h g- igh d R 2 n -S pee a Foshan Hong Kong han upheld the strategy of building an industry-driven and industrial development. The Research Report aims iy First Ring Road of u 181km city. It prioritized smart manufacturing on its agenda of to present a comprehensive overview of the investment G Foshan

ailway Line Ring industry transformation and upgrading, while optimiz- environment in Foshan from the following five aspects: d R Expressway ee Sp ing its competitive sector clusters in the manufacturing • Government policies and services h- Foshan West ig 2h H Railway Station u Guangzhou Foshan industry, such as sectors of household appliances, ce- • Business environment o Macau h Zhaoqing z 135km g n Huangpu Port ramic building materials, metal products, automobiles • Infrastructure a u G - and auto parts, and machinery equipment manufactur- • Human resources g n Foshan i Chancheng G n u ing. The city also nurtured strategic emerging industries • Living environment n a a District Sanshan Port n 2h10m Shenzhen Bao’an g N z Foshan h including electronic information, energy saving and Guangzhou o The Report also analyzes the development planning of u 127km International Airport - South Railway S h environmental protection, and healthcare and wellness. e Foshan and featured services provided by competent Station n Guangzhou-Foshan z h Such focused efforts made by Foshan in transformation Line Metro Line e authorities, presenting insights into its advantages in n R a and upgrading of its industry structure had enabled the i l h m investment environment and development prospects, w 2 20 Zhuhai Jinwan a Foshan Delta y city to enter more specialized areas and move up the L Airport specifically: i New Line Airport n 155km Guangzhou-Shenzhen-Hong e value chain steadily. • Premium geographic location and favorable business G Kong Express Rail Link ua le th n rc During the 13 Five-Year Plan period (2016-2020), and living conditions gzh Ci Nansha Port - olis Foshan is leveraging the opportunities brought by the • Targeted government policies and efficient adminis- Gu Foshan Metrop ang coordinated implementation of China’s strategies of trative services zh le ou- irc G Fos ic C u the GDHKMC Bay Area, the innovation-driven devel- • Unique industry clusters and strong innovation mo- han- nom a Zhaoqing Eco n

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z opment and the Belt and Road Initiative. Envisioning mentum h o u to shift from “Made in Foshan” to “Created in Foshan”, -Z As China deepens its progress on economic growth h u h Shenzhen Bao’an the city is focusing on high value-added industries a model shift as well as transformation and upgrading, i In International Airport te and innovation-intensive industries. Its unremitting r Foshan is further aligning with the national strategies to c i Shenzhen t y pursuit of an innovation-driven development model create a more attractive, competitive and sustainable R a i l centered on advanced technologies will further im- w business environment. a prove industries’ competitiveness and enable more y sustainable development.

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Foshan Urban Rail Transit Planning Map (2017-2022) Table of Contents

Chapter I Overview of Foshan City Basic Facts ...... 3 Local Economy ...... 4 Chapter II Business Environment A Cluster of Competitive Manufacturing Industries ...... 7 • Traditional Household Appliances + Smart Manufacturing • Traditional Manufacturing + Machinery Equipment Strategic Emerging New Industries ...... 10 • Electronic Information & Energy Saving and Environmental Protection • Medical and Health Care Platforms Enabling Industry Development ...... 12 Innovation and Start-up Environment ...... 14 • R&D and Innovation Advantages Analysis • Industry-University-Research Partnership & Talent Cultivation for Innovation and Entrepreneurship

Chapter III Infrastructure Transportation Network ...... 17 Public Infrastructure ...... 19 Chapter IV Human Resources Human Resources ...... 21 Chapter V Living Environment Education and Healthcare ...... 24 Urban Living ...... 25 Cultural Landscapes ...... 26 Chapter VI Government Policies and Services Transparent and Targeted Government Policies ...... 28 • Policies in Support of Industry Development • Policies in Support of Technological Innovation • Policies in Support of Talent Development • Policies in Support of Financial Development Innovative and Highly Efficient Government Services ...... 32 Chapter VII Summary and Vision Summary and Vision ...... 34

Appendix Appendix I: Distribution Map of Industry Parks ...... 37 Appendix II: Contact Information of Main Government Agencies for Investment Services in Foshan, Guangdong Province ...... 39

Research Report on the Investment Environment of Foshan City, Guangdong Province 1 Basic Facts

Premium Location and Emerging Opportunities so as to achieve its strategic goals of shifting from “Made in Located at the heart of the economically vibrant PRD Foshan” to “Created in Foshan”, and from “Large Industrial region, Foshan is close to Hong Kong and Macau, and ad- City” to “Strong Industrial City”. jacent to Guangzhou on the east. It is a significant part of Closer Cooperation and Better Integration for the Guangzhou-Foshan Metropolis Circle and the GZFSZQ the Bay Area Development Economic Circle. The city is now conveniently connected Foshan is committed to making joint efforts with its Chapter I by the diversified transportation network comprised of first-tier neighbors, such as Guangzhou, Shenzhen and the Guangzhou-Foshan Intercity Railway Line, the Guang- Hong Kong, to build the Bay Area into a world-leading zhou-Foshan-Jiangmen-Zhuhai Intercity Railway Line, the city cluster. For example, it is co-constructing the Nan- Overview of Foshan City Guangzhou-Shenzhen-Hong Kong High-Speed Railway sha Port with Guangzhou and Zhongshan, to further im- Line, the Hong Kong-Zhuhai-Macau Bridge and other in- prove the transportation network within the Bay Area. It frastructure. As a result, Foshan is further integrated into has also reached cooperation intention with Hong Kong 1 the “one-hour economic circle” of the GDHKMC Bay Area , on 11 key projects in 7 areas, on the basis of a new ready to promote human resource exchange, currency cir- cooperation model between the two cities. Through all culation, policy communication, financing, and information these efforts, Foshan has been deeply integrated into sharing among the cities in the Bay Area. Leveraging the the nationally strategic GDHKMC Bay Area project. premium location, Foshan is making every determined ef- Foshan is ready to further strengthen the backbone of fort to take the emerging opportunities in the new era and the PRD city cluster together with other cities in the Bay push forward innovation-driven development, with a view Area, through pioneered innovations in regional open- to becoming a bright pearl in the west of the PRD region. ing-up and cooperation models as well as shifted driving Smart Manufacturing and Innovation-driven force for development. It aims to help the Bay Area de- Development velop into a region with the most comprehensive market As an industry center in the GDHKMC Bay Area and a economic system and the most vibrant economy. leading city on the west bank of the Pearl River in terms Rich Cultural Heritage and New Development of equipment manufacturing, Foshan is well placed to Momentum capitalize on its advantages in this industry, with smart Having nurtured and inherited the Culture, Foshan manufacturing at the core, to promote cluster-based is recognized as a National Historical and Cultural City in and high-tech-driven development facilitated by an China, and the home of Opera, martial arts and integrated value chain, as part of the efforts to achieve lion dancing. It boasts rich cultural heritage, time-honored comprehensive transformation and upgrading. architecture of typical Lingnan style, and abundant intan- To function as a major participant in the synergic inno- gible cultural heritages, presenting a panorama of Lingnan vation system of the Bay Area, Foshan is implementing culture and folk customs. It is also a city of creativity that its strategic planning of “First Ring Innovative Circle”. pioneers in innovatively using modern art and cultural Efforts are continuously made to develop an attractive events and advanced technologies to optimize its cultural leading-edge area of global influence, supported by a ful- environment. With an integrated culture featuring valuable ly-fledged technological innovation system. The city aims to traditional and modern elements, Foshan is demonstrating pursue the innovation-driven development model of “Glob- unique and vigorous merits to the world. al Technologies + Made in Foshan + International Markets”,

Titles & Honors • National Historical and Cultural City • National Model City • National Garden City • The City of Martial Arts in China • The Leading City in Education Modernization in Guangdong Province • National Leading City in Technological Advancement • National Double Support Model City • Award for Best Practices to Improve the Living Environment (awarded by the United Nations)

Note: 1. GDHKMC Bay Area refers to a city cluster comprised of the special administrative regions of Hong Kong and Macau, and nine cities in Guangdong Province, namely: Guangzhou, Shenzhen, Foshan, Dongguan, Huizhou, Zhuhai, Zhongshan, Jiangmen, and Zhaoqing.

2 Research Report on the Investment Environment of Foshan City, Guangdong Province 3 Local Economy Local Economy (Continued)

Economic Development at a New Level Table 1: Foshan’s GDP and Its Composition (2011-2017) Further Growth of Imports & Exports Table 3: Import and Export Value of Foshan (2011-2017) th • In 2017, Foshan witnessed a year-on-year increase (In RMB Billion) • Since the beginning of the 12 Five-Year Plan period, (In RMB Billion) 955 433.3 435.7 Foshan has made great progress in economic growth, 863 of 6.1% in the total volumes of import and export 402.6 408.7 800.4 383.5 384.5 371.2 with its GDP increasing by approx. RMB 300 billion. In 760.3 trades, to RMB 435.74 billion, with the export volume 701 increasing by 1.7% to RMB 315.36 billion, and the im- 2017, the GDP of Foshan grew year on year by 8.5% 658 670.9 to RMB 954.96 billion1. With a steady progress, Fos- port value increasing by 19.6% to RMB 120.38 billion. han ranks third in Guangdong Province in terms of • In 2017, the volume of the import and export trades GDP, and 16th among the Top 100 cities in China. in Foshan with the Association of Southeast Asian • In 2017, the industry structure of Foshan has been Nations (ASEAN) and the USA continued to grow at a further optimized towards “tertiary, secondary, pri- double-digit rate. The volume of trades with countries mary industry” (in the order of the proportion of con- along Belt and Road accounts for 31.4% of the city’s tribution to GRP, from highest to lowest). Specifically, total import and export volume, among which the the ratio of primary-secondary-tertiary industries volume with Thailand, Malaysia, India and 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 amounted to more than RMB 10 billion. changed to 1.5:58.4:40.1 in 2017 from 1.7:59.6:38.7 Import Export Import & Export in 2016. The value added of the secondary industry Primary Industry Secondary Industry Win-Win Results by Going Global and Bringing in Tertiary Industry GDP • Over the past few years, the outward investment reached RMB 557.02 billion, the most among the Vibrant Capital Market three industries, while the value added of the tertiary made by Foshan-based Chinese companies has seen • The capital market provides an important platform for the industry was RMB 383.35 billion, serving as a new a dramatic growth. From 2015 to 2017, 112 outward Continuous Growth of Industrial Economy optimal economic development of Foshan. As of 2017, driver for local economic growth. investment projects were launched, with over USD 5.8 54 companies in Foshan have gone public (including two Steady Increase of the Overall Industrial Output Value billion invested by local Chinese companies, rising by Transformation and Upgrading of the companies that have gained approval and are preparing In 2017, the overall output of Foshan’s industrial en- 2,066.67%. Local companies in Foshan, represented Consumer Market for their IPO), with the market capitalization amounting terprises with an annual revenue of RMB 20 million or by the and Guangdong SACA Precision • In 2017, the total retail sales of consumer goods in to RMB 972.2 billion. Foshan, therefore, has been ranked more increased by 8.7% to RMB 2,235.07 billion. With the Manufacturing, have started going global, expanding Foshan grew 10.0% year-on-year to RMB 332.04 bil- seventh among the cities in China in terms of the market strategic goal of building an advanced, intelligent and en- beyond the domestic market. lion, maintaining at a double-digit growth. Dedicated cap of listed companies. This is the first time that Foshan vironmentally friendly industrial sector, Foshan strives to • As of February 2018, 10,497 foreign direct investment to upgrading the consumption patterns and mak- has been listed among the Top 10 cities. develop into a large but also strong industrial city. (FDI) projects have been launched in Foshan with the ing innovations in consumer goods supply, Foshan • At the same time, Foshan has been promoting high and Largest Scale of Investment in Industrial Technology total investment value amounting to USD 80.88 billion, encourages traditional retail businesses to develop new technology companies and those with an annual Reform in Guangdong Province including a contractual FDI of USD 41.93 billion. Among e-commerce, to promote the integration of and in- revenue of RMB 20 million or more to engage in the the foreign investors are 60 Fortune 500 companies teraction between online and offline markets in the In 2017, Foshan invested RMB 77.15 billion, a year-on- multi-layered capital market. So far, 142 high- and new- investing in 116 projects in industries including food, new wave of opportunities created by the “Internet+” year increase of 39.4%, in industrial technology reform, tech companies have been listed on the mainboard and auto parts, electrical equipment and chemicals. Fos- model. The city has opened the door of the consum- ranking first in Guangdong Province. By investing in technology board of the Guangdong Equity Exchange han has risen as an attractive investment destination er markets’ transformation and upgrading with the manufacturing facilities including industrial robots, nu- and 3 have gone public in China through IPO. These for more and more multinational companies. new retail pattern of “Online + Offline”. merical control machines, and fully automatic produc- public companies have become the main force of the tion lines, the city is on the way of transforming from economic development in Foshan. Table 2: Foshan’s Total Retail Sales of Consumer “Made in Foshan” to “Created in Foshan”. Table 4: Some Fortune 500 Investors in Foshan Table 5: Major Business Players in Foshan Goods (2011-2017) Buoyant Development of Private Sector Anheuser-Busch, , DuPont, Invista, USA (In RMB Billion) In 2017, the total industrial output of the private Kohler, Tyco, Genpact Local Companies Listed in Fortune 500 2011 193.1 sector in Foshan increased by 10.2% to RMB 1,584.55 Midea Group Co., Ltd. Holdings Co., Ltd. billion, contributing to 81.3% of the industrial growth of Toshiba, , Honda, Aeon, ITOCHU, Japan 2012 202 Foshan. Many private sector brands have established Sumitomo Corporation Local Leading Companies 2013 226.4 a presence in China and the rest of the world, such as Volkswagen, Siemens, Fiat, BP, Total, Veolia, Haitian Flavouring and Food, Jianlibao, Midea and New Haitian Flavouring and Food Qunzhi Photoelectric 2014 256.1 Europe Zhong Ceramics. ArcelorMittal, Basf, Shell Group Lesso Technology 2015 268.7 Hutchison Whampoa Limited, Esquel, Hong Sun Hung Kai Properties, New World 2016 301.8 Kong Vanward New Electric New Pearl Ceramics Development, 2017 322 Xingfa Aluminium Esquel Group AB InBev, Keppel Logistics, CapitaLand, LG, Others Posco Note: 1. Unless otherwise expressly stated, all currencies are reported in RMB in this report. Keda Clean Energy Foshan Electrical and Lighting Source: 1. Statistical Communiqué of Foshan (2011-2017); 2. The Yearbook of Foshan 2017; 3. The official website of the Foshan Municipal Statistics Bureau; 4. The official website of the Foshan Municipal Government Source: 1. Statistical Communiqué of Foshan (2011-2017); 2. The Yearbook of Foshan 2017; 3. The official website of the Foshan Municipal Statistics Bureau; 4. The official website of the Foshan Municipal Government

4 Research Report on the Investment Environment of Foshan City, Guangdong Province 5 A Cluster of Competitive Manufacturing Industries

Serving as a Chinese manufacturing base in the GDHKMC Bay Area, the city of Foshan has devoted efforts to es- tablish a new industry development pattern on the foundation of its strengths in traditional industries supported by the pillar of advanced manufacturing with a focus on strategic emerging industries. In response to a series of China’s national strategic initiatives, including “Made in China 2025” and the “Integration of Informatization and In- dustrialization”1, Foshan is currently committed to improving the quality and efficiency of production in its six major traditional industries, including household appliances, ceramics and furniture, while following a path towards smart high-end upgrading featuring technological innovation and “Internet+” models, as part of its endeavor to facilitate a Chapter II full-fledged chain across all its traditional competitive industries and foster a cluster-based new driving force. Business Environment Traditional Household Appliances+ Smart Manufacturing Drawing on the core technologies of smart manu- facturing, Foshan is continuing its efforts to promote innovative development of its traditional household appliances manufacturing towards smart upgrading across the industry.

Household Appliances Industry

Overview: As a key manufacturing base of household appliances in China, Foshan leads the country in the production and sales of white goods, including mi- crowave ovens, washing machines and refrigerators. Building on its solid strengths in the household appli- ances industry and a full-fledged sector cluster, Fos- han has nurtured a large number of leading compa- nies and renowned brands of household appliances. The household appliances industry, as the core of Fos- Internet + Smart Manufacturing han’s traditional industries, generated a total output Over the past few years, Foshan has made great efforts to value of around RMB 211.17 billion in 2017, up by 9.1% deepen the integration of manufacturing industries with over the previous year, accounting for 24.7% of that of Internet, big data and artificial intelligence technologies, Foshan’s six major traditional competitive industries. and facilitate the expansion of the digital economy. By Leading Companies: Midea Group, Galanz Group, promoting the innovative “Internet + Smart Manufacturing” SHIMPO, vanward business models, such as web-based collaboration, cus- tomization, online value-added services, and shared manu- facturing, it is driving the manufacturing industries towards Building on a variety of key technologies of smart manufacturing and advanced experience in smart manufacturing of industrial digital, web-based and intelligent-oriented development. robots, numerical control machines, and other equipment, Fos- In the robot industry, for example, Foshan is proactively han is stepping up its efforts to develop digital management on rolling out the Smart Manufacturing Program and the supply chains, automatic manufacturing, and smart household Robots-driven Development Initiative, and has launched appliances, as an endeavor to facilitate optimized upgrading and the Plan of Foshan to Promote Robots Applications and innovation across the household appliances industry. Support the Robots Industry Development (2018-2020), • Internet of • 3D printing • Microprocessor to encourage companies to transform industrial technolo- Things (IoT) • Man-machine • Sensors gies for the development of smart manufacturing. • Cloud interaction • Network com- computing • Sensors munications Midea Group, a Fortune 500 company based in Foshan, is cooperating with KUKA, a world leading supplier of robots, for the research and innovation in big data and AI tech- nologies. It strives to offer automation and business solu- Supply chain Manufacturing Household tions applicable to different complicated manufacturing Appliances situations, laying the ground for potential human-robots Connection of All Industrial Segments collaboration in smart manufacturing.

Note: 1. Integration of Informatization and Industrialization: an in-depth integration of information technology and industrial applications in a mutually supple- mentary manner to foster a new industrial development model fuelled by the synergistic effects of information technology and industrial applications. Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Development and Reform Bureau; 3. Foshan Municipal Economic and Information Bureau 6 Research Report on the Investment Environment of Foshan City, Guangdong Province 7 A Cluster of Competitive Manufacturing A Cluster of Competitive Manufacturing Industries (Continued) Industries (Continued)

As the only pilot city in China for manufacturing transformation and upgrading, Foshan has been boosting the trans- In line with the national strategy to promote green, smart and IT-based development for the automobile manufactur- formation and upgrading of traditional manufacturing driven by machinery equipment manufacturing, as part of its ing industry, Foshan has seized the opportunity to expand the scale of its automobile industry, while optimizing the unremitting endeavor to promote integration of different manufacturing sectors. The city has focused on optimizing industry structure and spatial layout, to build a leading automobile industry cluster in China worth RMB 100 billion the allocation of available resources, while promoting industry development and quality improvement, in an effort to through the accelerated clustering of industry elements and innovation resources in the city. accelerate synergistic and innovation-driven development of both advanced and traditional manufacturing. It is mak- ing every effort to become China’s national center for manufacturing innovation and a city strong in manufacturing. Traditional Automobile Manufacturing New Energy Vehicle (NEV) Manufacturing Featuring Solid Industry Foundation Showcasing Great Clustering Effect Traditional Manufacturing + Machinery Equipment The automobile and parts manufacturing in Foshan The NEV industry represents one of the three prioritized The manufacturing of general and specialized machinery equipment in Foshan is featured by special-purpose light maintained a high-speed growth in 2017, with the an- strategic emerging industries in Guangdong Province, machines for ceramic, textile, and plastic production. With the help of automatic and advanced technologies and nual total output value reaching over RMB 71.96 billion, and also a focused area in the initiative of constructing equipment, the city’s competitive traditional industries covering ceramic, metal, furniture and textile production are accounting for about 7.0% of the city’s gross output val- an industry belt for advanced equipment manufacturing developing towards innovative upgrading with internationally advanced equipment and technologies. ue in advanced manufacturing. along the west bank of the Pearl River. Foshan has launched a series of pilot projects for smart As a result of the city’s continuous efforts to foster a new Ceramic Production Metal Production Furniture Production Textile Production manufacturing of traditional auto parts led by leading driving force for the auto industry through exploration of corporations such as Toyota Boshoku, Aisin Seiki and new paths to develop NEVs, Foshan has so far established Overview: Renowned as Overview: With a solid foun- Overview: As a key Overview: Foshan has Delian Group, thus forming an industry cluster of au- a well clustered NEV production base covering the areas China’s hub of ceramic dation of metal production, manufacturing base for fostered a mature man- production, Foshan is Foshan is also known as a higher end furniture ufacturing and sales tomobile accessories including engines, electronics, of R&D and production of essential parts, battery recycling equipped with the most stainless steel processing in China, Foshan is base supported by molds, tires and coatings. and reusing, and whole vehicle manufacturing. complete chain of sup- and trade center. In 2017, it home to around 1,000 well-established supply Foshan is now home to four automobile manufacturers, Foshan is also making focused endeavor on innovative porting services and com- achieved a 17.3% increase furniture manufactur- chains for a wide range including FAW-Volkswagen Base and Nanhai key technologies and their commercial applications, mercial facilities, and the of the total output value of ers, selling products to of textile products rep- Automobile Factory of Beiqi Foton Motor, and two spe- while developing critical materials and core parts with most innovative industry metal production over the many European and resented by the Zhang- cial-purpose vehicle manufacturers (Yuehai Automobile independent intellectual property, such as fuel cells. clusters in China, produc- previous year, marking an American countries, as cha knit works, Xiqiao Factory and Luzhiyou Machine Manufacture Co., Ltd.), which The persistent efforts on innovative R&D of cutting-edge ing many world reputable industry development in well as Japan, with an fabrics, and Jun’an jeans, produce an extensive variety of automobile products. technologies have provided inexhaustible impetus for ceramic brands. increasing presence in both quantity and quality. remarkably contributing Foshan operates one of the three major automobile manu- the city’s further development of NEV industry. the global market. Leading Companies: Leading Companies: to the regional industry facturing bases in Guangdong Province, which is equipped Dongpeng Ceramics, Guangya Aluminium Leading Companies: development. with complete industrial facilities for production of whole Case Study Monalisa Group, New Industry, Huanan Steel, Wision Furniture Man- Leading Companies: vehicles and auto parts and accessories and serves as a Pearl Ceramics Xingfa Aluminium ufacturing, Alishunlin The “NEV Town” is established in Shunde District of Foshan Esquel Textiles, Seazon significant contributor to the smart, high-end and clustered Furniture to focus on the development of new energy and smart net- Textile and Garment development of China’s automobile industry. work, specifically, production of NEVs and core parts and accessories, and development of the Internet of vehicles (IOV), cloud computing and big data technologies. As of Traditional Manufacturing Overview of Machinery Equipment Manufacturing Industries In 2017, Foshan achieved a total output value of RMB 130.95 billion now, more than 20 leading companies in automobile inno- in general equipment manufacturing, an increase of 13.4% over the vation have signed up and moved into the town, including Integrated Development │ the Headquarter Base of China OptimumNano New Energy Cooperation for Win-Win Results previous year, thanks to its development of world leading technol- ogies and machinery equipment products ranging from ceramic Vehicle Innovation Alliance and IOV Joint Lab. Dedicated to optimal industry development driven by R&D Machinery Equipment presses and dry-type transformers to mattress machines and injec- and innovation, the “NEV Town” is building a Foshan-based Manufacturing tion molding machines. world-class innovation ecosystem for the auto industry. Innovation-driven and Integrated Development Propelled by the vibrant growth of its machinery equipment manufacturing industry, Foshan is vigorously pushing forward an innovative development across all competitive traditional Auto Parts Manufacturing Vehicle Manufacturing Integrated Innovation industries, with a focus on the high-value-added segments in these industries. To this end, enterprises are encouraged to develop and put into use new equipment, materials and Major Enterprises Major Projects Key Platforms techniques, to achieve transformation and upgrading facilitated by automation, high-end • GSE New Energy • Corun CHS Hybrid Electric Vehicles • Guangdong NEV Essential Parts and internationally advanced technologies. • Teamgiant New Energy • NEV Production and Hydrogen Industry Base • Dongfang Precision Science & Power R&D Center of Changjiang • South China NEV Integrated Inno- As of now, leading enterprises in these industries in Foshan have developed innovative Technology Automobile vation Industry Park products including functional ceramics, low-carbon textiles and customized furniture. In the • Brunp Recycling Tech • Greenwheel Pure Electric Passen- • South China Base of National Fuel context of integrated development of competitive traditional industries and the machinery ger Vehicles Cell and Hydrogen Technology Re- equipment industry, Foshan is accelerating resource integration through industry clusters to • Feichi Buses search Centre create an ecosystem featuring win-win results through cooperation across all industries.

Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Development and Reform Bureau; 3. Foshan Municipal Economic and Informa- Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Development and Reform Bureau; 3. Foshan Municipal Economic and Information Bureau tion Bureau.

8 Research Report on the Investment Environment of Foshan City, Guangdong Province 9 Strategic Emerging Industries Strategic Emerging Industries (Continued)

Electronic Information Industry Known as one of the most promising sectors in the 21st century, the medical and health care industry presents a huge Considered as the forefront of automation reform potential market. In an active response to the Plan of Healthy China 2030, Foshan prioritizes the development of four and smart device application, the electronic infor- major segments – biomedicine, medical devices, health services and healthy food and beverages, as part of its efforts mation industry plays a crucial role in intelligent to foster a highly concentrated cluster of medical and health care industry featuring a complete value chain. transformation. Taking advantage of the smart man- ufacturing boom, Foshan has been vigorously devel- A Complete Value Chain Diverse Industry Incubators oping the electronic information industry to boost the growth of the new economy and upgrade the 1 Biomedicine • Nanhai Biomedicine Base and Transla- traditional manufacturing towards intelligentization. Based on biological technologies such as genetic engineering, mi- tional Medicine Center of Guangdong • Based on the Made in China 2025 Foshan Action Plan, Industry Platform – Electronic Information Industry Park crobial engineering and enzyme engineering, Foshan-based com- Academy of Medical Sciences Foshan has seized the golden period of electronic Located at Town of Nanhai District, Foshan Electronic panies have independently developed drugs with new mechanisms • Guangdong Health and Medical Big information industry to prioritize the development of Information Industry Park focuses on the development of a of action and biological targets, antibody drugs, new structural Data Industry Park semiconductor chip manufacturing and integrated new generation of IT sectors comprised of cloud computing, proteins and polypeptide drugs, which have enhanced the core • Guangdong Bio-industry Park for Inno- circuit design. With Nationstar, Qunzhi Photoelectric, big data, Internet of Things, mobile Internet, smart cities competitive edge of the city’s biomedicine industry. vation and Technology Transfer and electronic information. Enjoying superior geographical Halomicro, Gowin Semiconductor and other top com- Leading Companies: Otsuka Pharmaceutical, Medi-World Phar- • China (Nanshan) Medical and Health advantages, it has fostered coordinated development with panies leading the way, the city has been proactively maceutical, Dezhong Pharmaceutical Care Industry Valley Guangzhou Huangjinwei Industry Park which focuses on a nurturing electronic information industry clusters. • Chinasun Pharmaceutical Machinery new generation of information technology and artificial intel- 2 Medical Devices • In this field, the PRD region has seen a great integration ligence. The two industry parks have been sharing industry Foshan has improved its innovativeness in upgrading the pro- Industry Base in Foshan of major industry resources and synergistic develop- investment promotion catalogues and encouraging free duction of medical devices through breakthroughs made in • Nandan Mountain Health Care Cultur- ment. As a major player in the PRD City Cluster, Foshan resources flow in the region, with a view to fully integrating applications of biological 3D printing, pluripotent stem cell al Industry Park has made full use of the regional industry advantages the industry resources of the two cities to enhance region- induction and other state-of-art technologies, with a focus on • China (Sanshui) International Food to proactively engage in the Guangzhou-Shenzhen Sci- al collaborative innovation capabilities and jointly create a high-performance diagnostic equipment such as imaging devices and Beverage Base ence and Technology Innovation Corridor, strengthen Guangzhou-Foshan electronic information industry cluster. and medical robots, high-value medical consumables such as bi- cooperation with Dongguan on innovation resources, odegradable vascular stents, and mobile medical products such and further integrate into the synergistic innovation Energy-Saving and Environmental Protection Industry as wearable devices and telemedicine equipment. system of the GDHKMC Bay Area. Over recent years, Foshan has been devoted to pro- Leading Companies: Qinlian Medical Apparatus and Instru- moting the development of energy-saving and environ- ments, TiCar Biotech mental protection, resource recycling technologies and equipment, as well as supporting energy-saving service 3 Health Services industries, which leads to the scale and clustering de- Foshan has been committed to improving services for health Case StudyYifang velopment of the environmental protection equipment examination, counseling and rehabilitation, and elderly care, Pharmaceutical while strengthening its capability of delivering customized manufacturing industry and the establishment of a As a leading company in modern Chinese health management services. It also encourages coordinated green and low-carbon industry ecosystem. medicine, Yifang Pharmaceutical is dedicat- development of health care, tourism, culture and the Internet • Foshan is taking advantage of key industry platforms ed to reforming traditional Chinese medi- to create new industries, modes and patterns of business. Cases Study – Infore Environment like the Southern China Cluster of Environment Service cine (TCM) decoction with the assistance of Leading Companies: Starcastle Senior Living modern plant extraction technologies. Technology Group Industry and Shunde Energy-saving and Environmental 4 Modern Chinese Medicine and Food & Beverages For years, the company has made scientific Infore Environment Technology Group (SZ000967) is a Protection Equipment Industry Base, and leading com- Foshan has placed a great emphasis on the R&D of purification research and innovation the major driving leading integrated environmental service provider in Chi- panies like Keda Clean Energy and Infore Environment technologies for marine organisms, active ingredients in tradi- forces for its development, and developed a na specialized in environmental protection equipment, Technology Group; it is also engaging actively with Chi- new model that integrates production with tional Chinese medicine and other raw materials using new-type environmental governance and system services. The nese Academy of Sciences to jointly establish a platform research and applications to enable a sys- company fully utilizes “Internet Plus”, big data, and cloud for industry innovation and promote the R&D of new bioreactors and large-scale industrial fermentation devices, in an tematic R&D on the production processes, computing and other emerging technologies, and has energy-saving technologies, aiming to build itself into a endeavor to promote the upgrading of modern Chinese medi- quality criteria, clinical efficacy and safety of independently developed an integrated stereo monitor- well-known exemplary city home and abroad in the en- cine, traditional and healthy food and beverages. TCM formula granules. For its strong techno- ing platform for smart environmental protection, smart ergy-saving and environmental protection industry. Leading Companies: Yifang Pharmaceutical, Haitian Flavoring logical achievements made in facilitating the watersheds, smart industry parks, smart atmosphere • In addition, Foshan is piloting new business models and Food, Hong Fu Loi Healthcare Product, Jianlibao, Budweiser, industrialization of its TCM formulas, Yifang and sponge cities. It is committed to providing custom- Pharmaceutical has won a series of awards such as third-party environmental governance, con- Red Bull, Coca-Cola, Heinz ers with customized and integrated environmental gov- and honors, including Second Prize of the tract energy management, green finance, PPP financ- ernance solutions covering “Monitoring + Governance + National Award for Scientific and Techno- Operation”, facilitating Foshan to achieve breakthroughs ing, and innovative green think tanks, providing a logical Progress, and First, Second and Third in environmental protection and smart manufacturing. new driving force for the development of energy-sav- Prizes of the Guangdong Provincial Award ing and environmental protection industry. for Scientific and Technological Progress. Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Development and Reform Bureau; 3. Foshan Municipal Economic and Information Bureau Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Development and Reform Bureau; 3. Foshan Municipal Economic and Information Bureau

10 Research Report on the Investment Environment of Foshan City, Guangdong Province 11 Platforms Enabling Industry Platforms Enabling Industry Development Development (Continued)

Supported by three key industry development platforms, namely Foshan National High-tech Industry Development With the building of the GDHKMC Bay Area and the deeper integration of Guangzhou and Foshan, an increasingly open Zone, Guangdong High-tech Service Zone for Financial Institutions, and Sino-German Industrial Service Zone, Fos- innovation system has been emerged in the region. Foshan’s development strategy, the “First Ring Innovative Circle”, is han has continuously promoted the innovative development, transformation, and upgrading of its local industries, being implemented in the layout of “one core connecting five platforms with multiple routes” featuring the Chancheng-Nan- contributing to the capacity upgrading of the regional economy. hai-Shunde (Sanlong Bay) High-end Innovation Cluster as the core. Foshan takes the road of “internationally advanced tech- nology + Foshan smart manufacturing + global market”, marking a new era of innovation-oriented development. Fos- Guang- dong High-tech Nanhai-Sanshui han National One Innovative Core Industry Coopera- High-tech Industry Service Zone for One Innovative Core tion Zone Development Zone Financial Institutions Sino-German Indus- Located on the border of three districts of Foshan, (covering Foshan Five Innovative Platforms High-tech Industry – Capital Cluster and trial Service Zone – National Independent the Chancheng-Nanhai-Shunde (Sanlong Bay) Multiple Innovative Development Zone) Financial Innovation – Platform in South China for Sanshui DistrictGuangzhou Baiyun Innovation Demon- High-end Innovation Cluster enjoys remarkable Connecting Routes International Airport stration Zone in in the PRD Strategic Cooperation with geographical advantages with a total area of 93 Qingnian Lake PRD Region Region European companies Electronic Informa-

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a significant supportive base for hosting a large number of industry first-class standards domestically and globally, a u W ring R opment zones in 2017. ctu ing in Shunde District Innovation Cluster fa Sou building Guangdong into a province facilities such as Guangdong Tan- powerhouse for innovation-driven growth of the thw So far, this Development Zone has formed es t F strong in finance. zhou International Convention and o National (Foshan) high-tech industry clusters led by industries GDHKMC Bay Area, and an exemplary zone for Gaoming District shan The Zone has attracted 369 financial Military-civil of automobiles and auto parts, high-end Exhibition Center and Sino-Europe- practicing the new development concept. Integrated institutions and renowned enter- an Center, together with incubators Innovative Demon- equipment, opto-electronics, new materi- stration Zone prises including the People’s Bank of including Guangdong Intelligent als and healthcare, along with distinctive Five Innovative Platforms China, HSBC (Hong Kong and Shang- Manufacturing Demonstration industry parks represented by Guangdong hai Banking Corporation), American Center and South China Robotics Nanhai-Sanshui Industry Cooperation Zone Qingnian Lake Electronic Informa- Intelligent Manufacturing Demonstration International Assurance, China Life Innovation Research Institute. Sup- The Industry Cooperation Zone, with a total area of 109 km2, covers the tion Industry Park Base, Guangdong Bio-Pharmaceutical Insurance, Capgemini SE, KPMG In- ported by a wide range of industry Shishan Town of Nanhai District and the Town of . It Covering an area about 23.8 km2 in Lishui Industry Base, and Guangdong New Light ternational Cooperative, and Oracle platform services and an enabling Source Industry Base. It is now home to is making significant efforts in advanced manufacturing industries includ- Town of Nanhai District, the Industry Park Corporation, with a total investment environment for innovation and en- 1,020 high-tech companies, 91 Fortune ing smart manufacturing, equipment manufacturing and biological medi- will develop synergistically with Baiyun of nearly RMB 70 billion. The res- trepreneurship, the Zone serves as 500 companies, and 76 listed or NEEQ cine, with a view to agglomerating the city’s emerging strategic industries, District of Guangzhou in emerging IT in- ident projects are from high-end a magnet which has attracted more (National Equities Exchange and Quota- and building an e-commerce logistics center and a pilot zone integrating dustries including cloud computing, big service-oriented sectors, including than 100 renowned companies from tions) listed companies, achieving a signifi- finance, technology and industry. data, IoT, mobile Internet, smart cities and banking, insurance, securities, service China and abroad to settle down, cant clustering effect. electronic information. This cooperation outsourcing, private equity and ven- covering intelligent manufacturing, Guangdong High-tech Service Zone for Financial Institution between Foshan and Guangzhou is a cru- Highlight: Innovation-driven ture capital, financing and leasing, and biopharmaceuticals, and convention Located at the bank of Qiandeng Lake in Nanhai District, the 11.4-square- Development cial part of the “Guangzhou-Shenzhen Sci- online financing, which have pooled and exhibition. kiometer Service Zone is positioned to be a premium financial business Foshan High-tech Industrial Development ence and Technology Innovation Corridor” 50,000 financial professionals. Highlight: International district offering radiating industry benefits to other cities in the PRD region. Zone has continuously enhanced coop- initiative, aiming to build a cluster of high- Highlight: Finance Town Strategic Cooperation National (Foshan) Military-civil Integrated Innovative Demon- eration among businesses, universities, tech and innovation industries. As one of the first provincial-level pi- Sino-German Industrial Services and research institutes with a focus on stration Zone lot distinctive towns, Qiandeng Lake Zone, where the Secretariat of Si- Located at Xingtan Town of Shunde District, the Demonstration Zone cov- Foshan Airport Economic Area innovation-driven development. It is vig- 1 Venture Capital Town in the Zone no-German Industrial City Alliance 2 According to the construction plan of the orously integrating innovation elements ering an area about 95 km aims to develop cutting-edge technologies in has embraced an array of innovative is located, is proactively promoting New Line Airport, the such as international investment and ad- smart device manufacturing, wearable device manufacturing and bio-in- business forms of private funds, cooperation among member cities Foshan Airport Economic Area, which will vanced technologies to build itself into a telligent manufacturing, becoming an industrialization center for global such as angel investment, venture of the Alliance on expanded eco- be divided into a new city town, a logistics national-level innovative distinctive park, a smart technologies and a hub of IoT supply chain. It is ready to cluster capital, risk investment and equity in- nomic and trade development, pro- provincial-level intelligent manufacturing military-civil integrated industries as well as global emerging strategic in- zone and a high-end manufacturing zone, vestment, thus creating an enabling duction capacity upgrading, talent center, and a regional innovation center dustries, and play a main part in China’s new economy, with its influences is to be built as a new airport center in the venture capital eco-environment for training, mutual financial assistance on the west bank of the Pearl River. radiated to the GDHKMC Bay Area. west PRD region, with a focus on industries the city’s financial sector. and cultural exchanges. such as commercial aviation, financial ser- To further implement the military-civil integrated development strate- vices, cross-border e-commerce, modern gy, Foshan has proactively promoted platform building for military-civil logistics, international trade and high-end integrated industries in Nanhai, Sanshui and Chancheng Districts, con- manufacturing. tributing to the rapid and sound development of these industries.

Note: 1. Sino-German Industrial City Alliance was jointly established by Foshan, major industrial cities in Germany, and participated by major industrial Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Science and Technology Bureau cities in other Europe countries and along the Belt and Road. Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Bureau of Financial Management; 3. Foshan Municipal Economic and Information Bureau

12 Research Report on the Investment Environment of Foshan City, Guangdong Province 13 Innovation and Start-up Environment Innovation and Start-up Environment (Continued)

Propelled by the innovation-driven development strategy, Foshan has continued its efforts to build platforms for Industry-University-Research Cooperative R&D and innovation, and start-up incubation, with a view to strengthening the clustering of innovative elements and Foshan has established strategic partnership Platforms in Foshan the transformation of technology into productivity. Meanwhile, Foshan has been vigorously developing a market-ori- with many leading universities and research insti- Tsinghua University (Fos- ented technological innovation system featuring businesses as the main driving force and close industry-universi- tutions including Chinese Academy of Sciences, University (Foshan) han) Advanced Manufac- Chinese Academy of Engineering, Tsinghua Uni- Technology Transfer Center ty-research partnership, as an endeavor to build itself into an international center for manufacturing innovation. turing Research Institute versity, Zhejiang University and German Fraun- Remarkable Strength in R&D and Innovation A Record High on Fiscal Input in hofer Society. In a bid to facilitate cooperation and Civil-military Integration Incuba- Guangdong Universities tor for Technology Transactions In recent years, Foshan has been actively facilitating the Technological Innovation communication among businesses, universities, Technology Transfer and Civil-military Integration expansion and quality improvement of high-tech enterprises, Over the past few years, Foshan has steadily and research institutions, Foshan has made great Center One-stop Service Platform which are rising as the innovative growth pole of the city. In increased its fiscal input in technological innovation, efforts to build platforms that focus on technolo-

2017, the number of national-level high-tech enterprises and optimized the fund structure and financial Partnership gy innovation and commercialize the local techno- Guangdong Technology Shunde Innovation Park of in the city increased by 1,159 to 2,547 in total, leading to support forms, such as R&D subsidies and logical breakthroughs, and set up industry parks, University CNC Equipment Science and Technology Park enhanced clustering development. Driven by the leading innovation vouchers, aiming to lead and encourage along with observation tours and other diversified Cooperative Innovation of South China University of enterprises, Foshan has won a number of awards for R&D the wide participation of people from all walks of Institute (Phase II) Technology Industry-University-Research measures. As a result, the city has pooled top- and Innovation. In 2017, Foshan won 14 provincial science life and more investment in the innovative activities notch talents and cutting-edge R&D achievements and technology awards and 49 China Patent Awards, the across all sectors. South China Industry Base of total number of which made a record high, ranking In 2017, Foshan’s total fiscal input in innovation to co-build a technological innovation highland. Institute of Optics, University Science Park the 3rd ve Fine Mechanics and Physics, (Shunde) in Guangdong Province. si F grew year on year by 34.96% to register n is Chinese Academy of Sciences e h c a record high of about RMB 4.73 billion. In addition, Foshan leaps into the front ranks of h t a Case Study g l e I Guangdong Province in terms of the number r n n The whole city’s R&D expenditure in p e p 1 r t u 2017 amounted to RMB 24.7 billion, Based on “an Institute, a Technology Park and a Fund” , the of invention patents. In 2017, the total number m S t

o

of applications for patent was 73,948, rising by C contributing 2.5% to its total GDP, up by industry-university-research partnership between Foshan 39.49% over the previous year, among which the 0.18% over 2016, maintaining a year-on- and Tsinghua University was formally forged in 2016 when applications for invention patent totaled 25,899 year growth momentum. the two parties signed a strategic cooperation agreement and the patents granted reached 36,767. P designed to promote coordinated innovation by the govern- l at g ment, businesses, universities and research institutions. This for ildin m Bu deepened collaboration between one of China’s top univer- Proven Clustering Effects of Innovative sities and the city renowned for its manufacturing industry Talent cultivation is essential to an innovation-driv- Platforms will ensure a bright future for smart manufacturing. en city. Therefore, Foshan collaborated with South- Foshan has continued its efforts to push ahead with the ern Medical University and Guangdong University development of innovative platforms. In 2017, the number of In the activity of “Visiting Tsinghua” in 2017, entrepreneurs in of Finance & Economics in building their Foshan provincial-level engineering centers in Foshan increased by 233 need of 65 technologies from 54 Foshan-based enterprises nd campuses covering both full-time undergraduate to 628, ranking the 2 in Guangdong Province; the number of had in-depth talks with a group of experts and scholars from provincial-level key laboratories of enterprises increased by 4 to different schools and departments of Tsinghua University, and postgraduate courses. It also joined forces 21; about 49.07% of the industrial enterprises with an annual including Institute of Microelectronics, Department of Me- with Beijing Foreign Studies University and Univer- revenue of RMB 20 million or more have set up R&D institutes, chanical Engineering, and School of Materials Science and sity of Science and Technology Beijing in setting while the percentage is 100% for the industrial enterprises with Engineering. The research breakthroughs achieved by the up graduate schools, with two National Demon- an annual prime operating revenue of over RMB 0.5 billion. experts and scholars have been precisely aligned with the stration Bases for Joint Training of Postgraduates Case Study technological needs of the Foshan entrepreneurs, further- established. Moreover, the city is stepping up to A well-developed and sound incubator system enables and Entrepreneurship ing the effective integration of the university’s innovation innovation and entrepreneurship. As of the end of 2017, develop high-level science universities based on Foshan National Torch Innovation Pioneering Park, with an achievements and Foshan’s industry resources. and cultivate more talented pro- Foshan was home to 77 technology business incubators, 2 area of over 200,000 m , serves as an important incubator Talent Cultivation for Innovation with 18 at the state level and 30 at the provincial level, and fessionals for local technological innovation. for promoting technological innovation and transforma- 59 makerspaces that included 20 at the state level and In 2017, municipally recognized innovation teams in- tion of technology into productivity. It was established by 30 at the provincial level, contributing to the incubation of creased by 19 to 76 in aggregate, providing a sufficient the concerted efforts of Torch High Technology Industry more than 100 high-tech start-ups. Development Center under the Ministry of Science & supply of talents for the city’s innovation and entrepre- Technology, Guangdong Science and Technology Depart- neurship. In the meantime, Foshan held 23 competitions ment, and Foshan municipal government. on innovation and entrepreneurship of different levels, Operating a national-level high-tech company incubator including the Sixth China Innovation & Entrepreneurship and a technological innovation and R&D center, the Park Competition (Foshan Division), the Fifth “Zhujiang Angel has attracted a host of start-ups run by high-caliber pro- Cup” Innovation & Entrepreneurship Competition, and fessionals and incubated numbers of high-tech projects. Foshan Bank Innovation & Entrepreneurship Competition. It is the powerhouse for strategic emerging industries’ op- The competitions attracted about 800 participant teams timization and upgrading and the innovative development and over 600,000 online and offline audience, creating an of the tech-based programs in Foshan. innovatively vibrant atmosphere in the city.

Source: 1. Foshan Municipal Science and Technology Bureau Note: 1. “An Institute, a Technology Park and a Fund”: “An Institute” refers to Foshan and Tsinghua University Cooperative Innovation Institute, “A Tech- nology Park” to the Leaguer Science Park (Foshan), and “A Fund” to a RMB one-billion government support fund for advanced manufacturing. Source: 1. Foshan Municipal Science and Technology Bureau; 2. 2017 Foshan Municipal Government Work Report 14 Research Report on the Investment Environment of Foshan City, Guangdong Province 15 Transportation Network

Foshan boasts a well-developed transportation network, which makes it a significant part in the development of the Guangzhou-Foshan Metropolis Circle, the GZFSZQ Economic Circle and the “one-hour economic circle” of the GDHKMC Bay Area. In recent years, Foshan has been striving to develop an intermodal transportation system aimed at achieving integrated regional development, and has made joint efforts with Guangzhou to build an international hub city cluster.

Expressways Guangzhou- Line • An interconnected expressway network across Fos- The Guangzhou-Foshan Metro Line operates 22 stations han has taken shape, consisting of two ring express- Chapter III along the route at a total length of 33.5 km, further pro- ways, four expressways running from north to south moting the integration of Guangzhou and Foshan. and five from east to west with a total length of 486.7 Guangzhou Infrastructure km constructed by the end of 2017. The convenient Foshan Section Section and efficient expressway system has enabled Foshan Chancheng Nanhai Shunde Haizhu Liwan to be connected with Guangzhou in a multidimen- District District District District District sional road transportation network and through a jointly built intermodal transportation corridor, Rapid Rail Transit Lines Connecting Guangzhou further strengthening the role of Foshan as a critical and Foshan hub in the west of the PRD Greater Bay Area. The Guangzhou-Foshan Metro Line is the first rapid intercity

ressway Guangzhou-Foshan Expressway & Guangzhou-Zhuhai underground rail line in China. Nine other rail lines directly p x Foshan- Expressway Expressway West Line E g n running between Guangzhou and Foshan will have been i PRD Region Second Ring Expressway

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r y a w s s Foshan-- Foshan-Jiangmen e the competitive edges of the Guangzhou-Foshan Metropolis Conghua Expressway Expressway Circle and even the whole PRD region. ▲ Expressway Network of Foshan Rail Transportation • Foshan is served by rail transportation hubs including Foshan West Rail- way Station, Foshan Railway Station and Sanshui South Railway Station, Foshan West Railway Station and is traversed by Guangzhou-Zhuhai Railway, Guangzhou- Railway and other railway lines. Foshan West Railway Station, the largest high-speed railway station • As the railway which enables access to Nansha Port has been put into in China with entrances and exits operation along with the construction of the freight stations in Guan- below the level of the tracks, serves yao Town and Town, and the Guangzhou-Maoming Railway the Guangzhou-Foshan Metropolis line ceased freight transport services, Foshan has been well connected Circle and the whole PRD region as to the neighboring ports like the Nansha Port in Guangzhou and the an important passenger transport Gaolan Port in Zhuhai thanks to the enhanced development of the hub. It will be further developed road-rail and sea-rail intermodal transports. into an intermodal transportation • Foshan has planned to construct national rail transportation hubs jointly system integrating rail transporta- with Guangzhou which serve China’s hinterland and the ASEAN Economic tion, intercity transit lines, metro Development Zone. By 2020, it will take only three hours from Foshan lines, and other means of West Railway Station to or , four hours to , Wu- passenger transportation. han or , and ten hours to Shanghai, Beijing or Xi’an.

High-speed Railways The GDHKMC Bay Area has been covered by a well-developed high-speed railway network with Guang- zhou as a hub at the center. The operating Beijing-Guangzhou, Guiyang-Guangzhou, -Guangzhou and Xiamen-Shenzhen High-speed Railway lines have connected the Bay Area with the rest of China. The high-speed railway network will be further developed as the railway lines under planning or construction are put into operation including the -Shenzhen, Shenzhen-Maoming and Guangzhou- High-speed Railway lines, as well as the Guangzhou-Shenzhen-Hong Kong Express Rail Link.

Source: 1. Foshan City Transportation Bureau; 2. Foshan Investment Promotion Agency; 3. The 13th Five-Year Plan of Foshan City

16 Research Report on the Investment Environment of Foshan City, Guangdong Province 17 Transportation Network (Continued) Public Infrastructure

Air Transportation Location of Airports in Foshan and Pearl River Delta New Line Airport (under Planning) Surrounding Cities • Located in Gaoming District, Foshan City, Pearl River Delta New Line Guangzhou Guangzhou In recent years, Foshan has further strengthened its efforts to optimize the Airport, an important feeder airport of the nine major airports to be Baiyun use of existing land resources and develop industrial infrastructure including built by Guangdong, is one of the backbones of the world-class airport Internation- al Airport energy supply, and information and communications with a view to laying a cluster in the PRD region. Mainly serving the mid-western PRD region Foshan About 1.5-hour drive and surrounding areas, the airport contributes to form an internation- solid foundation for economic growth. al aviation hub cluster jointly with Guangzhou Baiyun International Air- port, driving Foshan shifting from a node city into a regional hub city. Pearl River About 2.5-hour drive Shenzhen Delta New • Foshan has already launched the preliminary work so as to start Line Airport the first-phase construction of the Pearl River Delta New Line Land Supply 1 Airport by the end of 2018. Planning to build an airport econom- Shenzhen Bao’an Following the strategy of implementing Three-Old Transformation , Foshan has been focusing on transform- ic zone, Foshan aims to develop the airport into an aviation hub International Airport ing village-level industrial parks to discover and unleash the potential of land resources, as part of its efforts to in western GDHKMC Bay Area. maximize the efficiency of land supply. Meanwhile, “emptying the cage for new birds”, a strategy for upgrading Guangzhou Baiyun International Airport industries, is carried out for intensive and efficient use of land and increased efficiency of land supply. Foshan has Sharing Conveniently Accessible Air Transportation of Sur- As one of the three major aviation hubs in made enduring efforts to shift from increasing land supply to optimizing the use of existing land resources with a rounding Cities China, the airport gains a leading position • Enjoying the premium geographical advantage at the center of the in passenger throughput globally with an focus on improving the quality of land use, thus securing sustainable socioeconomic development of Foshan. airline network covering more than 210 des- GDHKMC Bay Area, Foshan shares convenient airport resources with tination airports worldwide. Energy Supply Guangzhou and Shenzhen. It takes less than one hour driving from Table 6: Electric Rates of Shenzhen Bao’an International Airport Water Supply downtown Foshan to Guangzhou Baiyun International Airport and It is a large-scale modern international air- Foshan With 32 water plants in urban and rural areas, including 4 to be expanded, Shenzhen Bao’an International Airport, benefiting Foshan with con- port featuring multimodal transport of sea, (RMB/kWh) Foshan provides all citizens with access to clean water, and is focusing on de- venient domestic and international air transportation. road, air and railway. veloping itself into a national water saving city. Non-residential water is rated Airport Cluster 0.61~1.00 (1-10kV) at RMB 2.19-2.60/m3. With the most fine-meshed airport Large-scale 0.61~1.00 (20kV) network in China and even around the Electricity Supply Industries world, the passenger throughput of the 0.58~0.96 (35-110kV) Foshan will develop grid-connected PV power systems by the power dis- clustering airports in the GDHKMC Bay 0.56~0.92 (≥220kV) tribution side, build new 500 kV and 220 kV substations, and increase the Area has exceeded that of the three capacity of existing substations. airports in the New York Bay Area. Gas Supply Ring-shaped networks of high pressure gas pipeline will be built across Foshan 0.83~1.36 ( ＜ 1kV) Ports General to ensure gas supply from diversified sources. The high pressure gas pipelines 0.80~1.32 (1-10kV) • Water transportation is an important component of Foshan’s Business of Foshan will be connected with those of other cities including Guangzhou, 0.80~1.32 (20kV) comprehensive transportation system. With 13 container termi- Port Cluster Sectors Zhongshan and Jiangmen as part of the sweeping efforts to build interconnect- nals, Foshan enjoys convenient container water transportation, Joint construction of port cluster is crucial 0.78~1.28 (≥35kV) ed high pressure gas pipeline networks. By 2020, 100% of its urban areas will providing daily shuttle barge routes to major coastal hubs includ- for the development of the GDHKMC Bay have access to fuel gas, 45% of which will be delivered through gas pipelines. ing Guangzhou, Shenzhen, and Hong Kong. Area. As of the end of 2016, Guangdong had 2,811 berths at ports and harbors, Information and Communications • Foshan has 78 navigable rivers with a total navigable length of of which 304 were at 10,000 DWT or Foshan has been steadily developing information infrastructure and about 1,084 km, which accounts for 10% of that of Guangdong above. The annual freight throughput of Province and 1.13% nationally. The watercourses flowing past the ports in Guangdong has reached 1.67 has made remarkable achievements in building mobile networks. Foshan connect Province, Province, and billion metric tons, ranking second na- As a result of its constant efforts to install shared communication Autonomous Region to Guangzhou, Shenzhen, and other coastal tionwide, while the container throughput conduits, more than 83% of the households in this city have access areas, as well as Hong Kong and Macau, among which the Xijiang has totaled 59.48 million TEUs annually to fiber optic internet. The quality of free WLAN at public places has Trunk Line is navigable for 5,000-DWT vessels, providing direct ac- and ranked first in China. been improved, contributing to a healthy and harmonious internet cess to the Pearl River and the . environment. 4G networks provided by the three telecommunica- tions giants in China and free WiFi hotspots are now available on all Foshan Port Guangzhou Port Guangzhou-Foshan metro trains. Leveraging the technological ad- The Largest Inland Port in Guangdong An Asia-Pacific Modern and Comprehensive Hub Port vantages enabled by the “Internet Plus” strategy, Foshan is speeding As one of the 28 national major inland Enjoying rich hinterland resources and well- up its efforts to build itself into an information-based smart city. ports in China, Foshan Port is an impor- equipped infrastructure, Guangzhou Port boasts tant hub of the comprehensive trans- full-fledged collection and distribution transport Note: 1. Three-Old Transformation, a unique reconstruction strategy implemented in Guangdong Province, focuses on the transformation of old towns, portation system in the PRD region. system with full utilization of berths. factories and villages. Source: 1. Official website of Foshan Municipal Bureau of Land Resources and Urban-Rural Planning; 2. Official website of Foshan Municipal Economic Source: 1. Foshan City Transportation Bureau; 2. Foshan Investment Promotion Agency; 3. The 13th Five-Year Plan of Foshan City and Information Technology Bureau; 3. Overall Urban Plan of Foshan City (2011-2020)

18 Research Report on the Investment Environment of Foshan City, Guangdong Province 19 Human Resources

In recent years, following the strategy of building an increasingly competitive Foshan by pooling more talents, the city has focused on creating more support platforms and a favorable development environment to attract profes- sionals with expertise in R&D, innovation and management, guaranteeing talent supply for building itself into a na- tional-level manufacturing innovation center.

High-level Professionals Resources Highly-educated Professional Resources High-level Professionals Higher Education Resources • As of the end of 2017，the professional talent pool of Chapter IV • Foshan is now home to 13 higher education institutions, Foshan has expanded to about 1.44 million people, including campuses of universities such as South China a large number of which are high-level professionals, Normal University, Southern Medical University, and Human Resources including 223 engaged in innovation and entrepreneur- Guangdong University of Finance & Economics, graduate ship with municipal-level recognition, who have brought schools and industry-featured colleges. The city plans to a variety of high-end technological achievements and build a high-level university for science and technology, pioneering technology-based projects to the city. and a university of applied sciences, striving to have 20 higher education institutions by 2020. • In 2017, Foshan hosted a total enrolment of some 45,000 undergraduates and postgraduates, and 30% 95 academicians of CAS (Chinese Academy of Sciences) and CAE (Chinese Academy of Engineering) as well as of the 4.1 million working population in the city have re- experts qualified in the “1,000 Talents Program” and ceived 2- to 4-year higher education. “10,000 Talents Program” of China • In addition, Foshan has shared higher education experts enjoying a special subsidy from the State resources with Guangzhou thanks to the Guang- 115 Council of China professionals qualified in the “Pearl River Talents zhou-Foshan integration plan. At present, an annual 23 Plan” and the “Special Support Program for Talents” supply of 300,000 graduates from 27 universities and of Guangdong Province colleges in the two cities satisfies the market demands for various professionals. Cultivating Talents • Foshan boasts 59 post-doctoral workstations, ranking Table 7: Part of the Shared Higher Education first among prefecture-level cities in China, and 17 CAS/ Resources between Guangzhou and Foshan CAE academician workstations specializing in new mate- rials, advanced manufacturing, new energy, and energy Sun Yat-sen University Foshan University conservation and environmental protection, which have South China University of Southern Medical University risen as a major driver for the enhancement of techno- Technology logical innovation capability of local corporations. South China Normal University

Guangdong University of South China Agricultural Finance & Economics University

Exemplary Case Recruiting Overseas Talents • Foshan has attracted overseas academicians, experts One of the high-level universities for science and technol- and medalists of the WorldSkills Competition through vig- ogy in Guangdong Province and one of the pilot schools orous efforts including building up international talent-at- of the “100 Universities Project” initiated by the Ministry of tracting cooperation platforms like global liaison offices, Education of China to build a collaborative big data plat- attending the Conference on International Exchange of form, Foshan University currently boasts 5 provincial-level engineering research centers including the Guangdong Professionals, and hosting matchmaking meetings for Engineering Research Center for Smart Manufacturing international high-level talents and projects. In recent five Equipment, 1 provincial-level key laboratory, 3 engineering years, Foshan has recruited about 5,000 overseas profes- R&D centers of the Department of Education of Guang- sionals, 1,000 of which were employed in 2017, gaining dong Province, 6 municipal-level engineering R&D centers significant momentum for upgrading and transformation and 17 municipal-level technology innovation platforms. of industries and talent structure of the city. Source: 1. Foshan Municipal Science and Technology Bureau; 2. Foshan Human Resources and Social Security Bureau; 3. Foshan Municipal Statistics Bureau

20 Research Report on the Investment Environment of Foshan City, Guangdong Province 21 Human Resources (Continued)

Vocational Talent Resources Vocational Talent Pool • By the end of 2017, Foshan had a rich pool of voca- tional talents consisting of 729,000 skilled personnel, including 184,000 highly skilled professionals and 24,000 with senior professional titles. Vocational Education Chapter V • Foshan has been committed to modern vocational education by supporting the development of tech- nical and vocational training schools. As of 2017, Living Environment Foshan had nine technical schools with a current enrolment of 13,700 students and a graduate em- ployment rate of over 98%. About 25 companies and associations have established vocational training Human Resource Costs schools, six of which have set up provincial-level Figures released by Foshan Human Resources and So- workstations for technicians specialized in ten oc- cial Security Bureau in June 2017 show that employees’ cupations. In 2017, Foshan offered 37,998 people average monthly salary in 2016 was RMB 5,599. Cur- vocational trainings, playing a leading role in China. rently, Foshan-based companies assume 18.2% of the social insurances and a minimum 5% of the Housing Provident Fund for their employees. As demonstrat- ed by the table below, Foshan is highly competitive compared with China’s major cities regarding human resource costs, supporting the long-term operation and development of the local companies.

Table 8 Comparison of human resource costs between Foshan and China's top cities

7,425 7,480 7,706 6,504 5,599 36% 36% 28% 27% 23%

Foshan Human Resources Service Industry Park Foshan Guanzhou Shenzhen Beijing Shanghai

Foshan Human Resources Service Industry Park is the Employees’ average monthly salary in 2016 (in RMB) first one of its kind established in Guangdong Province. Percentage of the five social insurances and the Housing Provident Fund paid by companies It gathers a cluster of emerging human resources ser- vice providers in recruitment, consultation, training, outsourcing, labor dispatching and other talent services, Note: providing efficient, professional and intensive HR ser- 1. Figures in this table are rounded to the nearest whole vices to both employers and employees. The Park now number. houses an array of leading HR service providers includ- 2. The Housing Provident Fund paid by companies is calculat- ing zhaopin.com, LeaderHR, Randstad and Manpower, ed at 5%. creating a talent service powerhouse to serve even the The average monthly salary of 2016 in the table was released whole GDHKMC Bay Area through market-driven and in June 2017. By the time this report was finalized, the figures government-guided development. of 2017 had not yet been made public.

Source: 1. Foshan Economic Statistics 2. The Yearbook of Foshan 2016; 3. Information provided or released by Foshan Human Resources and Social Security Bureau

22 Research Report on the Investment Environment of Foshan City, Guangdong Province 23 Education and Healthcare Urban Living

Foshan is a city of great importance to the GDHKMC Bay Area. In the ongoing Guangzhou-Foshan integration pro- As a modern international city with distinctive Lingnan cultural identities, Foshan is where natural beauty meets cess, the arrangement of educational and healthcare resources has been constantly improved to ensure a mutually the comfort of urban living. Its urban appeal is further enhanced by the sophisticated public infrastructure, and a beneficial sharing of high-quality resources, and to create a more coordinated public services system. diverse calendar of recreational activities. The high-quality living environment has attracted people from all over the country to live and work in the city, and to indulge in its unique charm. A well-balanced and comprehensive education Adequate healthcare resources system • Foshan is rich in healthcare resources. It is home to Urban amenities 42 general hospitals at Level II or above – including The city operates an extensive array of cultural, sports and leisure facilities, such as public libraries, science and the First People’s Hospital of Foshan, Second People’s technology museums, cultural centers (stations), museums, stadiums, golf courses, theatres, and cinemas, enabling Hospital of Foshan, and Foshan Municipal Hospital the local residents to ensure a high quality of life. of Traditional Chinese Medicine – and 15 specialized Business facilities Asia Art Park of Foshan hospitals at Level II or above – such as Foshan Maternal Foshan boasts a good many internationally renowned chain hotels, & Children’s Hospital, Foshan Stomatology Hospital and including Intercontinental, Crowne Plaza and Sheraton, along with the Third People’s Hospital of Foshan. high-end residential properties developed by Country Garden, • As envisioned in the 13th Five-Year Plan for Deepening and China – all favorably located in comfortable • As the first “model city for promoting modernized the Medical and Health System Reform in Foshan, surroundings. It is home to a network of urban complexes, education in Guangdong Province”, Foshan has published by the municipal government aimed such as Lingnan , Vanke Mall, Shunlian Square, and developed a comprehensive, multi-layered system for to develop a health service system that suits local Florentia Village, offering the convenience of daily shopping and providing high-quality modernized education for all. economic and social development needs, by 2020, entertainment. In addition, the multifunctional Foshan International Foshan will become a leading city in China in terms of Conference & Exhibition Center and Guangdong (Tanzhou) Table 9: Number of Educational Institutions in comprehensive healthcare services. International Convention and Exhibition Center ideally serve the Foshan (2017) 100% coverage of hierarchical diagnosis and purposes of exhibition, convention and performance. treatment information management Category Number Cultural activities Lingnan Xintiandi Over 98% enrolments for the basic healthcare Foshan offers a diversity of cultural activities, such as Guangdong Kindergartens 914 insurance (Foshan) Creative City Expo, Hong Kong Foshan Festival, Primary schools 409 Zero price markups in medicine and medical Foshan Kung Fu (Action) Film Festival, and the world-renowned supplies Nickelodeon-themed project, a central feature of the Foshan Middle schools 142 Improvements in the critical illness insurance Cultural and Ecological Coastal Park. An increasing number of cultural events add to the city’s vibrant cultural scene, such High schools 58 program as the National Academic Exhibition of Masters of Chinese Institutions of higher education 13 Calligraphy in Celebration of the 160th Birth Anniversary of , the concert series of “Music in Foshan – Musical Charm Secondary vocational schools 47 of Qin Celebrating the Beauty of Four Seasons”, and the 27th Special schools 7 Golden Rooster and Hundred Flowers Film Festival. Modern arts merge and collide with the traditional , • In 2017, Foshan EtonHouse International School (FEIS), representing the city’s unique cultural richness. Foshan Lingnan Mingzhu Gymnasium the first school for overseas students in the city, was Sports events set up. With its distinctive international education Table 10: Number of healthcare institutions in Every year, a variety of major sporting events are held in the programs, FEIS has a growing presence in cities around Foshan (2017) Century Lotus Stadium, Lingnan Pearl Stadium and Foshan the Pearl River Delta. International Sports and Cultural Performing Arts Center, Category Number • For the next five years, Foshan plans to promote including the Beijing Olympic Diving Trials, the 10th FINA innovation- and creativity-focused education, from Public hospitals 50 World Junior Synchronised Swimming Championships, the aspects of faculty resources, course structure, 2016 Foshan FIE Women’s Sabre World Cup, the 13th National activities, environment, R&D programs, supportive Private hospitals 60 Games of China Badminton Qualifiers, and FIBA World Cup 2019 Asian Qualifiers. These domestically and platforms, and evaluation. The aim is to develop Primary healthcare institutions 1549 a unique and scalable Foshan model of maker- internationally recognized sporting events have not only oriented education, supported by a comprehensive Specialized public healthcare institutions 48 improved the visibility of Foshan, but also cultivated a sporting system for cultivating high-caliber professionals with culture in this dynamic city. Others 8 innovation expertise.

Source: Information provided by the official websites of: 1. Foshan Municipal Education Bureau; 2. Foshan Municipal Government; 3. Foshan Municipal Source: 1. Foshan Master Plan (2011-2010); 2. The official website of Foshan Municipal Government. Statistics Bureau; 4. Guangzhou Municipal Education Bureau; 5. Guangzhou Municipal Statistics Bureau.

24 Research Report on the Investment Environment of Foshan City, Guangdong Province 25 Cultural Landscapes

Eight Top Attractions in Foshan

Crisscrossed by rivers and lakes, Foshan is abun- Xiqiao Ancestral dantly rich in water and lush greenery. A blend of Mountain of Nanhai Temple of Foshan ecological beauty and fascinating history, the city features a great many cultural attractions and for- Qinghui Nanfeng Ancient mer residences of celebrities with domestic and Garden of Shunde Kiln of Chancheng international fame. The distinctive cultural land- Flowers’ Lotus Chapter VI scapes combine to nurture the charming Lingnan World of Shunde World of Sanshui culture, one of the most unique and vibrant region- al cultures in China. Zaomu Nanguo Peach Government Policies and Services Mountain of Gaoming Garden of Nanhai

The Xiqiao Mountain is a national 5A-level tourist attraction, known as one of the two most iconic mountains in southern Guangdong for its varied and stunning scenery. Boasting 72 distinctive peaks and 42 deep caves, it is dotted with lakes, waterfalls, springs, brooks, rocks, cliffs, ponds, and pavilions. Cultural attractions abound in the Xiqiao Mountain National Geological Park, including the quarry ruins dating back to the (1368–1644) and the Stone Age ruins. The unique culture of the Xiqiao Mountain, which values diver- sity, inclusion, openness, and innovation, represents the Xiqiao Mountain of Nanhai essence of Lingnan culture.

Favorably located on the border between Guangzhou and Foshan, the Nanhai Film & TV Town is one of the four CCTV Film & TV Production Bases. Its architectural complexes bring different historical periods back to life, including the Taiping Heavenly Kingdom City, Jiangnan Watertown, and Old Hong Kong & Macau Streets. Featuring a delicate blend of Chinese and Western elements, they offer perfect backdrops for out- door scenes of dramas and movies, and for major cultural events. The Town features a beautiful southern landscape with clear waters and green mountains, making it an ideal des- Nanhai Film & TV Town tination for recreational tourism.

Known as “a palace of oriental folk arts”, the Ancestral Temple of Foshan is a folk art museum housing collections of ancient ceramics, wood carvings, castings, and architec- tural artworks. A national cultural heritage site of China, it consists of the Ancestral Temple architectural complex, Confucian Temple, Feihong Memorial Hall and Ye Wen Hall. Every year, performances and exhibitions are held on a regular basis, such as the First Writing Ceremony for Children held in the Confucian Temple, the Huang Fei- hong Lion Dancing, and performances. The museum captivates both Chinese and overseas tour- Ancestral Temple of Foshan ists with its vast collections of spectacular artworks that represent the best of the local Lingnan culture.

Source: Information provided by the official websites of: 1. Foshan Municipal Tourism Bureau; 2. Foshan Municipal Government; 3. The Ancestral Tem- ple of Foshan.

26 Research Report on the Investment Environment of Foshan City, Guangdong Province 27 Transparent and Targeted Government Transparent and Targeted Government Policies Policies (Continued)

Guided by the development concept of Policies in Support of Technological Innovation innovative upgrading and transforma- tion, Foshan is promoting all-round insti- tutional innovation to support industry Government Grants for Technology Projects To Promote Incubation of Technology development, technological innovation, Foshan city government has released targeted policies to Companies human resource services and financial encourage increased investment in science and technolo- A number of incentives have been put in place to boost services. Targeted government policies gy, including measures to reward scientific and technolog- tech incubators and create a favorable environment have been issued to boost emerging in- ical achievements, and city-level measures to fund sci-tech for mass entrepreneurship and innovation, including innovation teams, major projects, innovation platforms subsidies for incubators’ expanded space and support- dustries and modern service industries, and patents. These grants will also help create a diversified ing facilities, compensations for incubation investment and facilitate advantageous traditional multi-channel investment system, comprehensively improv- and credit loans, and rewards for exceptional operation industries in moving up the value chain, ing the city’s environment for scientific and technological performance. For instance, a recognized state-level tech so as to strengthen the generators of innovation. incubator will be granted RMB 1 million. the city’s economic growth.

To Facilitate Technology To Support Business Expansion and Growth • A total of RMB 28 bil- To Reduce Business Operating Commercialization lion was invested in R&D Financial support programs have been rolled out to help Fos- Costs To unleash the potentials of education and re- in Foshan. han-based businesses continuously improve their competitiveness. “Ten Measures in Foshan” have been search institutions (ERIs) in technology commer- • The ratio of R&D expendi- These programs cover a variety of areas including office subsidies, put in place to reduce a full range of cialization, efforts have been made in the city to: tures to the city’s GDP financing guarantee services, rewards for significant contributions business costs for optimized efficiency, (i) establish government funds for technology increased to . to the local GDP and rewards for excellent senior executives. In ad- including costs in tax payment, land R&D and commercialization; (ii) develop innova- 2.8% dition, facilitating measures such as “Project-specific Consideration” use, social security, utility services, tion platforms featuring coordination between • A total of at least RMB and “Company-Specific Policies” have been implemented to attract transportation, financing, procurement governments, industries, and ERIs, (iii) encourage 100 million is expect-

Policies in Support of and support industry-leading companies. and operations, and institutional costs. ed to be allocated for Industry Development ERIs to inaugurate market-driven technology These policy measures are designed to commercialization organizations, and (iv) require Foshan’s city-wide inno- inject more vitality to the real economy all the gains from technology commercialization vation voucher program To Promote Industry sector and develop Foshan into one of to be owned by these organizations. between 2016 and 2018. Transformation and Upgrading China’s most attractive low-cost areas While proactively nurturing strategic for the manufacturing industry. emerging industries, Foshan has made To Protect Intellectual Properties To Boost Technological Innovation with “Innovation Vouchers” vigorous efforts to optimize and trans- Intensive efforts have been made to develop An innovation voucher program has been in place in Foshan to form traditional industries. To this To Encourage International Market Expansion Foshan into a National Intellectual Property (IP) reduce the financial burdens of innovation for Micro-, Small and end, earmarked funding programs are To help businesses enter overseas markets, efforts have been made to Demonstration City. To this end, a state-level IP Medium-sized Enterprises (MSMEs), and encourage them to in- launched to motivate traditional busi- promulgate more guiding policies, increase financial support, improve protection center was established as the first of crease R&D investment. Innovation vouchers are open to technol- nesses to transform and upgrade their administrative services and create cooperation platforms. For example, a its kind in Guangdong Province, and the city’s ogy-based MSMEs planning to purchase technological innovation technologies with wider applications RMB 100-million earmarked funding program has been designed to facili- IP right defense assistance system and judicial services, such as R&D and design, financial technologies, intellectual of robotics and smart equipment. For tate the establishment of new institutions for an open economy, providing protection system improved. Meanwhile, a properties, inspection and testing, and technological intermediary instance, to enable a better layout of financial aid for offshore trade projects, overseas parks for international well-functioning IP service ecosystem has been consulting. An eligible enterprise may claim up to RMB 100,000, the high-end manufacturing industry, industrial capacity cooperation, international cooperation platforms, ef- created thanks to the patent financing policies which will be provided to its service providers by the Foshan Mu- the local government will provide a forts to avoid trade frictions, and other relevant projects. and dedicated grants for patent financing, pat- nicipal Science and Technology Bureau and the Foshan Municipal pilot demonstration enterprise for the ent protection and model entities in IP. Bureau of Finance in accordance with relevant rules. “Made in China 2025” strategy with a financial aid of up to RMB 5 million. To Attract Investments and New Projects With a view to creating a more attractive investment environment and encouraging the settlement of new businesses and projects, targeted fa- vorable policies have been released to attract and support new projects, especially those in strategic emerging industries such as electronic informa- tion, civil-military integration, biopharmaceuticals and airport economy. For example, a civil-military integration project may receive a settlement subsidy of up to RMB 1 million. For critical sectors and significant projects, special supports will be provided in terms of capital, land, energy and other factors. Take the land use as an example. A dedicated land use plan may be devel- oped after taking into account the layout, scale and time arrangement.

Source: 1. Foshan Investment Promotion Agency Source: 1. Foshan Investment Promotion Agency

28 Research Report on the Investment Environment of Foshan City, Guangdong Province 29 Transparent and Targeted Government Transparent and Targeted Government Policies (Continued) Policies (Continued)

Policies in Sup- port of Talent Following the strategy of building a more competitive Foshan through enhanced talent development, Highly Attractive Incentive Policies for the Financial Industry Develop- the city government has moved up talent development on its agenda and has listed it as a “Top Pri- • Foshan has launched a series of targeted incentive policies for financial institutions, including Financial ment Policies ority Program” within the mandate of the highest leadership. Continuous efforts have been made provision of subsidies for business registration in Foshan, capital increase to expand business by the city government to further enhance its talent development programs with increased financial operation, use of office space, and recruitment of management and financial professionals. These support provided for targeted and intensive measures to attract and recruit more and better need- policies aim to promote the clustering of key financial industry elements, to further increase the ed professional talents, including provision of financial subsidies and one-stop service cards. value added of this industry in Foshan. • Meanwhile, Foshan is encouraging and supporting large local companies to establish urban com- Diverse Policies for Building a Highland of Talent Development • No less than RMB 500 mercial banks, private banks, and financial companies to promote creation of a diversified and million each year is ear- full-fledged financial ecosystem. Newly-recruited municipal-level techno- Increased Subsidies: RMB 2-20 million marked in the municipal logical innovation teams Subsidies fiscal budget for talent at- Both Financial and Policy Incentives to Encourage Companies to Go Public for Talent Newly-recruited provincial-level techno- An incentive package for each team: traction. • To build a multi-tier capital market, Foshan is stepping up its efforts to support companies to go public Team-building logical innovation teams 50% of the provincial financial support • More than RMB 3 by launching incentive policies such as the Three-Year Action Plan of Foshan for Encouraging Publicly Newly-recruited world-leading experts, Traded Companies (2016-2018) and Measures of Foshan on Supporting Publicly Traded Companies. including Nobel laureates, CAS and CAE Project-specific tailored support billion each year is invest- academicians, and strategic scientists ed from the district-level Companies that successfully go public are entitled to a financial reward of up to RMB 29 million. Newly-recruited Chinese state-level leading fiscal budget for talent de- • In addition, Foshan has established a risk mitigation fund for bond financing to provide credit enhancement experts, including professors of the velopment. Housing allowance: services for companies issuing bonds. Through provision of subsidies for the partnered credit enhance- Enhanced Re- Changjiang Scholars Program, and experts RMB 4 million cruitment of recruited under the 1,000 Talents Program • More than RMB ment organization, companies are supported to operate bond financing with lower costs. Talent Team in Innovation and Entrepreneurship 100 million each year Leaders Newly-recruited experts under the Pearl is invested from the mu- Housing allowance: Fiscal Support for Small and Medium-sized Enterprise (SME) Financing River Talents Program, and other provin- RMB 3 million nicipal fiscal budget to at- cial-level leading experts tract high-caliber Chinese • The Foshan municipal government has made proactive efforts to provide government-guided fiscal support Newly-recruited leaders of university key dis- Housing allowance: and overseas talents. under a newly expanded fiscal support management system. It has established a dedicated fund to provide an ciplines, and other local-level leading experts RMB 2 million easier and more affordable way for business financing, along with a variety of targeted fiscal support funding pro- Housing allowance: RMB 300,000 Newly-recruited post-doctoral fellows Research subsidies: RMB 300,000 grams to serve the needs of SMEs.

Newly-recruited doctorate holders Housing allowance: RMB 200,000 Risk Compensation Fund Doctorate Research subsidies: RMB 200,000 for Loans of Quality Tech- Living subsidies: RMB 180,000/year nological Improvement and Holders and Postdoctoral station fellows As of the end of 2017, this Allowances for spouse between jobs: Guidance Fund for Innova- Innovation Programs Postdoctoral dedicated funding program has Fellows RMB 3,000/month tion and Entrepreneurship A total of 58 programs of Programs in Foshan have been provided refinancing support for Organizations building new postdoctoral Subsidies for establishing new 53 companies granted with credits totaling 2,845 loan transactions with a stations/company-based sub-postdoctoral stations: RMB total amount of stations/ postdoctoral innovation practice RMB 1,000,000/500,000/400,000 367 million. RMB 28.05 bases respectively This funding program billion, benefiting1,622 companies. operates a total asset of Holders of as a guid- Senior-level Newly-recruited holders of senior-level/ Housing allowance: RMB 10 billion Professional associate senior-level professional titles RMB 300,000/200,000 ance fund to attract more funds which Titles sum up to 10 times larger, Dedicated Fund of which RMB 3.04 billion for Business Mid-/En- Newly-recruited holders of mid-level Housing rental allowance: invested by sub-funds or their Financing try-level professional titles, senior technicians, and RMB 9,000 / 6,000 administrative institutions Professionals master or bachelor degree holders Operating a total of RMB have been in place. 190 million, this program has helped 337 technolo- - In Support of Talent Attraction Talent Development in All Specialized Talent Referral Program Since the launch of related policies gy-based SMEs in Foshan be granted credits totaling & Development Programs Areas A reward of RMB 50,000 to one year ago, a total of RMB 158 RMB . Each talent attraction and devel- An additional salary allowance of RMB 100,000 200,000 is granted to each million of loans on credit has 2.98 billion been granted to SMEs. opment program recognized as to 1 million is granted to each of the recog- person making a successful exemplary, innovative and prac- nized outstanding specialists in all professional referral of a provincial-level tically effective is granted with a areas across the city, including innovative technological innovation team, Policy-supported Small-loan Risk Compensation Fund Protection Insurance for Credits of Technolo- financial support of RMB 500,000 and entrepreneurial professionals, top-notch or a state/provincial-level lead- gy-based SMEs to 2 million from the municipal youth, cultural experts, school principals and ing professional.

opment Mechanism fiscal budget. teachers, medical doctors, and artisans.

Innovative Talent Devel 1 2 3 Source: 1. Foshan Municipal Bureau of Financial Management; 2. Foshan Municipal Economic and Information Bureau Source: 1. Implementation Rules for the Reform of Talent Development Mechanism in Foshan issued by Foshan Municipal Government; 2. Foshan In- vestment Promotion Agency

30 Research Report on the Investment Environment of Foshan City, Guangdong Province 31 Innovative and Highly Efficient Government Services

As part of its efforts to promote the “One Stop & One Network” reform of government services, the Foshan municipal government has in recent years developed a series of mechanisms to streamline its administration, delegate more power to lower-level governments with a strengthened regulation system, and provide better public services. All these mecha- nisms aim to enhance the city’s attractiveness to investors, capability of pooling resources, and regional competitiveness, thus building an international and market-oriented business highland with a facilitating environment.

• Foshan’s “Internet + Government Services” project is officially listed under China’s National-sponsored “Internet + Government Services” Demonstrative Program. Chapter VII • The Administrative Service Center of Foshan Municipal Government was awarded “Prize for Outstand- ing Contribution of Chinese Government Services” at the 2nd National Government Services Exposition. • Foshan’s “One Stop & One Network” administrative reform project was once again selected as one of Summary and Vision “China’s Top 50 Internet + Governance Projects” in 2017. • Foshan is rated No.1 provincially in terms of citizens’ satisfaction with public services in the Research Report on Development of Service-Oriented Local Governments in Guangdong Province.

“One Stop & One Network” Government Service Reform in Foshan Foshan has made intensive efforts to bring advanced information technologies, such as the Internet and big data, into its undertaking of building an “Internet + Government Services” system that features optimized and streamlined administration under standardized regulation, seamless sharing of government information, and convenient and efficient interaction between the government and citizens, thus pushing forward the constant enhancement of the city’s government services in both quality and efficiency. As part of the efforts to simplify service procedures, 1,182 administrative service items, which Separation of used to be separately accepted and processed, are streamlined under six categories of general services to be accepted at the same service window, followed by a uniformed internal review and Acceptance and Review approval process across different administrative departments. As of the end of 2017, a total of Procedures for General 1,381 general service windows have been set up at the municipal, district and township (commu- Services nity) levels across the city to substantially handle “all cases under the general service categories”. By standardizing 102 universal tags including the naming of service items to be processed, appli- Standardized Operation cation documents to be submitted, and the approval procedures involved with the application of an electronically managed process system, the city has unified its management of 1,833 service Based on an Electronic items to be processed by 55 administrative departments, enabling standardized administrative Transfer Process approval services across departments, districts and industries. In order to better serve the needs of applicants, Foshan has put in place an interdepartmental Universal Application joint review and approval mechanism, which replaces the previously different forms issued by various departments with one universal form and facilitates data and information sharing across and Joint Approval different departments to eliminate the repetitive work of submitting application documents to each relevant department. Under this mechanism, applications are accepted at the same general service window to be reviewed and approved under a joint process by all involved departments based on shared information within a set time limit. Foshan has provided direct access to as many as 546 administrative service items at any service Multichannel Services location across the city, a number of which can be processed in Guangzhou. Furthermore, the and Expanded Access city’s administrative service system has been greatly expanded through various online platforms including the online service center, self-service terminals, mobile service Apps and 12345 hotline, bringing into shape an integrated multichannel services model of online and offline services, and enabling seamless connection between the government services and citizens. Currently, 84% of the administrative services can be completely processed online.

Foshan has estab- Foshan has ena- Foshan has devel- On-Site Visit to Local Companies lished bled oped The Foshan municipal government has rolled out a program in A “Universal Service “Expanded Access” “Interdepartmental which government officials are sent out to visit local companies, Model” aimed at to administrative Coordination” to getting first-hand feedback through direct communication, and providing systemat- services across de- deliver highly effi- ic, standardized, and partments, admin- cient and precisely helping companies sort out problems facing their development. non-differentiated istrative levels and targeted administra- In 2017, the program covered a total of 11,000 companies, and administrative ser- regions. tive services. over 90% of the issues raised by companies were followed up by vices. relevant departments within the same day of visit.

Source: 1. Documents on Experience Sharing of Innovative Government Service Development in Foshan; 2. Notice of the General Office of the Foshan Municipal People’s Government on Implementing Proposals on Accelerating the Advancement of “Internet + Government Services” and Deepening the “One-Stop & One-System” Government Service Model Reform [2016] No.909; 3. Information provided by Foshan Administrative Service Center.

32 Research Report on the Investment Environment of Foshan City, Guangdong Province 33 Summary and Vision Summary and Vision (Continued)

Industry Transformation and Upgrading Driven by High Technology In the new era of economic development, Foshan has been firmly com- mitted to a distinctive “Smart Manufacturing + Internet” roadmap for in- dustry transformation and upgrading, placing equally great importance on smart-manufacturing-based innovation of manufacturing production and innovation of industry development based on “Internet +” approaches. The solid industry foundation and well-developed industry layout have made Foshan a top destination for investors and entrepreneurs from China and abroad. Foshan has attracted the settlement of many advanced industry programs represented by Toray, Changjiang Hydrogen-Powered Smart Automotive and KUKA Robotics, facilitating the coordinated innovative de- Manufacture + Internet velopment across the industries and injecting vigor into the industry trans- formation and upgrading. Meanwhile, the industry platforms like Foshan 2 High-tech Industry Park, Guangdong High-tech Service Zone for Financial Institutions and Sino-German Industrial Service Zone have been rapidly developing with outstanding achievements delivered to offer strong sup- port for the industry transformation and upgrading in the city and the regional economic development.

A Talent Development Highland Driven by Innovation and Entrepreneurship Facilitated by the “First Ring Innovative Circle”, Foshan has been step- ping up its efforts to develop enabling platforms for technological innovation and entrepreneurship, pooling resources for innovation and encouraging commercialization of scientific and technological achievements. The move aims to develop a market-oriented technolo- gy innovation ecosystem featuring deep company-university-research institute integration with enterprises as the main force, thus making Foshan an international hub for industry innovation. First Ring Fully aware of the importance of talent as the source of innovation, Innovative Based on the analysis of the investment environment of the City of Foshan, this report summarizes the four most Foshan is committed to providing an optimal environment for talent Circle attractive advantages for investment in Foshan as follows: development driven by innovation and entrepreneurship. In order to bring out the potential of talents, the city has taken a series of meas- 3 ures including promoting a whole package of talent policies, estab- Premium Location with Emerging Opportunities lishing the “Foshan Talent Benefit Card” system, as well as launching Foshan boasts a premium location at the heart of the PRD region, training programs on innovation and entrepreneurship. which has brought emerging opportunities to the city. Facilitated by a diversified network of transportation, Foshan has been closely Service-Oriented Government Facilitating Company Development connected with well-developed cities and regions like Guangzhou, Foshan is committed to developing a service-oriented government, pro- Shenzhen, Zhuhai, Hong Kong, and Macao, and deeply integrated viding practical and highly efficient administrative services for local com- into the central part of the GDHKMC Bay Area. Under the Guang- panies. In a bid to create an enabling environment for business operation zhou-Foshan integration plan, Foshan and Guangzhou have aligned and growth, Foshan has been making efforts to serve the needs, relieve with one another in many areas including industry platform, human the burdens, and reduce the costs of local companies, as best exemplified resources and commute network. In the years to come, the two A Pivotal City by the “One Stop & One Network” administrative service reform which fea- cities will carry on their efforts to share critical industry resources in the GDHKMC tures comprehensive services, joint approval and full access within the city. such as innovative technologies to promote their integrated devel- Bay Area One Stop & Regarded as a “bright pearl” on the west bank of the Pearl River, Foshan opment strategy of “Guangzhou R&D + Foshan Manufacturing”. With One Network has made substantial progress in terms of government services as well as concerted efforts, Foshan will continue to closely cooperate with 1 industry upgrading and innovation. During the 13th Five-Year Plan period, Guangzhou contributing to the building of a key zone in the world- Foshan will further optimize its business environment. While carrying on class PRD city group, and a vital hub in cooperative development of 4 the rich heritage of Lingnan Culture, Foshan strives to become a gateway the GDHKMC region. for opening up, a test field for mechanism reforms, and an ideal place for innovation and entrepreneurship, as well as for living and working.

34 Research Report on the Investment Environment of Foshan City, Guangdong Province 35 Sanshui Park of Foshan National High-tech Industry China (Sanshui) International Beverage and 2 Development Zone (Leping Town) 1 Food Base Location: Leping Town, Sanshui District Location: Xinan Sub-district, Appendix I: Distribution Map of Industry Parks Planned Area: 110 km2 Sanshui District Leading Industries: machinery equipment Planned Area: 8 km2 Shunde District manufacturing, automobile and parts, Leading Industries: food and electronics and electrical appliances, new beverages 1 China Pottery Valley 1 China Southern Wisdom Valley energy and materials, and medical devices 2 South China Innovation Valley (South China Power 2 Shunde Intelligent Manufacturing Industry Base Creative Science Park) 3 Shunde Exhibition Center 3 Zhihui Town by Green Island Lake 4 Shunde New Energy Vehicle Manufacturing Industry Base 4 Fengshou Street 5 Shunde Producer Services Cluster South China Innovation Valley (South China 3 Zhihui Town by Green Island Lake 2 5 Smart New City 6 Shunde Innovation and Entrepreneurship Valley for Smart Power Creative Science Park) 6 6 Chancheng European Industrial Park Household Appliance Location: Nanzhuang Town, Location: Zhangcha Sub-district, 7 South China Life Science Park 7 International Pan-home Furnishing Eco-industry Park Chancheng District Chancheng District 2 2 Nanhai District Gaoming District Planned Area: 0.23 km Planned Area: 0.22 km Leading Industries: smart Leading industries: power Appendix Smart Machinery Equipment Manufacturing Industry Base 1 Guangdong New Material Industry Base 1 manufacturing, new materials supply, high-end equipment, 2 Automobile Industry Park 2 New Energy Vehicle Industry Base and new energy Sanshui District healthcare and Internet 3 National-level Electronic Information Industry Base 3 New Material Industry Base 2 4 4 National-level New Industrialization Demonstration Base 4 Textile Technology Industry Base 5 CAS-FS Biotech and Pharmaceutical Center 5 Healthy Food Industry Base 3 1 6 Nanhai National Eco-industrial Demonstration Park 6 New Energy Industry Base Guangdong New Energy Vehicle Industry Base 7 Guangdong New Energy Car Core Component Industry Sanshui District 3 Base 2 Location: Danzao Town, Nanhai District 8 Nanhai Japanese SME Industrial Park 1 China (Sanshui) International Beverage and Food Base 1 2 4 Planned Area: 5.49 km 9 Guangdong New Light Source Industry Base 2 Sanshui Park of Foshan National High-tech Industry 5 Development Zone (South & North Parks) Leading Industries: hydrogen-rich 10 High-end Industry Service Area of Dajin Intelligence materials and hydrogen production Gathering Land 3 Sanshui New City Nanhai District equipment R&D, hydrogen fuel cell and Aerospace Smart City for Military-civil Integrated and 6 11 Guangdong-Hong Kong-Macau High-end Service 4 Coordinated Innovation 7 powertrain Cooperation Demonstration Area 5 8 5 South China New Energy Vehicle Integrated Innovation 9 Industry Park 10 Guangdong (Sanshui) Daily Chemical Industry Base 6 2 Chancheng 4 6 7 District 11 1 China Southern Wisdom Valley 5 China Intelligent Safety and Security Industry Park 3 Location: Lunjiao Sub-district, Shunde District 2 Location: Danzao Town, Nanhai District 1 3 5 Planned Area: 0.77 km for commercial purpose, including 30,000 m2 Planned Area: 0.67 km2 for offices Leading Industries: production safety, fire control 2 5 Leading Industries: smart manufacturing, safety, transportation safety, public security and 4 7 Shunde District bio-pharmaceutical and modern information information security 6 1 services Gaoming District 2 Shunde Intelligent Manufacturing Industry Base 6 Cangjiang Industrial Park 1 Location: Western Ecological Industry District, 3 Shunde High-tech Industry Location: intersection of Gaoming 2 4 Development Zone Avenue and Haitian Planned Area: 1.80 km2 for industrial purpose, Avenue, Gaoming District including 110,000 m2 for factories Planned Area: 13.39 km2 and 30,000 m2 for offices Leading Industries: smart Manufacturing, 3 Shunde Exhibition Center machinery equipment and medical device Airport Economic Area Xijiang New City Location: Gongzhan Road, Beijiao Town, Location: Genghe Town, Location: Yuehua Road, Hecheng Shunde District Gaoming District Sub-district, Gaoming Planned Area: 1.54 km2 for industry purpose Planned Area: 100 km2 District Leading Industries: exhibition and related Planned Area: 20 km2 services, technology service and industry finance

36 Research Report on the Investment Environment of Foshan City, Guangdong Province 37 Appendix II: Contact Information of Main Government Agencies for Investment Services in Foshan, Guangdong Province

Foshan Municipal Bureau of Commerce Foshan Chancheng District Investment Promotion Investment Promotion Agency Agency Address: 135 Middle Fenjiang Road, Chancheng Address: 2F, Administrative Service Agency, Smart District, Foshan City, Guangdong Province (zip code: City Building T8, 28 Jihua First Road, Chancheng 528000) District, Foshan City, Guangdong Province (zip code: Tel.: 86-757-83036005 (English) 528000) 86-757-83035510 (Japanese) Tel.: 86-757-82340951 Email: [email protected] Email: [email protected] Website: www.fsboftec.gov.cn www.fipa.fscom.gov.cn Nanhai District Economy and Technology Promotion Agency Foshan Investment Promotion Agency Address: 3 South Tianyou Road, Guicheng Sub- Address: 33F, Building 2, AIA Financial Agency, 1 East district, Nanhai District, Foshan City, Guangdong Denghu Road, Guicheng Sub-district, Nanhai District, Province (zip code: 528200) Foshan City, Guangdong Province (zip code: 528000) Tel.: 86-757-86293812 Tel.: 86-757-86360279 Email: [email protected] Email: [email protected] Shunde District Investment Promotion Agency Address: 2F, Administrative Building East, 3 Demin Road, Daliang Sub-district, Shunde District, Foshan City, Guangdong Province (zip code: 528333) Tel.: 86-757-2283 2266 Email: [email protected]

Gaoming District Economy and Technology Promotion Agency Address: 21 Street, Xinghe Road, Hecheng Sub-district, Gaoming District, Foshan City, Guangdong Province (zip code: 528500) Tel.: 86-757-88822168 / 88881150 Email: [email protected]

Sanshui District Economy and Technology Promotion Agency Address: 37 Jianlibao North Road, Xinan Sub-district, Sanshui District, Foshan City, Guangdong Province (zip code: 528100) Tel.: 86-757-87768888 / 87768788 Fax: 86-757-87755681 Email: [email protected]

Research Report on the Investment Environment of Foshan City, Guangdong Province 39 China Public Service Team Contacts of Deloitte Offices in China

Beijing Deloitte (Shanghai) Deloitte Touche Tohmatsu Certified Public Deloitte Touche Tohmatsu Certified Public Floor 30, Bund Center, No. 222, East Yan An Road, Shanghai, China Accountants LLP Beijing Branch Accountants LLP, Hangzhou Branch 8/F, Tower W2, The Towers, Oriental Plaza, Unit 1206-1210, Approval 1 East Chang An Avenue, Beijing, 100738, PRC Center East Tower, 9 Feiyun Road, Vivian Jiang Tel.: + 86 (10) 8520 7788 Shangcheng District, Hangzhou, 310008, PRC Deloitte China Deputy CEO Fax: + 86 (10) 8518 1218 Tel.: + 86 (571) 8972 7688 : Fax: + 86 (571) 8779 7915 / 8779 7916 Tel. +86 21 6141 1098 Changsha Fax: +86 21 6335 0003 Deloitte & Touche Financial Advisory Services E-mail: [email protected] Limited Changsha Branch Deloitte Consulting (Shanghai) Company Limited 20/F,Tower 3 HC International Plaza, Harbin Branch No. 109 Furong Road North, Kaifu District, Room 1618, Development Zone Mansion, 368 Changsha, 410008, PRC Changjiang Road, Tel.: + 86 (731) 8522 8790 Nangang District, Harbin, 150090, PRC Eunice Kuo Fax: + 86 (731) 8522 8230 Tel.: +86 (451) 8586 0060 Tax Managing Partner of Fax: +86 (451) 8586 0056 Eastern Region Deloitte Touche Tohmatsu Certified Public Tel.: +86 21 6141 1308 Accountants LLP, Chengdu Branch Deloitte Consulting (Shanghai) Company Limited Fax: +86 21 6335 0003 Unit 3406, 34/F Yanlord Landmark Office Tower Hefei Office E-mail: [email protected] No. 1 Section 2, Renmin South Road, Chengdu, 610016, Unit 1201, Office Tower A, Winbond ICC Building, PRC 190 Qian Shan Road, Government and Cultural New Tel.: +86 28 6789 8188 Development District, Hefei Fax: +86 28 6500 5161 Tel.: +86 (551) 6585 5927 Jeff Xu Fax: +86 (551) 6585 5687 Partner Deloitte Touche Tohmatsu Certified Public Jinan Tel.: +86 21 6141 1278 Accountants LLP, Chongqing Branch Deloitte Touche Tohmatsu Certified Public Fax: +86 21 6335 0003 36F, Deloitte Tower, 8 Corporate Accountants LLP Jinan Branch E-mail: [email protected] Avenue, 10 Ruitian Road, Yuzhong District, Units 2802, 2803 & 2804, 28/F, Chongqing, 400043, PRC China Overseas Plaza Office, Tel.: +86 23 8823 1888 No. 6636, 2nd Ring South Road, Shizhong District, Jinan, Fax: +86 23 8859 9188 250000, PRC Tel.: +86 (531) 8973 5800 Eddie Yan Deloitte Touche Tohmatsu Certified Public Fax: +86 (531) 8973 5811 Director of Public Sector Services Accountants LLP, Dalian Branch Hong Kong Tel: +86 21 6141 1097 Room 1503 Senmao Building, Deloitte Touche Tohmatsu Fax: +86 21 6335 0003 147 Zhongshan Road, Dalian, 116011, PRC 35/F, One Pacific Place, 88 Queensway, Hong Kong Email: [email protected] Tel.: + 86 (411) 8371 2888 Tel.: + (852) 2852 1600 Fax: + 86 (411) 8360 3297 Fax: + (852) 2541 1911 Guangzhou Macau Deloitte Touche Tohmatsu Certified Public Deloitte Touche Tohmatsu Accountants LLP, Guangzhou Branch 19/F, The Macau Square Apartment H-N, 26/F, Yuexiu Financial Tower, 28 Pearl River East Road, 43-53A Av. do Infante D. Henrique, Macau Guangzhou, 510623, PRC Tel.: + (853) 2871 2998 Tel.: + 86 (20) 8396 9228 Fax: + (853) 2871 3033 Fax: + 86 (20) 3888 0575

40 Research Report on the Investment Environment of Foshan City, Guangdong Province 41 Contacts of Deloitte Offices in China Acknowledgements (Continued)

Taipei Shenzhen Companies interviewed (in random order) Deloitte & Touche Deloitte Touche Tohmatsu Certified Public Midea Group Co., Ltd. 12F, 156 Min Sheng East Road, Sec. 3, Accountants LLP Shenzhen Branch , 10596, 13/F, China Resources Building, 5001 Country Garden Holdings Co., Ltd. Tel.: +886 (2) 2545 9988 East, Shenzhen, 518010, PRC Infore Environment Technology Group Co., Ltd. Tel.: + 86 (755) 8246 3255 Hsinchu ANDRITZ (China) Ltd. Fax: + 86 (755) 8246 3186 Deloitte & Touche, Hsinchu Branch Guangdong Yifang Pharmaceutical Co., Ltd. 6F, 2, Prosperity Road 1, Hsinchu Science Park, Monalisa Group Co., Ltd. Hsinchu, 30078, Taiwan Deloitte Touche Tohmatsu Certified Public Tel.: +886 (3) 578 0899 Accountants LLP Suzhou Branch Guangdong Esquel Textiles Co., Ltd. 23/F, Building 1, Global Wealth Square, 88 Su Hui Road, Foshan Branch of FAW-Volkswagen Automotive Co., Ltd. Industrial Park, Suzhou, 215021 Deloitte & Touche, Taichung Branch Guangdong High-tech Service Zone for Financial Institutions Tel.: + 86 (512) 6289 1238 27F, 218 Taiwan Boulevard, Sec. 2, West District, Sino-German Industrial Service Zone Fax: + 86 (512) 6762 3338 / 6762 3318 Taichung, 40354, Taiwan Tel.: +886 (4) 2328 0055 Deloitte Touche Tohmatsu Certified Public Photographs provided by: Tainan Accountants LLP Tianjin Branch Investment Service Center of Chancheng District, Foshan Deloitte & Touche, Tainan Branch 45/F, Metropolitan Tower, 13F, 189 Yongfu Road, Sec. 1, Tainan, 70051, Taiwan Economy and Technology Promotion Bureau of Sanshui District, Foshan 183 Road, Heping District, Tianjin, PRC Tel.: +886 (6) 213 9988 Tel.: + 86 (22) 2320 6688 Investment Promotion Agency of Foshan Hi-tech Zone Kaohsiung Fax: + 86 (22) 8312 6099 Administrative Committee of Foshan Sino-German Industrial Service Zone Deloitte & Touche, Kaohsiung Branch Well-being Shunde Brochure 2014 3F, 88 Chenggong 2nd Road, Kaohsiung, 80661, Taiwan Deloitte Touche Tohmatsu Certified Public Foshan EtonHouse International School Tel.: +886 (7) 530 1888 Accountants LLP Wuhan Branch Midea Group Nanjing Unit 2, 38/F New World International Trade Tower, Deloitte Touche Tohmatsu Certified Public 568 Jianshe Avenue, Wuhan, 430022 FAW-Volkswagen Automotive Co., Ltd. Accountants LLP Nanjing Branch Tel.: +86 (27) 8526 6618 Guangdong Yifang Pharmaceutical Co., Ltd. 6/F, Asia Pacific Tower, 2 Road Xinjiekou Fax: +86 (27) 8526 7032 Infore Environment Technology Group Co., Ltd. Square, Nanjing, 210005, PRC Xiamen Foshan NationstarOptoelectronics Co., Ltd. Tel.: + 86 (25) 5790 8880 Deloitte Touche Tohmatsu Certified Public Fax: + 86 (25) 8691 8776 Yaotong Yang, Xuan Gao, Songjiang Tan, Jiankang Liang Accountants LLP Xiamen Branch Shanghai Unit E, 26/F, International Plaza, Yujie Zhang, Jingwang , Weishan You, Qingji Pan Deloitte Touche Tohmatsu Certified Public 8 Lujiang Road, Siming District, Xiamen, 361001 (Note: The ranking is in no particular order. Accountants LLP Tel.: +86 (592) 2107 298 The list above may not cover all the authors of photographs used in the Report. If there is 30/F, Bund Center, 222 Yan An Road East, Fax: +86 (592) 2107 259 any infringement, please contact Foshan Investment Promotion Agency as soon as possible.) Shanghai, 200002, PRC Tel.: + 86 (21) 6141 8888 Research report preparation committee members: Fax: + 86 (21) 6335 0003 Vivian Jiang, Eunice Kuo, Jeff Xu, Eddie Yan Rebecca Chen, Joanna Gong, Skar Feng, Lance Gao Deloitte Consulting (Shanghai) Company Limited Shenyang Branch Unit 05-06, 36/F, Forum 66 Office Tower 1,1-1 Youth Street, Shenhe District, Shenyang, 110063, PRC Tel.: +86 (24) 6785 4068 Fax: +86 (24) 6785 4067

42 Research Report on the Investment Environment of Foshan City, Guangdong Province 43