CHINA DAILY Wednesday, March 28, 2018 7 Incentive Zengcheng, a new investment hotspot policies, District in east Guangzhou sees billions of yuan pour in from Foxconn and other big name innovators, Chen Hong reports. low costs

A recent investment of 61 bil- draw new lion yuan ($9.64 billion) from Foxconn Technology Group, the world’s largest electronics talents contractor, has cast the spot- light on Zengcheng district of Guangzhou. By CHEN HONG Located in the eastern part of the capital of Guangdong Shortly after she gradu- province, Zengcheng is much ated from Cambridge Uni- closer to the neighboring city versity with a doctorate six of Dongguan than the business years ago, Fang Fang set up center of Guangzhou, but it is China’s first failure analy- becoming a new investment sis and testing company hotspot. for light-emitting diodes Official figures show that a in Zengcheng district of total of 94 projects introduced Guangzhou. by the local government were One month ago, she was signed in 2017, with total con- picked by the nation’s high- tractual funding of more than est-level talent importing 63.4 billion yuan. program, among a team of The annual earnings or out- 41 out of 443 candidates, put of 29 of the projects are to win the title of top over- forecast to reach at least 1 bil- seas-returned profession- lion yuan each. als. “Compared with 2016, our Her company served projects made remarkable more than 2,000 companies quality improvements, which in 2017, most of which are is critically important for the listed LED manufacturers continued healthy develop- in China. ment of the district,” said Zhao Guosheng, executive deputy chief of Zengcheng. He said that the district 160 government has been in talks with at least 143 high-quality enterprises projects, which are expected invested in Zengcheng and in high-tech industries have to pour additional funds of 150 set up good connections with based their operations in billion yuan into the district the district. That’s why we are Zengcheng in 2017 in the coming years, further here,” he told reporters. boosting the local economy. Diversified interest Two key clusters Apart from the two industri- 94 According to Zhao, two al clusters, the district has also new projects powerful industrial clusters placed emphasis on attract- — expected to generate out- ing companies in the sectors introduced in Zengcheng put of over 100 billion yuan of modern services, regional last year each — have taken shape in headquarters, artificial intel- Zengcheng, one focused on ligence, biomedicine, new new generation of informa- energy, and new materials, big 435 tion technology and the other data, modern agriculture and on automotive and auto parts eco-tourism, said Su of the dis- million yuan manufacturing. trict’s commerce department. fund invested in science and Foxconn’s vast investment For example, Zengcheng technology in 2017 strategy called SIO new-gen- introduced 16 regional head- eration panel display industry quarters projects in 2017, rang- was agreed at the end of 2016 ing from the low-carbon indus- and construction launched try and financial technology to “We try to identify the rea- last March. The plan involves innovation services. sons that led to or might lead building the world’s largest Total investment in the dis- to the failure of the products 8k-resolution panel factory and trict is projected to reach about in terms of raw materials ultimately turning Guangdong 22 billion yuan, surging 742 or techniques used, which into a world-leading manufac- percent year-on-year, accord- helps the clients to solve the turing and research center for ing to government figures. problem, retrieve their loss- the industry. “Our economy has much es and improve on quality,” When it is put into operation room to develop and growth said Fang, founder of Gold in the second half of 2019, the Clockwise from top: The picturesque view of Zengcheng, in the will be substantial in the Medal Analytical & Testing factory will be able to produce eastern part of Guangdong province. WU GUOMING / FOR CHINA DAILY coming years,” said executive Group. 92 billion yuan in industrial Visitors participate in a cycling event in Zengcheng. LING YUN / deputy chief Zhao. He said the She said the longer she output annually, said Su Yan- FOR CHINA DAILY With a good natural environment, Zengcheng district’s development plan is has stayed in Zengcheng, hua, director of bureau of com- is an ideal place to live. WU GUOMING / FOR CHINA DAILY Workers designed to create an eastern the more she loves the place. merce of Zengcheng district. assemble cars at a production line of BAIC Group in Zengcheng. gateway for Guangzhou to con- “The local government “More significantly, Fox- LING YUN / FOR CHINA DAILY nect to the surrounding cities offered an office free of conn’s project will attract its in the Pearl River Delta, such charge and other incentive suppliers from across the After conducting initial end of last year. chi and Honda specializing vehicle manufacturing plants as Shenzhen, Dongguan and policies to attract people like globe, including many top 500 assessments, the department Investment in the automo- in the manufacturing and and at least 150 auto parts and Huizhou.“Located at the center me to start up businesses,” transnational companies, to carefully selected about 40 tive and auto parts manufac- research of motors for new- research companies. of the Guangdong-Hong Kong- Fang said. Another factor settle in Zengcheng,” Su noted. companies from Foxconn’s turing cluster is also on the rise, energy vehicles, set up its first “Guangzhou is a well-estab- Macao Greater Bay Area, and was the district’s central To attract these heavyweight supply chain, including Air Su said. overseas branch in the district. lished vehicle manufacturing as a key stop along the Guang- location for the major LED companies, Su’s department Products, Corning, Toray and In October 2017, China These two new projects, center of China. In addition, zhou-Shenzhen Science and markets in the Pearl River has set up a database to record Daifuku, and offered them Automotive Technology and with contractual investments the new energy auto mar- Technology Innovation Corri- Delta area in Guangdong the key information of more incentive policies and tailor- Research Center, a State-owned of 1.85 billion yuan and 3 bil- ket has high potential,” said dor, Zengcheng is at its prime province. than 170 such suppliers, includ- made government services, industry leader, started con- lion yuan, respectively, added Namatame Haruo, president development stage and clearly Fang said the local gov- ing their main business, core said Su. struction on its South China glamor to the existing strong of Hitachi Automotive Electric a good choice for investment,” ernment offers technologi- technologies, current invest- As a result, Corning decided headquarters in Zengcheng. auto and auto parts manufac- Motor Systems (Guangzhou) Zhao said. cal subsidies to profession- ment in China and their busi- to invest about 2 billion yuan One month later, Hitachi Auto- turing industry in the district. Ltd. als, their teams and their ness relations with Foxconn to build a new plant for display motive Electric Motor Systems, The area has built a complete “Our parent company Hita- Contact the writer at cheng- projects, and provides effi- in China. devices in Zengcheng at the a joint venture between Hita- supply chain composed of two chi Automotive System has [email protected] cient services. Labor costs and living costs — including house prices, rent, commodities — are much lower than in downtown Guangzhou, she Government support makes for efficient business environment added. According to the district By CHEN HONG in making metal bones and end of last year, connecting the industrial park. government, it focuses on joints by using the fine art of Zengcheng with downtown Terry Guo, founder and tailor-made services to Zhu Xianwen set up his 3-D printing technologies. Guangzhou. Several other chairman of Foxconn, the attract professionals. 3-D printing company in As it is the district’s first routes are under construc- world’s largest contract elec- They can enjoy a series of Zengcheng district of Guang- project to be founded by an tion. tronics manufacturer, said services in terms of health- zhou late last year. academician, the local govern- The district is also building the spacious land area that care, schooling for their Zhu said he picked the loca- ment dispatched a team to a transportation hub for east Zengcheng offers is one of children, transportation tion carefully, visiting many help the company to manage Guangzhou to link with sur- the most important elements and travel after settling in other places in Guangdong administrative processes such rounding cities and provinc- driving his decision to invest Zengcheng, according to the province before making his as renting offices, registration, es via several highways and 61 billion yuan ($9.66 billion) district government. decision. paying tax, authenticating high-speed trains, according in the district. “The economy is developing medical equipment and even to the district’s development In comparison with nearby rapidly in Zengcheng, and the managing investors, Zhu said. blueprint. Shenzhen and some other district government is very As a result, Zhu and his Meanwhile, Zengcheng is districts in Guangzhou that efficient and helpful. They team can focus on developing vying to host the city’s second face land shortage problems, offer many more services, and new products and establish- international airport. Zengcheng covers about 1,616 at higher standards, than we ing cooperation with the local Wu Xinhua (left), a world-leading expert in titanium, is selected The International Creat square kilometers, which is expected,” Zhu, founder and hospitals, to continue to carry as an academician of the Australian Academy of Technology and Center, on which construc- about one-fifth of Guang- president of Guangzhou Hua- out experimental operations. Engineering. PROVIDED TO CHINA DAILY tion started in May 2016, zhou’s total land area. tai 3D Material Manufactur- “With the strong support will provide a floor area of “District government ing Co, told reporters. of the government and our 100,000 square meters in its departments are improv- He set up the company with advanced technologies, we ter, one of the industrial parks of its convenient transpor- first phase by October this ing efficiency, streamlining Wu Xinhua, an academician will soon introduce metal 3-D in the State-level Zengcheng tation, solid supply chain, year. Several companies, administrative procedures of the Australian Academy of printer for medical purposes Economic and Technological resourceful talent pool, skill- including the domestically and launching e-government Technology and Engineering to the market,” Zhu told China Development Zone, said the ful workers and wonderful listed Dian Diagnostics and systems to further improve the and a world-leading expert in Daily, adding that the location district is “undervalued”. living environment,” Chen Hong Kong-listed Beijing business environment,” said titanium, titanium alloys and is definitely a “smart choice”. “It’s an ideal place for com- said. Enterprises Water Group Ltd, Zhao Guosheng, executive An artist’s rendering of their manufacturing process- Chen Chen, a director of panies to set up their South A new metro line was have agreed to set up their deputy chief of Zengcheng. skyscrapers of Zengcheng es. The business specializes the InternationalCreat Cen- China headquarters because put into operation at the South China headquarters in district. PROVIDED TO CHINA DAILY

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