ISSUE 02, 2012

Publisher: Municipal Board for International Investment Cover Story

LIFE IN GZ Emerging Industries Guangzhou’s Music of Strategic and Its History Importance in

INVESTMENT Guangzhou Zengcheng High-end Equipment Industry Base Preface COVER STORY E20 New Energy in Pursuing CONTENTS Guangzhou: ABB Innovation and Development According to the 12th Five-Year Development Plan for emerging in- dustries of strategic importance in , Guangzhou will accelerate the development of emerging industries of strategic importance. Guangzhou will focus on six categories including new generation information technology, bio- technology and health industries, new materials and high-end manufacturing, fashion and creative industry, energy sav- COVER STORY Investment E4 Emerging Industries of Strategic Importance ing and environmental protection, new E26 Zengcheng High-end in Guangzhou energy vehicle industry. Improving the Equipment Industry Base development of the emerging industries of strategic importance of Guangzhou is of great importance in improving Guangzhou’s position as a national cen- tral city, preempting the commanding heights of technology and industry, ac- celerating transformation of the develop- ment mode of economy, and achieving internal and external improvement.

This issue of Invest Canton has in- COVER STORY LIFE IN GZ terviewed Xiang Xiaomei, the direc- E16 Ugeux: Guangzhou should make prudent tor of Institute of Industrial Economy E34 Guangzhou’s Music planning for the development of Emerging and Its History of Guangdong Provincial Academy of Industries of Strategic Importance at first Social Science and Georges Ugeux, the chairman and CEO of Galileo Global Advisors, centering about the advan- tages, challenges, current situation and Others future of Guangzhou’s development of strategic new industries. The experience E28 policy E38 SIGHTS OF E42 focus E48 WHAT’S ON of ABB and Dongfeng-Nissan in develop- Excerpt from Guangdong’s 12th GUANGZHOU 2012 White Paper on Arts events in July and ing emerging industries of strategic im- Five-Year Plan for Emerging Guangzhou Guangzhou Foreign Trade August portance will also be shared. Industries of Strategic Importance Sweeties and Economic has been released in E4 Cover Story Cover Story E5

EMERGING indus- tries of sTRATE- GIC IMPORTANCE IN Guangzhou

be put in emerging industries of stra- RMB has been set up as loan guaran- GDP to 2.8%. Enterprises will increase By Eric Xie, translated by Ester Yang & Xi Ying tegic importance. Besides, government tee fund for minor technology-oriented their investment of research and devel- will support 100 technology innovation enterprises to help them with financing opment. There will be 35% of large and ing Guangzhou Science City, Guangzhou The goal of development Current state of development projects and arrange 200 to 300 billion difficulties. In the coming five years, the medium industrial enterprises having Higher Education Mega Center and Tian- RMB to support the transformation of government plan to attract social funds their own research and development he Intelligence Town. They have complete According to the 12th Five-Year Devel- Guangzhou will promote the develop- scientific and technological achieve- of 20 billion RMB for innovation busi- institutes. Meanwhile, the projects in- chains of innovation, including new dis- opment Plan of Guangzhou, Guangzhou ment of emerging industries of strategic ments. Special support fund for talents ness by technology-financing methods. cluding Guangzhou Higher Education play technology, digital home, information will accelerate the development of emerg- importance by constructing innovation will also be set up by government to The government will try to cultivate 20 Mega Center, Southern Guangzhou service of software and mobile Internet. ing industries of strategic importance, platform, gathering high-end human re- invest 1 billion RMB in the five years innovation enterprises which have list- Higher Education Mega Center and Guangzhou will try to build up two new focusing on six categories, including new sources, making breakthrough of core to cultivate 300 leading talents of in- ing potential to lay a solid foundation Biological Island will be built up in 2014 industries with output value of more than generation information technology, bio- technique and accelerating the innova- novation industries and 100 innovation for the development of emerging indus- with a total investment of 3.72 billion 200 billion RMB and two new industries technology and health, new materials and tion of technology. In 2011, the added teams. The maximum financial aid for tries of strategic importance. RMB, which will create conditions for with output value of more than 150 billion high-end manufacturing, fashion and cre- value of emerging industries of strategic everyone is 15 million RMB. International innovation institutes and RMB at the end of the period of the 12th ative industry, energy saving and environ- importance of Guangzhou was more than 1.3 Construction of environment the development of enterprises ag- Five-Year Development Plan. mental protection and new energy vehiche 130 billion, which accounted for more than 1.2 Financial supports In the coming five years, Guangzhou glomeration. industry. Guangzhou will try to build up a 10.6% of the GDP of Guangzhou. The list of Bureau of Science and Information will pay great efforts to build up a fa- national base for emerging industries of 50 key enterprises of emerging industries Advantages of development Technology of Guangzhou will carry out vourable policy environment to attract 1.4 Attention from the leaders of strategic importance in 2015. Guangzhou of strategic importance and 50 enterprises financing programs of technology and a range of capable technology research the municipal government will try its best to increase the added val- which will get special supports in Guang- 1. Government supports finance innovation. In the first phase of institutes, technology enterprise and Mr. Jianhua, the mayor of ue of emerging industries of strategic im- dong has been released recently. In the investment, 200 million RMB has been innovative talents to stay in Guang- Guangzhou, emphasizes on sensing portance to be more than 270 billion RMB list, there are nine enterprises of Guang- 1.1 Fiscal investment invested as initiation funds to drive zhou. At the same time, Guangzhou the urgency of developing emerging in 2015, which will account for 15% of the zhou have been listed as key enterprises During the period of the 12th Five-Year fourfold to quintupling social funds for will reform the management and ser- industries of strategic importance. He GDP of Guangzhou. Guangzhou will also and 17 enterprises have been listed as Development Plan, municipal finance will technology innovation. Two investment vice system of technology, improve the hopes responsible departments will try to achieve an average annual growth special supported enterprises, which cov- arrange four billion RMB annually (totally funds have been set up with more than soft environment of technology inno- continue to make scientific plan to de- of 20% and improve the percentage of the er 26% of the enterprises in the list. 20 billion RMB in the five years) to sup- 600 million RMB to support innovation vation, and increase the percentage of velop strategic new industries as the GDP of Guangzhou to be more than 20%. Guangzhou has formed ten industryial port the key industries with strategic development of enterprises. 45 million research and development funds of the key and leading industries of Guang- clusters of innovated-orientation, includ- importance. Half of the investment will E6 Cover Story Cover Story E7

ment of 500 million RMB), Telecom alization of biological diagnosis, and key The field of new material develop- Guangzhou Data Center, Guangzhou technique and product development of ment and manufacturing has the stron- STE-PCI Technology Limited’s cloud blood purification. The development of gest strength among the six emerging computing center (with a investment of biology and health industry is driven into industries in Guangzhou. As a city that 2 billion RMB) and Centrin a rapid stage. In 2012, Guangzhou has gather the most higher education insti- Cloud Computer Center (with a invest- set up special fund for the development tutes and science research institutes in ment of 9 billion RMB) . of leading industry with strategic impor- Guangdong, Guangzhou has almost cov- In the coming five years, Guangzhou tance and offer great support for the biol- ered the most important experts of the will play an active role in carrying out ogy and health industry. material area in Guangdong. eight major projects including new dis- During the period of the 12th Five- Among the academicians of the Chi- play technology, digital TV and digital Year Development Plan of Guangzhou, nese Academy of Sciences and Chinese home, new-generation mobile wireless Guangzhou will actively develop new Academy of Engineering in Guangdong, communication, electronic audio prod- drug research and development, bio- there are four academicians working in ucts, mobile internet, software products, medical engineering products and tech- material area. Moreover, the achieve- cloud computing, Internet of Things, and nology and service outsource of biologi- ments of the material area have won a the next Internet. Guangzhou will ac- cal technique according to the demand range of national science and technology celerate the import and development of of Guangzhou’s industrial planning. award in the recent years. those projects with independent intellec- Guangzhou will promote the innovation Guangzhou will base on the advan- tual properties and core technology, im- of industrial technology, make break- tages of electronic information, automo- prove capacity for independent innova- through of the key technique of drug bile manufacturing and petrochemical zhou. Guangzhou should not only focus and development staffs in Guangzhou, China's Top Ten Innovative Cities”, tion, cultivate core enterprises, and pro- production, release a range of important production and focus on the planning of on the current projects, but also fore- which ranks the first of Guangdong. which shows that Guangzhou plays a mote the adjustment of industry struc- innovative achievement, speed up the key material of new panel display, semi- sight the importance of strategic new leading role in China of science devel- ture. Guangzhou will also develop the pace of the industrialization of achieve- conductor lighting material, advanced industries. In the coming five years, 2.3 The effort of developing tech- opment, independent innovation, trans- high-end electronic information industry ment of the biology industry, form the ceramic material, special glass, modified Guangzhou will make great effort of nology will be increased. The fund for formation of development, industrial cluster and software and information in- cluster of biology industry with 200 bil- plastics, and new material for vehicle. develop emerging industries of strate- research and development in 2010 took transformation, energy-saving, environ- dustry cluster, promote the construction lion RMB, and continue to increase the Combining the need of the develop- gic importance to increase competitive up 2.4% of the GDP, which increase mental innovation, reformation of sys- of professional industry area and public core competitiveness of the industry. ment of emerging industries of strate- service platform, and improve the envi- ability. Guangzhou will carry out indus- by 0.75% of 2010. During the period of tem and innovation of system. gic importance, Guangzhou will base ronment for industry cluster. In this way, try supporting policies related to funds, the 11th Five-Year Development Plan New material industry on new material industry to increase the Guangzhou can keep the development of innovation capacity and level of new ma- environmental protection and human of Guangzhou, Guangzhou totally re- New generation of infor- industry in a rapid and health way, trying terial industry of Guangzhou. To reach resources to make full use of the guid- ceived 12.77 billion RMB of national At present, the new material industry to become China’s software cities and this goal, Guangzhou will carry out major ance of the financial support (two billion financial support. In 2010, Guangzhou mation technology industry of Guangzhou has formed a relatively national demonstrate city of Internet of higher level of industry agglomeration project of new material, encourage the RMB per year) of emerging industries had 32.31 billion RMB for the develop- Things and to constructs an Intelligence with obvious advantage of the scale of industrial chain integration, and increase of strategic importance. Guangzhou ment of social science and technology In 2011, the production value of elec- Guangzhou. enterprises. The clusters of advanced the development and industrialization will accelerate the building of industry activities. Municipal finance appropria- tronic information industry of Guang- zhou achieved 202.5 billion RMB, in- metal materials, organic polymer materi- level of new rare earth materials, display clusters which have different character- tion for science and technology has material, structure material of automobile creased by 11.5%. The production value Biotechnology and health als and fine chemical engineering have istics and center on large-scale groups reached 790 million RMB in 2010. and ships, energy-based material, and of software and information service industry been set up. Electronic information ma- with assistance from minor enterprises. green chemical materials. Guangzhou reached 175 billion RMB. Among them, terials, biological medicine material and 2.4 High and new technology en- will develop the new material industry the income of software service was about In the recent five years, departments new energy materials also have built up 2. Innovation atmospheres joys rapid development. In 2011, output into a high-end and large-scale develop- 103.7 billion RMB, increased by 40%. A including Bureau of Science and Infor- their industrial bases. According to sta- value of hi-tech products reached 635.3 ment. At the same time, the new material range of high-end projects of electronic mation Technology of Guangzhou and tistics, the output value of new material 2.1 Construction of education insti- billion RMB, taking up 40% of the total industry of Guangzhou will support other information industry have been imported, Guangzhou Municipal Development & industry of Guangzhou increases by 20% tutes and innovation platform has been value of the industry. There are 1261 hi- emerging industries of strategic impor- including the 8.5th generation LCD pan- Reform Commission have set up a range annually. More than 140 new material en- improved. Guangzhou has two third of tech enterprises in Guangzhou, taking tance. Guangzhou will improve the de- el, LED wafer, Centrin South China Cloud of biology industry projects and invested terprises’ annual sales revenue achieved up 26% of Guangdong. velopment of new material industry bas- higher education institutes, 97% of na- Computer Center, Nufront Computer more than 500 million RMB to attract more 100 million RMB. There are 23 enterpris- ing on the national industrial base of new tional key majors and most of technol- chip, and Skyworth OLED. Guangzhou than 1.5 billion RMB investment from en- es of them having more than one billion material, focus on the construction of new ogy research and studies departments 2.5 Output of the science and tech- has cultivated a range of key enterprise terprises and related departments. Major RMB as annual sales revenue. And three material innovation platform, modified of Guangdong. nology makes great achievement. The of electronic information industry. projects of biology and health industry of them have more than 10 billion RMB. plastics manufacturing base and carbon number of patent application reached A series of projects of major infrastruc- combine with the local features and en- New material products are predicted fiber manufacturing base, and cultivate 2.2 Human resources are developing 25000 in 2010. During the period of the tures offer a strong support for the new vironment location, focusing on the re- to reach the scale of 180 billion RMB in a range of leading enterprises, including into an agglomeration state. The hu- 11th Five-Year Development Plan of generation of information technology in- search and development of major new 2015. The added value of new material Kingfa Sci.& Tech. Co.,Ltd and Genius man resources of Guangzhou rank the Guangzhou, Guangzhou received 682 dustry. They are super computer center in drugs, accreditation of laboratory animal, and high-end manufacturing is predicted Advanced Material Co.,Ltd..Guangzhou third of the big cities in China. There are national and provincial awards of sci- Guangzhou, China Mobile South base of biological medicine outsourcing service, to be 40 billion RMB in 2015 to build up a will try to build up a national industrial almost 30 thousand of returned oversea ence. cloud computing center, Tone cloud key technique and clinical practice of important national base for new material base of new material industry. students and 93.5 thousand research Guangzhou has been listed as “2011 computing data center (with a invest- stem cells, key technique and industri- and high-end manufacturing. E8 Cover Story Cover Story E9

New energy vehicle industry porting products for magneto including New energy industry and energy, heat pumps, hydropower and green intelligent building technolo- technologies and equipments of Car- high-temperature-resistant material, energy saving and environ- wind power, biomass energy, transpor- gies, resources comprehensive utiliza- bon Capture and Storage should be power electronic modules and highly tation alternative energy, green building, tion, circular economy, pollution con- guided. In the coming five years, Guangzhou mental protection indus- will pay great efforts to develop new en- reliable controller. About electronic con- new energy equipment manufacturing, trol and other fields will be conducted. ergy vehicle industry and try to achieve troller, Guangzhou will focus on the de- try and foreign investment in new energy Energy saving and environmental (2) In the field of circular econo- the comprehensive production capacity velopment of the control system of entire power generation are the key points of protection landmark demonstration my, the production technologies and electronic vehicle, improve the manage- Guangzhou's new energy development. of 150 thousand vehicles in 2015 with According to the industrial develop- projects will be implemented. Some equipment complying with the prin- ment system of hybrid power and multi ment goal, the new energy and energy 7 billion RMB added value. Guangzhou new energy integrated demonstra- ciple of "3R" (reduction, reuse and re- energies, and actively improve electronic saving & environmental protection in- will initially build up the system of sup- Energy saving and environ- tion zones, green smart demonstration cycling), utilizing resources efficiently, devices and components for vehicle in- dustry will achieve the added value of porting facility, the system of support- mental protection projects, circular economy demonstra- generating few pollutants and caus- cluding IGBT. Guangzhou will also play RMB14 billion by 2015; a number of lead- ing technique and system of policy and an active role in developing component ing industrial clusters in the fields of tion zones and green communities will ing little pollution are the focuses; the environment for new energy automobile Guangzhou's environmental protec- parts including power steering system nuclear power equipment, wind power be built. Energy and environmental clean production technologies and to achieve the application of new energy tion industry has an extensive scope, with electric power, electronic assisted equipment, solid waste incineration infrastructure will be improved. The equipment in electric power, metal- vehicle in urban traffic control system. and involves many fields. The industry braking system with energy feedback, power generation equipment, energy- technical standards of energy saving lurgy, chemicals, building materials, The government has set 800 million RMB covers the production of environmentally air conditioning and LNG tank. saving air-conditioning and energy- and environmental protection will be printing and dyeing, paper making, as supporting fund for promoting energy- friendly products, the manufacturing of saving electrics will emerge; the largest heightened. High-energy consumption electroplating, circuit boards and other saving vehicle and new energy vehicle. environmental protection equipment, the 3. Construction of application en- research, equipment manufacturing, and high-pollution products will be re- heavy polluting industries should be construction of environmental engi- vironment promotion and application base of new stricted. The construction of “Low-car- developed significantly; the clean pro- The key points of the devel- neering, the environmental engineer- Guangzhou will accelerate the con- energy and energy saving and environ- bon Guangzhou” will be accelerated duction technologies and equipment opment of new energy ve- ing consulting and services, the com- struction of infrastructure including mental protection in South China will be and pushed forward. of hotels, restaurants, transportation prehensive utilization of resources, the hicle: charging and maintaining the new en- established. and other service industries should be production of clean products, etc.. At ergy vehicle. Guangzhou will search for 2. The garbage clean incineration guided. new business modes including raw au- present, Guangzhou's environmental 1. Entire vehicle manufacturing New energy equipment centering the advanced Guangzhou will focus on the develop- tomobile, battery leasing, vehicle leasing protection industry reaches the ad- garbage clean incineration power gen- 2. Field of pollution control tech- ment of plug-in hybrid electric vehicle, and change of battery, and complete the vanced level in Guangdong Province in In the light of Guangzhou New Ener- eration technology will be developed nologies and equipment all-electric vehicle and hybrid vehicle, public service platform for search, de- terms of quantity, scale and quality. In gy and Renewable Energy Development vigorously. The construction of Water as well as encourage the development velopment, detection and experiment of April 2012, Zhongchen Fund, China's Plan issued in February 2012, Guang- Pollution Control Technology R & D (1) In the field of water pollution of special purpose electric vehicle, new new energy vehicle. Basing on the cur- zhou will raise the proportion of the new first professional industrial investment Base, Water Treatment Equipment control, the wastewater treatment, and generation light all-electric vehicle and rent standard of the industry in China, energy in the energy structure from the fund which is engaged in boosting Manufacturing Base, “Environmental recycling technologies and equipment LNG vehicle. Guangzhou will also sup- Guangzhou will further set up the local current 1% to 15%, the output value of the the energy saving and environmental Monitoring Technology, Product R & in heavy polluting industries (such as port the entire vehicle manufacturing en- standard for energy cost and pollutant new energy industry is expected to reach protection, settled in Guangzhou and terprises and projects to achieve national discharge to achieve a comprehensive D and After-sales Service Base”, Clean tanning, printing and dyeing, circuit 400 billion RMB, and Guangzhou will be- held an opening ceremony. Zhongchen standard and industry access. Guang- system of local standard for new energy Production Common Technology R & D boards, electroplating, chemicals and come a “new energy city” in 2020. At the Fund will mainly invest in the projects zhou will also try to plan for the develop- vehicle. and Equipment Industry Base will be livestock breeding) are the focuses; same time, the plan proposes that solar supported by the relevant ministries or ment of other types of new energy ve- accelerated. the denitrification and phosphorus re- the local government, it will coordinate hicle including fuel-cell powered vehicle. moval upgrading and transformation with the provincial and ministerial of sewage treatment plants, the creek governmental institutions to prompt Key development fields of the 2. Key component parts water environmental restoration tech- the development of the environmen- energy saving and environ- Centering on entire vehicle manufac- nologies and equipment should be de- turing of new energy vehicle, Guang- tal protection industry, and assist the mental protection industry veloped significantly; marine pollution zhou will carry out planning, integration, local government to build innovation include control, agricultural nonpoint source developing supporting industry and platforms. The funds in the energy sav- pollution control and rural decentral- focus on key component parts of elec- ing and environmental protection in- 1. Green low-carbon field ized wastewater treatment technolo- trokinetic cell, electric motor and elec- dustry will value 10 billion RMB within tronic controller. About electrokinetic gies and equipment should be guided. three years. (1) In the low-carbon field, the car- cells, Guangzhou will mainly develop bon-free technologies and equipment lithium power cell and its management (2) In the field of air pollution con- The planning for the energy of renewable energy sources (such system, support and improve the devel- trol, the technologies and equipment opment of nickel and metal hydride elec- saving and environmental as solar energy, nuclear energy, wind of flue gas desulfurization and deni- tric power cell and fuel cell, encourage protection industry in the energy and biomass energy) are the fo- trification, efficient dust removal, and the next generation cells and accelerate next five years is as follows: cuses; the carbon reduction technolo- industrial organic waste management gies and equipment in electric power, the key material such as diaphragm of are the focuses; the technologies and metallurgy, petroleum, chemicals, ce- lithium ion battery. About electric mo- 1. Key technology research and de- equipment of atmosphere combined tor, Guangzhou will focus on developing ramics, cement, printing and dyeing, velopment in energy conservation of pollution prevention and motor vehicle high power magneto and it controlling paper making and other key industries high-energy consumption industries, exhaust gas purification should be de- system, speed up to develop the sup- should be developed significantly; the veloped significantly. E10 Cover Story Cover Story E11

(3) In the field of solid waste dis- protection engineering, the market- development funds of the strategic backbones in the industrial develop- posal, the disposal and comprehen- oriented, professional and social ser- leading industries will support the ment. sive utilization technologies and vices of environmental protection fashion and creative industry in the Guangdong Animation City equipment of urban domestic gar- infrastructure are the focuses; the following aspects: original animation (Conghua Animation Industrial bage, hazardous waste, scrap metals, contracting and third-party opera- and online games, animation and on- Park) is a large-scale cultural and waste plastics and other solid waste tional services of comprehensive envi- line game platforms, derivatives of creative industrial cluster guided by are the focuses; the disposal and com- ronmental engineering and pollution animation and online games, mobile the government and established by prehensive utilization technologies control facilities should be developed streaming media, mobile TV, interac- private enterprises. This industrial and equipment of sludge of urban significantly; the integrated environ- tive web TV and other new media, park covers animation research and sewage treatment plants, river mud, mental services targeting solving design and manufacture of fashion development, education and train- scrap cars and electronic products environmental problems and improv- products, fashion planning, fashion ing, production, development of de- should be developed significantly; the ing environmental quality should be publishing, fashion video and pho- rivative products, brand licensing, ecology and soil environmental reme- guided. tography, fashion books and maga- animation copyright trading, anima- diation technologies and equipment zines. tion exhibition, as well as animation important opportunity for the rapid ing market prospects; make break- should be guided. (2) In the field of environmental According to the industrial devel- tourism and recreation. Its establish- development. throughs of key technologies; in- protection technical consultation, en- opment goal, Guangzhou will build ment marks that a complete indus- Take the apparel industry for an troduce excellent talents; and make 3. Field of environmental moni- vironmental planning, environmental three to four new fashion blocks and trial chain of the animation industry example, Guangdong has more than breakthroughs in strategic leading toring and environmentally friend- impact assessment, clean production fashion brand zones, and more than will be formed. The total planning 30,000 apparel enterprises, and 26 industries in the next five years. ly materials investigation, environmental manage- 20 online game and animation enter- area of Guangdong Animation City apparel industry clusters. Guang- Guangzhou strives to make the ment system certification and other prises will achieve the annual sales reaches 2,500 mu, the initial devel- dong’s apparel output accounts for a new-generation information technol- (1) In the field of environmental consulting services are the focuses; income of over 100 million RMB by opment area covers 251 mu, and the quarter of the national apparel out- ogy industry, the biotechnology and monitoring, the technologies and pollution prevention technical adviso- 2015. Guangzhou will become a re- estimated total investment values put, becoming the world's largest health industry, and the new mate- equipment of online pollution source ry services should be developed sig- gional online game and animation more than 10 billion RMB. In Phase apparel production base and distri- rials and high-end manufacturing monitoring and fast heavy metal de- nificantly; environmental monitoring center with important influence, and I, Original Building, Game Building, bution base. Apparel Industry De- industry to be one industry cluster tection are the focuses; the new toxic and social services should be guided. a region where fashion talents gath- Education and Training Building, velopment Plan in Delta with value of 100 billion RMB, and contaminant detection technologies er, fashion products originate and Animation Square, supporting apart- Region proposes clearly that Guang- build the fashion and creative indus- and equipment should be developed Fashion and creative in- fashion brands concentrate. ments and other construction proj- zhou should develop the headquar- try, the new energy and energy sav- ters economy of the apparel industry ing and environmental protection in- significantly; the portable and auto- dustry ects totally covering about 200,000 motive emergent detection technolo- Animation industry square meters have been finished. as well as the fashion and creative dustry, and the new energy vehicle industry, so as to become a clothing industry to be one industry cluster gies and equipment should be guided. Guangzhou government regards The Opening Ceremony of Guang- fashion center in China. with 10 billion RMB by 2015, in order the development of the fashion and Within five years from 2007, 150 dong Animation City was held on Qingliang (the Mayor of to ensure that Guangzhou have new (2) In the field of new environmen- creative industry as the focus of the million RMB is used as the develop- June 21. Currently, there are more Guangzhou, the secretary of Guang- development impetus and growth in tally friendly materials, water treat- transformation of economic develop- ment funds to support and encour- than 30 companies registered for ad- zhou Municipal Committee of the the next 5 to 10 years. ment flocculants, coagulants, biofilm ment mode and new industry culti- age Guangzhou's software and ani- mission. Communist Party of China) proposes In the process of promoting in- adsorption materials and fillers as vation; especially after the old city mation industry every year. Under that Guangdong should strengthen dustrial breakthroughs, Guangzhou well as other high-performance envi- reconstruction is combined with the the support, the development envi- Fashion industry the textile and apparel industry. will actively introduce major indus- ronmentally friendly drugs and ma- industrial upgrading (the secondary ronments of Guangzhou's animation trial projects through business in- terials are the focuses; high-efficient industries are encouraged to exit industry have changed significantly, At present, Guangdong Province Conclusion vitation and investment attraction, membrane separation materials, from the urban , while the becoming one of the biggest bright has become a region with the most provide green channel services for membrane modules, ion exchange vacated plants are used to develop spots of Guangzhou’s creative in- comprehensive segments of the In accordance with the decisions 100 major projects in emerging in- resins and other new environmental commerce, service and other tertiary dustry. At present, more than 100 fashion industry in China centering and plans of Guangzhou Municipal dustries with strategic importance. friendly materials should be devel- industries), the rapidly emerging companies are engaged in online in Guangzhou, covering clothing, Committee of the Communist Party With special funds of RMB2 billion oped significantly; high-temperature new concept cultural and creative games, animation and cartoon in cosmetology, hairdressing, cosmet- of China and Guangzhou Municipal per year offered by Department of Fi- resistant and corrosion resistant dust industry has become Guangzhou's Guangzhou, with 15,000 employ- ics, jewelry, footwear, leather goods, Government, Guangzhou will speed nance, Guangzhou will support the filters, high-performance sound in- new economic growth point and the ees. The industrial chain covering animation, games, cars, gifts, con- up to plan and build a number of financing of enterprises, make use sulation materials, special catalysts future pillar industry. online games, animation creation sumer electronics and so on. Guang- productivity backbone projects with of financial interest subsidies and and other functional environmentally Design, publishing, cultural en- and performance, mobile games and dong's strength has been greatly high technological content, good guarantee to guide all kinds of com- friendly materials should be guided. tertainment, cultural tourism, ad- stand-alone games has been formed enhanced. Now, China has had the economic benefits and strong driv- mercial financial institutions to give vertising, exhibition, online game, preliminarily. In Guangzhou, a num- world's most complete industrial ing forces; develop some backbone credit support to the above 100 proj- 4. Field of environmental ser- animation and other segments have ber of famous enterprises and inde- chain and the most diversified prod- enterprises with high brand value, ects and open up "green channels" vices turned to be the main supporting pendent brands with great influence ucts of fashion industry. Guang- advanced technology and promis- for the loans of project. forces of Guangzhou’s creative in- and strong market radiation power zhou’s fashion industry has seen an (1) In the field of environmental dustry gradually. In Guangzhou, the in China have arisen, becoming the E12 Cover Story Cover Story E13

Director of Institute of Industrial Provincial Academy of

Social Science, Decision-making Consultant of Guangdong Provincial Government Xiang Xiaomei: Guangzhou should be “an in- novative source” in for the develop- ment of emerging industries of strategic importance.

Translated by Xi Ying

s the aca- plays a leading role in China undoubt- lent projects, but also focus on emerg- to accomplish some achievements in economy is one of the main ways for high-end new electronic information, demia de- edly by virtue of the advantages in lo- ing industries of strategic importance the promotion of emerging industries Guangzhou to construct itself as a na- new energy, and LED), Guangzhou fines, emerg- cation and industries. and making more efforts to develop of strategic importance. On the other tional central city. has seen rapid developing, and occu- ing industries “Guangzhou should play its role in them in the next five years and in the hand, Guangzhou is in the critical his- In 2011, Vision and Paths for pied an important position in China; of strategic Pearl River Delta and even Pan-Pearl long tern. Guangzhou should improve torical period when the economic and Cultivating Emerging Industries of in other industries, Guangzhou also importance River Delta as 'an innovative source', itself in order to enhance the competi- social development models transform Strategic Importance in Guangzhou has good basis. However, the indus- mean the and guide the regional development tiveness significantly. and the construction of Guangzhou written by Xiang Xiaomei attracted trial development requires a long in- new indus- in emerging industries of strategic In the planning of , as a national central city accelerates, the attention of the Government and cubation period. Guangzhou is facing tries related importance,” said Xiang Xiaomei, the increase value of emerging in- so it is significant for Guangzhou to public. The scholar who is commit- great opportunities and uncertainties A dustries of strategic importance will to the national economic and social the director of Institute of Industrial boost emerging industries of strategic ted to researching industries focused when it develops emerging industries development as well as the industrial Economy of Guangdong Provincial exceed RMB 270 billion in 2015, ac- importance. on strategic emerging industries and of strategic importance. Guangzhou’s structure optimization and upgrading, Academy of Social Science. counting for 15% of Guangzhou’s GDP; "The advance planning of strate- explained "Guangzhou’s paths" for advantages do not mean everything, with overall, long-term and guiding Previously, at Guangzhou by 2020, the increase value will grow gic emerging industries is a strategic emerging industries of strategic im- there are exist many problems to be features. Development and Reform Conference at the annual growth rate of over 20% choice for Guangzhou to enhance its portance in depth. solved by it. Since Premier Wen Jiabao put for- 2012, the mayor Chen Jianhua em- , accounting for 20% of Guangzhou’s status as a national central city, and Emerging industries of strategic About the advantages, chal- ward the idea of developing emerging phasized that Guangzhou should de- GDP. seize the top position in technology importance are not purely fictitious, lenges, current situation and future industries of strategic importance in velop emerging industries of strate- Undoubtedly, Chen Jianhua and industries." Xiang Xiaomei indi- they should be combined with the of Guangzhou’s developing emerging 2008, a new industrial boom has aris- gic importance as soon as possible; expressed an explicit opinion— cated that the improvement of the ra- existing industries. In three key stra- industries of strategic importance, we en in China. In this trend, Guangdong Guangzhou should not only grip excel- Guangzhou have capcity and mind diation and influence of the industrial tegic emerging industries (namely interviewed Dr. Xiang Xiaomei who E14 Cover Story Cover Story E15

is the director of Institute of Industrial been improved. Four national high-tech of Guangzhou’s innovative industrial ag- leading role in a new ented profit model should Economy of Guangdong Provincial industry bases in biology, software, in- glomeration park is backward, without round of the competi- also be formed gradually. Academy of Social Science and the deci- formation and new materials respec- high energy innovation-oriented indus- tion for emerging in- As for systems and in- sion-making consultant of Guangdong tively drive the development of emerg- try clusters. dustries of strategic dustrial policies, the gov- Provincial Government. ing industries of strategic importance. As for the selection of industries, importance depends on ernment should formulate In the wake of quick emergence of High- Guangzhou has never coordinated or Guangzhou’s capacity of non-balanced financial sup- Q: By location and economic base, tech Industrial Core Zone consisting of integrated all of production factors and optimizing and distribut- porting policies, and set up Guangzhou has unique geographical ad- Guangzhou Science City and Tianhe resources from the perspective of the ing innovative resources the investment and financ- vantages, the functional positioning of a Software Park, Guangzhou’s high-tech whole Pearl River Delta industrial chain. and strategic resources ing system integrating in- national central city, has strong econom- industrial layout featured with “one core, Guangzhou has the same industrial within an extensive re- vestment, insurance and ic strengths and advanced infrastruc- three poles and several special function- structure with the surrounding cities. gion. Guangzhou should loan. On the other hand, the ture, which facilitate the development of al areas” has formed and showed strong There are many emerging industries, grasp the opportunities Government should focus emerging industries of strategic impor- stimulating effects. such as the electronic information indus- of building up a national on creating the space for tance. However, in the whole Pearl River As for talents and technological in- try, the core sector of the industry chain central city and impel- the clusters of emerging in- Delta, many cities are exploring emerg- novation, abundant human resources is weak, many key components are still ling the integration of the dustries of strategic impor- ing industries of strategic importance. and strong technology strength offer imported from abroad or purchased from Pearl River Delta region, Q: In your article Vision and Paths tance. In your opinion, what kind of role does intelligent and technical support for the other regions. Guangzhou has not estab- implement the cluster-based high-effi- for Cultivating Strategic Emerging Secondly, in order to build a na- Guangzhou play? development of emerging industries lished industrial collaboration and coop- cient industry chain integration strategy Industries in Guangzhou, you pointed tional central city with strong radiation of strategic importance. The scientific eration with the other regions in Pearl to accelerate the development of strate- out that Guangzhou should bring two power and impulse, Guangzhou should Xiang Xiaomei: Guangzhou is lo- and technological resources of South River Delta. The lack of the industrial gic emerging industries, make various strengths “the government and mar- have vigoroso service functions, occupy cated in the geometric center of Pearl China concentrate in Guangzhou. 2/3 of consolidation leads to unrealized indus- clusters and enterprises in diversified ket” into play when it prompts strategic high-end links in the value chain of the River Delta cities, connecting the globe, Guangdong's colleges and universities, trial agglomeration effects and econo- value chains with coordinative advantag- emerging industries. How both of the production system. Meanwhile, with linking Hong Kong and Macao, radiating 97% of the national major disciplines, mies of scale; especially, the leading es and scale advantages, and ultimately strengths help Guangzhou attract strate- the deepening of professional division Southern China, backing on Pan-Pearl most of the natural sciences and techno- enterprises in new industries have weak improve Guangzhou’s international com- gic emerging industries? and the transfer of professional services, River Delta and the extensive hinter- logical R & D institutions, and all of the competitiveness, which is extremely in- petitiveness in industries. the enhancement of the competitive- land of the ASEAN market. Obviously, national key laboratories are located in compatible with the status of the central There are three priorities. At first, Xiang Xiaomei: In fact, the linkage ness of the manufacturing industries in Guangzhou has unique location advan- Guangzhou. More than 480 Guangzhou city Guangzhou. Guangzhou should level up emerging strategy of “the government and market” Guangzhou and even Pearl River Delta tages. Reform and Development Plan high-tech enterprises have been certi- industrial clusters, strengthen R & D, de- is just one of three major supporting strat- relies on the support of emerging service of the Pearl River Delta Region (2008- fied by Guangdong Province, accounting Q: In your opinion, how to make sign, marketing, headquarters economy egies for Guangzhou to develop emerg- industries of strategic importance more 2020) clarifies the new positioning of for nearly 40% of the total certified enter- up for the relative disadvantages of and other high-end sectors of the industry ing industries of strategic importance. and more. Therefore, Guangzhou should Guangzhou as a national central city prises in Guangdong. Also, Guangzhou’s Guangzhou, how Guangzhou exerts its chains, as well as play a key and crucial The other two strategies are Interactive not only develop emerging manufactur- from the perspective of the national strat- independent innovation capabilities comparative advantages, and how can role that improves the competitiveness of Strategy of Emerging Manufacturing ing industries of strategic importance, egy. have been enhanced continuously, it has Guangzhou achieve a breakthrough in emerging industries in South China. and Service Industries of Strategic but also develop emerging service indus- By industries, Guangzhou is the cen- been selected to be one of the forefront nurturing emerging industries of strate- Secondly, the production sec- Importance, and High-end Elements tries of strategic importance. Through the ter of Pearl River Delta cities. I prefer to cities in science and technology in China gic importance? tors with decreasing marginal benefits Concentration Strategy. mutual stimulation between emerging consider Guangzhou to be "an innova- for five times, and its scientific and tech- should be transferred. Guangzhou should First, emerging industries of stra- service industries of strategic importance tive source" in Pearl River Delta and even nological innovation has reached the so- Xiang Xiaomei: Guangzhou must complement with the cities in Pearl River tegic importance are risky and have a and emerging manufacturing industries Pan-Pearl River Delta. phisticated level in China. adopt innovation strategies. Based on Delta, Ring Pearl River Delta and Pan- variety of uncertainties. Enterprises are of strategic importance, Guangzhou can Guangzhou’s modern industrial sys- the existing foundation, Guangzhou Pearl River Delta in industries, so as to unwilling to invest too much in them at boost up its functions in the convergency tem has had an embryonic form with Q: As your mentions above, should make use of integrated innova- integrate upstream and downstream first, but such industries often represent of high-end elements, scientific and tech- strengthened supporting abilities, pro- Guangzhou should play a role as a nation- tion and re-innovation of introduced industry chains, allocate and utilize pro- rare opportunities for a region to com- nological innovation, cultural guidance viding powerful support for the devel- al central city. Guangzhou has advantag- technologies as breakthroughs to im- duction resources, research resources pete for the bargain power in the future and integrated services as a national cen- opment of emerging industries of stra- es in developing emerging industries of prove the capability of independent in- and marketing resources effectively in competition, so the government needs tral city. tegic importance. Guangzhou has set strategic importance, but Guangzhou’s novation, invent competitive strategic a larger range, as well as broaden the to play a more important role. Especially Finally, occupying in high-end in- up the modern industrial system center- advantages are the comparative advan- technologies and products which high- space for the development of emerging in the early stage, the governmental de- dustry value chair, emerging industries ing the service economy preliminarily. tages compared with other cities in Pearl ly integrate advantageous resources. industries. partments should open up new markets of strategic importance are featured with Automotive, shipbuilding, petrochemi- River Delta, or the absolute advantages? Meanwhile, Guangzhou should vigor- Third, Guangzhou should deepen through conducting government procure- technology-intensive, knowledge-inten- cal, equipment manufacturing and oth- ously promote the innovation in indus- the cooperation with Hong Kong, Macao, ment and expanding the public demand sive and talent-intensive. However, if er advanced manufacturing industries Xiang Xiaomei: The emerging in- trial systems, industrial culture, business and ASEAN in science, technol- to support R & D of high-risky basic tech- Guangzhou hopes to promote the devel- have witnessed the rapid development dustries of strategic importance in models, brands and business processes, ogy and industries, push up the collabo- nologies, improve systems, and guide the opment of emerging industries of strate- in China. Guangzhou's car output ranks Guangzhou are still in the imitation create multi-level environments for inno- ration with developed countries in indus- whole society to notice emerging indus- gic importance, it has to improve invest- first in the country; Nansha Shipbuilding stage. The innovative industrial agglom- vation, and strengthen its functions as a tries and R & D, enter the global value tries. However, once the social capital ment and innovation environments, uti- Base will be among top three major ship- eration in Guangzhou lags behind that knowledge innovation center plus sci- chain with the core value links, and ame- flows in, the mode featured with the gov- lize the concentration of talents, informa- building bases in China; Guangzhou's in the domestic developed cities. At the ence & technology innovation center in liorate the position in the international ernment's investment should transit to tion, even technology and other high-end integrated supporting capacities and same time, according to GDP and the South China. industrial chain. the mode featured with the social invest- elements to seize the top position in the product development capabilities have position in the country, the construction Whether Guangzhou can play a ment regularly, and a mature market-ori- competition. E16 Cover Story Cover Story E17 Ugeux: Guangzhou should make pru- dent planning for the develop- ment of Emerging Industries of Strategic Importance at first

Translated by Xi Ying

n May 30, Premier Wen Jiabao chaired an Ex- velopment priorities, and made plans for strategic emerging the signed projects, over 80% were in the scope of the modern the fashion & creative industry, the new energy and energy ecutive Meeting of the State Council to discuss industries in 2010. service industry, the emerging industries of strategic impor- saving & environmental protection industry, the new energy and adopt “Twelfth Five-Year” National Devel- Georges Ugeux, the chairman and CEO of Galileo Global tance, the advanced manufacturing and R & D platforms. vehicle industry), the Work Program depicts the future blue- opment Planning for Emerging Industries of Advisors, said in the interview with the magazine: “Guang- “RMB 4 billion each year” mentioned by Chen Jianhua is print and intends to make the new-generation information StrategicO Importance, which made a plan for the development zhou has good foundation, if it is supported and promoted by absolutely not an empty promise. Work Program for Guang- technology industry, the biotechnology & health industry, the of seven emerging industries of strategic importance (includ- policies and makes enough efforts by itself, it will witness sig- zhou to Achieve a Major Breakthrough in Promoting Leading new materials & high-end manufacturing industry to be one ing energy saving and environmental protection, new energy, nificant development definitely.” Strategic Industries implemented in early 2012 points out that industry cluster worth RMB 100 billion, and build the fashion new energy vehicles, etc.) and put forward 20 projects. At Guangzhou Development and Reform Conference held Guangzhou will invest RMB 4 billion annually and RMB 20 & creative industry, the new energy and energy saving & en- As the driving force of traditional industries on the eco- in January 2012, the mayor Chen Jianhua indicated, “Guang- billion totally in five years in supporting leading industries of vironmental protection industry, the new energy vehicle in- nomic development declines, emerging industries of strategic zhou will promote emerging industries of strategic importance strategic importance during the period of “Twelfth Five-Year”, dustry to be one industry cluster worth RMB10 billion by 2015. importance are seen as a major impetus for a new round of vigorously, it has prepared the financial support funds, RMB 4 wherein RMB2 billion will be used to support the new-gen- Currently, these six major emerging industries only contrib- economic growth in China. According to the goal of “adjust- billion each year. Once there are good projects, it will invest.” eration information technology industry, the biotechnology & ute 10% or so to Guangzhou’s GDP. In accordance with the ing the economic structure and changing the economic de- This shows that Guangzhou is resolute to develop emerging health industry, the new materials & high-end manufacturing decision and planning of People’s Government of Guangzhou velopment mode” in the period of “Twelfth Five-Year”, local industries of strategic importance in the next five years. industry, the fashion & creative industry, the new energy and and Guangzhou Municipal Committee of the Communist Party governments have begun to implement economic restructur- In fact, Guangzhou expressed its resolution to push forward energy saving & environmental protection industry, the new of China, the added value of emerging industries of strategic ing strategies, and have been engaged in strategic emerging emerging industries of strategic importance energetically at energy vehicle industry and other emerging industries each importance will account for 12% of Guangzhou’s GDP by 2015. industries. the promotion conference “New Guangzhou & New Business year . Pan Jianguo, the director of Guangzhou Municipal Develop- As one of pioneers, Guangzhou preliminarily selected ten Opportunities” in 2011. The annual investment project target- For six major emerging industries (the new-generation in- ment and Reform Commission, said when interviewed by the fields (including new energy, energy saving and environmen- ed the modern industrial system, and it took seven months to formation technology industry, the biotechnology & health in- media, “From the perspective of the strategic development or tal protection, electric vehicles, new materials, etc.) as the de- cover 14 major cities in China and foreign countries. Among dustry, the new materials & high-end manufacturing industry, the future, Guangzhou selects these six emerging industries E18 Cover Story Cover Story E19

of strategic importance.” The cultivation of emerging indus- soundly in the future. When I see Nansha’s development tries will ensure the new momentum and growth in the devel- plans for all service sectors, when I realize Guangzhou will opment of Guangzhou within the next 5-10 years. become a financial center apparently, I believe all of these Guangzhou has increasingly explicit routes for the devel- factors will promote the transformation of the city, because opment of emerging industries of strategic importance, but various talents will be attracted to come here. as more and more cities explore emerging industries for the purpose of benefits, the homogenization may be inevitable, Q: For the favorable development of emerging in- so it is urgent for Guangzhou to think about how to make its dustries of strategic importance, what should Guang- emerging industries have “Guangzhou style”. zhou pay attention to? “Guangzhou has to wait for a good timing, and should not Ugeux: Guangzhou should make a plan before action. In be hurried.” Ugeux said, “This is a reconstruction and ongoing fact, Guangzhou has made some progress in emerging indus- process. The problem lies in what should be enhanced and tries, for example, electric vehicles. Importantly, Guangzhou what should be expanded.” should find ways to further reduce pollution. You are using Georges Ugeux is a senior economist and lawyer, has over coal actually when you use electricity, unless you can con- 30 years of professional experience in the financial sector, and duct energy conversion to involve more clean energy in the has ever served as the principal of Investment Banking Divi- power generation and consumption system. The fact is that sion and Fiduciary Management Division of Fortis Bank which the environments are also polluted even if you make use of is a famous European bank, the executive of Investment Bank- clean energy; both of application and pollution occur simul- ing Division of Morgan Stanley Europe, and the vice president taneously. In the power generation, China relies too heavily of the New York Stock Exchange. In 2009, Ugeux was hired to on coal. Electric vehicles help reduce pollution, but they are be an international consultant of the project “Invest in Guang- produced with the electricity generated by coal, so the pollu- zhou”. tion still exists in the production process of electric vehicles. As for segments, Guangzhou is entitled to determine the priorities. Guangzhou has a large population and consumes Q: As Galileo Global Advisors knows, among the for- considerable energy, so a variety of energies are needed. But, eign companies that intend to invest in China, how how to produce is a problem, after all, the land is very lim- many of them are interested in emerging industries? ited. I think we should concern about the wind energy. I do Ugeux: Foreign companies are very interested in Chinese not think that we have paid enough attention to it. I see the emerging industries of strategic importance. Honestly speak- prospect in this regard, because the wind energy technol- ing, China occupies an absolute leading position in the world ogy nearly has no noise and the wind has been in existence with its emerging industries of strategic importance. In the always, unlike the sun. Therefore, I suggest that Guangzhou future, China should further develop emerging industries. may notice the wind power. The fact is very severe. We need more alternative energies. Perhaps, the economic slowdown leads to the decreased de- Q: What should Guangzhou improve when it creates mand of the society for alternative energies, but we should not investment environments? stop the pace of development in this aspect, because it has Ugeux: We are convinced that Guangzhou is a very prom- strategic significance for China’s development. The number ising city. Regarding to the prospect of the city, in fact, we of vehicles will increase and the energy consumption will rise, may be much more optimistic than Guangzhou natives. One if you can not find a method to reduce pollution, then for the reason is that we travel all over the world and understand people living here, the situation will get worse. It is a long- what exactly each city is. The key is to be better than others term planning, it will change the existing pattern of the en- rather than the best. It is not absolute, but relative. In my ergy market, of course, it will experience the ups and downs, opinion, Guangzhou is still one of the world’s best cities. but China must adhere to it as a leader. As to the aspects that should be improved, I think that Guangzhou should create suitable investment environments Q: What do you think about Guangzhou’s develop- for the development of the modern service industry. The ser- ment of emerging industries of strategic importance? vice industry does not require factories or abundant land, Ugeux: The Guangzhou government should attach impor- but it needs a good business climate and a mode that links tance to the potentials of Guangzhou in developing emerging and combines enterprises with the Government. Guangzhou industries of strategic importance, in fact, Guangzhou can do knows this, and also hopes this will happen, but the current more. Guangzhou is experiencing the substantial changes, issue is how to realize the goal. In fact, we should not only which will change the existing organizational structure of have a plan, but also ensure the practical implementation of Guangzhou forever. The high ranking government officials of the scheme. Guangzhou is an attractive city. The upgraded the Guangzhou government have made ​​a wise decision to de- execution will enable Guangzhou to reach a higher level and velop strategic emerging industries. Supported by , the become a leader in the modern service industry. manufacturing sector will see good development in Guang- zhou. IT, new energy and service industries will also develop E20 Cover Story Cover Story E21

offices opened in China. During the interview, Mr. Liang shared with us New Energy his views on Guangzhou. “First of all, we have made a very long analysis of Guangzhou. The reason why we are in the south of China, it is due to the in Guangzhou: strategic location here. It links to all of the countries around China which are very well for export reasons - Australia, New Zealand and also the whole South ABB and East Asia. The sea ports are re- lated and connected to the traffic very well. And also, it is the international- based with the trade fair, which is An interview about well-known all around the world. I think the lo- cation is very im- the automation world portant. There has not been a lot of competi- tion yet in the The supply-demand When talk about their further invest- Now ABB also wants to put the traction Translated by Laura Luo south of China. ment plan, Mr Liang specially pointed out transformers in . Many other trac- In China, the central government and their wish to work closer with local gov- “We have projects in . tion equipment many provincial governments attached ernment. “It is very necessary to work There will be finalized the metro Line 4, BB launched its annual About the Automation World places are in the strategic importance to energy efficiency with the government very closely togeth- which is running very well. We are also “ABB Automation World” , Beijing, or increase and emission reduction, in order er like in other cities such as working very hard for the metro projects in event in Shanghai on The “Automation World” in other areas, but not to reduce 20% energy consumption per and Shenzhen. It is sure that we see Guangzhou. I know there are many lines, June 6 with the theme of event highlighted ABB’s support for in the south. And here we GDP unit and 10% emission according to the demand and necessity to do that, like Guangzhou Line 9 and Guangzhou A “Industrial Upgrade and the industrial upgrade of its Chinese are looking for the contact and corpo- the country’s 11th 5-year plan. and also, for the power generation actu- Line 7. We have high expectation that Service”, which showed customers by improving their energy ef- ration with the government. Therefore, “And this is the reason why it is im- ally where we could support very good ABB can play as a local company in all this its energy efficiency solutions for vari- ficiency, automation penetration, and for the strategic location, it is very im- portant to have energy saving products, quota portfolio, but I think there is room major projects. Because we have hired a ous industries, discussed with customer productivity. The previous three “ABB portant. The high-educated human re- high efficient products and ABB is the to improve for the communication also for lot of people here, we have created a lot about some hot topics such as renewable Automation World” events alternated course is one of the elements why ABB world’s leading company in this area. those projects.” Mr. Liang said. of jobs in this company, and of course, energy, new technology of energy stor- between Shanghai and Beijing, and come to Guangzhou for our automation The major concerns are energy saving, we want to contribute ourselves here age, charge technology for automations, explored themes like “Innovation and projects in our company.” green energy and also environmental ABB in the railways-For a better word to the metro projects.” Mr. Liang said. railway technology, data center solutions Resource Efficiency”, “Smart Technology Since 1903 when the 1st electro- protection. These are the major driven di- and so on. ABB , with its headquarter in and Energy Efficiency”, and “Energy mechanical relay, ABB has been com- rections of ABB. ABB traction transformers first en- Their Expectation Zürich, is a leader in power and automa- Efficiency and Renewable Energy”, at- mitted to sustainable improvement ABB is among the first to promote en- tered the Chinese railway market in 2004. tion technologies that enable utility and tracting about 7000 participants. on protection relayed design and re- ergy efficiency in China. Its strong advo- After the interview, Edgar Keller showed “We had got some support from industry customers to improve perfor- Mr. Liang introduce that the number search. Over one hundred year, ABB cate for using HVDC technology to trans- us the traction transformers which wide- the government of Guangzhou. And we mance while lowering environmental im- of the attendance this year is about 2700. protection relays are now applying all fer bulk power from the three Gorges to ly used at the railway aspect. Traction kept our promise and we did there. We pact. The ABB Group of companies oper- It’s very important for ABB, either for over the world with reputable reliabil- Guangzhou and Shanghai greatly re- transformers are not the only power prod- are producing in China, and developing ates in around 100 countries and employs their costumers in China from different ity and leading the way to drive the duced power loss over long distances. ucts supplied by ABB. For the - in China, so the converges products we about 145,000 people. industries. And they are very happy and whole industry constantly. ABB’s i-bus intelligent building control Guangzhou high-speed rail project, ABB have here are developed in China, for On the second day of the event, the expect to bring the event to Guangzhou ABB started its cooperation with system enabled an Ito Yokado store re- supplied a series of other products, in- China and the rest of the world. We try global vice president of ABB, Mr. Edgar under the government’s support. It is China in 1907 when providing the first covered its investment in five months cluding its 27.5 kV ZX1.5-R and 10 kV to integrate the people here to be local Keller (General Manager of ABB Global also a very good event for ABB to get a boiler. In the past one century, ABB with the cost saved on power, and ABB’s ZX0 GIS switchgear, as well as the SAFE- and to develop the people here. It is not Product Group Traction Converters), and lot of different costumers in one event.” played an important role in supporting drive system has helped save 30 billion series SF6 insulated switchgear that are only assembling or doing something and Mr Liang Rui, General manager of ABB China’s electrification and industry au- kWh (enough to satisfy the needs of 21.4 used in the railway signal system power selling. We try to integrate the local envi- Microunion Traction Equipment Ltd, Why ABB in Guangzhou tomation, by linking its name with the million households) in China in the past supply. The ZX1.5-R GIS switchgears are ronment here. And we want to continue had an interview with Invest Canton to well known projects such as the Three 12 years. modular and flexible single busbar two- that, but we also need continuous sup- talk about the growing path of ABB, the As one of the largest engineering Gorges, the South to North Water “We produce high efficient motors phase panels and are specially designed port from people, the government as well strengths and challenges faced by ABB companies as well as one of the larg- Diversion, the West to East Power and energy saving, motor support, the at ABB China’s medium-voltage techni- as the costumers.” Mr. Liang said. and expectation in Guangzhou. est conglomerates in the world, ABB Transmission, the Olympic Games con- transportations, like the metro, trunk cal center to address the highly specific has actively supported the construction struction projects, etc. ways here in Guangzhou, and this is the railway power supply requirements of of China’s key projects. Over 40 branch reason why we are here.” Mr. Liang said. China’s electrified high-speed railways. E22 Cover Story Cover Story E23 Dongfeng Nissan Impacts Chinese Electric Vehicle Market

Translated by Xi Ying

n 2012, the vehicle implemented the dual-brand strat- Auto Show in April 2012, Dongfeng formally at Beijing International Auto capacity of three ma- egy covering the joint venture brand Nissan mounts the Chinese stage in Show in April 2012, and announced that jor production bases “Nissan” and the independent brand full regalia again. the pure electric vehicle model based of Dongfeng Nissan “Venucia”. At the end of 2011, Dong- on Nissan LEAF would be produced “I will reach 1 million, feng Nissan finished the construction Explore Chinese Market for a trial in this year. Now, Dongfeng including 600,000 in of Huadu Plant II and put it into op- Nissan has conducted promotion in Huadu Base, 200,000 in eration, so that Dongfeng Nissan be- According to the data of Interna- Beijing, Guangzhou, Wuhan, Shenzhen Base and 200,000 in Base. came the largest automobile manu- tional Energy Agency (IEA), China's and other pilot cities, and will realize The capacity problem that bothered facturer in South China. electric vehicle capacity is expected mass production before 2015. Dongfeng Nissan previously has In the next five years, the total in- to reach 2 million by 2015, over 100% In fact, since 2008, Dongfeng Nis- been solved smoothly." said Fumiaki vestment of Dongfeng Nissan in Hua- more than the expected 1 million in san has launched electric concept cars Matsumoto, the Managing Director of du will exceed RMB10 billion, and the the United States. This huge poten- in major international auto shows. At Dongfeng Nissan Passenger Vehicle funds will be used in Huadu Plant II, tial market is regarded by foreign the same time, it has formulated relat- Company, in the interview with the Engine Expansion Project, Transmis- automobile enterprises as a battle- ed development strategies, for exam- magazine. sion Project, and other forthcoming ground. ple, it issued "Green City Plan" in 2009 Since it issued New Medium-term construction projects. When numerous well-known mul- in order to center the world's leading Business Plan 2011-2015 in August Dongfeng Nissan performed im- tinational automobile enterprises electric vehicles and participate in im- 2011, Dongfeng Nissan has acceler- pressively in the Chinese automo- entered the Chinese electric vehicle proving the ecological environments of ated its development in the territory bile market in 2011. In the wake of market, Dongfeng Nissan’s inde- the communities through the profound of China. Dongfeng Nissan has cre- the debut of Dongfeng Nissan’s first pendent brand Venucia launched its cooperation with the governments of ated its own brand “Venucia”, and concept electric vehicle model in the first concept electric vehicle model the domestic cities. E24 Cover Story Cover Story E25

Independent Brand strategy covering the joint venture Though he is confident, Fumiaki INVEST brand “Nissan” and the indepen- Matsumoto still takes a cautious atti- Fumiaki Matsumoto claimed, “Chi- dent brand “Venucia”. In the future, tude toward the future development na plays a very important role in Nis- the focus of Nissan’s electric vehicle of Venucia in China. To him, China san’s global electric vehicle layout; in strategy will lie in Venucia instead electric vehicle industry is still in the order to grasp some share and then of LEAF which has been involved in initial stage, there are many issues GZ erect its own position, Dongfeng Nis- several roadshows and test drives. that need to be solved step by step. san seems careful and prudent about Fumiaki Matsumoto explained, The scale expansion of electric vehi- its every step.” In accordance with "Nissan had ever considered LEAF cles requires a long process. Within Electric Vehicle Promotion Strategy commercialization, but after the the next few years, electric vehicles To Fumiaki Matsumoto, in the in China proposed by Nissan Motor consideration, we believe that it is will only be a small part of the whole wake of the severe oil shortage and in 2009, 2010 represented the prepa- a more reasonable choice for Dong- market. the strengthened environmental ratory stage, Dongfeng Nissan main- feng Nissan to develop electric ve- "We do not expect that electric ve- awareness, the arising of new en- ly made preparation for the produc- hicles with the independent brand, hicles will contribute a large propor- ergy vehicles is inevitable. Now, tion and application of electric cars; because it can meet the demand of tion to the sales revenue of Dongfeng Europe, America and Japan are pro- 2011 was the import and R & D stage, the Chinese market better and sat- Nissan by 2015. However, in the long moting electric vehicles vigorously, Wuhan and other cities were the pi- isfy Chinese consumers." run, with the gradual improvement which represents an important de- lot cities, and Nissan Motor provided Dongfeng Nissan aims to be a of the relevant standards and regula- velopment direction. 25 electric vehicles in these cities zero emission leader in the Chi- tions as well as the construction of "In China, the government has for demonstration; in the future, Nis- nese market. But as an independent the infrastructure such as charging defined electric vehicles as the ma- san Motor will sell electric vehicles brand of a joint venture, can Venu- poles, the electric vehicle market will jor strategic direction that promotes in China by import; in 2013, Nissan cia impact the Chinese market? The witness accelerated growth." Fumia- the transformation and upgrading of Motor will begin to produce electric advantages of Dongfeng Nissan are ki Matsumoto pointed out bluntly. the automobile industry, which will vehicles in China, and focus on CKD reflected in technology. Facing the It is worth mentioning that in one facilitate the development of electric assembly; in 2015, Nissan Motor will challenge, Fumiaki Matsumoto looks month before Huadu Plant II of Dong- vehicles in China." Fumiaki Matsu- enhance the production in China and unperturbed. The mass production feng Nissan was completed and put moto said, "Of course, we shall see, achieve the output and sales volume of Nissan LEAF has been realized in into operation, Dongfeng Motor and the Chinese electric vehicle market goal of 50,000. foreign countries already and it has Guangzhou Municipal Government has just emerged, it has a long way In accordance with the above been launched in the markets, with signed a strategic agreement for to go, but we should be confident strategy, Dongfeng Nissan strived as a good reputation in terms of qual- their cooperation in planning and with its development prospect." much as possible in the preparatory ity and sales volume, so that Venucia construction of the third factory of Fumiaki Matsumoto's confidence stage. "We have carried out a num- based on Nissan LEAF has a solid Dongfeng Nissan; the development is not groundless. In April 2012, the ber of cooperation projects with the foundation. of pure electric vehicles was the fo- State Council approved Develop- Chinese Government in the field of "Dongfeng Nissan and Nissan cus of this agreement. In this regard, ment Plan for Energy-saving and electric vehicles. For example, Dong- Global have the same quality, so we Fumiaki Matsumoto said, "Guang- New Energy Automotive Industry feng Nissan signed electric vehicle are confident that our electric ve- zhou consumers are one of the most (2012-2020), which put forward the development agreements with the hicles will be outstanding with the mature automotive consumer groups, goal that the cumulative output and Government of Huadun and Wuhan, technology." Fumiaki Matsumoto they have rational consumption con- sales volume of pure electric vehi- and delivered a pure electric vehicle said, "Dongfeng Nissan has deep un- cept, and they are willing to accept cles and plug-in hybrid vehicles in model LEAF to them for a trial run." derstanding of the Chinese market trendy concepts and technologies. China should reach 500,000 by 2015 Fumiaki Matsumoto said. and consumer demand through the Guangzhou Municipal Government and more than 5 million by 2020. The outsiders had thought that operation of many years. In order emphasizes the development of new Carlos Ghosn, the president and LEAF would help Nissan open the to meet the market demand better, energy vehicles seriously. Therefore, CEO of Nissan Motor, said in an in- door of the Chinese electric vehicle Dongfeng Nissan develops electric we believe that Guangzhou will be- terview, “if the cumulative sales vol- market; however, surprisingly, Dong- vehicles by virtue of the independent come a flagship in the domestic new ume of new energy vehicles in China feng Nissan did not reveal such idea brand. With the advantages in tech- energy automobile industry, and reached 5 million in 2020, China will in its New Medium-term Business nology and consumer insight, I be- guide the development of the indus- occupy 20% share of the global new Plan 2011-2015 issued in August lieve that Dongfeng Nissan will have try. " energy vehicle market.” 2011. In this plan, Dongfeng Nissan the last laugh in the future competi- intends to implement the dual-brand tion in the electric vehicle market. " E26 Investment Investment E27

Zengcheng High- Development priorities:

Based on 480,000-Passenger Car Base of GAIG Hon- end Equipment da, 300,000-Passenger Car South China Production Base of BAIC Group and Guangzhou East(Zengcheng) Automotive Industry Base, an automotive industry cluster worth RMB100 billion will be established. Industry Base Led by Production Service Demonstration Park of the 5th Electronics Research Institute of Ministry of In- dustry and Information Technology, a national testing Translated by Xi Ying & certification and technical R & D center for the elec- tronics industry and the communications equipment industry will be built. Overview: Centering Extra High Voltage Engineering Labora- tory of China Southern Power Grid, Copper, Zengcheng High-end Equipment Industry Base is located Lianzeng Electric, Green Energy Electric and Xinxing in the core area of the Development Zone, ​​east to Cables, a power transmission and distribution equip- across the river, west to Guangzhou Development Zone, and ment industry cluster will be set up. south to Guangzhou East (Xintang) Transportation Hub. With Surrounding Collado Agricultural Machinery, Borch the excellent geographical location and convenient transporta- Machinery, Huayan Machinery and Boray Power, a tion, the Base has sound infrastructure, stable geological struc- general-purpose machinery and equipment industry ture and adequate supply of electricity; water supply, drainage, cluster will be created. electricity, telecommunications, gas, heat, roads and smooth By virtue of the developed engineering equipment land are available in the Base. There are perfect living facilities. application market in Pearl River Delta, an engineer- Within 15-minute drive from the Base, there are a number of ing equipment industry cluster will be cultivated and large green communities. Besides, staff living quarters in the developed. Base make employees enjoy educational, scientific and medi- cal resources which are the same as those in the downtown of Guangzhou.

Investment Attraction:

The projects in core automotive compo- Industrial Base: nents, large-scale CNC machine tools, en- vironmental protection and energy saving In the Base, there are about 230 equipment manufacturing equipment, engineering machinery and lift- enterprises above the designated size (each of them has the an- ing transport equipment, electronic equip- nual revenue of RMB20 million at least). These enterprises are ment, power transmission equipment and engaged in transportation equipment manufacturing, general communications equipment will be the tar- equipment, electrical machinery, packaging machinery and gets for introduction. other industries, with the main products such as the automo- bile, motorcycle and their components, injection molding ma- chinery, power transmission and distribution equipment, wires & cables, agricultural machinery, instruments, metal products, and etc. Key enterprises include GAIG Honda, BAIC Group, GAIG R & D Center, GAIG Engine, Denso, Hitachi Automotive Systems, Pearl River Piano, Borch Machinery, Collado Agricul- tural Machinery, China Southern Power Grid, Jiangxi Copper, Xinxing Cables and etc. E28 POLICY POLICY E29

Excerpt from Guangdong’s 12th Five- One axis and two zones radiate to the whole province

Year Plan for emerg- According to the current spatial arrangement of industry and the future de- velopment trend, Guangdong will combine the characteristic of regional indus- try development to build up an innovative axis of the research and development of Guangzhou-Shenzhen, the PRD major industry zone and the industry zone of ing industries of stra- eastern, western and . Relying on two national innovative cities—Guangzhou and Shenzhen, Guangdong will build up Guangzhou- innovative zone and Shenzhen-Hong Kong innovative zone to establish two hubs on the innovative axis of the research and development. Dongguan and Foshan will be set up as the backstage service bases. Guangdong will integrate innova- tegic importance tive resources at home and aboard to drive the establishment of leading new in- dustries, to form the sources of innovation and motivation for the whole province, and to promote Guangdong itself as a cradle of the emerging industries of strategic Translated by Ester Yang importance.

ecently, People’s Govern- ment of Guangdong Prov- 1 New high-end electronic will also accelerate the construction of ince released the Guang- information industry wireless broadband in Pearl River Delta dong’s 12th Five-Year Plan area, to build the Pearl River Delta as a for Emerging Industries of Guangdong has to improve its com- new national information and telecom- RStrategic Importance. Provincial finance petitive industries, cultivate new in- munication industrial zone that takes will put 22 billion RMB into the develop- dustry status, make breakthrough of Guangzhou and Shenzhen as center ment of emerging industries of strategic high-end process, and improve the ba- and , and importance. There will be totally 148 proj- sic products— to promote and build up as complement. ects of emerging industries of strategic the layout of key point industries. importance with an investment of 388.588 1.2 Guangdong will build the indus- billion RMB. 1.1 Guangdong will focus on the trial bases of sensor network, RFID and construction of Shenzhen TFT-LCD In- embedded technology and the Pearl dustrial Base and LCD TV Module In- River Delta’s demonstration zone of dustrial Base in Guangzhou, Shenzhen, “The Internet of things. Guangdong Foshan, Huizhou and Zhongshan to will also establish and develop the cen- building up two LCD industrial zones ter and service platform for Cloud Com- in eastern Pearl River Delta area (Shen- puting. Integration of three networks zhen-Huizhou) and western Pearl River (telecommunications, TV networks and Delta area (Guangzhou-Foshan). Focus- Internet) will be experimented in Pearl ing on building up Guangdong OLED River Delta area and other areas which Demonstration Base, Guangdong will meet the requirement including . try to develop OLED Industrial Base Satellite navigation industrial zone will in Guangzhou, Foshan, Dongguan and be formed in Guangzhou and Foshan . Guangdong will focus on with industrial bases of satellite navi- Guangzhou, Shenzhen and Shanwei to gation and satellite integrated applica- develop new display industrial base of tion. electronic paper and laser. Guangdong 1.3 Guangdong will develop and E30 POLICY POLICY E31

strengthen the industry clusters of soft- ergy automobile. 5.3 Ocean engineering equipment ware and integrated circuit in Guang- LongXue Shipbuilding Base, Guang- zhou, Shenzhen and Zhuhai, build 3 LED industry zhou Dagang Marine Low/Medium Guangzhou and Shenzhen as software Speed Diesel Engine Manufacturing city, and focus on the construction Cities including Guangzhou and Base, Zhuhai Yacht Manufacturing of national software industrial base, Shenzhen will be supported to devel- Base, Zhongshan International Ocean export base of software, integrated op high-end process of industry value Engineering and Shipbuilding Manu- circuit industrial base and national chain, centering on new industrial stat- facturing base will be accelerated. digital home application demonstra- ues including innovative design of LED tion base. Experimentation of digital and service outsourcing. 5.4 Intelligent manufacturing equip- home project will speed up in Guang- ment zhou, Foshan, Zhongshan and Yunfu. 4 Bio industry Guangzhou and Foshan will focus This project will spread to the whole on the development of intelligent man- Guangdong province. Guangdong will Guangdong will form the bio indus- ufacturing equipment including numer- focus on the construction of technol- try zone centering on Guangzhou and ical control machine and precision pro- ogy research and high-end production Shenzhen national bio industry bases. cessing equipment. Areas with proper base including consumer electronics The construction of major innovative conditions including Guangzhou and industry in Guangzhou and Shenzhen, platform including South China Cen- will develop high-end agri- home-used home audio - visual equip- ter for Innovative Pharmaceuticals and cultural machinery equipment. ment industry in Dongguan, new digi- Guangzhou International Bioisland will tal audio-visual products industry in be promoted. Guangzhou will focus on 6 Energy-conserving and Huizhou, acoustic product industry in improving research and development environment-protective in- Zhongshan. of marine biology. dustry

1.4 Guangdong will develop and 5 High-end equipment pro- 6.1 Energy-conserving industry construct a range of industrial bases duction industry Guangdong will actively develop including semiconductor and integrat- low-carbon industry, focusing on iron ed circuit equipment industrial base 5.1 Aeronautical equipment and steel enterprises to promote ener- in Guangzhou, semiconductor testing Guangdong will accelerate the con- gy-conserving of iron and steel indus- equipment and electronic equipment struction of aviation industry cluster of try. Guangzhou, Foshan and Zhuhai industrial base in Shenzhen, new elec- coastal area in the west Guangdong, will put great efford to develop ad- tronic devices and components equip- central Guangdong and coastal area vanced air conditioning technology. ment in . in the east Guangdong. The central Guangzhou and Dongguan will develop ronmental monitoring techniques and international competitiveness, will be system of wind and light complement aviation industry zone will center on industry cluster of energy-saving glass. products will be build in Guangzhou promoted to build. Nansha Nuclear in Foshan and Guangzhou will be sup- 2 New energy automobile Guangzhou Baiyun International Air- and Shenzhen. Research and develop- Power Equipment Manufacture Base is ported. industry port, mainly constructing aviation lo- 6.2 Environmental protection indus- ment industry base of cleaner produc- a key project which will further gather gistics industrial zone with the com- try tion techniques will also be built in the manufacturing of steam turbine, 8 New material industry To improve the development of in- plement of developing aviation compo- Guangdong will actively develop Guangzhou, Foshan and Zhaoqing. self-contained dynamo and other in- dustry cluster, Guangdong will estab- nents processing, electronic airborne, waste incineration equipment with land transport equipment in the base Guangzhou will center on national lish a range of new energy automobile aerial material and aeronautical equip- advanced technology of generat- 7 New energy industry in Nansha. new material industrial base to develop production project and support Guang- ment manufacturing. ing electricity by waste incineration. dominant new material industry, build zhou to build up the national new ener- Guangdong will speed up the building 7.1 Nuclear power 7.2 Wind power up innovation platform of new material, gy automobile industrial base. Guang- 5.2 Track traffic equipment of research and development service Relying on nuclear power sta- Guangdong will cultivate and sup- modified plastics production base and dong will also support Shenzhen, Relying on the three automobile center of water pollution control tech- tion construction and key enterprise, port key enterprises to become top- carboform production base, and form Dongguan, Huizhou, Guangzhou and manufacturing bases in Jiangmen, niques, with water treating equipment Guangdong will carry out the coopera- ranking enterprises of wind power national new material industrial base. Foshan to develop electrification at- Huadu and Panyu in Guangzhou, manufacture in Guangzhou, Foshan tion between home and aboard enter- equipment manufacture. The focus will tached industries including electroni- Guangdong will form track traffic and Zhongshan as center – to build up prises which manufacture key nuclear be put in megawatt blower, key com- cally controlled or electric air condition- equipment industrial base in the Pearl the manufacture base of water treat- power equipment and nuclear island ponent and small blower of wind and er, electric power steering and electric River Delta and boost the construction ing equipment in western coastal part auxiliary equipment. In this way, an light complement. A range of charac- brake system to build up the industrial of Guangdong track traffic equipment. of Pearl River. Research, development industry cluster of nuclear power teristic industrial bases will be built. zone of major components for new en- and after-sale services center of envi- equipment manufacture, which has The development of small blower and E32 Special Topics Special Topics E33 The expats influenced Tianhe

Translated by Ester Yang

uangzhou has developed into an international supporting facilities, which make it a Tianhe has large population of expats. metropolis. ideal place for expats. The properties in At the same time, it makes expats’ More and more attract a large number life in Tianhe become easier and foreigners choose of expat residents. On the other side, easier. Personally, Salim also enjoys to work and live in more and more international serviced the life in Tianhe very much. He thinks Guangzhou. At the apartment enter Guangzhou, including TaiKoo Hui is a new hotspot of Tianhe same time, their Oakwood Premier Guangzhou, Ascott which offers a high standard venue for Guangzhou, Springdale Serviced shopping, dining and entertainment. work, investments and contributions traffic system which helps customers also accelerate the development of this Residence and New World Executive “And I think Zhujiang New Town and G get easy access to his restaurants is Residence Guangzhou. They offer more Liede Area will be the next hotspot.” city. another reason of choosing Tianhe. choices for expats. International hotels The advantages of Tianhe District “We are situated next to the Mandarin in Tianhe District are also popular attract more and more expats, and Expats in Guangzhou mainly gather Oriental and TaiKoo Hui because both in Tianhe District. According to the among expats. Although the prices are expat residents also improves the are major landmarks of Guangzhou. very high, there are still expats choose to international development of this information which was released by Our second location is in Canton place Tianhe District People's Government make a long stay at those International area. Expats who live in Tianhe and which is a new development area hotels for their professional service. the development of Tianhe have on the “www.thnet.gov.cn”, “Most of providing a beautiful atmosphere for foreign residents of Guangzhou live in Besides those forerunners including close relationship and interact on relaxed wining and dining.” The rapid The Westin Guangzhou, Grand Hyatt each other. As an expat who lives in Tianhe District, which is the top of all development of Tianhe District also districts of Guangzhou.” On the other Guangzhou and The Ritz- Carlton, Guangzhou for long time, Salim thinks better the investment environment Guangzhou, Hilton Guangzhou Tianhe District is a key area of the hand, the western part of Tianhe District of Tianhe. “Roads are better and fully institutes. Tianhe Bei area and Zhujiang Tianhe, Sofitel Guangzhou Sunrich and future development of Guangzhou. is the center of the city according to of different aspects, so a great number constructed. Most major development New Town are among the most popular Sheraton Guangzhou Hotel have joined Continuous construction will bring the general plan of Guangzhou. It of expats choose to run their business is complete except for Mandarin areas for expats residents. In the recent the market of Tianhe recently. What’ more commercial property projects to is not only the center of politics and in this area. Salim Aboudaoud from Oriental Hotel. More construction is ten years, the city center of Guangzhou more, Mandarin Oriental, W Hotel and Tianhe. He also comments on the future culture in Guangzhou, but also the Canada has been doing different kinds being done around Tianhe and this has experienced of changing from Four Seasons Hotel will also locate in development of Tianhe, “Tianhe is an center of external contacts. There are of business in Guangzhou for years. will cause further changes over the Huanshi Lu to Tianhe Bei, and from Tianhe. important part of Guangzhou’s future; a wide range of business buildings in Several years ago, he and his partners next 5 years with new buildings Tianhe Bei to Zhujiang New Town, in terms of residential living and large this area, so a large number of foreign opened a café called Boca (the name and new businesses opening up.” enterprises and International institutes which has proved the booming of the has been changed to Bocca recently) companies moving their headquarters to Southern China. HSBC and other locate in this area. The appropriate Tianhe District. in Tianhe Dong Lu. The café has been Choice of life regional planning and convenient doing very well in these years, so they major companies are relocating their Choice of residency A wide range of foreign business supporting facilities also attract expats opened their second branch in Zhujiang resources to this area which should and departments popped up in Tianhe to live here. A large proportion of the New Town. When talking about the prove a very promising future for Choice of Tianhe District has a large number District including western restaurants expats who live in Tianhe District are reason of choosing Tianhe, Salim Guangzhou.” of medium and high-end properties and bars, import food stores, administrative staffs of large foreign investment pointed out that Tianhe is not only a which have comfortable environment, international medical center and companies and representatives in hotspot for business and commerce, but convenient traffic, scientific language training centers, because resident representative office of foreign Tianhe has a range of advantages also a hot spot for live. The convenient management and comprehensive E34 LIFE IN GZ LIFE IN GZ E35

omeone had once said that Guangzhou is a desert of mu- sic. How can such a commercial city be tolerant of those S persons who really play music? However, there happens to have a group of such persons, who delightfully respond to the call of music and abandon themselves to it, never to regret. These people may look normal, or mysterious, or may behave rudely, or impulsively, but they all possess the com- mon features endowed by Guangzhou: grow up with cracked CDs and vinyl records; be good at expressing inner feelings through implicit musical notes; under the pressure of survival, work hard while tenaciously make music. Filling with vigorous spirits, these people feel both painful and happy.

Guangzhou has unique culture and language, and represents local culture and spirit. Guangzhou is urbanized but it's also a pioneer of accepting foreign culture that its unique culture is composed of multiple elements.

Guangzhou Local musicis no longer grows within a small group but has expanded to a large circle, and the music itself is no longer Outstanding merely melody but a method of expression and communication. Guangzhou’s Reviewing the development road of Guangzhou's music Cantonese There are more than 300 Cantonese songs that were created in 30 years' period from early 1920s to the pre-liberation days, among Music Grows which more than 50 songs spread to home and abroad. After the Music and liberation, Cantonese music experienced remarkable development as a lot of outstanding composers and performers, who created lots of new works widely known by the public, sprung up. up with According to general statement, pop songs were born in early Its History Guangzhou 1950s but it is still unable to decide what the accurate origin is. The Translated by Laura Luo only indisputable fact is that Cantonese pop songs originated from the ditty of . The ditty is the music score of inter- lude in traditional Cantonese Opera. Besides original Cantonese music score, the ditty also widely used Mandarin popular songs, Western pop songs and folk songs from other provinces which were easy to follow. Integrated with Cantonese tunes and words, the ditty appeared as the background music in Cantonese voice. E36 LIFE IN GZ LIFE IN GZ E37

From underground to grand stage 430 Music Gig 30 Music Concert was found in the Indie Musical he rise of Guangzhou’s musical festival in re- Festival on April 30th, 2011, gathering indie music all cent years drives local music to turn white-hot 4over Guangdong, encouraging expressing different Tas the local youth pay close attention to and voices and producing worlds outside the earphone. On April push forward the indie music trend. Besides satisfying 30th , 2012, in the 1850 Innovation Park, every indie band fans’ desire towards music, musical festival of assort- from Guangzhou and Hong Kong began their two days' rock ed types also provide those local bands with grander trip in a way of marathon. stages, promoting their communication with domes- The theme of 430 Music Concert this year is "2012 Live tic and even foreign bands, making Guangzhou’s mu- On", expressing connotations of loving animals, protecting sic becomes hot and shines. environment, confronting doomsday and protecting the en- dangered. More than 25 groups of artists from Hong Kong, Guangzhou, German, Zhongshan and Shenzhen were in- vited and played music ranging from Jazz, which was as casual as summer, to Metal Rock, which aroused hot blood. That day, nearly 50 free fair booths gathered folk creativity and common memories of the 80’s and the 90’s, who knew stories behind rock from tattoo culture and rock culture booths. The band Insecticide has always insisted on using thrash metal as its keynote, and casually integrated all kinds of rock music style, striving to create their own metal music works with strong metal sense.

South Music Fest

ifferent from other domestic musical festivals which mani- Dfest mania and anger, beauti- ful South China Musical Festival walks on a road close to the public. The entire musical festival is filled with the atmo- Music lost sphere of sharing happiness with the public, who can walk in the creativity and Found fair while enjoying both the river wind and bright music. In this year's festival, his concert is a serial con- when the local rapper group "Speaker" ceptual concert, which was led the public to shout loudly "Stick to Tlaunched on the occasion Guangzhou style", many fans expressed of the publication decennial of City in their micro-blogs that "this is a fes- Pictorial and is devoting itself to pro- tival really belonging to Guangzhou". moting the most outstanding singer- The local youth of Guangzhou have al- songwriters in Chinese-speaking re- ways had deep sense of local conscious- gions. Live show tour is held monthly ness and the festival witnesses their in big and medium cities throughout love towards Guangzhou again. China since June,2009. E38 SIGHT OF GZ SIGHT OF GZ E39

Tong sui, literally translated as “ water”, refers to any sweet soup or custard served as a in Cantonese-speaking areas. It is very popular among Guang- zhou locals. There is a wide range of shop at every corner of Guangzhou. A bowl of Tong sui can not only relieve summer heat but also warm your body in the GUANGZHOU winter. The prices of traditional Tong sui shops are friendly, and lots of them have long history to reserve precious memory for Guangzhou locals. In recent years, there are more and more new style dessert shops existing in Guangzhou bringing more fla- vours to the city. Both traditional and new Tong sui shops satisfy Guangzhou people’s Sweeties Translated by Ester Yang sweet teeth.

Stewed Papaya with Coconut Juice and Molten Chocolate Cake served with is a good choice for autumn and winter. makes a sensory delight. 1 Mango with black glutious rice is well received by Mango fan with its rich Five Guys mango sauce and fresh diced mango. 2 Tong The popular Hong Kong Creative brand Five Guys opened its first Guangzhou branch Dessert on the busy Huifu Dong Lu. Offering new style desserts Among new-style dessert including Crème brûlée, shops, Tong mainly offers cre- Molten Chocolate Cake, and ative desserts of Hong Kong Mango rools, it has quickly style, especially desserts with become one of the most pop- mango. The fresh ingredients ular hotspot of dessert. and affordable prices make it become one of the most popu- lar new-style dessert shops. Milk with Water Melon makes use of Yeung Ji Gum Low was innovatively the most popular fruit in summer. mixed with Taiwan style ice blended. Crème brûlée is famous French dessert featuring crispy layer of caramel and a rich French Style Custard has three different layers with custard base. smooth custard, rich mango juice and fresh fruit. E40 SIGHT OF GZ SIGHT OF GZ E41

Hidden in Tianhe Nan Area which is full of bar and cafe, Bao He Tang 3 Bao He is a rare home-style dessert shop in Tianhe District. Beside the specialties 5 Bai Hua Dan Huang Nai and Gui Ling Gao, Bao He Tang also offers double-boiled Tang soups and herbal teas. It is a good choice for people to have a rest after Dessert shopping in Tianhe. Bai Hua is an old and famous des- sert shop on the Wenming Lu. Although the décor is humble, Bai Hua has been Gui Ling Gao is one of the most pop- Almond milk, a traditional drink made of Dan Huang Nai has a pudding-like a hotspot for locals to hang out and ular items of Bao He Tang. almond looking milk, has strong flavor texture and strong flavour of milk. brought a lot of sweet memory. There and is thought to be good for skins. are abundant options of Tong sui here at- tracting more and more regulars.

Mung Bean with Seaweed is a tradition- Reb Bean and Coix Seed Tong sui is ally popular item. another popular options in the hot and humid summer of Guangzhou.

Cowpea and Pea- Con- nut Tong sui is a gee with Wheat fea- traditional type of tures with strong Tong sui for the flavour of wheat and summer time. smooth texture.

4 Mei Gui Dessert Founded in 1982, Feng Fang has been highly recognized by Located in the old 6 Fen Guangzhou locals for its good quality and reasonable prices. The building on Wenming most famous offering of Feng Fang is (sweet gluti- Lu, this small dessert Fang nous rice balls) which is soft and tasty. shop is attracting a great number of regu- Dessert lars with its signature offerings—Almond Crispy water chestnut and layers of Tang Bu Shuai (sweet glutinous Stewed Papaya with Milk is a Pudding and Yeung egg combine this delicious Tong sui. rice balls) is dessert well-received good choice for ladies. Ji Gum Low (Chilled The taste of mango, pomelo, evaporated White Fungus Sweet Soup is also warm welcomed by ladies. by both young and old. Mango Sago Cream milk and coconut cream reaches a per- fect balance in Yeung Ji Gum Low. with Pomelo). The owner is a talkative

middle aged man who Stewed Papaya with can always make the sago is an innovation of regulars happy. the traditional stewed papaya sweet soup.

You can choose different toppings for the Shuang Pi Nai. E42 FOCUS FOCUS E43

2012 White Paper on Guangzhou Foreign Trade and Economy has been released in Hong Kong Translated by Ester Yang

the release conference. He showed Links of hot issues: that this version of white paper is an innovation with Guangzhou Foreign Investment Guide and Collection of Mr Xiao Zhenyu has introduced Thirdly, they will guide the trans- enterprises’ advantages of finance, Supporting Policies for Foreign Trade five major measures of promot- formation of Hong Kong-invested en- law, accounting, and investment and Economy Enterprises as supple- ing the cooperation between Hong terprise and support the stable de- consultation, they will encourage ments. Both of them have close rela- Kong and Guangzhou by Bureau of velopment of enterprises. They will enterprises in the both cities to ex- tionship with the white paper. These Foreign Trade and Economic Coop- implement the Guiding Opinion on plore international market by means three publications have different em- eration of Guangzhou Municipality. Promoting the Development of the of joint investment, joint tender and phasis, and are complements to each Firstly, they will promote the re- Pearl River Delta Region as the Na- joint project. other. Regarding to promoting the source consolidation between Hong tionwide Upgrading of Processing cooperation between Guangzhou and Kong and Guangzhou and build up Trade Demonstration Area—pub- Fifthly, they will strength the Hong Kong, Xiao Zhenyu mainly in- a new cooperation mode of Hong lished by Ministry of Commerce of function of platform and cultivate troduced five key measures including Kong-Guangzhou cooperation. Aims the People’s Republic of China, Min- new growth of cooperation. There the new cooperation mode of Guang- to establish a mutual and interactive istry of Human Resources and Social are Nansha integrated exemplary zhou-Hong Kong cooperation, expan- cooperation mode, they will have Security of the People’s Republic of zone for CEPA, Guangzhou South sion of industrial cooperation space, close cooperation with Hong Kong China, and General Administration Station exemplary zone for modern deepening the service of service in- to accelerate the smooth flow of hu- of Customs of the People’s Repub- service industry of Guangzhou-Hong dustry, taking part in International man resources, materials, funds and lic of China—to guide and improve Kong-, Baiyun cooperative competition and cultivating the new information. Effective reallocation of the transformation and upgrade of zone for service industry of Guang- On March 30, “New Guangzhou, New Opportu- growth point of cooperation. resources will improve the coopera- the Hong Kong invested process- zhou-Hong Kong-Macau working nities—2012 White Paper on Guangzhou Foreign tion of economy and trade between ing trade enterprises in Guangzhou. as platforms, which leads to deep- Mr Xiao Zhenyu also had interac- Hong Kong and Guangzhou to a The industry chain will be extended, en cooperation with Hong Kong in Trade and Economy Release Conference” has been tive communication with the guests wider sphere, a deeper level and a increasing the capability for sustain- the areas of trade, investment and held in Hong Kong. Guangzhou has released White at the conference. He answered the higher standard. able development. agent. Hong Kong investors will be questions by representatives of the encouraged to join the projects of Paper on Guangzhou Foreign Trade and Economy Chamber of commerce from Hong Secondly, they will expand the Fourthly, they will take advan- the construction of modern service in Hong Kong for the sixth consecutive year. Kong and the media at home and space of cooperation and deepen the tages of the both cities and work industry, scientific innovation and aboard. The questions are about a cooperation of service industry. Mak- together to take part in international advanced manufacturing, including range of economic hot topics, includ- ing full use of Guangzhou’s function competition. They will continually Nansha New District, Sino-Singa- , the deputy mayor of Guangzhou has more advantages of ing the 12338 strategic plans by mu- as CEPA demonstrating city, they improve the cooperation with Invest pore Guangzhou Knowledge City, Guangzhou, gave a speech at the re- investment policy, industrial base, nicipal Party committee, Hong Kong will implement the supporting poli- Hong Kong, Hong Kong Trade Devel- Tianhe Scientech Park, and Guang- lease conference. He pointed out that and business environment. Global in- enterprises’ investment of logistics cies and measures of CEPA and its opment Council and other chamber zhou Science City. in recent years Guangzhou has been vestors are all welcomed to join the enterprise in Guangzhou, making ex- supplementary agreements to have of commerce to perfect the promot- accelerating the transformation and new construction and new develop- periments of the integration of busi- further import the finance, logistics, ing system of investment and trade. upgrade of economy, society, cul- ment of Guangzhou. ness tax and VAT (value-added tax), exhibitions, commerce service and Guangzhou and Hong Kong will ture and the city on the purpose of the positive effects of CEPA and its service outsourcing enterprises and work together to launch investment constructing Guangzhou into a Na- Xiao Zhenyu, the general director of complementary agreements, the re- to accelerate the liberalization of ser- and trade promoting event over- tional center city. Especially after the Bureau of Foreign Trade and Economic form of the service industry in Guang- vice trade in Hong Kong and Guang- sea to promote the development Guangzhou 2010 Asian Games and Cooperation of Guangzhou Municipal- zhou, and the development situation zhou. opportunities in Guangzhou and Guangzhou 2010 Asian Para Games, ity, released the 2012 white paper at of economy and trade. Hong Kong. Relying on Hong Kong E44 FOCUS FOCUS E45 Cao Jianliao Led Guangzhou Mu- nicipal Government Delegation to Visit FOCUS Japan and South

Korea Translate by Xi Ying

rom April 14 to 20, Guangzhou Mu- nicipal Govern- ment Delegation led by Cao Jian- liao (Vice Mayor The delegation met NTT Data Corp., which of Guangzhou is a top-ranked software company in Japan. It Municipal Govern- communicated with NTT Data on the upcoming ment, Secretary of software outsourcing projects as well as smart Zengcheng Mu- city management systems. For the cooperation nicipal Committee projects in the optical technology industry and Fof the Communist Party of China, Secretary of auto parts in Zengcheng, the delegation visited the Party Working Committee of Zengcheng Gwangju Film and Television Animation Pro- Economic and Technological Development duction Center, Hyundai, Honda, Honda Motor Zone, Director of Management Committee) Co., Ltd., Hitachi Auto Parts System, Toba In- visited South Korea and Japan. The delega- dustrial Research, Denso and other enterprises. tion paid a visit to Gwangju (South Korea) which is a friend city of Guangzhou and Fu- Meanwhile, the delegation held “Forum on kuoka Municipal Government (Japan). The Energy Saving & Environmental Protection and delegation and both cities talked about the Medical Service Industry” and “Guangzhou - cooperation programs in technology, econ- Gwangju Advanced Manufacturing Investment omy and trade, covering Gwangju’s optical Forum” successfully in Japan and South Korea industry, Fukuoka’s high-tech and harbor in- respectively. dustry. E46 ABOUT US Information E47

About us PROCEDURE FOR SETTING UP FOREIGN-INVESTED ENTERPRISES 中心简介 成立外商投资企业的程序

Pre-registration of the company name with Obtaining Approval Certificate from Ministry Administration for Industry and Commerce of Foreign Trade and Economic Cooperation (“AIC”) 获取对外贸易经济合作局的许可证 到工商行政管理局预先登记公司名称

Engraving the company chops with Public Obtaining Business License from AIC Security Bureau 从工商行政管理局处获取营业执照 到公安局刻制公司印章

Obtaining organization code from Administration of Quality Supervision, Inspec- tion& Quarantine Bureau

从质量监督检验检疫总局获取组织机构代码

Obtaining State Tax Registration Certificate from State Tax Bureau

从国家税务总局处获取国税登记证 Opening foreign currency and RMB bank accounts

Obtaining Local Tax Registration 开立人民币和外汇账户 Guangzhou Municipal Board for International 广州市国际投资促进中心是广州市 Certificate from Local Tax Bureau Investment is the only non-profit and profes- 政府属下唯一的非盈利性专业投资促进 从地方税局获取地税登记证 sional investment promotion institution under the 机构，拥有丰富的政府资源网络与多语 People’s Government of Guangzhou. It has abun- 种精英团队，为海外投资者提供专业的 Obtaining Foreign Exchange Registra- Obtaining Statistics Registration dant government resource networks and a team of tion Certificate from State Administra- 投资服务，包括：提供及时详实的投资 Certificate from Statistics Bureau professionals who are capable of working under tion for Foreign Exchange multilingual environment. It provides overseas 资讯、解释相关政策、解答投资疑难、 从统计局处获得统计登记证 从国家外汇管理局处领取外汇登记证 investors with a series of professional services, 组织实地考察、推荐合作伙伴等。 including the latest and detailed information on 广州市国际投资促进中心愿与海外 investment, interpreting relevant policies and an- 投资者精诚合作，携手创造新未来！ swering investment-related questions, conduct- Obtaining Finance Registration Certificate ing on-the-spot investigation, and recommending from Finance Bureau 地址：广州市天河区珠江新城华利路61号7楼 Inject capital and putting partners for cooperation. Add: 7/F, 61 Hua li Road, Pearl River New 从财政局获取财政登记证 Guangzhou Municipal Board for International Town, Guangzhou, China business in operation Investment looks forward to a good cooperation 邮编：510623 P.C: 510623 电话：+86-20-3892 0739 3892 0738 投入资金开始经营 Obtaining Customs Registration Certificate with overseas investors to create a new future. 传真：+86-20-3892 0730 from Customs Office 网址：www.investguangzhou.gov.cn 电邮：[email protected] 从海关处获得海关登记证