Geographical Distribution of Industry Focus and Soft-Landing Zones in China

Geographical Distribution of Industry Focus and Soft-landing Zones in China

Preface

This report is the second of two volumes which aim to support European SMEs who wish to establish a base in China. This first report provides an overview of the opportunities available and the general expectations of the SMEs to receive Chinese support. The second report provides detailed information on the support available in different cities across China, including information on specific soft-landing zones, funding and international R&I cooperation policies, plus an indication of the internationalisation level of the city. We hope you find these reports useful.

Authors: Huihui He, Odette Paramor Organisation: University of Nottingham Ningbo China Date: 31st December 2020

For further information, check http://china.enrichcentres.eu/

Table of Contents Preface ...... 2 I. Business Environment of Cities in China ...... 6 1.1. Sustained popularity of foreign direct investment (FDI) in China ...... 6 1.2. Regional differences in GDP growth related to industry structures in China ...... 6 1.3. Popular Chinese Cities for FDI ...... 9 1.3.1. Rising cities in the Diamond Economic Circle Area ...... 10 1.3.2. Unbalanced Distribution of Foreign Investment ...... 12 II. The most popular Chinese cities for foreign investment ...... 13 2.1. Beijing ...... 15 2.1.1. Industry Focus ...... 16 2.1.2. Introduction ...... 16 2.1.3. Key Districts & Industry Focus ...... 18 2.1.4. Supporting policies ...... 32 2.1.5. Intellectual Property Rights ...... 32 2.1.6. Contact of the Municipal Investment Promotion Bureau/Service Centre ...... 34 2.2. Shanghai ...... 35 2.2.1. Industry Focus ...... 35 2.2.2. Introduction ...... 36 2.2.3. Key Districts & Industry Focus ...... 38 2.2.4. Supporting policies ...... 44 2.2.5. Intellectual Property Rights ...... 47 2.2.6. Contact of the Municipal Investment Promotion Bureau/Service Centre ...... 48 2.3. Shenzhen ...... 49 2.3.1. Industry Focus ...... 50 2.3.2. Introduction ...... 50 2.3.3. Key Districts & Industry Focus ...... 52 2.3.4. Supporting policies ...... 62 2.3.5. Intellectual Property Rights ...... 63 2.3.6. Contact of the Municipal Investment Promotion Bureau/Service Centre ...... 64 2.4. Guangzhou ...... 65 2.4.1. Industry Focus ...... 66 2.4.2. Introduction ...... 66 3

2.4.3. Key Districts and Industry Focus ...... 68 2.4.4. Contact of the Municipal Investment Promotion Bureau/Service Centre ...... 77 2.5. Hangzhou ...... 78 2.5.1. Industry Focus ...... 78 2.5.2. Introduction ...... 79 2.5.3. Key Districts & Industry Focus ...... 81 2.5.4. Supporting policies ...... 85 2.5.5. Intellectual Property Rights ...... 85 2.5.6. Contact of the Municipal Investment Promotion Bureau/Service Centre ...... 86 2.6. Nanjing ...... 87 2.6.1. Industry Focus ...... 88 2.6.2. Introduction ...... 88 2.6.3. Key Districts & Industry Focus ...... 89 2.6.4. Supporting policies ...... 94 2.6.5. Key supporting policies: ...... 94 2.6.6. Intellectual Property Rights ...... 94 2.6.7. Contact of the Municipal Investment Promotion Bureau/Service Centre ...... 96 2.7. Suzhou ...... 97 2.7.1. Industry Focus ...... 97 2.7.2. Introduction ...... 98 2.7.3. Key Districts & Industry Focus ...... 99 2.7.4. Intellectual Property Rights ...... 102 2.7.5. Contact of the Municipal Investment Promotion Bureau/Service Centre ..... 103 2.8. Tianjin ...... 104 2.8.1. Industry Focus ...... 104 2.8.2. Introduction ...... 105 2.8.3. Key Districts and Industry Focus ...... 106 2.8.4. Intellectual Property Rights ...... 112 2.8.5. Contact of the Municipal Investment Promotion Bureau/Service Centre ...... 113 2.9. Chengdu ...... 114 New Tier One City ...... 114 2.9.1. Industry Focus ...... 115 2.9.2. Introduction ...... 115

2.9.3. Key Districts and Industry Focus ...... 115 2.9.4. Intellectual Property Rights ...... 120 2.9.5. Contact of the Municipal Investment Promotion Bureau/Service Centre ..... 121 2.10. Chongqing ...... 122 2.10.1. Industry Focus ...... 122 2.10.2. Introduction ...... 122 2.10.3. Key Districts and Industry Focus ...... 123 2.10.4. Intellectual Property Rights ...... 127 2.10.5. Contact of the Municipal Investment Promotion Bureau/Service Centre ..... 129 2.11. Wuhan ...... 130 2.11.1. Industry Focus ...... 130 2.11.2. Introduction ...... 130 2.11.3. Key Districts and Industry Focus ...... 131 2.11.4. Supporting Policies ...... 132 2.11.5. Intellectual Property Rights ...... 133 2.11.6. Contact of the Municipal Investment Promotion Bureau/Service Centre ..... 134 2.12. Xi’an ...... 135 2.12.1. Industry Focus ...... 135 2.12.2. Introduction ...... 136 2.12.3. Key Districts and Industry Focus ...... 136 2.12.4. Intellectual Property Rights ...... 138 2.12.5. Contact of the Municipal Investment Promotion Bureau/Service Centre ..... 138

I. Business Environment of Cities in China

1.1. Sustained popularity of foreign direct investment (FDI) in China

Despite the global “capital winter” of foreign direct investment (FDI), China is still experiencing increasing growth of FDI. The recent Global Investment Trend Monitor1 released by the United Nations Conference on Trade and Development stated that the “FDI flows to developed countries remained at a historically low level, decreasing by a further 6% to an estimated $634 billion” in 2019 which included a drop in FDI to the European Union (EU) of 15% to $305 billion. FDI in inflows to China remained stable in 2019 at $140 billion, ranking it second globally behind the $251 billion invested in the United States. The confidence of international investors in the Chinese market can also be reflected on the 69.8% year-on-year growth in the number of new wholly foreign-owned enterprises (WFOEs) (Figure 1).

Figure 1. FDI Environment of China in 20182

1.2. Regional differences in GDP growth related to industry structures in China

While China as a whole has become increasingly popular for FDI, the attractiveness varies from region to region. The recent China’s Urban Business Environment Index Report 20193 assessed

1 UNCTAD. (2020). Global FDI Flows Slip in 2019, Moderate Increase Expected in 2020. Global Investment Trend Monitor, 33. Available on: https://unctad.org/system/files/official-document/diaeiainf2020d1_en.pdf 2 Shanshan, L. & Mengchao G. (2019) The Chinese market is increasingly attractive to foreign investment. China Daily. [6], 40-41. Available on: http://paper.people.com.cn/rmrb/page/2019-02/11/18/rmrb2019021118.pdf 3 China Strategic Culture Promotion Association., et al. (2019). China’s Urban Business Environment Index Report 2019. Available on: http://www.echinagov.com/report/286069.htm 6 the business environment of 100 Chinese cities using a Soft Index and Hard Index (Table 1). The report uses the hard index to assess factors such as natural environment, climate change, air quality, municipal infrastructure, and traffic of a city, and the soft index includes factors influencing a city’s capability of attracting talents, new technologies, start-ups, liveability, and so on to determine the attractiveness of an area to FDI. As there are large differences in these hard and soft indices between cities it is important to understand the different competitive advantages, industry focus, and policy differences of the different cities and regions in China.

Table 1．Business Environment Index System Hard Environment Natural Environment Index Infrastructure Environment

Technology Innovation Environment Business Environment Index Financial Environment Soft Environment Index Talent Environment

Cultural Environment

Living Environment

According to the China’s Urban Business Environment Index Report 2019, Shanghai has the highest score on the hard index, followed by Beijing, Shenzhen, Guangzhou, Nanjing, Wuhan, Hangzhou, Tianjin, Chengdu, Xi’an, Suzhou, Qingdao, Hefei, Wuxi, Changsha, Jinan, Ningbo, Xiamen, Dalian, and Zhuhai. Although all these cities have competitive business environments which attract a huge amount of foreign investment, the cities’ environment and industry focus differ greatly and change rapidly over time. For instance, Beijing is narrowing its focus on politics, culture, international exchange, and technology innovation by reducing investment in finance of which the centre is still in Shanghai. Rising areas such as Xiong’an New Area which is located just outside of Beijing is rapidly developing to strengthen the Beijing-Tianjin-Hebei Region and the government is dedicated to transforming this area into a high-tech city of the future. The Chinese government invested €1,260 billion between 2009 and 2017 in the infrastructure with an aim to build the first driverless city, the first supercomputer brain city, and the first Internet of Things city4.

4 Xinhua News Agency. (2018). The outline of the development plan of Xiong’an New Area. Available on: http://www.xiongan.gov.cn/2018-04/21/c_129855813.htm 7

Figure 2. The change of GDP and proportion in the north and south of China5 (red line indicates south and blue north).

There has also been a divergence in the GDP and industry focus between the north and south of China over the past 20 years (Figure 2). GDP of the northern part of China represented 42.6% of the total GDP in 2003, rose to 45.8% in 2012, and then declined to its lowest point of 38.5% in 2018. While the southern part of China shows the opposite trend. The widening gap is largely due to the changes in the industry structure related to government policies. In northern China, for instance, the focus is on heavy industry compared to the south which is more focused on high-tech companies (Figure 3).

Figure 3. Industry Structure in Three City Clusters of China6

Driven by government strategic regional development policies, some cities have focused on

5 Data source: China Statistical Yearbook 2000-2018, figure made by China Academy of New-type Urbanization, Tsinghua University. 6 Xiaozhao, Lin. (2019). The proportion of GDP in the north dropped to 38.5%, and the flow of people from the south to the north gradually took shape. CBNWeek. 8 developing characteristic industries to provide their cities with a special identity. For example, at the national level, China aims to lead the global industrial internet industry and many cities have chosen to link their identity to this. For instance, Beijing invests heavily in the R&I of Artificial Intelligence; Hangzhou is becoming the centre of the data industry of China; Shanghai and Shenzhen are providing strong support for companies developing robotics technology. Also, within the “5G+Industrial Internet” strategy, the huge demand for internet revolution in the industrial industry will boost the development of 5G facilities. By 2025, the China Academy of Telecommunication Research of MIIT estimates an accumulation of investment of €151 billion in the 5G facilities in China, which expect to boost GDP growth of €454 billion7 by 2030. Eastern cities of China, including Shenzhen, Shanghai, Guangzhou, Nanjing, Hangzhou, and Suzhou, leading inland cities such as Wuhan, Chongqing, and Chengdu, and Beijing are the first pilot cities to 5G facilities with massive investment. Other city identities include “the most fashionable city” with Chengdu, who has nearly four million square metres of retail property, ranking second in China and closely following Shanghai.

1.3. Popular Chinese Cities for FDI

China’s foreign investment increased from $59.36 billion (€50.4 billion) in 2000 to $134.9 billion (€114.6) billion in 2018. In general, the actual use of foreign investment in different cities in 2018 shows big differences among different economic clusters (Figure 4)8. Beijing and Shanghai, rank the first and second, and the two cities received more than 25% of China’s foreign investment in 2018.

7 China Business Industry Research Institute. (2020). Current development of 5G industry distribution. Available on: http://cabling.qianjia.com/html/2020-04/01_363525.html 8 Weihua, Lv. (2019). 2019 Research report on foreign investment attractiveness of cities at prefecture level and above in China. Meisen Zhiku.

Actual Use of Foreign Investment in 2018 ($100 million) 200.00 180.00 173.10 173.00 160.00 140.00 Average: 99.82 109.27 120.00 102.73 100.00 86.90 82.03 73.20 68.30 80.00 66.11 63.54 57.80 60.00 48.51 45.20 43.20 42.10 38.53 37.15 36.50 40.00 34.89 32.30 20.00 0.00

Figure 4. Actual Use of Foreign Investment in 2018 ($100 million)9

1.3.1. Rising cities in the Diamond Economic Circle Area

However, it is surprising that while Beijing was seen with a huge decrease of 28.9% in the year- on-year growth of foreign investment, inland cities such as Wuhan, Chengdu, and Xi’an have also increasingly attracted foreign investment in 2018 (Figure 5). Moreover, two cities above the average line, in addition to Beijing and Shanghai, are also inland cities, i.e. Wuhan and Chongqing. This can be explained by the Diamond Economic Circle (Error! Reference source not found.) formed by Xi’an, Chengdu, Chongqing, and Kunming in 2015 under the OBOR initiative. The Diamond Economic Circle interconnects with the Yangtze River Economic Zone, making the Midwest the Blue Ocean of China’s economic development.

9 China Statistical Yearbook 2019. (2019). Available on: http://www.stats.gov.cn/tjsj/ndsj/2019/indexch.htm 10

30.00

20.00 5.42 8.09 4.70 6.43 6.07 10.00 12.81 17.50 12.82 13.30 4.89 14.90 7.70 10.00 10.80 5.05 5.10 0.00 1.70 0.90 3.30

-10.00 -28.90 -20.00

-30.00

-40.00

Year-on-year Growth (%) City's use of FD/China's use of FDI (%)

Figure 5. Top 10 Cities with High Actual Use of Foreign Investment in 201810

Figure 6. The Diamond Economic Circle Wuhan, according to the China’s Urban Business Environment Index Report 201911, has the second-best urban public facilities and the number of higher education universities and graduates, ranked the second in China, providing quality talents for local economy. Chengdu

10 China Statistical Yearbook 2019. (2019). Available on: http://www.stats.gov.cn/tjsj/ndsj/2019/indexch.htm 11 China Strategic Culture Promotion Association., et al. (2019). China’s Urban Business Environment Index Report 2019. Available on: http://www.echinagov.com/report/286069.htm 11 and Xi’an have been increasing popular in inland China and northern China respectively, attracting young generation to gather to these two centres due to high and new facilities, liveability, and financial ability. For example, Chengdu has profound financial environment that ranked 5th in China and Xi’an’s living environment ranked first in China12. Despite the poor natural environment, Xi’an, as a frequent capital city of China in a long history, has top research, educational and medical resources, making it a pleasant city for people to live in. While Chengdu, as the centre of the “Western Development” strategy, has been benefiting from government support in terms of research funding and talent attraction policies, in the past two decades.

1.3.2. Unbalanced Distribution of Foreign Investment

There are big gaps of the use of foreign investment among cities in different regions and city clusters of China. In the list of top 100 cities, 46% are from the eastern China while only 15 and 5 from the western and east northern China respectively in 2018. Moreover, in China’s 663 cities, the use of foreign investment of the top ten cities (i.e. Beijing, Shanghai, Wuhan, Chongqing, Qingdao, Shenzhen, Chengdu, Hangzhou, Guangzhou, Xi’an, Changsha, Suzhou, and Ningbo) accounted for over 51.52% of the total in the country in 2019.13 Beijing, who ranked the first attracted FDI ($17.31 billion) 30 times more than the Loudi City who ranked the lowest in 2019. Moreover, among the 13 cities having over $10 billion of actual use of foreign investment, six are in the east, five are in the midland, two are in the west and none in the north-eastern China. This is largely because of differences in the regional government policies in terms of attracting high-tech, talents, research innovation, and so on.

Similarly, foreign investment also has special Industry Focus. In 2018, China’s manufacturing industry attracted $41.1 billion foreign investment, followed by the real estate, rental and business commerce, and information transmission, software, and information technological service, which added up to nearly 70% of the total ($134.9 billion)14. It aligns with China’s overall supporting policies on industry development focus reflected on the 13th five-year plan.

Though the geographical distribution of industry focus and development level seems to be distinct and clear, European SMEs are recommended to check updated regional policies regularly as local government’s supporting policies are changing on a daily basis and critical to the growth of local businesses.

12 China Strategic Culture Promotion Association., et al. (2019). China’s Urban Business Environment Index Report 2019. Available on: http://www.echinagov.com/report/286069.htm 13 China Statistical Yearbook 2019. (2019). Available on: http://www.stats.gov.cn/tjsj/ndsj/2019/indexch.htm 14 China Statistical Yearbook 2019. (2019). 11-16: FDI by industries. Available on: http://www.stats.gov.cn/tjsj/ndsj/2019/indexch.htm 12

II. The most popular Chinese cities for foreign investment

This report focuses on the twelve most internationalised cities in China as these are currently the most compatible for European SMEs due to their infrastructure and support for international companies and talents. The twelve cities are Tier-One and New Tier-One cities. We evaluated their attractiveness for foreign investment by considering factors including the number of industrial parks, research institutes, annual graduates, retained urban population, as well as liveability and transportation that may influence European SMEs’ decisions on selecting a landing location in China.

Each city section includes the city’s Industry Focus, introduction, key districts & Industry Focus on the district level, supporting policies, and contact information of local government agencies such as Municipal Bureau of Commerce and Investment Promotion Centre. This report only highlights key policies available online and European SMEs are suggested to contact local government agencies using the contact included in this report for details and policies only available with hard copy.

An example of the information structure of the 12 cities introduced in the Section II is shown below:

2.1. Beijing Tier One City Internationalisation Level: ⭐⭐⭐

2.1.1. Industry Focus15

Information Medicine and Intelligent Integrated Circuit Technology Health Equipment

Energy Conservation and New Energy Artificial New Material Environmental Intelligent Vehicle Intelligence Protection

Software and Information Technical Service Service

2.1.2. Introduction

Beijing is well known as the capital of China and may be what European SMEs and research & innovation organisations first think of when establishing businesses in China. It has a large population of over 21 million in the urban area and has a large GDP of about 3.5 trillion RMB in 2019. It has showed great enthusiasm for innovation and entrepreneurship since 2017 and constructed more than 400 incubators, accelerators, technology parks and so on. In 2019, Beijing attracted $25.97 billion of contracted foreign capital, with 37.6% on information communication, software and information technology service, 25.9% on scientific research and technology service, and 11.4% on finance16. As the home to China’s leading scientific research institutions, Beijing invested RMB 159.5 billion in R&D spending, accounting for 5.7% of its annual GDP in 201817.

Despite Beijing’s long history in R&I which formed a unique Chinese research centre, it could be too difficult for European SMEs to benefit from local supporting policies due to the fierce competition. Moreover, according to Beijing’s most recent development strategy 18 , it is committed to sustaining its position in politics, culture, technology innovation, and

15 Beijing Municipal Committee (2017). Guidelines on accelerating the development of new generation information technology industry by scientific and technological innovation in Beijing. Jing [2017]. No. 27. 2017- 12-20. Available on: http://www.beijing.gov.cn/fuwu/lqfw/ztzl/kjcxgjj/wj/t1503854.htm 16 Beijing Investment Promotion Service Center. Available on: http://invest.beijing.gov.cn/tzbj/tzysjgk/bjgkyys/201912/t20191208_969371.html 17 JLL, 2018; Beijing Municipal Bureau of Statistics, 2018; OECD PATSTAT, 2017 18 Jie, D. (2020). Beijing’s 14th Five-Year Plan is coming. Beijing Daily. 16 international exchange, rather than promoting economic development as it previously did. It implies that, in terms of economic development, China is likely to distribute investment to different cities for promoting local economy instead of centralizing resources in Beijing. Therefore, European SMEs might as well check opportunities of other emergently developed cities if funding and supporting policies are crucial for its start-up in China.

2.1.3. Key Districts & Industry Focus

The service industry has become the main investment focus of foreign investment, accounting for 94.5% of sectors where new foreign enterprises invested in 2018. Within the service industry, 856 newly established foreign-invested companies are in the high-tech service sector (52% of all sectors), with a year-on- year growth of 31.2%19 in 2018, which implies Beijing’s continuous ambition of building a technology-driven city.

Four districts including Chaoyang, Haidian, Shunyi, and Dongcheng gathers 70% of total foreign investment in Beijing City. These foreign investment are from 165, among which Hong Kong, Europe, America, and Korea invested 80% of foreign businesses in Beijing. Table 1 shows industry foci and key characteristics of 17 districts in Beijing.

Table 1. Key Industry Foci of Beijing City District Industry Focus Key Characteristics Contact Information

1. Foreign Capital: 65 new foreign-funded Financial Service enterprises were set up in 2018, with $620 million Contact: Beijing Dongcheng District Beijing DongCheng Culture and Creativity of foreign capital actually utilized. Commerce Bureau Information Service 2. Efficient administration service: enterprise Tel: +86 10 6707 9133 service butler equipment, government and enterprise exchange activities and platforms.

19 Beijing Municipal Commerce Bureau. (2019). 2019 Beijing Foreign Investment Development Report. Available on: http://sw.beijing.gov.cn/sy/nsjg/wzfzhch/zwxx/201912/P020191220595508247719.pdf

1. In 2019, two incubation acceleration bases and one incubation acceleration platform were newly identified and registered. Contact: Beijing Xicheng District Commerce 2.Famous for the Jinke New District where Beijing Beijing XiCheng Financial Service Bureau Fintech Industry Investment Fund, Beijing Fintech Tel: +86 10 6803 3198 Research Institute, Beijing Financial Street attracting 54 financial institutions that have registered capital of €8,3 billion.

1. Foreign Capital: more than 10,000 foreign- invested enterprises have been introduced by 2019 and it realized the actual utilization of foreign Contact: Beijing Chaoyang District Bureau of Financial Service capital of over $60 billion in 2019. Commerce Beijing ChaoYang Culture and Creativity 2. Efficient administration service: 33 measures to Tel: +86 10 8468 1109 Technology Service improve the business environment, the integrated reform of real estate transaction registration and 90% of government service are available online.

Railway Transport Equipment 1. Established one Enterprise Technology Center Contact: Beijing Fengtai District Bureau of Electronic Information and four Technology incubators in 2019. Commerce Beijing FengTai Technology 2. Efficient administration service: WeChat license Tel: +86 10 6383 7580 Smart Manufacturing and free enterprise seal, administrative

Equipment examination and approval. New Materials Bio-pharmaceutical

Military-civilian Integration

Financial Service Contact: Beijing Shijingshan District Bureau Digital Cultural 1. Efficient administration service: tax reduction of of Commerce Beijing ShiJingShan Creative Activities 5 billion yuan, "9+N" policy, self-service tax Tel: +86 10 6886 5178 Electronic Information department service.

Technology

Electronic 1. High GDP: 792.6 billion yuan in 2019 (22.6% Internet, Cloud of Beijing City). Computing and Big 2. Foreign Capital: In 2018, 339 new foreign- Contact: Beijing Haidian District Bureau of funded enterprises were set up in Haidian District, Commerce Beijing HaiDian Data Service Bio-pharmaceutical with actual utilization of foreign investment of Tel: +86 10 5280 8236 New Materials $7.91 billion Education 3. Policy Support: tax cut of €5.75 billion. 4. Opened a chip source innovation center and 11 high - value patent cultivation center in 2019.

Contact: Beijing Mentougou District Bureau Tourism Efficient administration service: enterprise butler of Commerce Beijing MenTouGou Artificial Intelligence service, "Service package" for key enterprises Tel: +86 10 6383 7580 Health

Artificial Intelligence Efficient administration service: "Fangshan Tong" Contact: Beijing Fangshan District Bureau of Smart Equipment APP, enterprise service package, online processing Commerce Beijing FangShan Manufacturing of investment project approval, tax reduction €350 Tel: +86 10 8131 2936 New Materials million.

Headquarter service 1. A new district that has been promoted by the Financial Service central government who is dedicated to building a Culture and Tourism high-tech new city (drive-less vehicles & AI)in Contact: Beijing Tongzhou District Bureau of Digital Cultural Tongzhou District. Commerce Beijing TongZhou Creative Activities 2. Foreign Capital: actual utilization of foreign Tel: +86 10 6952 4525 Electronic capital exceeded us $300 million in 2019.

Technology Service 3. Efficient administration service: reduction in Smart Manufacturing taxes by €139 million, one-stop service for Equipment enterprises.

1. Foreign Capital: in 2019, imports and exports totaled €13.4 billion and foreign investment actually utilized totaled €118 million 3.Efficient administration service: more than 1,000 New Energy Vehicle exchanges were organised to connect different Contact: Beijing Shunyi District Bureau of Manufacturing Commerce Beijing ShunYi enterprises with government leaders, eight New Materials "breakfast meetings" were held, and 146 Tel: +86 10 6944 2776 Aviation Equipment customized "service packages" were provided to help companies to register or apply for funding, resulting in a tax cut of €1 billion to encourage business growth. 4. In 2019, 263 new projects/companies

introduced, and 57 high-tech projects were promoted, including Beijing Benz New Energy Shunyi Factory, Zhongrong Lyco, DIDI (Uber China) Chuxing and Toyota Joint venture.

1. Built 5 collaborative innovation platforms for hydrogen energy, nuclear energy and the Internet New Energy of Things Contact: Beijing Changping District Bureau Smart Manufacturing 2. 61 science and technology industrial parks of Commerce Beijing ChangPing Equipment expect to be built in the next 5 years, including Tel: +86 10 6974 4935 Bio-pharmaceutical Xiaomi Smart Technology, Good Future Internet

Modern Business Education headquarters, China Telecom Information Technology Industrial Park, etc. 3. Focus on modern agriculture

Medical Health 1.53 incubators and maker spaces have been built Bio-pharmaceutical by 2019. Airport Economic 2. Industrial agglomeration effect: projects include Industries Tu Youyou Team Research Center, Xinghao Contact: Beijing Daxing District Bureau of Electronic Information Pharmaceutical Co., Ltd. and Tongrentang Daxing Commerce Beijing DaXing Technology Production Base. In 2019, there were 20 high Tel: +86 10 8129 6068 Smart Manufacturing technology enterprises, such as Jizhijia and Equipment Shenzhiyao, and 12 international cooperation New Energy Vehicle projects. Manufacturing 4. Financial support: In 2019, the "1+N" policy released supporting funding of €12.87million, and

the regional industrial guidance fund was increased to €1.4 billion

1. Industrial agglomeration effect: In 2019, there were more than 100 newly registered enterprises and 373 high-tech companies, and the revenue Digital Cultural related to the cultural industry exceeded €1.28 Creative Activities billion. Contact: Beijing Huairou District Bureau of Innovation Town 2. Policy support: "9+N" business policy, a tax Commerce Beijing HuaiRou New Material cut of €3.5 billion. Tel: +86 10 6968 1083 Conference and 3. 2,680 conferences and exhibitions attracted Exhibition 420,000 audiences in 2019 including the Global Innovation Economic Forum, the 7th Internet Security Conference, BOE Global Innovation Partnership Conference, and Baidu AIG 2019

1. Policy support: Pinggu District Business Logistics Environment Reform Implementation Plan, Pinggu Contact: Beijing Pinggu District Bureau of E-commerce District Industry Project pre-examination Commerce Beijing PingGu Tourism management method Tel: +86 10 8998 8293 Culture and Creativity 2. Zhongguancun Pinggu Garden (innovation Modern Agriculture centre): 139 high-tech enterprises and 200 innovation-oriented enterprises

1. Industrial agglomeration effect: 446 new and Biomedicines high technology enterprises, 5 new city-level Health town scientific and technological R&D institutions, 15 E-commerce Contact: Beijing Miyun District Bureau of new and high technology agricultural enterprises, Tourism Commerce Beijing MiYun and 12 enterprises with annual sales of more than Smart Manufacturing Tel: +86 10 6906 9602 €1.28 million Equipment 2. Policy support: 9+N "policy version 2.0, a Modern Business reduction of €248 million in taxes and fees. Modern Agriculture 3. Efficient administration service: " E Window Pass ", "Close help" APP

1. 22 Science and Technology Incubators High-precision 2. Policy Support: "1 + 4 + 4 "policy Contact: Beijing Yanqing District Bureau of Industry 3. 87 modern horticultural enterprises, 16 UAV Commerce Beijing YanQing Modern Horticulture enterprises and 75 new energy and energy Internet Tel: +86 10 6914 3025 Tourism enterprises, 12 municipal laboratories and R&D New Energy platforms.

Apart from varying industry foci across 17 districts, Beijing also set special economic development zones at national or municipal levels that government promotes with preferential policies on talent attraction, tax reduction, R&D Subsidy, etc. Two key economic development zones are briefly introduced here with representative industrial parks and soft-landing zones.

National Economic Development Zone: Beijing ZhongGuanCun Science Park Beijing is the first city in China who established national economic development zone, sustaining a pioneering position of supporting innovation and business development for high- tech industries, combined with funding support for attracting new business, foreign investment, global talents, and so on.20 Beijing ZhongGuanCun Science Park is a representative industrial park that released a series of policies to promote and encourage establishment of soft-landing zones such as incubators, accelerators, and maker space.

Case study 2.1.3.1. : Beijing ZhongGuanCun Science Park Beijing ZhongGuanCun Science Park was established in 1988, serving as an innovation park that has 67 Unicorn enterprises, accounting for about 50% of China.21 It is the first high- tech park of China and became the first national innovation demonstration Centre of China in 2009.  Talent cluster: 7770 experts of the “1000 Talents Plan” – 80% of Beijing; 368 talents of the “Beijing Foreign Talent Gathering Project” – 80% of Beijing  Innovation and financing Centre: one third of start-up investment of China; 224 listed companies  Well-established financing system: including national policy support, training, network opportunities, source of capital

By 8th Feb 2018, Beijing ZhongGuanCun has built 68 incubators that formed an innovation eco-system in China.

Contact: Tel: +86 10 8882 8800 (general consultation)/8882 7009 (start-up incubator) Website: zgcgw.beijing.gov.cn

20 Beijing Investment Promotion Service Center. Available on: http://invest.beijing.gov.cn/tzbj/ 21 Beijing Investment Promotion Service Center (2018). Beijing’s Advantage. Available on: http://invest.beijing.gov.cn/english/Choose/Advantages/201912/t20191207_967670.html 25

Case study 2.1.3.2. : Beijing Economic-Technological Development Area Beijing Economic-Technological Development Area, also called as YiZhuang Economic- Technological Development Area, is one of the most developed innovation Centres well configured with incubators, makerspace, industry alliance, R&D institutes and government guide fund that start-ups and SMEs. It is a representative park of ZhongGuanCun that has attracted foreign investment of hundreds of billion dollars in the past 30 years22. It has 802 national-level high-tech enterprises and 83 Fortune Global 500 companies such as Mercedes- Benz, GE, Bayer, and ABB, with total foreign investment of hundreds of billion dollars.

Contact: Tel: +86 10 67857878 Add.: No.15 RongHua Middle Rd, Beijing Economic-Technological Development Area Website: http://kfqgw.beijing.gov.cn/index.html

22 Beijing Daily (2018). Policy interpretation: Beijing economic and technological development zone has attracted a total investment of nearly 100 billion us dollars. Available on: http://invest.beijing.gov.cn/tzbj/tzzctzbj/gjjbjs/bjgjjcyzc/201912/t20191207_958230.html 26

Municipal Economic Development Zone By January 2020, the People’s Government of Beijing Municipality has set up 16 municipal economic development zones to provide soft landing zones and investment for new and emerging industries, including European SMEs.

Name Approved Industry Focus Advantages Contact year 北京马坊工业园区 2006 High-tech, green energy, - Admitted companies can apply for Tel: +86 10 6099-6925 modern manufacturing ZhongGuanCun High-Tech Enterprise Beijing MaFang Industrial Certification Park - Eligible for ZhongGuanCun preferential policies - Equipped with wastewater treatment plant, talent apartments

北京昌平小汤山工业园区 2006 New materials, modern - Aim to establish an industrial park with Website: manufacturing, packaging 26 admitted companies http://invest.beijing.gov.cn/t Beijing ChangPing & printing zbj/tzysjgk/cyyqydx/sjkfq/20 XiaoTangShan Industrial 1912/t20191207_953928.ht Park ml

北京采育经济开发区 2006 Auto parts, new materials, - Geographical advantages: surrounded by Website: urban industry industry clusters of manufacturing, bi- http://invest.beijing.gov.cn/t Beijing Caiyu Economic engineering, medical, logistics, etc. zbj/tzysjgk/cyyqydx/sjkfq/20 Development Zone 1912/t20191207_953929.ht ml

北京石龙开发区 2012 CNC equipment, bio- - Future focus on advanced manufacturing, Tel: +86 10-69803404 pharmaceutical, instrument internet finance, modern services Beijing ShiLong Add.: No. 20, Yong’an Rd, and apparatus, machinery Development Zone Mentougou District, 102308, Beijing Website: http://invest.beijing.gov.cn/t zbj/tzysjgk/cyyqydx/sjkfq/20 1912/t20191207_953930.ht ml

北京房山工业园区 2006 Petrochemical engineering, - Led by petroleum product processing and Website: new materials, machinery byproduct production http://invest.beijing.gov.cn/t Beijing FangShan zbj/tzysjgk/cyyqydx/sjkfq/20 Industrial Park 1912/t20191207_953926.ht ml

北京通州经济开发区 2000 New materials, new - Cluster of foreign investment with 212 Tel: +86 01 12345 medicine, electronic, admitted companies invested by Beijing TongZhou Website: machinery shareholders from the US, France, Economic Development http://invest.beijing.gov.cn/t Germany, Malaysia, Japan, and Singapore Zone zbj/tzysjgk/cyyqydx/sjkfq/20 - Representative companies include PPG 1912/t20191207_953933.ht (US), AXT (US), ASAHI GLASS (Japan), ml ELF Atochem (France), Lion Group (Malaysia)

北京大兴工业开发区 2000 Software development, - Tax exemption policy for foreign invested n/a machinery, bio- companies: foreign-invested companies Beijing DaXing Industrial pharmaceutical, printing & with 10-year experience of production can Development Zone packaging, clothing enjoy 100% and 50% tax exemption for the first 2 years and for the third to fifth year since the companies start to make profit respectively - Equipped with software park, genome research Centre, incubator for returned students

北京八达岭经济开发区 2000 New energy and - Industry cluster of new energy Tel: +86 10 61164918 environmental protection technologies in areas of wind energy, Beijing BaDaLing Website: solar energy, environmental protection Economic Development https://baike.baidu.com/item equipment, hydropower, biomass energy, Zone /%E5%8C%97%E4%BA% geothermal energy AC%E5%85%AB%E8%BE %BE%E5%B2%AD%E7% BB%8F%E6%B5%8E%E5 %BC%80%E5%8F%91%E5 %8C%BA/2477419?fr=alad din

北京兴谷经济开发区 2000 Auto parts, food, machinery - Listed as “National Agricultural Product Website: Processing Demonstration Base” and http://xinggu.qianyan.biz/ Beijing XingGu Economic “Beijing Automobile and Accessory Parts Development Zone Production Base”

北京雁栖经济开发区 2006 Food, printing & - High internationalization level: 3 Tel: +86 10 6166 3649 packaging, electronic Beijing YanXi Economic - One of the first four “Beijing Email: [email protected] information, bio- Development Zone headquarters economic development new pharmaceutical Website: area”, admitted headquarter companies http://www.yda.gov.cn can enjoy multiple government subsidies - Four special industrial parks: technology service industrial park, nano-technology industrial park, digital information industrial park, and urban industrial park - Representative companies include: Mars (US), Ball, Asahi (Japan), Kewpie, Redbull (Thiland), Clariant (Switzerland)

北京良乡经济开发区 2000 Bio-pharmaceutical, new - High internationalization level: 3 Tel: +86 10 6033 0867 materials Beijing Liangxiang - Representative foreign companies: PLP Add.: NO. 73, Changhong Economic Development (US), Geokon (US), Itochu (Japan) West Rd, Liangxiang, Zone Beijing Website: http://www.bjlxeda.com/

北京延庆经济开发区 2006 Pharmaceutical, clothing, - Good eco-system and environment Tel: +86 10 6914 3476 new materials, food Beijing YanQing Economic Development Zone

北京永乐经济开发区 n/a Electronic, auto, machinery, - Policies encouraging and supporting JVs Tel: +86 10 8051 1597/8051 construction material, and foreign businesses to establish 2909 Beijing YongLe Economic logistics factories in the area Development Zone Email: [email protected]

北京密云经济开发区 2000 Auto parts, energy - Well established services and government Tel: +86 10 8909 conservation, preferential policies for attracting new 9987/610208218 Beijing MiYun Economic environmental protection, companies Development Zone Email: [email protected] green food, bio- pharmaceutical Website: http://www.zgcmyy.com/f

北京天竺港经济开发区 2000 Airport logistics, auto parts - High internationalization level: 3 Tel: +86 10 8049 7866 Beijing TianZhu Port - 450 admitted companies from 20+ Economic Development countries, with total foreign investment of Zone RMB 54 billion. 90 multinational companies and 21 Global Fortune 500 companies

北京林河经济开发区 2000 Auto parts, electronic - Government matching fund, loan interest Tel: +86 10 894903610 information & engineering, subsidy and tax preferential policies Beijing LinHe Economic advanced equipment Development Zone manufacturing, new energy, bio-pharmaceutical, micro- electronics, opto- mehcatronics

2.1.4. Supporting policies

Since Beijing identified 10 Industry Focus as key drives to facilitate high and advanced economic structure in December 201723, The Beijing Municipal Government has introduced “10+3” policies to support the 10 sophisticated industries, including 10 general guidelines to develop 10 Industry Focus respectively, and three guidelines in funding, talent, and land use24.

Information Technology

Medicine and Health

Integrated Intelligent Circuit Equipment

New Energy Artificial Intelligent Intelligence Vehicle

Energy Conservation Software and and New Material Information Environmenta Service l Protection

Figure 7. 10 Industry Focus in Beijing’s High and Advanced Industry Structure

Following the “10+3” policy, district government introduced supporting policies with detailed information of supporting purposes, requirements, application procedures, evaluation criteria and so on. This information will usually be available on the district governments’ website or administration office and contact information of each district government and key policies are provided in Error! Reference source not found..

2.1.5. Intellectual Property Rights

It is worthwhile approaching the IP SME Helpdesk for advice on IPR issues as they provide free and confidential advice for European small and medium sized enterprises (SMEs) to both protect and enforce their Intellectual Property (IP) rights in or relating to China

23 Beijing Municipal Committee (2017). Guidelines on accelerating the development of new generation information technology industry by scientific and technological innovation in Beijing. Jing [2017]. No. 27. 2017- 12-20. Available on: http://www.beijing.gov.cn/fuwu/lqfw/ztzl/kjcxgjj/wj/t1503854.htm 24 Beijing Investment Promotion Service Centre (2019). Beijing's 10 + 3 policy to build a sophisticated economic structure. Available on: http://invest.beijing.gov.cn/tzbj/tzzctzbj/gjjbjs/bjgjjcyzc/201912/t20191207_958244.html 32

(https://www.china-iprhelpdesk.eu/).

2.1.6. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact: Beijing Investment Promotion Service Centre 北京市投资促进服务中心 Tel: +86 10 6554 3161 Web: http://invest.beijing.gov.cn/tzbj/

2.2. Shanghai Tier One City Internationalisation Level: ⭐⭐⭐

2.2.1. Industry Focus

Culture Finance Trade Creativity

Artificial Bio- Integrated Intelligence pharmaceutical Circuit

New Material Auto Chemical

2.2.2. Introduction

Shanghai, with a large population of about 25 million, is an Alpha+ global city and one of the world’s top 10 megacities. It is the centre of China’s Economy, Finance, Trade, Shipping, and Sci-tech Innovation. With 200,000 m2 of Grade-A co-working office space, Shanghai is considered as a Centre for work-place innovation and a hub for co-working25. The Shanghai Municipal Master Plan (2017-2035) points out its future efforts in developing industries of Finance, Trade, Culture Creativity, Artificial Intelligence, Bio-pharmaceutical, Integrated Circuit, New Material, Auto, Chemical and so on.26

In 2019, Shanghai attracted $259.49 billion paid-in capital from foreign investment in 103,000 foreign-invested projects from 188 countries and regions. By the end of 2019, there are more than 50,000 foreign-invested companies established in Shanghai, 720 of which are regional headquarters of multinational corporations. In addition to its attractiveness for multinational companies, Shanghai is considered as the world’s innovation centre favoured foreign innovators, which can be proven by the growing number of foreign-invested R&D centres that soared to 461 in 2019.27

25 JLL (2018). JLL Global Research. China12: China’s Cities Go Global. Available on: https://www.jll.com.hk/content/dam/jll-com/documents/pdf/research/china12-china-cities-go-global-en.pdf 26 Shanghai Municipal Government (2018). Shanghai Municipal Master Plan (2017-2035). Available on: http://www.shanghai.gov.cn/newshanghai/xxgkfj/2035001.pdf 27 Invest Shanghai. Available on: http://www.investsh.org.cn/enwstzpbfz.htm 36

Figure 8. Foreign Investment Facts in Shanghai.28

28 Invest Shanghai. Available on: http://www.investsh.org.cn/enwstzpbfz.htm 37

2.2.3. Key Districts & Industry Focus

Unlike other cities that typically have one or several districts that stand out as the most attractive district for foreign investment, Shanghai has well developed to a highly internationalised metropolis where almost every single district has attracted foreign investment to certain levels, although with representative industry foci. The Table 2 presents what district government promotes, along with contact information of external service providers (ESP).

In addition to the districts listed below, other surrounding cities such as Jinshan and such as Kunshan City in Jiangsu Province, that are geographically close to Shanghai, have been benefiting from the spill-over effects from Shanghai’s still-fasting developing businesses. These surrounding cities might be geographically further from the downtown areas such as Huangpu, Xuhui and Jing’an, the settlement costs, such as transportation, office rental, and labour costs, are usually lower compared to those in inner rings and it is recommended for European SMEs to take them into account while identifying cities/areas to establish businesses.

A useful platform we recommend European SMEs to use is Invest Shanghai29, who provides a comprehensive package of services to help foreign companies to register, select offices, hire talents, and apply for funding. They also developed an effective investment map to help foreign SMEs to identify key areas and routes to visit centres of certain industries (Figure 9).

29 Invest Shanghai Website: http://www.investsh.org.cn/

Figure 9． A demonstration of industry map developed by Invest in Shanghai30

30 The Investment Map developed by Invest in Shanghai: http://www.shanghai-map.cn/invest/pc_en.html

Table 2. Industry foci of different districts of Shanghai31 District Industry Focus Key characteristics ESP Link Xuhui Artificial intelligence 1. The regional government encourages the 1. Xuhui District Industry http://www.investsh.org.cn/g development of accelerators, e.g. Promotion Centre qzdtj/182.htm Information technology Google Developer Groups, COCO Tel: 021-64872222 Cultural and creativity SPACE, InnoClub, Tencent Innovation

Healthcare, Innovative Base finance 2. Efficient administrative service: “one 2. Shanghai Xuhui District Small and Medium-sized Scientific and counter to complete all affairs”, 4 Enterprises Service technological innovation working days to process business license application, robot service, etc. Centre Headquarters economy Tel: 021-64872222

Changning Artificial intelligence, 1. High level of internationalization: with 1. Shanghai Changning http://www.investsh.org.cn/g Aviation services, “Internet 27 consulate agencies, 120+ diplomat’s Investment Service qzdtj/184.htm + life”, Fashion creativity residents, 70,000+ foreign workers from Centre 150+ countries Tel: 021-62118851 2. High GDP: 141.878 billion RMB in

2018 2. Shanghai Changning Investment Promotion Office

31 Shanghai Investment Promotion Service. Available on: http://www.investsh.org.cn/gqzdtj/index.htm

Tel: 021-62118851

Qingpu Logistics 1. Fast-growing GDP: growing at 7% n/a http://www.investsh.org.cn/g annually between 2012 and 2018 (GDP: qzdtj/178.htm 107.43 billion RMB in 2018) 2. Pleasant ecological environment 3. Host of the International Import Expo

Hongkou Shipping service, Financial 1. “2+4+X” modern service cluster 1. Hongkou Commerce http://www.investsh.org.cn/g service, Commerce and Commission qzdtj/171.htm 2. International shipping Centre trade, cultural creativity, Tel: 021-25658335 environmental protection, 3. Technological innovation city: e.g. it has consulting service in green technology bank, technological innovation industry accelerator, Sino- certification, legal and 2. Hongkou Investment Oxford innovation program engineering Service Centre - Sub- Centre III Tel: 021-65100757

Yangpu Entrepreneurship and 1. 60+ incubators: e.g. Changyang 1. Yangpu Commerce http://www.investsh.org.cn/g innovation, modern Campus, Chuangzhi Tiandi Commission qzdtj/118.htm industry 2. 13 headquarters of Tel: 021-65148753 Transnational enterprises 2. Yangpu investment promotion office: 021- 3. Policy support: e.g. efficient visa 25010296 application for foreign employees, R&D subsidy of 1 to 2 million RMB

4. Efficient administration service

Minhang High-end equipment, 1. 9 industrial parks or economic Minhang Investment http://www.investsh.org.cn/g Artificial intelligence, development Centres Promotion Centre qzdtj/189.htm New-generation 2. High GDP: 201.3 billion RMB Tel: 021-54436885 information and communication 3. 2025 strategy of becoming China’s technology, Bio- national demonstration area as a science pharmaceutical, and technology innovation Centre International trade, Modern finance, Cultural creativity, Technology service

Jinshan High-end equipment, new- 1. Coastal area with good eco-system n/a http://www.investsh.org.cn/g generation information and qzdtj/185.htm 2. One-hour economic circle with: Suzhou, communication Jia, Wuxi, Nantong, Huzhou, Hangzhou, technology, Life health, Shaoxing New material

Pudong Finance, Financial trade, 1. High level of internationalization: n/a http://www.investsh.org.cn/g Advanced manufacturing 33,000 foreign investment projects; 304 qzdtj/180.htm (auto), Technological headquarters of transnational innovation, Bio- companies, 233 foreign-invested R&D pharmaceutical, Cultural Centres creativity, Artificial 2. GDP: trillions of RMB intelligence, Environment protection, International 3. Pioneer in establishing foreign-invested

trade, Tourism, Logistics insurance company, tariff-free zone, financial trade zone, free trade zone

Putuo Services in modern 1. “3+5+x” industry policies: 3 policies n/a http://www.investsh.org.cn/g commerce, technology, supporting companies, technological qzdtj/170.htm finance, culture, Intelligent innovation, and talent cultivation; 5 software, Technological policies supporting financial service, innovation, Fin-tech cultures, intelligent manufacturing and robot, internet games, X policies supporting special industries 2. Technological innovation incubators: 2 national-level incubators, 4 municipal- level incubators, and 4 district-level incubators

Baoshan Cruise economy, New 1. “1+9” policy: one funding policy on the n/a http://www.investsh.org.cn/g material, Robot and management of special funding to qzdtj/169.htm intelligent manufacturing, support for industry development, and 9 Bio-pharmaceutical, areas such as cruise economy, advanced Internet + supply chain manufacturing, modern service, technological innovation, financial service, energy saving, cultural creativity, agriculture, talent cultivation 2. Efficient administration: “one-counter service”

Huangpu Financial service, 1. High level of internationalization n/a http://www.investsh.org.cn/g

professional services, 2. New Industry Focus on Fin-tech, qzdtj/168.htm commerce trade, cultural Intelligent retail, Creative 2.0, Health, creativity, entertainment & Internet+ tourism, Shipping logistics, Fin-tech, Intelligent retail, Creative 2.0, Health, Internet+

Fengxian Cosmetics, Auto The only urban area equidistant from two Shanghai Fengxian http://www.investsh.org.cn/g major international airports and one Investment Promotion Office qzdtj/165.htm international shipping port (within 45 mins Tel: 021-67137517 to Shanghai Hongqiao Airport and to Shanghai Pudong Airport)

Jing’an Commercial service, 1. Downtown of Shanghai n/a http://www.investsh.org.cn/g Financial service, qzdtj/164.htm 2. High level of internationalization Professional service, Cultural creativity, Information service

2.2.4. Supporting policies

Table 3. Summary of Shanghai Policies Encouraging Foreign Investment Policy type Policy name Key points Issued by Issue date Remarks

Company – Regulations of Shanghai City  The policy loosens restriction for: Shanghai Municipal July 2019 Come into force Headquarter Encouraging Multinational 1) The asset of parent company Peoples from 1st September Economy Corporations to Set Up Regional who plans to set up regional HQ in Government 2019 till 31st August Headquarters in Shanghai32 Shanghai: $200 million 2024 HFG [2019] No.31 2) The asset of parent company who plans to set up HQ in Shanghai: $100 million 3) Delete the requirements on contributed capital and the number of subsidiaries  Foreign banks can set up wholly foreign-funded banks and branches of foreign banks; or set up Sino-foreign banks and branches of foreign banks at the same time. The branches of foreign banks can take fixed-term deposit of no less than 500,000 RMB from Chinese citizens in China  Government subsidies for office

32 Shanghai Municipal Government (2019). Regulations of Shanghai City Encouraging Multinational Corporations to Set up Regional Headquarters in Shanghai. Available on: http://www.shanghai.gov.cn/nw2/nw2314/nw2319/nw12344/u26aw61407.html

set up and rental  Loosening policy for exit and entry administration  For employees: Children education, medical insurance, apartment rental, citizenship

Individual Suggestions on further deepening It outlines policies that attract foreign Shanghai Municipal September the reform of the talent experts to settle down in Shanghai City Peoples 2016 development system and in many aspects. Government mechanism and accelerating the  Residence application: Foreign construction of a scientific and experts working in Shanghai for technological innovation Centre consecutive 4 years and living in with global influence33 China no less than 6 months annually  B-class Permit (Resident permit for overseas talents): tax waive for housing purchase; children education  Simplify work permit and residence application

33 Shanghai Municipal People’s Government (2016). Suggestions on further deepening the reform of the talent development system and mechanism and accelerating the construction of a scientific and technological innovation centre with global influence. Available on: http://www.shanghai.gov.cn/nw2/nw2314/nw2315/nw4411/u21aw1163613.html

 Encourage Sino-foreign schools, educational institutes, laboratory, etc.

2.2.5. Intellectual Property Rights

2.2.6. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact: Invest Shanghai 投资上海 Tel: +86 21 6236 8800 Email: [email protected] Add.: 15th Floor, New Hongqiao Centre Building, 83 Loushanguan Road, Shanghai Web: [email protected]

2.3. Shenzhen Tier One City Internationalisation Level: ⭐⭐⭐

2.3.1. Industry Focus34

Pillar Emerging Future industries industries industries

New-generation information Cultural and creative technologies Life & health

High-end equipment and manufacturing Aerospace High technologies Green and low-carbon, biomedicine Robotics Digital economy Modern logistics Wearable devices New material

Finance Marine economy Intelligent equipment

2.3.2. Introduction

Shenzhen is first special economic zone after China’s reform and opening-up, one of the four first-tier cities of China, an important marine and air hub and foreign trade port internationally, and a key financial Centre of China. With successful companies such as Huawei and ZTE, Shenzhen is considered as the home to the world’s largest international patent applications. It has 8,000 patent applications in 2015.

Driven by innovation, Shenzhen is on top of the list of “The 30 most innovative cities in 2018” by Forbes China and named as the Silicon Valley of China by The Economist, with R&D investment of over 100 billion RMB, i.e. accounting for 4.16% of the city’s GPD in 201835. By 2018, there had been more than 14,000 high-tech companies were established in Shenzhen, making it home of a cluster of enterprises spread throughout a variety of high and new technology Industry Focus.

By May 2020, Shenzhen has 11 districts with each focusing on various Industry Focus, coupled

34 Commerce Bureau of Shenzhen Municipality. Available on: http://commerce.sz.gov.cn/tzly/zdcy/wlcy/ 35 Commerce Bureau of Shenzhen Municipality. Available on: http://commerce.sz.gov.cn/tzsz/tzys/content/post_1958173.html 50 with supporting policies on business development, talent attraction, office rental, utility use, etc. As for foreign investment, it is worth mentioning the 29 Shenzhen International Key Industrial Parks for Investment Promotion that has six key supporting measures for attracting foreign investment and facilitating internationalization. By 2019, Shenzhen has 14,834 foreign invested companies, with a strong year-over-year growth of 119.54%36.

The following documents presenting investment opportunities including key industries, preferential policies, company operating procedures and costs, and living conditions will be useful for European companies who have interests in developing business in Shenzhen:

Name of docs Publisher Language Available on

2019 Shenzhen Commerce Bureau http://commerce.sz.gov.cn/atta Commerce Bureau of Shenzhen English chment/0/23/23745/1954291. Investment Municipality pdf Guideline

2018 Invest http://commerce.sz.gov.cn/atta Shenzhen Invest Shenzhen English chment/0/23/23648/1954316. Investment pdf Guideline

36 Commerce Bureau of Shenzhen Municipality. Invest in Shenzhen. Available on: http://commerce.sz.gov.c n/attachment/0/23/23718/1954305.pdf 51

2.3.3. Key Districts & Industry Focus

Key Industry Focus of different districts of Shenzhen were identified based on the information published on the website of Commerce Bureau of Shenzhen Municipality. Pillar industries that have been majorly contributing to the local economy and industries that the district plan to promote in response to the call of China’s national government are listed (Table 4).

Table 4. Focused industries in different areas of Shenzhen37 Districts Key Industry Focus Advantages FuTian Finance, international exchange, culture, business- Located in central Shenzhen - Public service: as the Centre of culture, business, entertainment, sports, etc. - Government grants/policies: e.g. “1+9+N” policy, 1.8 billion yuan of government grant to support industry development, online public service, 1 billion yuan to attract domestic and international talents

LuoHu Port business, transportation, gold & jewelry,- Geographical advantage: close to Guangdong-Hong Kong-Macao Greater Bay Area culture, high-end service, finance, medical service, artificial industry, healthcare

37 Commerce Bureau of Shenzhen Municipality. Available on: http://commerce.sz.gov.cn/tzly/qyfb/gqcyjs/

YanTian High-end shipping, health, artificial intelligence,- International port (86 ship routes to foreign destinations) Fintech, headquarter economy, tourism - National goldsmithing origin (700+ companies of gold wholesale and processing business) - Tourism resource - Government grant/public service: online government service; policies to attract business; Wutong Talent policy to attract talents

NanShan Integrated circuit, 5G, artificial intelligence,- PCT patent applications account for 12.5% of China marine economy - Headquarter offices of DIDI, Country Garden

Bao’An Land and marine transportation, high- - Geographical advantage: Centre of Pearl River Delta, Key Point of Maritime Silk end/intelligent manufacturing Road - Has the largest number (3030) of registered high-tech companies in Guangdong Province

LongGang Information and communication technology,- Has many foreign invested educational institutes or universities (talent source) artificial intelligent Internet of things, green energy, life science, electron component, creative life

LongHua Electronic information, artificial intelligence,- lifeNew district set in December 30, 2011 health, fashion & creativity

PingShan New energy (Auto), new-generation information- Supporting grant for the integrated circuit business technology & intelligent manufacturing, - Has attracted 22 key integrated circuit companies biomedical, integrated circuit

GuangMing Advanced manufacturing - 1+4+N industry development supporting policies - HongHu Plan Talent Scheme

DaPeng New Area Tourism, marine industry, bio industry - New district set on December 30, 2011

ShenShan Special Robot, new material, intelligent equipment,- bigNew district set on December 16, 2018 Cooperation Zone data - Focus on new and high-tech industries, with opportunities of government grants

Shenzhen investment promotion industry chains and industrial parks

By May 2020, nine industrial parks were updated on government website. They serve as industry clusters attracting companies along aside certain industry chains (Table 5)38.

Table 5. Shenzhen investment promotion industry chains and industrial parks Industry Name District Advantages Admitted Companies Incubator/Accelerator Contact chains YESUN - Innovation encouragement with- 10 key laboratories of YESUN Technology Tel: +86 755 2799- Biomedical Technology Longhuamultiple incubators, accelerators, Shenzhen in biomedical Building 0988 Park makerspace, etc. - Global Fortune 500 such- asIntro: The first national Email:

38 Commerce Bureau of Shenzhen Municipality. Available on: http://commerce.sz.gov.cn/tzly/qyfb/tztgcylzyyq/content/post_6759215.html

- Fuji Xerox and ABB incubator of Longhua, [email protected] Yinxing Shenzhen providing services for - Well equipped to be qualified for Website: startups in high-tech and requirements of establishing GLP http://www.szyxjt.com/ innovation. (Good Laboratory Practice) business/index/id/1.ht laboratories and GMP (Good - ml Manufacturing Practice) factories YESUN Zhijie Life Health Add.:1301 Guanguang - Technology Park Rd, Guanlan Ave, Longhua, Shenzhen - Thoughtful living facilities with - Intro: An accelerator well- talent apartments, cultural, sports equipped with facilities and entertainment facilities supporting companies in the life health technology industry,

from R&D, pilot test, manufacturing and office management. - - Services & equipment: Cargo elevator with capacity of 3 tons; concentrated treatment Centre for waste water and waste gas, double circuit power supply, steam supply

YESUN Smart Valley

- Intro: An incubator that has admitted more than 200 Global Fortune 500 companies such as Fuji Xerox, in areas of computer science and intelligent manufacturing.

BaoNeng Science and Technology Park Tel: +86 755-3688- - Intro: it is a science and 9999 technology service complex Add.: No. 1 Qingxiang BaoNeng - Focuses on services of finance, that includes offices, talent Rd, Qinghu Industrial Internet of Science and technology, talent, supply chain,- law,Huawei, Canon, Reedbel, Longhua apartments, entertainment park, Longhua New Things Technology policy, commerce, property Qian’hai Life Insurance facilities, and incubators. Area, Shenzhen Park management, etc. - Website: - Services: financing, technology, http://bngzhonglin.com talent, logistics, legal, policy /index.html training

Intelligent Tel: 400-8808-355 ShenZhenW Hi-- techServe as the headquarter base of manufacturin Tencent WeBank n/a an zone Shenzhen Bay, a SME incubator for Add.: South Nine Ave, g Technology innovative companies, and a national High Tech Zone,

Ecological low-carbon ecological demonstration Nanshan, Shenzhen Park park Website: https://www.shenzhen wankejishengtaiyuan.c om/#

- Over 30 high-tech companies including - Invested by Runyang Group, the AIRmaker International Alibaba, Tencent, Hollysys, largest call Centre in Asia Incubator MIT KJ Group, Zhengdong, Tel: +86 755-2799- - A demonstration base of green Airmaker, SiDanSai - Intro: It is located in GS Park, 2939 energy, energy conservation and Biotechnology, Jiahong one of the most beautiful high- environmental protection Dental Lab, Intelligent tech park of Longhua, Email: Shenzhen. It was co-established - Well-equipped living and securityAutomation, DOWSE, etc. business.jinxiu@runya by Runyang Group and facilities and eco-environment ng.biz - 12 Laboratories (with aboutCapitaLand (a Singapore Graphene GS Park Longhua - 500 R&D personnel): Lasercompany ) and has admitted Add.: No. 85 Hudipai Lab, Medical Equipment Village, Longhua, - One of Shenzhen’s key international more than 10 international start- Lab. Digital Map Shenzhen industrial parks, innovation ups from different regions of Application Lab, Digital industrial park, technology Asia. Website: Micro-ecology Lab, New innovation park, incubator for http://www.gspark.cc/P Energy Technology, Lab,- Services: smart security returned students, technology ark.aspx Food Security Testing Lab,facilities, call Centre, free accelerator/incubator/makerspace Integrated Circuit Lab, public transportation, etc. Micro-Nano 3D Printing demonstration facilities Lab,

- An international ecological CMIT Incubator intellectual town co-established by - Intro: An international Shenzhen municipal government and ecological intellectual town co- China Merchants Group established by Shenzhen - Thoughtful services in policy, municipal government and industry-university-research China Merchants Group, cooperation, business, tax, legal, providing services for start-ups Tel: +86 755 2346- New- talent, financing and investment. and SMEs in areas of intelligent 6688 generation manufacture, bio- - information CMIT pharmaceutical, advanced Add.: No. 3009 technologies, (China - Cluster of intelligent manufacturing materials, and e-commerce GuanGuang Rd, GuangMi Dalton, Posonwone, intelligent Merchants industry. It has admitted 6 listed Guangming New Area, ng- National-level CMIT Technology GIMSZ manufacturin Intellectual Enterprise Accelerator with RMB 2.5 enterprises and 23 national Shenzhen g, bio- Town) high-tech companies. billion investment a well-equipped Website: medical, new makerspace (talent apartment, R&D - Services: policy, industry- http://www.cmgm.com materials Centre, factories, etc.) university-research cooperation, .cn/Field.aspx?c=0401 - business, tax, legal, talent, financing and investment. - International cooperation: e.g. CMIT-Europe in Italy39; Plan to - Added value services: talent build EU-China industrial park with apartments and factories of Germany different scales in the same parks. Innovation and

entrepreneurship competitions

39 China Merchants Group. Available on: http://www.cmhk.com/main/a/2018/f20/a36232_36586.shtml?5

with funding support.

ZhongHaiXin International High-Tech Industrial Centre Tel: +86 755-3311- - Intro: It is the first national- 2288 level incubator that was - Co-established by ZhongHaiXin and operated by a private company Email: local government providing services and a key innovation [email protected], for SMEs New technology park in Longgang [email protected] - One of the first - National-level Shenzhen. It has 13 years of generation ZhongHaiXi Add.: Zhonghaixin CMIT Technology Enterprise Hongdian, Hazens, experience in industrial park technology, n Innovation LongGan Innovation Industrial Accelerator set in 15 years ago IERFU, Minrray, operation and provides services bio-medical, Industrial g park, Bulan Ave, Buji Korllin for SMEs in areas of electronic new energy, park - One of the first National-level Street, Longang, information technology, bio- new material Emergency Industry Demonstration Shenzhen engineering, new medicine Base technology, new materials, Website: - An incubator for returned students advanced manufacturing, http://www.zhxkg.com energy saving and internet for /merchants_introduce. listing purpose. php?ihc=3 -

Tel: +86 188-1449 1896 Email: [email protected] - Huawei Technology Park’s Tian’an Longgan ABSEN, ShengDe Big data demonstration project on technology Add.: No. 2018 Yungu g Technology innovation Xeugang North Rd, Bantian Ave, Longgang, Shenzhen Website: http://www.taygsz.cn/

Tel: +86 130-4887- Innovation 5537 - Invested and built by Skyworth YipLED, Nub UAV Skyworth Bao’an Group with RMB 3 billion Medical, YDEA Tech Website: Group http://www.chuangwei chuangxingu.cn/

Shenzhen investment promotion international industrial parks

The Commerce Bureau of Shenzhen Municipality introduced 29 international industrial parks that already attracted or plan to attract foreign business and start-ups who aim to expand market in China or establish business relationships with local business. Four representative international industrial parks listed in Table 6 have successfully attracted foreign business to set offices or headquarters in Shenzhen. More information for other international industrial parks is

60 available on: http://commerce.sz.gov.cn/tzly/qyfb/gjhzdyq/index_2.html.

Table 6. Representative International Industrial Parks in Shenzhen40 Name of Key Industry Focus Representative companies/incubatees Contact & Link industrial parks ChuangWei Drones Skyway Lighting, Ximei Technology, Tel: 13048875537 Innovation Park Laser Valley, Aiten Technology, Swift Biotechnology http://www.szft.gov.cn/msfw/zsyz/ Technology, Kelli Acoustics, Henghe New generation information technologies Health Technology

ShenZhen Software technology Intel, Nvidia, Amazon, Panasonic, Tel: 400-168-9016 Weixin Software Sagem, Daikin, Dji, Flextronics, Goer https://gd.zhaoshang.net/yuanqu/det Technology Park Shares, Pactera, Palm Technologies, ail/2841 Erich, Horizon Robotics

Tingwei R&D Lab Swiss ABB, THALES, US MTS, Japan Tel: +86 130-4887-5537 Industrial Park Yamaha, SF express, Tencent Business http://www.tingweichanyeyuan.cn/ Culture

JinRongDa High technology Huawei, iSoftStone, Parker Hannifin n/a Industrial Park (US), KLA-Tencor (US), Epro software development (Germany), Parker (Germany), Fedon information industry (Italy), Eprotel (Hong Kong), OSIM

40 Commerce Bureau of Shenzhen Municipality. Available on: http://commerce.sz.gov.cn/tzly/qyfb/gjhzdyq/

(Singapore), COMEN

2.3.4. Supporting policies

As one of the most fast-developing cities in China, Shenzhen Municipal Government continuously issues preferential policies to support local business and foreign investment. The following highlights policies that may benefit European companies who plan to set up new business in Shenzhen.  RMB 10 million for newly established headquarters companies that have been introduced to Shenzhen and promise to pay tax to local government as required within a certain period of time  Cash reward of RMB 20 million for eligible headquarters companies  Rental subsidy of RMB 1.5 million each year for headquarters companies that do not have fixed office space and rent offices  Office purchasing subsidy equivalent of 10% of the total price (max. RMB 50 million) for headquarters companies that purchase offices for the first time  A reward of RMB 30 million for companies selected to the Fortune Global 500 for the first time  RMB 3 million for companies in weak industry links in Shenzhen  Subsidy of 35% of the military industrial scientific research projects (max. RMB 5 million)

2.3.5. Intellectual Property Rights

2.3.6. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact 1: Commerce Bureau of Shenzhen Municipality 深圳市商务局 Tel: +86 755 6952 2564/8810 7023 Tel: +86 755 8810 7061 (incubator & foreign investment) Email: [email protected] Add.: 12/F, Great China International Exchange Square, No 1, Fuhua Road 1, Futian District, Shenzhen, 518034 Web: http://commerce.sz.gov.cn/szinvest/index.html

Contact 2: Shenzhen SME Public Service Platform 深圳市中小企业公共服务平台 Tel: +86 755 2266 2277 Web: http://www.smemall.cn/mall/mallindex/toIndex.sc

2.4. Guangzhou Tier One City Internationalisation Level: ⭐⭐⭐

2.4.1. Industry Focus41

Advanced New strategic Modern Marine Urban modern manufacturing industries services economy agriculture

New-generation The Greater Bay Production-oriented Modern marine Auto industry information Area Basket for services engineering technology vegetables

Advanced Artificial Information Port logistics Special agriculture equipment intelligence consumption

Bio-pharmaceutical New display and advanced Modern finance High-end shipping technology medical equipment

New energy and High-value marine Industrial internet Professional service new materials equipment

Business trade

Culture, tourism, and creativity

2.4.2. Introduction42

Guangzhou is the capital of Guangdong Province and an international Centre of finance, commerce, trade, transportation and exhibition. It is located in the Pearl River Area, where China’s reform and opening-up first took place. Forty years later, Guangzhou once again takes active moves to push the economic globalization under the context of that the Guangdong-Hong Kong-Macao Greater Bay Area becomes strategic in China’s economic development. It topped the list to be the most preferred city for investment in South China according to the 2018 White Paper on the Business Environment in China and the 2018 Special Report on the State of Business in South China realized by the American Chamber of Commerce in South China.

Recently, Guangzhou’s Comprehensive Urban Plan: 2017-2023 (Draft) endows Guangzhou with a new mission of building a livable flower and dynamic global city by 2035. Its GDP grows 13% annually with foreign trade as its key business focus. Since 1957, Guangzhou has been hosting China Import and Export Fair, the largest scale international trade fair, attracting tens of thousands of foreign trade companies. Other international high-level conferences that Guangzhou holds include the World Economic Forum in Davos, China Development Forum,

41 Xujing, G. (2019). Policy interpretation of the Action Plan for Guangzhou City to Jointly Build a Modern Industrial System with international competitiveness in Guangdong-Hong Kong-Macao Greater Bay Area. Guangzhou Daily. 42 Guangzhou Municipal Board of International Investment. (2018) Invest Canton. Available on: http://english.gzcoc.gov.cn/resources/uploadfiles/article/attachments/investguangzhou.pdf 66 and Boao Forum for Asia. By 2018, Guangzhou has attracted more than 130 countries and regions to invest and more than 200 global trading partners. It has 36 international sister cities and established cooperative ties with 31 cities.

2.4.3. Key Districts and Industry Focus

Three districts in Guangzhou that may be the most attractive for European SMEs including Nansha, Huangpu, and ZengCheng. While Nansha is a core area of the Guangdong-Hong Kong-Macao Greater Bay Area with huge investment in international trade and main focuses on large-scale investment projects, ZengCheng is an emerging and new area that benefits from its geographical advantages as it has very well developed transportation all through the Greater Bay Area. Huangpu, however, is a developed district that is eliminating traditional industries and promoting new sectors in science and technology.

Table 7. Key districts and Industry Focus of Guangzhou District Industry Focus Key Characteristics Contact

1. Three incubators above the municipal level have been established in 2019 Electronic Information Contact: Liwan District Bureau of 2. Policy Support: "Digital Government", "10 Easy Tax Technology Commerce and Investment Measures" LiWan Smart Manufacturing Promotion 3. A total of 919 5G base stations were built. Equipment Tel: +86 20 8150 0418 4. In 2019, there were 31 newly contracted projects, 10 Financial Service projects with an investment of more than €127 million, and 17 enterprises with a registered capital of more than €12.78 million.

1. Foreign Capital: A total of 691 foreign direct investment enterprises have been set up, with the actual utilization of foreign capital amounting to US $323 million. 2. In 2019, there were 9 new incubators (Makerspace), adding Contact: Guangzhou Property Internet, Cloud Computing and up to 31 incubators. Exchange Investment Platform YueXiu Big Data Service 3. Policy support: "Government and enterprise meeting room", Tel: +86 20 3761 8055 Modern Service "enterprise cancellation joint office special window", state- funded investment company, industrial investment promotion association, innovative launch of "investment Yuexiu" one- button investment platform

Artificial Intelligence 1. By 2019, there are 47 science and technology business Contact: Haizhu District Bureau Internet, Cloud Computing and incubators and 32 maker spaces. of Industry and Commerce HaiZhu Big Data Service 2. More than €600 million tax cuts and fee reductions. Tel: +86 20 8442 9523 Electronic Information 3. Foreign Capital: imports totaled €1.43 billion, and foreign Technology investment actually utilized amounted to $511 million.

1. High GDP: 504.74 billion yuan in 2019 (21.3% of Artificial Intelligence Guangzhou City). Contact: Tianhe District Electronic Information 2. In 2019, there were 41 new incubators and maker Spaces, Commerce and Gold Bureau TianHe Technology adding up to 191 incubators. Tel: +86 20 3862 3718 Digital Economy 3. Policy support: "1+2+3" working system, "Warm enterprise 15", special fund for small, medium and micro enterprises loan discount

Contact: Baiyun District Branch 1. Foreign Capital: the number of foreign-invested enterprises Electronic Information Industrial and Commercial increased by 175, and the actual utilization of foreign capital BaiYun Technology Information Bureau reached $310 million, with an increase rate of 139.9% in 2019. Bio-pharmaceutical Tel: +86 20 8073 6064 2. It has 200 incubators and maker space.

1. High GDP: 350.25 billion yuan in 2019 (14.8% of Guangzhou city). 2. Foreign Capital: In 2019, the total value of import and export reached €36.88 billion. The contracted foreign investment reached $2.009 billion, and the actual use of foreign investment reached $2.281 billion. 246 foreign Electronic Information investment companies were introduced to the district in 2019. Contact: Huangpu District Technology 3. Key Business Centres: Hess Knowledge Center, Commerce Bureau HuangPu Artificial Intelligence International Digital Hub Platform, Hengrui Research and Tel: +86 20 8211 1493 New Material Development Center, Merck Innovation Centre.

Bio-pharmaceutical 4. Four new national incubators have been added, and 3 incubators were selected as excellent national incubators in 2019. 5. 6 State-level Science and Technology Awards and 21 Chinese Patent Gold Awards, accounting for nearly 50% of the city's total awards. 756 PCT international patent applications and 2803 invention patents were granted, ranking first in the national economic development area.

1. There are 12 maker Spaces and 32 science and technology. Contact: Panyu District Branch Electronic Information Business incubators in the region. Industrial and Commercial Technology 2. High GDP: 207.95 billion yuan in 2019 PanYu Information Bureau New Energy Vehicle 3. In 2019, the total value of foreign trade was 127.73 billion Tel: +86 20 3462 8048 Manufacturing yuan, up 4.4%, with contractual and actual foreign investment

totaling 3.116 billion yuan and 1.475 billion yuan respectively.

Contact: Huadu District Branch Industrial and Commercial Electronic Information HuaDu Established 3 established incubators Information Bureau Technology Tel: +86 20 8688 1290

Electronic Information Contact: Conghua District Branch Technology Industrial and Commercial Smart Manufacturing There are 4 district-level and above public innovation Spaces CongHua Information Bureau Equipment and 2 incubators. Tel: +86 20 8792 6371 Bio-pharmaceutical

New Materials

In the most recent white book of Guangzhou Municipal Commerce Bureau published on its official website, Guangzhou identified four key industries in its future development strategies (Table 8).43

Table 8. Key Industry Focus & investment areas of Guangzhou Industry Sector Development situation Industrial parks Investment focus Category Automobile manufacturing is the primary pillar industry of Guangzhou City.

Annual output of the automobile manufacturing European and American auto A cluster of the automobile industry: RMB 377.7 billion in 2015. brands. industry with hundreds of Automobile billions of investments in the Pure electric vehicle. manufacturing Advanced east, north and south of Guangzhou is one of the three national production base Automobile technical testing Manufacturing Guangzhou of passenger vehicles, national export base of auto and services. auto parts, and national demonstration city of energy conservation and new energy vehicles. Guangzhou has two independent brands of new energy vehicles (Trumpchi and Dongfeng Nissan Qichen).

Petrochemical is the second pillar industry of NanSha Fine Chemical Base Petrochemical Advanced energy storage Guangzhou. LuoGang New Materials and materials, advanced

43 Guangzhou Municipal Commerce Bureau. Available on: http://sw.gz.gov.cn/xxgk/zlhb/bps/2016n/content/post_2439245.html

Annual output of the petrochemical industry: RMB Fine Chemical Industryl Base: composite materials, 255.3 billion in 2015. has attracted daily-use advanced hard materials, chemical product high-performance metal 575 large petrochemical manufacturing enterprises, 2 manufacturing companies such structure materials national R&D Centres. as P&G and Amway Car pint, construction paint. Industry chain with oil refining, ethylene, synthetic HuangPu Petrochemical and materials, paints, fine chemicals and rubber Fine Chemical Industry Base processing.

Huangpu Robot and Intelligent Equipment Industrial park Rail transit equipment with LongXue Ship and Marine high-speed rail technology Engineering Equipment and clean energy and Manufacturing Industrial park: renewable energy equipment Annual output of the major equipment industry: RMB one of the three biggest industries with nuclear 411.1 billion in 2015. shipbuilding bases of China power technology. Major Has attracted many international companies including DaGang Major Euiqpment Aviation equipment, satellite Equipment Bombardier (Canada), Gulfstream (US), Kawasaki Industry Base and its application industry, (Japan), Fanuc (Japan), Comau (Italy). HuaDu Rail Traffic rail transit, ocean Intellectualization Industry engineering, intelligent Base: the largest power manufacturing. electric locomotive production Robot and intelligent base in China equipment. ST Aerospace Aircraft Maintenance and Repair Base:

the largest third-party aircraft maintenance company in China BaiYun Electrical Equipment Manufacturing Industry Base

Top 20 international BaZhou International Business trade Host of China Import and Export Commodities Fair exhibition companies. Convention and Exhibition & exhibition for 118 sessions with two every year. Centre International e-commerce operation service provider.

BaZhou Internet Innovation Cluster: attracted companies such as Tencent, Alibaba, International e-commerce Fosun who have RMB 1 headquarters. Strategic Demonstration city for cross-border e-commerce with E-commerce billion registration capital Emerging RMB 1.5 trillion transaction in 2015. E-commerce related Industries Huadihe E-commerce Cluster platforms such as big data, cloud computing, logistics. Zhuangyuan Valley E- commerce Industrial park

NanSha International Logistics Park The largest logistics market in South China, with 1 Shipping logistics, air Logistics billion tons of total freight in 2015. Guangzhou Airport logistics, Internet + International Logistics Park Huangpu International

Logistics Park

Listed and large-scale international industrial Financial Guangzhou’s financial sector grew with RMB 163 International Financial City financial services and high- insurance billion in 2015, at 14.2% pf year-on-year growth. end financial support services

Information technology National informatisation demonstration city. National digital home New- Telematics application demonstration generation The JV of TCL and Cisco invested $800 million in industry base New-generation information areas of business cloud platforms, cloud computing, communication technology video telecommunication, etc. Wangyi Smart Valley TFT-LCD Display

Guangzhou International Bio Island Bio- 112 APIs production and preparation companies and Guangzhou International International biomedical pharmaceutical 442 medical equipment production companies. Health Industry City brands Huadu Bio-Pharmaceutical Base

South China New Material Special steel materials, high Half of Guangzhou’s 400 new material companies are Innovation Park performance precision alloy New materials working on new energy materials, energy conservation Guangzhou High-performance plate, high temperature material, nanomaterials, composite material. Carbon Fibre Material and its resistant alloy materials Application Industry Base

Headquarter Headquarter Guangzhou has 320 headquarters with 2 Global n/a Functional headquarters Economy Economy Fortune 500 companies.

2.4.4. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact: Guangzhou Municipal Board of International Investment 广州市商务局 Tel: +86 20 3892 0744/+86 20 3892 0775 Add.: 7/F Guangzhou Government Affairs Centre, No.61 Hua Li Road, Zhujiang New Town, Guangzhou, China Web: http://sw.gz.gov.cn/

2.5. Hangzhou Tier Two City Internationalisation Level: ⭐⭐

2.5.1. Industry Focus

Artificial Internet plus Virtual reality Blockchain intelligence

Additive Commercial Biotechnology and Quantum manufacturing airplane bioscience

2.5.2. Introduction44

Hangzhou ranks number 6 on JLL’s research report of China12: China’s Cities Go Global45. With 8000 years of historical and cultural heritage, it hosted the opening ceremony of the G20 Hangzhou summit, bred world-famous companies such as Alibaba and many innovative companies including Ant Financial. As the capital city of Zhejiang Province, Hangzhou has implemented multiple national strategic programs to promote incubators and makerspaces and selected as the National Innovation Demonstration Zone, China (Hangzhou) Cross-border E- commerce Comprehensive Pilot Area, and Hangzhou Integrated Free Trade Zone.

By December 2017, Hangzhou had 163 listed companies, ranking fourth in China. Its economy is driven industries such as e-commerce, digital security, information software, network device and communications apparatus, industrial automation, smart healthcare, cloud computing and big data. The added value of information economy was over 321 billion RMB, a year-on-year increase of 21.8% in 2017.

To attract domestic and international first-class enterprises and talents, Hangzhou municipal government has been committed to high-efficiency government service (Hangzhou was selected by the World Bank with the top-ranking government efficiency in China) with “a one- off service, a one-day settlement, and a one-hour waiting time” scheme and was selected as one of the “top ten most attractive cities for foreign talents” for seven consecutive years by 2017.

Honors & awards concerning internationalization:  G20 Summit Host City  Ranked as the first in the World Bank’s “Investment Climate Surveys of Chinese Cities” for four consecutive years  Rated as the “Best Commercial City in Mainland China” by the Forbes for years  China Cross-border E-commerce Comprehensive Test Zone  International Federation of Park and Recreation Administration “International Garden City”  China National Tourism Administration and UN World Tourism Organization “China’s Best Tourist City”

44 Hangzhou Municipal Investment Promotion Bureau. Investment in Hangzhou. Available on: http://tzcj.hangzhou.gov.cn/module/download/downfile.jsp?classid=0&filename=027392080536485ab071e6ef3be 8de95.pdf 45 Zhou, J. (2018). China’s 12 leading cities going global Available on: http://www.jllapsites.com/research/chinas- 12-leading-cities-going-global/ 79

 National Innovation Demonstration Zone

2.5.3. Key Districts & Industry Focus

Hangzhou introduced “One Plus Six” industry cluster program which includes one information industry cluster with value of one trillion RMB and six industry clusters each with value of 100 billion RMB, i.e. cultural innovation, tourism and recreation, financial service, healthcare, fashion, and high-end equipment46.

In the Information Industry Cluster, Hangzhou aimed to build six Centres of information economy including International Electronic Commerce Centre, National Big Data and Cloud Computing Centre, National Internet of Things (IoT) Industry Cluster, National Internet Finance Centre, National Intelligent Logistics Centre, and National Digital Content Centre. Hangzhou Municipal Investment Promotion Bureau summarised key industry clusters for various industries in Figure 10.

46 Hangzhou Municipal Investment Promotion Bureau. Investment in Hangzhou. Available on: http://tzcj.hangzhou.gov.cn/module/download/downfile.jsp?classid=0&filename=027392080536485ab071e6ef3be 8de95.pdf 81

Figure 10. Hangzhou Municipal Platform for Key Industries47

47 Hangzhou Municipal Investment Promotion Bureau. Investment in Hangzhou. Available on: http://tzcj.hangzhou.gov.cn/module/download/downfile.jsp?classid=0&filename=027392080536485ab071e6ef3be 8de95.pdf 82

The rise of Alibaba Group has been leading Hangzhou’s industry development in areas such as e-commerce, digital security, information software, network device, big data, and so on. Despite the benefits from the industry cluster, Hangzhou has a relatively simpler industry structure (Table 9) compared to other cities in the Yangtze River Delta Area. It can be explained by Hangzhou’s less developed transportation infrastructure (started to develop in recent years), fewer international trade activities (restricted by geographical location), and fewer talented university graduates (fewer ‘985, 211’ project universities), which made it less attractive for foreign investment compared to other Tier Two Cities.

Table 9. Key districts and Industry Focus of Hangzhou District Industry Focus Key Characteristics ESP

 Focus on e-commerce, cloud computing. Internet, Cloud  Xihu Has realized the export value of cross-border e- Computing and Big West Lake Business Bureau XiHu commerce of $368 million and import value of $153 Data Service million, and attracted 54 new cross-border e-commerce Tel:+86 571 8228 8299 Financial Service enterprises, achieving 105%, 102% and 120% of the target set by the market respectively.

E-commerce Gong Shu District Investment Gongshu Financial Service  Established 115 incubators. Promotion Council Tourism Tel: +86 571 8825 9524

E-commerce  Focus on e-commerce, finance service Yu Hang Business Bureau YuHang Financial Service  The annual GDP reached 24.3 billion yuan, Tel:+86 571 6370 0609

E-commerce Artificial Intelligence Internet, Cloud Lin 'an Commercial Bureau Lin'An Computing and Big  Focus on E-commerce Artificial Intelligence Internet Tel:+86 571 6374 8927 Data Service Smart Manufacturing Equipment

 Focus on "E-commerce and Modern Business" Jianggan District Bureau of JiangGan E-commerce Commerce  172 incubators Tel:+86 571 8697 5146

 Focus on "E-commerce and Modern Business"  236 incubators Xiaoshan District Bureau of E-commerce XiaoShan  65 foreign invested enterprises were introduced, and Commerce Modern Business $924 million of foreign investment was actually utilized. Tel:+86 571 8228 8299 In 2019, it attracted 59 projects with a total investment of more than €12.78 million.

Fuyang District Bureau of E-commerce FuYang  Focus on E-commerce Financial Service Commerce Financial Service Tel: +86 571 6333 9300

The Commerce Bureau of Shangcheng District of Hangzhou ShangCheng E-commerce  Focus on E-commerce Financial Service Tel: +86 571 8702 4215, Tel: +86 571 8780 4825

2.5.4. Supporting policies

To encourage innovation and attract investment, Hangzhou government established the Hangzhou Investment Promotion Bureau in June 2017, requires the Municipal Standing Committee to review reports on key project on a monthly basis, set a budget of 500 million RMB to subsidize special projects, accumulate a government industry fund of over 300 billion RMB, and arrange construction land for expansion of key industry projects in fields such as advance equipment manufacturing, auto manufacturing, and biomedical.

2.5.5. Intellectual Property Rights

2.5.6. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact: Hangzhou Investment Promotion Bureau 杭州市投资促进局 Tel: +86 571 8525 9165 Email: [email protected] Add.: Floor 10, Building D, Civic Centre, Jiefang East Road, Hangzhou, 310026 Web: tzcj.hangzhou.gov.cn

2.6. Nanjing New Tier One City Internationalisation Level: ⭐⭐

2.6.1. Industry Focus48

Advanced Modern Future manufacturing services industries

New Software and Artificial electronic information intelligence information service

High-end Financial and Future smart S&T service networks equipment

Cultural Additive Green smart tourism and manufacturin vehicles health g and cutting- edge new Modern materials Biomedicine, logistics, new energy- business and saving and trade Life and environmental health -friendly materials

New finance

New retail business

2.6.2. Introduction49

As the capital city of Jiangsu province, Nanjing has been very active in international activities, establishing twining city relationships with 93 foreign cities, selected as the UNESCO City of Literature, and ranking fifth in China on the Global City Index.

Its success on internationalization is largely due to its concentrated education and research resources with 53 institutes of higher learnings, the largest number of undergraduates in China, one of the top three scientific research Centres in China.

Since the 13th five-year plan, Nanjing has been committed to enhancing its internationalization

48 Nanjing Municipal Investment Promotion Bureau (2020). Invest in Nanjing. P. 15. Available on: http://invest.nanjing.gov.cn/tznj/xznj/202005/P020200521629825959350.pdf 49 Nanjing Municipal Investment Promotion Bureau (2020). Invest in Nanjing. Available on: http://invest.nanjing.gov.cn/tznj/xznj/202005/P020200521629825959350.pdf 88 level by leveraging its geographical advantages as a hub city of the BRI, a pivot city of the Yangtze River Economic Belt, and a mega city in the Yangtze River Delta region, as well as opportunities of the approval of national-level new area and demonstration zone50.

Moreover, Nanjing’s endeavour to develop as a highly internationalised city is also reflected by its efforts on building and promoting special pilot zones. For example, the China (Jiangsu) Pilot Free Zone is a national-level development zone of Nanjing Jiangbei New Area that was approved in 2019 as a pilot zone for innovation with global influence and a major platform for opening-up and international cooperation. The establishment of this new area aims to build a world-leading investment and business environment with efficient public services for business registration, facilitated foreign investment activities with improved legal system, established foreign business management system, etc.

Highlights of innovation and internationalization level:  200,000+ university students graduate from universities in Nanjing annually  Received UN Habitat Scroll of Honour Award  Ranked third in China on the QS Best Student Cities Ranking 2020  35 national-level S&T enterprise incubators  Nanjing-based high-end research institutes set up by 46 renowned enterprises, e.g. the Cambridge University Nanjing Centre of Technology and Innovation  3,000+ S&T companies incubated in Nanjing by 2019  1,400 PCT patent applications were filed by 6,689 enterprises enrolled in SMEs in 2019, with an increase of 89%  29 angle sub-funds co-established by municipal-level S&T innovation funds and non- government capitals and RMB 5 billion were distributed in 2019

2.6.3. Key Districts & Industry Focus

The industry map developed by the Nanjing Municipal Government and released on 10 June 2020 presented key Industry Focus of different areas of Nanjing City. Any companies can visit and can simply select interested Industry Focus and the map will provide guidance on areas/industrial parks to contact: http://map.invest.nanjing.gov.cn/region/index.html#/industrymap

In Nanjing’s five industry landmarks, i.e. Artificial Intelligence (AI), Biomedicine and Health,

50 Hongbin, Y. (2019). Nanjing City’s commitment of improving its internationalization level. Najing Daily. 89

Integrated Circuit, New Energy Vehicle, and Software and Information Services, it is worth mentioning Nanjing’s long history in Biomedicine and Health in which it has built an industrial chain that covers APIs (active pharmaceutical ingredients) production, traditional pharmaceuticals, biopharmaceuticals, diagnostic reagents, medical equipment, R&D service outsourcing in medical industry. Other key industries of different districts are show in Table 10.

Case study 2.6.3.1: Bio-pharmaceutical industry Nanjing’s bio-pharmaceutical industry ranks eighth in China with total industry scale of RMB 60 billion, 69 large-scale bio-medical companies, 26 large-scale medical equipment companies, 800+ bio-pharmaceutical R&D companies, 100 pharmaceutical wholesalers, and 8 pharmaceutical companies with annual revenue of over one billion RMB.

Five industrial parks that gather key bio-medical companies in Nanjing are:  Nanjing Biomedicine Valley (Jiangbei New Area)  Nanjing Life Science and Technology Town (Jiangning District)  Jiangsu Life Science and Technology Innovation Park (Chixia District)  Gaoyu Medical and Health Industrial Park, Nanjing Raw Materials Pharmaceutical Industrial park (Jiangbei New Area)

Table 10. Key districts and Industry Focus of Nanjing District Industry Focus Key Characteristics District Government Contact

Internet, Cloud Computing and Big Data  Focus on Internet, Cloud Computing and Big Data Service QiXiaDistrict Bureau of Commerce QiXia Service Smart Manufacturing Equipment Tel: +86 25 8532 6935 Smart Manufacturing  103 incubators Equipment

Internet, Cloud Computing and Big Data  Focus on Internet, Cloud Computing and Big Data Service GuLou District Bureau of Commerce GuLou Service Smart Manufacturing Equipment Tel: +86 25 8532 6935 Smart Manufacturing  139 incubators Equipment

Artificial Intelligence Internet, Cloud  Focus on Artificial Intelligence, Internet, Cloud Computing JiangNing District Bureau of Computing and Big Data JiangNing and Big Data Service, Smart Manufacturing Equipment Commerce Service Tel: + 86 139 5190 4786 Smart Manufacturing  301 incubators Equipment

Internet, Cloud Computing and Big Data  Focus on Internet, Cloud Computing and Big Data Service JianYe District Bureau of Commerce JianYe Service Smart Manufacturing Equipment Tel: + 86 25 6853 9700 Smart Manufacturing  39 incubators Equipment

 Focus on Modern Agriculture LiShui District Bureau of Commerce LiShui Modern Agriculture  57 incubators Tel: + 86 25-68539700

New Materials  Focus on New Materials New Energy LiuHe District Bureau of Commerce LiuHe New Energy  69 incubators Tel: +86 25 5775 8957

 Focus on Internet, Cloud Computing and Big Data Service, Smart Manufacturing Equipment, Bio-pharmaceutical, Internet, Cloud Biomedical Engineering Computing and Big Data Service  139 incubators PuKou District Bureau of Commerce PuKou Smart Manufacturing  Nanjing Pukou Industrial Park has been equipped with the Tel: +86 25 9688 8707 Equipment overall framework of large-scale development and Bio-pharmaceutical construction, forming a virtuous circle of soft and hard Biomedical Engineering investment environment, and attracting investment from enterprises domestically and internationally

Internet, Cloud Computing and Big Data  Focus on Internet, Cloud Computing and Big Data Service, QinHuai District Bureau of QinHuai Service Smart Manufacturing Equipment Commerce Smart Manufacturing  85 incubators Tel: +86 25 5237 7083 Equipment

 Focus on Internet, Cloud Computing and Big Data Service, Internet, Cloud XuanWu District Bureau of Smart Manufacturing Equipment XuanWu Computing and Big Data Commerce Service  51 incubators Tel: +86 25 5775 8958

Smart Manufacturing Equipment

Electronic Information  Focus on Electronic Information Technology, Electronic, YuHuaTai District Bureau of Technology YuHuaTai Artificial Intelligence Commerce Electronic Tel: +86 25 8552 9525 Artificial Intelligence  92 incubators

2.6.4. Supporting policies

Like most of other highly developed international city, Nanjing has released a number of supporting policies to attract domestic and foreign investment.

2.6.5. Key supporting policies:

Headquarters policies:  RMB 100 million grant for newly recognized headquarters  RMB 10 million grant for newly recognized headquarter buildings Financial policies:  RMB 40 billion grant for emerging industry development fund  RMB 1 billion grant for on-lending fund  RMB 50 million grant for settled-in financial institutions  RMB 15 million grant for settled-in equity investment companies  RMB 3 million grant for companies that have launched an IPO in domestic and overseas multi-level capital markets Talent policies:  Up to RMB 100 million grant for those who are selected in Jiangsu’s “Supporting Plan for Topnotch Talent”  Up to RMB 3 million grant for companies who introduce high-level and innovative teams  Housing purchase subsidies and rental subsidies for employees possessing PhD degrees Science and Technology Innovation Policies:  Max. of RMB 200 million grant for original innovations and key technology innovation projects  Subsidy of 20% of projects’ R&D investment (max. RMB 10 million)

2.6.6. Intellectual Property Rights

Nanjing has a strategic plan for promotion innovation and patent application with five national golden brands:  National Model City for Trademark Strategy Implementation  First batch of cities with strong intellectual property rights (IPR) in China  China (Nanjing) IPR Protection Centre  National IPR Service Industry Cluster Development Experimental Zone  Key City for the Construction of the National IPR Operation System

To meet these objectives, Nanjing issued a series of documents such as the Implementation Plan for Building a Strong City in IPR Protection, Implementation Plan for the Construction of IPR Operation Service System in Nanjing, and Implementation Rules for Subsidizing IPR Pledge Financing Risks in Nanjing. These paperwork provide IPR guidance and regulations to enhance quick examination, quick right determination, and quick right protection. For example, counterfeit patent cases and design infringement cases can be settle within 10 days, intention and utility model patent infringement cases are generally settled within one month.

Companies are encouraged to consult details about application for these policies and other potential policies via the website of Nanjing Municipal Investment Promotion Bureau: http://invest.nanjing.gov.cn/.

2.6.7. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact: Nanjing Municipal Investment Promotion Bureau 南京市投资促进局 Tel: +86 25 8358 1570/8358 1586 Email: [email protected] Add.: Floor 11, Xincheng Building, No. 259, Jiangdong Middle Road, Jianye District, Nanjing, 210017 Web: http://invest.nanjing.gov.cn/

2.7. Suzhou New Tier One City Internationalisation Level: ⭐⭐

2.7.1. Industry Focus

Modern Pillar Advanced service industries industries industries

New-generation electronic Electronic information Finance information Software and integrated Equipment manufacturing Modern business and trade circuit Technology service, Advanced equipment Metallurgic service outsourcing manufacturing New energy and Chemical and petroleum Modern logistics environmental protection

Textile Cculture New materials

Medical equipment and Light industry Health bio-pharmaceutical

2.7.2. Introduction51

Suzhou is a rapidly advancing industrial powerhouse along Yangtze River Delta, a national historical and cultural city of China, and a high-tech technology industrial base. It increasingly attracts domestic and foreign investment because of high liveability, good environment and outstanding geographical advantages as it is within the radiation circle of Shanghai.

By 2018, Suzhou has over 8 million urban population and achieved RMB 1.85 trillion of GDP, a year-on-year increase of 7%. In the recent decade, Suzhou has been successful in its transformation and upgrading of traditional industries. In 2010, traditional industries such as textile, steel, and machinery account for 72% of Suzhou’s economic development, while it decreased to 50.2% in 2016, with new industries such as new energy, biological technologies, new medicine, and advanced manufacturing increased to 49.8%, driving its economic development52.

Suzhou is overall less internationalized compared to tier one cities in terms of innovation (incubators), infrastructure, transparency of information, number of large International Corporation, etc. However, its short distance to Shanghai, manufacturing cluster, liveability and good environment make Suzhou attractive to foreign SMEs in related industries.

51 Suzhou Bureau of Commerce. Suzhou Investment Guide. Available on: http://commerce.suzhou.gov.cn/szsswj/sztzzn/202001/4f437ed413b04369be1a9c492c628bc5/files/45f99ed3e6914 b12b3a956d899471142.pdf 52 Jiangsu Micro News. (2019). Interpretation of Suzhou City’s Urban Overview and Industries. Available on: https://www.sohu.com/a/312527163_120054444 98

2.7.3. Key Districts & Industry Focus

Suzhou’s economy had been driving by traditional manufacturing industry and transformed to modern service industries in recent five years, including finance, modern business and trade, technology service, service outsourcing, modern logistics, culture, and health.

On the call of the industrial policy called “Made in China 2025 – Jiangsu Executive Summary”, Suzhou is leveraging its experience in traditional manufacturing to facilitate the development of advanced industries such as new-generation electronic information, software and integrated circuit, advanced equipment manufacturing, new energy and environmental protection, new materials, medical equipment and bio-pharmaceutical industries.

Six national economic development zones and two national high-tech zones in Suzhou are recommended for foreign investment (Table 11).

Table 11. Suzhou Industrial Parks recommended for foreign investment53 Administration Industrial parks District Established Key Industry Focus Level Year National Suzhou Industrial Park WuZhong 1994 Integrated circuit, software, bio-pharmaceutical, new materials

National Kunshan Economic Development Zone KunShan 1985 Electronic information, precision machinery

National Suzhou National Environmental High-Tech Zone 2003 Environmental protection-related technologies

53 Jiangsu Micro News. (2019). Interpretation of Suzhou City’s Urban Overview and Industries. Available on: https://www.sohu.com/a/312527163_120054444

Protection Industrial Park

National Changshu Economic Development BinJiang 1992 Auto and auto parts, equipment manufacturing, new Zone International energy, modern logistics Building, ChangShu

National Wujiang Economic Technology WuJiang 1992 Electronic information, equipment manufacturing, Development Zone new energy, new materials, bio-pharmaceutical, modern services

National Jiangsu Suzhou HuShuGuan Economic High-Tech Zone 1992 Intelligent power grid, new battery R&D Centre, Development Zone energy batter, battery materials

National KunShan High and New Industry KunShan 1994 Robot, sensor, electronic information, precision Development Zone molds, equipment manufacturing, new materials, new energy, new display

National Suzhou High and New Industry High-tech Zone 2016 Advanced manufacturing, environmental protection, Development Zone non-bank finance

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Case study 2.7.3.1: Suzhou Industrial Park54 Among these industry parks, Suzhou Industrial Park, which was co-established by China and Singapore, pioneers in international innovation and business development in Suzhou City. It is selected as a successful demonstration of international cooperation and the important window of China’s reform and opening up. Since 2017, Suzhou Industrial Park has been ranking the first in the national economic development zone assessment for consecutive five years and achieved a high GDP of 2.742 trillion RMB, with imports and exports totaled 87.1 billion dollars in 2019.

Suzhou Industrial Park started industry transformation in 2001, when the municipal government released serial policies on resettlement, construction, and development. Since 2016, strategically, Suzhou Industrial Park started to promote artificial intelligence industry and established a national AI innovation Centre.

Highlights of its awards in technology innovation:  One of China’s first “New Industrialization Demonstration Base”  One of China’s first Nano High-Tech Industrialization Base  One of China’s first Smart City Pilot City  One of China’s first IP Demonstration Park  One of China’s first National Patent Navigation Industry Development Pilot Zone

Contact Suzhou Industrial Park Administrative Committee (overall management) Web: http://www.sipac.gov.cn Add.: No. 999 Xiandai Avenue, Suzhou Industrial Park, Suzhou, 215028 Tel: +86 512 6668 0114

Suzhou Industrial Park Investment Promotion Bureau Web: http://www.sipac.gov.cn/dept/tztjj Add.: Floor 15, No. 999 Xiandai Avenue, Suzhou Industrial Park, Suzhou, 215028 Tel: +86 512 6668 1568 Email: [email protected]

54 The Management Committee of Suzhou Industrial Park. Available on: http://www.sipac.gov.cn/dept/tztjj/gyyq/yqjj/202006/t20200609_1123287.htm 101

2.7.4. Intellectual Property Rights

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2.7.5. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact: Suzhou Bureau of Commerce 苏州市商务局 Tel: +86 512 6863 3671 (Foreign Investment Promotion Centre)/ 6863 3669 Add.: Floor 2, International Economic and Trade Building, No. 1638, West Ring Road, Suzhou Web: http://commerce.suzhou.gov.cn/szsswj/wstzqyfw/wstzqy.shtml/

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2.8. Tianjin New Tier One City Internationalisation Level: ⭐⭐

2.8.1. Industry Focus55

Advanced Aviation and Auto and New Equipment Aerospace Energy Auto

Intelligent New Energy and Modern Petroleum Technology, Bio- New Materials Pharmaceutical

55 Tianjin Municipal People’s Government (2020). Tianjin City’s commitment to guiding and encouraging the development “4+3” key industries. Available on: http://www.tj.gov.cn/xw/bum/202001/t20200117_3667553.html 104

2.8.2. Introduction

Tianjin, as one of the four municipalities of China (the other three are Beijing, Shanghai, and Chongqing), has high level of internationalization with frequent international cultural, sports, and research activities, highly developed Tianjin Port (e.g. 491 international container liners by 2019), many international business cooperation projects (11 signed Europe-China Industry Cooperation Projects by 2019), etc. The city has 12.96 million urban population with 83.15% urbanization rate. 54 out of the 55 minority nationalities are living in Tianjin, making it a multi- ethnic family. It is largely due to its openness and inclusion. Under a good international environment, Tianjin attracted 711 new foreign-invested companies and 31.592 billion dollar- international business contracts in 2019.56

56 Tianjin Municipal People’s Government (2020). 2019 Tianjin Municipal Economic and Social Development Report. Available on: http://www.tj.gov.cn/tj/tjgb/202004/t20200426_3673079.html 105

2.8.3. Key Districts and Industry Focus

Under the Summary of Investment Attraction Policies of 16 Districts in Tianjin City released in October 2018, key industries such as health, modern services, and intelligent technologies were identified as the main focuses of government policies (Table 12).57

Table 12. Key Districts and Industry Focus of Tianjin District Highlights Key Industry Focus International and national-level incubator or industry parks  China-Europe Intelligent Manufacturing Industrial Park  China (Tianjin) Pilot Free Trade Zone  The first national  Advanced  Tianjin Economic-Technological Development Area comprehensive reform and manufacturing (national-level) innovation zone approved by  Modern services  Tianjin Port Free Trade Zone Binhai New the state council and the first  Intelligent technology  Tianjin High-tech District (national level): national Area58 free trade demonstration zone in north China  Airport and port service innovation and technology park; approved as national innovation demonstration area by the State Council in  Driven by innovation and new  International trade 2014; approved as the national innovation and technologies  Culture and innovation entrepreneurship demonstration base in 2017  Sino-Singapore Tianjin Eco-city: smart city demonstration (plan to build 12 5G bases by 2020)

57 Tianjin Development and Reform Commission (2018). Summary of Investment Attraction Policies of 16 Districts in Tianjin City. Available on: http://fzgg.tj.gov.cn/dtzx/tzgg/201810/t20181023_71817.shtml 58 Tianjin Binhai New Area People’s Government. Available on: http://www.tjbh.gov.cn/channels/6252.html

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 Current economy is driven by  Advanced finance the financial industry with 660  High-end business financial institutions and 400  High-end trade HePing financial n/a headquarters/branches,  High and new accounting for 51% of Tianjin technology City  Culture and tourism

 Modern finance  Advanced business  Modern trade HeDong n/a  Culture and innovation n/a  Advanced manufacturing  Intelligent technology

 Finance  Innovative design  Shipping service HeXi n/a n/a  Culture and tourism  Advanced trade  Intelligent technology

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 Sports

 Technology services  One of the central districts of (e.g. incubator) Tianjin City  Finance  National Innovation Demonstration Area, Nankai Park  Highly encouraged innovation  Leasing and technology start-ups with a  Innovation and entrepreneurship intersection street NanKai series of technology incubators,  Culture and tourism (“WeiLaiLi”) accelerators and makerspace  Intelligent technology  ZhongGuanCun eGu (Nankai): incubator & financing (200 new technology agency  New energy and new companies registered in materials Nankai)  Bio-pharmaceutical

 Frequent international cooperation in industries such as product design, media,  Technology services process design, culture and  Culture and creativity creativity. E.g. Annual Tianjin Updated list on: HeBei  Modern finance International Design Week for http://www.tjhbq.gov.cn/tzzs/system/2019/03/11/010036075.shtml consecutive seven years,  High-end business attracting international  Intelligent technologies designers from Italy, Germany, Netherlands, Japan, etc.

 One of Tianjin’s six central  New-generation  National Innovation Demonstration Zone, HongQiao districts information technology GuangRongDao

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 Commitment to building an  Culture and creativity  Lujiazui Intenrtaional Community international innovation and  High-end business and high technology-driven city: trade e.g. multiple national technology incubator59; 1553 recognized technology SMEs by 2018

 Advanced manufacturing  Dongli National Economic Development Zone DongLi n/a  Modern services  National Innovation Demonstration Zone, Dongli  Intelligent technologies

 Intelligent technologies  Advanced  National Innovation Demonstration Zone, Xi’qing XiQing n/a manufacturing  XEDA Industrial Park  Modern services

59 Tianjin Hongqiao People’s Government (2018). The 13th Five Year Plan of Hongqiao District, Tianjin. Available on: http://www.tjhq.gov.cn/system/2013/07/17/000112395.shtml

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 RMB 10 billion on Jin’nan Haihe Zhihui Industrial Fund for recruiting experts and agencies to attract investment  Advanced  Development in digital manufacturing JinNan technologies in 2018: Ali Cloud  Modern services  National Innovation Demonstration Zone, JinNan Innovation Centre (Tianjin  Intelligent technologies Jin’nan); 40+ new companies registered in the Zhongqu and  Urban agriculture Shulian Zhiju Incubators; 430 new technology SMEs; 1064 patent applications60

 Advanced manufacturing  Bei’chen National Economic Development Zone BeiChen n/a  Modern services  National Industrial Integration Demonstration Zone  Intelligent technologies

 High internationalization level  Advanced  Wu’qing Economic Development Zone WuQing with many foreign companies, manufacturing  Tianjin Jing’jin Technology Valley Europe-China cooperation  Modern services projects/JVs  Tianjin Jing’jin E-commerce Industrial Park  Intelligent technologies  Cluster of e-commerce  Tianjin Wu’qing Auto Industrial Park

60 Tianjin Jinnan District Government (2018). Jinnan Economic and Social Development in 2018. Available on: http://www.tjjn.gov.cn/mljn/jnqk/201501/t20150116_1056.html

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businesses: 662 e-commerce  Tianjin Jingbin Industrial Park related companies, including Alibaba and JD.com  International companies/projects: e.g. CBD called Florentina Village (200+ international brands),

 Advanced manufacturing

BaoChi n/a  Modern services n/a  Intelligent technologies  Modern Agriculture

 Advanced manufacturing JingHai n/a  Tianjin Jing’hai International Trade Logistics Park  Modern services  Intelligent technologies

 Advanced manufacturing NingHe n/a n/a  Modern services  Intelligent technologies

JiZhou n/a  Modern services n/a

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 Advanced manufacturing  Modern agriculture

2.8.4. Intellectual Property Rights

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2.8.5. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact: Tianjin Bureau of Commerce 天津市商务局 Tel: +86 22 5866 5678 Add.: No. 158, Da’gu North Road, Heping, Tianjin, 300040 Email: [email protected] Web: http://shangwuju.tj.gov.cn/

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2.9. Chengdu New Tier One City Internationalisation Level: ⭐⭐⭐

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2.9.1. Industry Focus

Advanced Urban modern Modern services manufacturing agriculture

Electronic information Modern trade Deep processing of agricultural Auto manufacturing Modern finance products Food and beverage Technology services Equipment manufacturing Culture & creativity, modern logistics Urban agriculture Bio-pharmaceutical E-commerce Aerospace Health Rail transit Commerce, service outsourcing Energy conservation and environment Rural e-commerce protection Elderly service Artificial intelligence Headquarter economy Platform economy Precision medical Agricultural product logistics Virtual reality Testing and certification service Sensory control Conferences

New materials Sports Green farming New energy Tourism

2.9.2. Introduction

Chengdu is one of the fastest developing cities in western China with increasing investment. By 2017, Chengdu’s resident population has reached 15.9 million with a high urbanization rate of 70.6% and achieved GDP of 1.2 trillion RMB, a year-on-year growth of 7.7%. In its opening- up strategy, in 2017, Chengdu approved 268 foreign-invested projects, of which 53 has over 10 million dollars investment61.

Chengdu ranks first in the 15 new-tier one city list of 202062. 17 countries have set consular agencies in Chengdu and about 20,000 foreign nationals from more than 160 countries are living in Chengdu City.

2.9.3. Key Districts and Industry Focus

Chengdu identified 66 key industries in three categories of advanced manufacturing, modern services, and urban modern agriculture in the White Paper of Chengdu Industry Development

61 Chengdu Municipal People’s Government. (2018). National economic and social development overview. Available on: http://www.chengduinvest.gov.cn/index#/zsdt/details/afa302c16a6a48a7bd8f0b88e584bed5 62 New Tier-One City Research Institute. (2020). 2020 City Business Charm Ranking. 115

(2019)63. In Chengdu’s urban space strategy, five areas were planned with different Industry Focus (Table 13).

Table 13. Strategic Development Plan of Chengdu City64 Areas Development objectives Key Industry Focus

Zhong You To optimize urban functions and  High-end living services develop life services; lower  Finance development speed; and increase urban life quality  Headquarter economy  Culture and creativity  Modern medical  Urban tourism

Xi Kong To develop green and low-  Low carbon and high-tech carbon industries  Culture  Agriculture

Bei Gai To establish good environmental  International comer and ecological system logistics  Rail and transportation  Aerospace  Advanced materials

Dong Jin To develop new urban space  Advanced manufacturing  International production- oriented services  Auto manufacturing  Aerospace  Environmental protection  Intelligent manufacturing

Nan Tuo To build new and high-quality  High and new technologies Tianfu New area and optimize  New-generation space structure information technologies  Advanced equipment

63 Chengdu Municipal Development and Reform Commission (2019). White Paper of Chengdu Industry Development. Available on: http://cddrc.chengdu.gov.cn/cdfgw/ztlm028001/2019- 09/20/content_09a448677d2641c784a111e50b68819d.shtml 64 Chengdu Municipal Development and Reform Commission. Available on: http://www.chengduinvest.gov.cn/index#/panle. 116

 Bio-pharmaceutical  Artificial intelligence  Digital economy

Chengdu government has been very active in seeking and executing international innovation projects by establishing industrial parks with city-city partners in Asia and Europe. Four examples of Chengdu’s international cooperation with foreign countries are show below.

Case study 2.9.3.1: Industrial parks in Chengdu City

1. Sino-Germany (Pujiang) SMEs Cooperation Zone Introduction: It is a core carrier of international cooperation between Chengdu and Europe. By 2017, it had attracted 162 Global Fortune 500 companies, Sino-Germany (Chengdu) AHK Professional Training Centre, and so on.

The local government provides RMB 5 million, 8 million and 10 million subsidies for newly established European companies with registration capital of $10 million, 20 million and 100 million respectively.

Key industries: equipment manufacturing, healthy food, bio-pharmaceutical

Contact 1: Chengdu Pujiang Investment Promotion Bureau Tel: +86 28 8855 2881 Contact 2: International Cooperation Office, Chengdu Investment Promotion Committee Tel: +86 28 6188 3760

2. L’eco-Quartier Franco-Chinois A Chengdu / Chengdu Sino-France Ecological Park Introduction: It is a country park established under the MOU of Economic and Trade Cooperation on the Development of Ecological Park signed between China and France, with the commitment to developing new economy and environment and demonstrating the cooperation of energy conservation and green and low carbon between the two

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countries.

It was selected by the Global Times as one of the top ten industrial parks that have high investment value in 201965.

Key industries: Auto and auto parts, culture and creativity

Contact 1: Chengdu Sino-France Ecological Park Promotion Office Tel: +86 28 8463 1961 Contact 2: International Cooperation Office, Chengdu Investment Promotion Committee Tel: +86 28 6188 3760

3. Sino-Italian Cultural Innovation Park Introduction: The industrial park was established to enhance the cooperation on main areas of cultures and creativity between Chengdu and Italy, which is a key step to facilitate the development strategy of Tianfu New City.

Key Industry Focus: culture, innovation, environmental protection, medical,

65 The Management Committee of Chengdu Economic and Technology Development (2020). Available on: http://www.longquanyi.gov.cn/lqyqzfmhwz_gb/c130834/2020- 01/02/content_09e1884d2ea54801ad2281da61960d3e.shtml 118

sustainable development, agriculture, aerospace

Contact 1: Cultural and Creativity and Conference Bureau of Chengdu Management Committee, Tianfu New Area, Sichuan Contact 2: International Cooperation Office, Chengdu Investment Promotion Committee Tel: +86 28 6188 3760

4. The Singapore-Sichuan Science and Technology Innovation Park66

Introduction: The Singapore-Sichuan Science and Technology Innovation Park was co-invested by the Management Committee of Chengdu High-tech Zone, Singapore Xinchuan Investment Holdings with total investment of RMB 100 billion. Located at the Centre of Chengdu High-tech zone, it is an important innovation and entrepreneurship platform for international exchange and cooperation. It is committed to attracting foreign investment in key industries of electronic information, bio-pharmaceutical, and new economy. By 2020, it has admitted 34 large-scale projects including Global Fortune 500 companies, listed companies, and headquarters of world-famous companies and so on. Its Artificial Intelligence Innovation Centre and Bio-medicine Innovation Incubator provides facilities and services for international SMEs.

Key industries: manufacturing, modern services, life sciences, low carbon, environmental protection, electronic information, bio-pharmaceutical

66 Singapore-Sichuan Hi-tech Innovation Park official website. Available on: http://www.sscip.com.cn/about#0 119

Figure 11. 20th Meeting of the Singapore-Sichuan Trade and Investment Committee67

Contact 1: Zhongxin Innovation and technology Park Development Ltd. Tel: +86 28 8532 2322 Contact 2: International Cooperation Office, Chengdu Investment Promotion Committee Tel: +86 28 6188 3760

2.9.4. Intellectual Property Rights

67 Singapore-Sichuan Hi-tech Innovation Park official website. Available on: http://www.sscip.com.cn/about#0 120

2.9.5. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact: Chengdu Investment Promotion Committee 投资成都 Tel: +86 28 6188 5500 Add.: Floor 5-6, Building 3, No. 68, Shujin Road, Tianfu Avenue, Chengdu, 610042 Web: http://www.chengduinvest.gov.cn/index#/home

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2.10. Chongqing New Tier One City Internationalisation Level: ⭐⭐

2.10.1. Industry Focus

Electronics and Auto Equipment Chemical manufacturing manufacturing manufacturing engineering

Consumer Emerging Materials Energy goods industries

Industrial Medical Information

2.10.2. Introduction

Chongqing is the only municipality directly under the Central Government in mid-west China 122 and a strategic stronghold of China’s BRI. Despite the lower starting point compared to the other tier two cities, Chongqing has been actively engaging in international activities and establishing good city-city relationships with 38 foreign cities.68

In the “1336” opening-up scheme that the central government issued to promote Chongqing City’s internationalization process, it points out that Chongqing plans to build three international trade avenue, three opening-up platforms (Liangjiang New Area, Two-way Cuntan Free Trade Port Area, Xiyong Comprehensive Tariff-free Znoe), and six Centres in areas of manufacturing, logistics, finance, international trade, education, conferences, etc.69

In March 2020, Chongqing Municipal People’s Government released an official document that required subordinate cities, counties and districts to promote foreign investment and support foreign-invested companies in aspects of general administration services, a management scheme that allows foreign investors to connect with Chinese leadership, a compliant management system for foreign investors, regular workshops between foreign SMEs and Chinese government, and a networking system that helps foreign SME investors to expand their business in China and domestically.

2.10.3. Key Districts and Industry Focus

Chongqing, as China’s key traditional manufacturing base, has been driven by the manufacturing industry and committed to developing as the world’s largest electronic information cluster and auto manufacturing cluster. In 2019, Chongqing became the largest laptop and mobile phone production base with 64.22 million laptops and 170 million mobile phones produced in the years. Along with the solid foundation in the electronic information industry, intelligent terminal technology, integrated circuit, and new display became emerging Industry Focus that boost Chongqing’s economic momentum.

Chongqing has 46 industrial parks, constructing “1+2+7+36” development zone system, including one new area called Liangjiang New Area, two free trade zone areas, four national development zones and three municipal development zones, and 36 special municipal industrial parks. Among the 46 industrial parks, most focus on modern manufacturing while new ones focus on new and high technologies, e-commerce, culture, and education.70

68 Chongqing Foreign Investment Promotion Centre. Available on: http://www.investincq.com/index.php?c=c ontent&a=list&catid=20. 69 Chongqing Foreign Investment Promotion Centre. Available on: http://www.investincq.com/index.php?c=c ontent&a=list&catid=20. 70 Chongqing Foreign Investment Promotion Centre. Available on: http://www.investincq.com/index.php?c=c ontent&a=list&catid=102 123

Table 14. Key Districts and Industry Focus of Tianjin District Industry Focus Key Characteristics District Government Contact

JiuLongPo District Bureau of New Materials  Focus on New Materials, New Energy JiuLongPo Commerce New Energy  105 incubators Tel: +86 23 6861 1751

Artificial Intelligence Internet, Cloud  Focus on Artificial Intelligence, Internet, Cloud Computing Computing and Big Data BiShan and Big Data Service, Smart Manufacturing Equipment BiShan District Bureau of Commerce Service Smart Manufacturing  20 incubators Equipment

Electronic Information  Focus on Electronic Information Technology, Electronic, ShaPingBa District Bureau of Technology ShaPingBa Artificial Intelligence Commerce Electronic Tel: +86 25 5775 8962 Artificial Intelligence  68 incubators

Electronic Information  Electronic Information Technology Electronic Artificial HeChuan District Bureau of Technology Commerce Hechuan Intelligence Electronic Tel: +86 ：023-85181870 Artificial Intelligence  36 incubators

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Internet, Cloud Computing and Big Data Service  Focus on Internet, Cloud Computing and Big Data Service, Smart Manufacturing Smart Manufacturing Equipment, Aviation Equipment, YongchuanDistrict Bureau of Equipment Yongchuan Railway Transport Equipment Marine Engineering Commerce Aviation Equipment Equipment Industry Tel: +86 25 5775 8962 Railway Transport Equipment  27 incubators Marine Engineering Equipment Industry

Internet, Cloud Computing and Big Data Service  Focus on Internet, Cloud Computing and Big Data Smart Manufacturing Service,Smart Manufacturing Equipment, Aviation Nanchuan District Bureau of Equipment Nanchuan Equipment, Railway Transport Equipment, Marine Commerce Aviation Equipment Engineering Equipment Industry. Tel: +86 574 8726 2112 Railway Transport Equipment  12 incubators Marine Engineering Equipment Industry

Internet, Cloud  Focus on Internet, Cloud Computing and Big Data Service, TongliangDistrict Bureau of Computing and Big Data Smart Manufacturing Equipment, Aviation Equipment, Tongliang Commerce Service Railway Transport Equipment, Marine Engineering, Tel: +86 400 168 9016 Smart Manufacturing Equipment Industry Equipment

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Aviation Equipment  18 incubators Railway Transport Equipment Marine Engineering Equipment Industry

Modern Agriculture  Focus on Modern Agriculture, Modern Horticulture, Tongnan District Bureau of Tongnan Modern Horticulture Commerce and Trade Commerce Commerce and Trade  14 incubators Tel: +86 23 4455 8858 Rongchang District Bureau of  Focus on Circular Economy Commerce Rongchang Circular Economy  15 incubators Tel: +86 23 4677 2111 Tel: +86 152 1303 6990

 Focus on Circular Economy Kaizhou District Bureau of Kaizhou Circular Economy Commerce  9 incubators Tel: +86 25 5775 8962

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Case study 2.10.3.1: Xiantao International Big Data Valley71 The Xiantao International Big Data Valley is one of Chongqing’s representative emerging industrial parks, focusing on areas of big data, artificial intelligence, and IoT. At the three core industries, the valley aims to attract businesses and research projects in areas of intelligent auto, intelligent terminal, aerospace, life health and digital city.

Figure 12. Project Introduction: Xiantao Big Data Valley72 Soft-landing Zones: Acer Incubator (software) and Plug & Play are two accelerators that provide services for SMEs in related Industry Focus, including living facilities, big data college, low-carbon transportation, entertainment, public services, and so on73.

Its other efforts on building a leading big data valley include establishing a business- university co-established laboratory (in cooperation with a local university) and the Xiantao International College despite little evidence of its internationalization.

2.10.4. Intellectual Property Rights

71 Xiantao Big Data Valley. Available on: http://www.cqxtb.cn/ 72 Xiantao Big Data Valley. Available on: http://www.cqxtb.cn/content/201708/31/c_9392.html 73 Xiantao Big Data Valley. Available on: http://www.cqxtb.cn/column/col647.html 127

(https://www.china-iprhelpdesk.eu/).

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2.10.5. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact: Invest in Chongqing 投资重庆网 Tel: +86 23 8901 8888 Add.: Floor 6, Foreign Trade Building, No. 65, Jianxin North Road, Jiangbei, Chongqing Web: http://www.investincq.com/

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2.11. Wuhan New Tier One City Internationalisation Level: ⭐⭐

2.11.1. Industry Focus

Intelligent manufacturing & Electronic Health Integrated circuit advanced information equipment

New energy and Auto & auto parts Digital Aerospace new materials

2.11.2. Introduction

Wuhan is the capital of Hubei Province. At the intersection of the middle reaches of the Yangtze and Han Rivers, it is a major transportation hub that connects to other major cities through railways, roads, rivers, and so on. It is also the most populous city in Central China, with 11.08 130 million of population living in the land of 8,569 square meters in 2018. Its annual GDP increased at a fast speed of 8% to 13.4 trillion RMB, with the largest increase in the tertiary industry (9.2%) in 201774.

Leveraging its geographical advantages, Wuhan has been actively seeking international cooperation in economy, cultures, arts, and so on with main a focus on European relationships. For example, Wuhan has attracted 5973 foreign-invested companies (266 Global 500 enterprises) from 80 countries with a total capital injection of $22.45 billion USD. Among them, 50 French companies, which represents over one third of French investment in China, are located in the city75 . Under its ambitious and positive internationalization strategy, Wuhan establish friendships with multiple European cities including Manchester, with which they were selected as the Best Matching City by the Horizon 2020 Urban-EU-China Innovation Platform76.

2.11.3. Key Districts and Industry Focus

While Wuhan’s economy was driven by industrial development in the history, it now promotes three fast developing industries that contributes highly to its new economy, including intelligent manufacturing, health, and information technology, which by 22%, 18.7% and 18.2% respectively in 2017.77 In a recently issued document titled “Advice on Promoting High-quality Development of Key Industry Focus” by Wuhan Municipal People’s Government on 7th November 2019, Wuhan identified eight key Industry Focus as its primary development focuses by 2022, including three industrial clusters: electronic information, auto and auto parts, bio- pharmaceutical, four national industrial bases, and the health industrial base.78

Specifically, Wuhan created and published an industry map named “One Core Two Belts and Three Zones” on 4th September 2019, presenting 10 key industries (Figure 14), two development economy belts including the Yangtze River Green Economy and Innovation- driven Development Belt and the Hanxiao Suixiangshi Manufacturing Development Belt, and three industry clusters.

74 Wuhan Municipal People’s Government. 2018 Statistical Yearbook [30]. Available on: http://tjj.wuhan.gov.cn/tjfw/tjnj/202004/P020200426461240969401.pdf 75 Invest in Wuhan. Advantage. Available on: http://en.pxcbq.com/advantage 76 Urban EU-China. Powerhouse Competition. Available on: https://www.urbaneuchina.eu/en/city-city- partnerships/powerhouse-competition/ 77 Wuhan Municipal People’s Government. 2018 Statistical Yearbook [30]. Available on: http://tjj.wuhan.gov.cn/tjfw/tjnj/202004/P020200426461240969401.pdf 78Wuhan Municipal People’s Government. Advice on Promoting High-quality Development of Key Industry Focus. Available on: http://www.wuhan.gov.cn/zwgk/xxgk/zfwj/szfwj/202003/t20200316_973985.shtml 131

New-generation Geospatial Intelligent Integrated circuit information information manufacturing technology

Digital and big Elderly Automobile Biology data healthcare

New energy and Aerospace new material

Figure 13. 10 Key Industries of Wuhan’s Industry Development79

National-level Base of New energy & Internet of Things National-level Base of Aerospace

National-level Base of New energy & Internet of Things

Figure 14. Three City Centres Developing the 10 Key Industries80

2.11.4. Supporting Policies

Like many other cities with high internationalization levels, Wuhan Municipal Government

79 Department of Economy and Information Technology of Hubei Province. (2019). Hubei released “indust ry map” to present future industry distribution. Available on: http://jxt.hubei.gov.cn/bmdt/gzdt/201911/t2019 1105_353435.shtml 80 Department of Economy and Information Technology of Hubei Province. (2019). Hubei released “indust ry map” to present future industry distribution. Available on: http://jxt.hubei.gov.cn/bmdt/gzdt/201911/t2019 132 offers many preferential policies to attract foreign investment, including tax incentives, government subsidies, and discounted loan interest rates. For example, in March 2019, Wuhan released a new incentive policy to attract foreign investment, named “Measures to further expand the utilization of foreign capital to promote high-quality economic development”81 , following which was a series of supporting policies on encouraging companies to hire foreign talents and encouraging agencies to introduce foreign companies to establish businesses in China.

2.11.5. Intellectual Property Rights

1105_353435.shtml 81 Jin’an, X. (2019). Wuhan issued 12 new policies to attract foreign investment. Hubei Daily. Available on: http://m.xinhuanet.com/hb/2019-03/23/c_1124272247.htm 133

2.11.6. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact 1: Commerce Bureau of Wuhan Municipality 武汉市商务局 Tel: +86 27 8279 6639 Add.: No. 27-29, Lihuangpo Road, Jiang’an, Wuhan Web: http://sw.wuhan.gov.cn/index/

Contact 2: Invest in Wuhan (external agency) 投资武汉 Tel: +86 10 5327 0173 Web: http://en.pxcbq.com/

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2.12. Xi’an New Tier One City Internationalisation Level: ⭐⭐

2.12.1. Industry Focus

Production Pillar Emerging service industries industries industries

Electronic information Artificial intelligence Modern finance

Auto Modern logistics 5G technology

Aerospace R&D design Additive manufacturing Advanced equipment Testing and authorization

Robotics Software and information New materials and new energy service

Bio-pharmaceutical Big data and cloud computing Conferences

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2.12.2. Introduction82

Xi’an is the provincial capital of Shaanxi Province and the starting point of the ancient Silk Road of China. It served as an ancient capital spanning the 13 dynasties over 1,100 years and considered as one of the three most visited cities in China and favored by foreign tourists. Its strategic positions in economic development and internationalization include the core hub city of the BRI and a key node city in Chinese Western Development Scheme. Xi’an was selected as the Most Attractive City for International Investment, an Innovation and Entrepreneurship Base for High-level Overseas Talents, and a National New-generational Artificial Intelligence Innovative Development Pilot Zone.

Developing as an international metropolis becomes the core of Xi’an’s development targets with an ambition of constructing a Silk Road international conference Centre, facilitating advanced manufacturing industry, strengthening integrated development of culture and tourism, and so on. By 2019, 36 foreign cities have established international friendships with Xi’an and 73 foreign cities has conducted friendly international exchanges with the city. To attract foreign investment, Xi’an’s government deepened the reform of streamlining approval procedures and enabled 90% of registration services to be completed with only one visit. The World Cities Report issued by the UN rated Xi’an as one of “The World’s Most Competitive Cities” and “A Model City in China for Building an International Business Environment.”

Xi’an’s first foreign-invested project is a five-star hotel called Xi’an Jinhua Hotel that was approved in 1983 after China announced the reform and opening-up strategy. Despite the slow development of Xi’an’s foreign investment before 2002, it has become the most attractive city for foreign investment in north western China and there were 4,212 foreign-invested companies in by 2019 in Xi’an City.

2.12.3. Key Districts and Industry Focus

In 2019, Xi’an’s actual use of foreign investment reached to $47.886 billion, of which about 508% invested in the manufacturing industry for products such as computer, communication, and electronic equipment. While the BRI initiative represents an excellent industry transformation opportunity for Xi’an as the strategy has linked the city with European countries such as Russia, Ukraine, and Pakistan.

82 Xi’an Municipal Bureau of Investment Cooperation. (2019) Invest In Xi’an. Available on: http://www.xa.gov.cn/web_files/attachment/202004/17/20200417102516153700653098355527680.pdf 136

Xi’an has formed a “6+5+6+1” (strengthen 6 industrial cluster pillars, enlarge 5 emerging industries, optimize 6 production-related service industries, and transform the cultural tourism industry) modern industrial system to develop into an advanced manufacturing cities (Table 15).

Table 15. Industry Focus of Xi’an Strategy foci Industry Focus Supporting policies for SMEs  Subsidy (up to 2 million RMB) Electronic information for newly admitted projects to Auto incubators/industrial parks  Three-year rental waive for Strengthen 6 Aerospace qualified manufacturing industrial cluster Advanced equipment factories pillars New materials and new  An award of up to 6 million energy RMB for newly registered Bio-pharmaceutical foreign-invested auto parts companies

Artificial intelligence 5G technology  An award of 1 million RMB Enlarge 5 for registered unicorn seed Additive manufacturing emerging companies, unicorn developing industries Robotics companies, and unicorn Big data and cloud companies computing

Modern finance  Supporting policies for Modern logistics attracting foreign cultural companies (Policies on Transform the R&D design strengthening the weak points cultural tourism Testing and authorization and accelerating the industry Software and information development of cultural service industry in Xi 'an, [2017], No.12) Conferences

Transform the cultural tourism Cultural tourism N/A industry

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2.12.4. Intellectual Property Rights

2.12.5. Contact of the Municipal Investment Promotion Bureau/Service Centre

Contact: Xi’an Municipal Bureau of Investment Cooperation 西安市投资合作局 Tel: +86 29 8661 2982 Email: [email protected] Add.: Vanke Centre, Economic Development Zone, No. 301, Wei’yang Road, Xi’an, 710021, Web: xaic.xa.gov.cn

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