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The Introduction to Guangzhou's Economic Development And The Introduction to Guangzhou’s Economic Development and Investment Environment Speech at the Special Session of PECC Standing Committee Meeting in Beijing By Mr. Gu Shiyang, Deputy Director General of Guangzhou Municipality Distinguished guests, dear friends Ladies and Gentlemen: Good morning! It gives me a great pleasure to meet with you in Beijing, in the season of spring, and to present to you an introduction of Guangzhou’s economic development and investment environment. I hope that my introduction will improve your understanding of Guangzhou, a beautiful city, facilitate the exchange and communication between Guangzhou and economies in the Pacific Region, enhance our further cooperation and explore opportunities of mutual development. As the capital city of Guangdong province, Guangzhou is a dynamic city with a history of over 2200 years. It locates in the center of the Pearl River Delta, the most prosperous and energetic region in China, and is adjacent to Hong Kong and Macao. It covers 7437.4 square kilometers, and is home to 10 million permanent population, the fifth largest population among China’s major cities. Blessed by its favorable geographical location and backed by the affluent Pearl River Delta, Guangzhou has developed into the biggest economic center and transportation hub, as well as an essential port of foreign trade in south China, known as China’s “Southern Gateway”. Guangzhou enjoys a long tradition of opening to the outside world, and an established close cooperation with the Pacific region in 1 business and trade. As early as in Han Dynasty, merchant fleet from China set out from Guangzhou, and reached South-east Asia and South ASIA. This inaugurated the rising of the “Great Oriental Harbor” and the “Marine Silk Road”, and Guangzhou became the earliest, as well as the only never closed foreign trade port in China, which also bears remarkable significance in the world. Since China’s adoption of “Reform and Opening-up” policy, Guangzhou has implemented a foreign oriented strategy, accelerated its development of an open economy, and marched toward an international metropolis. Guangzhou is embracing the world extensively and intensively. We saw an average growth rate of 16.8% per year in foreign trade value in the past decade. At present, Guangzhou has established business relationship with over 200 countries and regions in the world, attracting foreign investors to set up over 8000 companies and 2000 representative offices here. 115 companies from Fortune Top 500 has entered Guangzhou and invested a total amount of USD 5.82 billion in 204 projects. Since 1979, the amount of accumulative performing foreign fund, mainly from Hong Kong, Taiwan, Japan, Singapore and U.S., has reached over USD 30 billion. The fund has been invested in various fields including the manufacturing of automobile and components, steel, electronics and IT, petrochemical industry, machinery and equipment manufacturing, transport and warehousing, textile, pharmacy, food, construction and real estate, and service industry. Guangzhou enjoys solid financial strength to cooperate with economies in Pacific region. Since the implementation of “Reform and Opening up” policy, Guangzhou has experienced sustained and fast development, with GDP’s average growth rate of over 14% per year. In 2003, the city’s GDP increased by 15% over the previous year, which amounted to 346.63 billion yuan, and 41.9 thousand yuan per capita. 2 The industrial output hit 401.783 billion yuan, with an added value of 114.606 billion yuan, increased by 29.4% and 25.0% respectively over the previous year. The contract value of foreign capital topped USD 3.511 billion, and the utilized value USD 2.581 billion, 16.1% and 13.0% higher than the previous year respectively. The total value of export reached USD 16.889 billion, an increase of 25.13% compared with the previous year. At present, backed by its pillar industries such as automobile manufacturing, petrochemical industry, electronics and IT, Guangzhou has established a modern industrial structure with comprehensive sectors as well as strong capabilities of support and Research and Development. With an ever increasing attraction, Guangzhou has become the top choice of international investment in China. Three major Japanese auto manufacturers, ie Honda, Nissan and Toyota established their overseas producing bases in Guangzhou. Fedex from U.S. also decided to move their Asian transfer center of express mail to Guangzhou. US cosmetic companies such as P&G, Amway and Avon have picked up Guangzhou as their China’s headquarters. A series of international companies that have leading positions in their industries began to set foot on Guangzhou, such as Arasor Corporation, GE, JFE(Japanese second largest steel corporation), and NYK(Nippon Yusen Kaisha) Line, making tremendous contribution to Guangzhou’s rapid development. Guangzhou enjoys desirable urban environment for business and investment. Guangzhou is the transportation and logistic hub of air, land and water in South China, thanks to its dimensional network incorporated with Railroad, air, road and water transport. Guangzhou Harbor is among the world top ten harbors, with an annual handling capacity of over 100 million tons and shipping destination of over 300 harbors, including those in more than 80 countries and regions. The 3 newly built Guangzhou Baiyun International Airport is one of the largest hub airports in China with most advanced facilities and modern management. It will soon put into operation. As one of the most important railway and road hub in Guangdong Province and China, Guangzhou has a convenient, efficient and densely covered railway and road network. The subway lines will be increased to nine from the current two, with the total length of 240 kilometers by 2010.Guangzhou International Convention and Exhibition Center is the largest of its kind in Asia, and the second largest in the world. At the mean time, Guangzhou also attaches greater importance to environmental protection and the renovation of urban environment. The city has taken on a brand new look, with fresher and cleaner air, larger green space and improved ecological environment. Guangzhou’s progress has won recognition home and abroad. In recent years, Guangzhou was granted “Nations in Bloom Award” (an international award for liveable communities), “Dubai Award for The Best Practices to Improve Living Environment”, “China’s Best City of Tourism” and “China’s Award for Best Practices of Living Environment”. According to World Bank’s appraisal of comprehensive investment environment of 23 cities in China in 2003, Guangzhou got the highest scores: A plus, ranking the first place. At present, Guangzhou is implementing the project of “Forested Mountain, Green Land, Blue Sky and Clear Water”, with the aim to develop herself into a city most suitable for both business and living with ecological landscape and rich historic and cultural heritage. Guangzhou enjoys a sound administrative system that would provide the investors with satisfying services. As a practical city, Guangzhou has established a fair and open market competition system. In recent years, focused on the vision of building “a city of credibility and honesty”, Guangzhou has intensified the regulation and standardization 4 of its market system. The city spared no efforts to establish an open and orderly market of fair competition, a sound legal environment, a government of credibility, honesty and responsibility, a government ruled by the law and a government ready for absorbing new information. The investors are provided with one-stop-shopping and one-to-one service that is both efficient and satisfying. The problem they encounter in the investment will be dealt with effectively. Guangzhou has actively building up “e-goverment” to promote foreign trade and economic cooperation, which has begun to take effect. The “e-government” system adopts advanced information technology such as internet and the investors are well-informed with just a click of mouse. Such system takes the leading position in China and has contributed greatly to the improvement of administration and business efficiency. Guangzhou has also taken various methods to lower the operation cost of enterprises, such as the administration of trial “fee-free zone” in fives districts, ie, Guangzhou Economic and Technological Development Zone, Guangzhou Development Zone of New and Hi-technology, Guangzhou Export Processing Zone, Guangzhou Bonded Zone and Guangzhou Nansha Development Zone, where 49 administrative fees were lifted. As a result, the operation costs are lowered, and investors are better rewarded. Guangzhou enjoys abundant human resources. Guangzhou has established a comprehensive and diversified education system, boasting 37 universities and colleges, over 20 post graduates institutions and 200 secondary vocational and technical schools and 196 independent R&D institutions, which have carried out cooperation with more than 200 overseas scientific research institutions, universities and academic organizations. 300,000 graduates of universities and secondary schools enter the job market each year. In addition, Guangzhou has abundant work force that is experienced and skillful, totaling 1.0214 million, and 5 relatively low labor cost. Thanks to its rapid development, promising future and favorable environment for business, Guangzhou has attracted numerous talents from home and abroad, which can meet the demands of different enterprises. The construction of
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