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Business Focus Xi’an - North China Xi’an – More than history To most people Xi’an, capital of Shaanxi province, is best known as the cradle of Chinese culture and a tourist destination where they can visit the relics of the ancient capital Chang An, of which the Terracotta Warriors, the City Wall, Drum Tower, Bell Tower and the two Wild Goose Pagodas are best known. The economic relevance and potential of the city in modern times, however, is widely underestimated. Xi’an was approved by the State Council to be an inland opening city in 1992 and a comprehensive reform test city in 1994, which made it a key city in West China and led to its recognition as “The most innovative and vigorous city in the world” by the United Nations Industrial Development Organization (UNIDO) in 2002. The West China Development Strategy was implemented comprehensively, so that the infrastructural premises today surpass those of most central Chinese cities and still continue to improve. While its economical supremacy is unchallenged in the northwest region (i.e. the provinces of Shaanxi, Gansu, Xinjiang, Qinghai and Ningxia), Xi’an competes with neighbouring Sichuan´s capital Chengdu and Chongqing in the southwest to attract foreign investment. All three cities benefit from their central location and offer ready access August - September 2008 | 16 The German Chamber of Commerce in China to the domestic market. For Xi’an it is 600m consumers and 10 provincial capitals within 12 hours´ travel time. Regarding export, Xi’an is connected to the east coast seaports in the Bohai area. As the largest transportation hub in northwest China, Xi’an has formed a network of high-level highways, railways and aviation stretching in all directions. A major advantage for Xi’an is its role as a logistics hub on the Eurasia rail link, which gives access to the Central Asian Republics, a connection of growing significance, as the ties to the growing markets in Central Asia and Russia among others are tightened by the bian- nual Euro-Asia Forum of the Shanghai Cooperation Organisation (SCO), which is also held in Xi’an. Due to its history as a center for research and production of military technology, Xi’an has become an important base of higher education with more than 80 public and private universities, providing companies with a deep pool of talents. For example, Jiaotong University In Xi’an is one of the few Top 10 Universities in China outside Beijing and Shanghai. The city uses a system of “Four Zones and Districts, one Base” to develop the six key industries of high technology, equipment manufacturing, tourism, cultural industry, modern services and software. Backbone of the high-tech industry are bio-medicine, electronic information, optical-mechanical-electrical integration, photoelectron, aviation and space flight, new materials and high efficiency and energy saving environmental protection industry. Main traditional industries in Xi’an are equipment manufacturing, light textile industry, chemical industry, food and beverage and building materials. The four zones and districts and one base are namely the Xi’an Hi-tech Industries Development Zone (XHTZ), Xi’an Economic and Technological Industries Development Zone (ETDZ), Qujiang New District, Chanba Ecological District (CBE) and Yanliang Aviation Hi-tech Industries Base (CAIB). For the future the Urban Development Plan of Xi’an is designed to lower residential density in the city center adding satellite cities outside the Third Ring Road and to establish an industrial region in the west, an economic region in the north, a region for tourism in the east and a leisure and resort region in the south of the presently developed areas. On a provincial level the expanded Xi’an will be the center on an east-west-axis along the Longhai Railway and the Baotong Highway (“One line and two belts”) from Baoji through Yangling, Xianyang, Xi’an, Weinan to Tongguan, forming the Guanzhong National Hi-tech Industries Belt, named after the Guanzhong plain where the cities are situated. Axel Brost | Managing Director - China Consulting Service Ltd. Jinyu Huayuan 3252 | No. 63 Xiying Lu | Xi’an 710054 Tel: 013 9911-74967 | Email: axel.brost@china-consulting-service.com | Web: www.china-consulting-service.com
The German Chamber of Commerce in China Small Town Feel with Big City Plans Changzhou Changzhou’s advantageous location right between Shanghai and Nanjing has clearly aided its development. Nicknamed the ‘Dragon City,’ Changzhou has a track record of flourishing during trying times in Chinese history. It benefited from the Taiping Rebellion, which constructed some of the city’s premier temples and pagodas. In the 1930s, the Japanese occupation of Shanghai caused many businesses to relocate, resulting in Changzhou importing the entire Shanghai cotton and textile industry. Additionally, the city emerged successful from the period of the Cultural Revolution while cities such as Shanghai were struggling economically. With a population of 3.4m, Changzhou is certainly dwarfed by other emerging cities such as Nanjing or Hangzhou. However, it makes up the difference with its progressive policies. The Changzhou government acts to promote a more environmentally-friendly development, as evidenced by the closure or relocation of several polluting factories in recent years. Furthermore, the city ensures that 99% of its schoolage residents attend high school. Many continue onto institutions of higher education, which have healthy graduation rates. Attractive Environment Due to positive developments in the areas of environmental protection and human resources, many companies have chosen Changzhou as a strategic base along the Yangtze River. The local airport, Grand Canal, river network and highway network all make the surrounding areas, including Nanjing and Shanghai, accessible within an hour or two. Currently, 20,000 manufacturing companies have set up shop in Changzhou, including 42 international giants from the West and Asia. The Path from Agriculture to Textiles to Engineering Formerly, Changzhou was a center for the distribution of local agricultural products. However, while food processing and distribution are still prevalent, the share of traditional agricultural output has shrunk to less than 6% of the local economy. The textile industry, spurred by the influx of cotton processing in the 1930s, continues to churn along strongly. East China - Changzhou In the manufacturing sector, Changzhou excels in power generation due to its access to hydropower. Automotive and motorcycle production are also successful, and electronics and engineering machinery have made their mark. Diesel engines are one of their top manufacturing products. Service Sector Blossoms at Changzhou National Hi-Tech District New high tech industries have also landed in Changzhou, and now constitute 50% of the local economy, as evidenced by the Changzhou National Hi-Tech District. Since 1992, the CND has filled 20km 2 of its total 30km 2 area with 7636 companies, 18 of which rank as Fortune 500. Located north of the city, the CND offers access to an oceangoing port for easy export of goods bound for Shanghai or overseas. The CND includes four subsections: • Start-up Hi-Tech Park: electronics, pharmaceuticals, biotech, mechatronics • Industrial Park: machinery, plastics, chemicals, electronics • Commercial & Residential Park: service arm of the CND, including educational facilities and residences • Tourist Park: Dinosaur Park, expat club and health clubs Tourism Initiative Set to Bring in Visitors While promoting its history for the purposes of tourism, Changzhou also welcomes fresh ideas to boost the number of visitors. From the scenic Tianmu Lake to the new Dinosaur Park, visitors can expect quite a variety. The Tianning Temple, built over 1350 years ago during the Tang Dynasty, is one of Changzhou’s historically significant sites. It is also known as the “Famous Spot of the Three Wu.” Destroyed and rebuilt 5 times, the Tianning Temple covers 6.7 hectares and houses over 70 monks, known for their strict interpretation of Buddhism. The Tianning Pagoda is the tallest in China, and perhaps the tallest in the world, at 153m. The location of the temple is significant to the Buddhist religion, located in the middle of the 5 directions: east (Lingshan), west (Leshan), south (Hong Kong), north (Yuyuan) and center (Langmen), where 5 other Grand Buddhas may be found. The ruins of the former King’s Palace built during the Taiping rebellion are also of note and can be seen near the city center. The palace was one of 5 palaces built during the tumultuous era. Tianmu Lake, not far away, offers scenic repose from city life. The lake which is named “Heavenly Eyes” in Chinese, is shaped in two round circles. Visitors come to try the local delicacy fish head soup, hike and boat. Perhaps one of Changzhou’s most talked-about recent tourism developments is the Changzhou China Dinosaur park, sometimes referred to as “Oriental Jurassic Park.” The attraction contains fossils from all across China, some reconstructed into complete skeletons. The facility offers multimedia educational displays, and each room attempts to recreate a different scene from prehistoric times. www.china.ahk.de 17 | August - September 2008 Business Focus
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Minister Steinmeier - AHKs

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