Chengdu Leads A New Round Of Investment In Western China
CHENGDU, China, Feb. 27, 2014 /PRNewswire/ — Is western China only capable of undertaking labor-intensive manufacturing from southern and eastern Chinese cities? With China’s growth slowing, will the global investment to the inland west shrink? During the upcoming CPC and CPPCC sessions, Chengdu, capital of Sichuan province in southwestern China answers these questions.
On Feb. 27, Chengdu Hi-tech Industrial Development Zone (Chengdu Hi-tech Zone) and Singapore-Sichuan Hi-tech Innovation Park (SSCIP) held a signing ceremony for an official cooperation agreement with five partners — Tencent Holdings Limited, Shenzhen Power Leader Group, Guangdong OPPO Mobile Telecommunications Corporation, Guangxi Conha Group, Shenzhen Chipscreen Biosciences Limited — and a total investment of $6.7 billion yuan.
For running the whole business chain, Tencent, as the most influential cyber giant in China, announced a more than $1 billion yuan investment to establish its southwest headquarter on the foundation of its customer service and online game R&D centers in Chengdu Hi-tech Zone.
China’s first A-grade public listed Internet gaming company, ZQ Games, owned by Shenzhen Power Leader Group is one of the companies investing into SSCIP. ZQ Games is an industry leader in gaming and with its entry into the Hi-Tech Park; it will greatly enhance Chengdu’s web and mobile browsing capabilities.
One of China’s leading mobile device manufacturers, Guangdong OPPO Telecommunications Group is investing approximately $1.2 billion yuan into the hi-tech innovation park. This center will focus on mobile intelligence engineering, software and mobile application developments, point-of-sales systems among other communication developments.
A market leader in the steel manufacturing and export business since 1992, Guangxi Conha Group is investing $2 billion yuan to develop a steel and electronics-trading hub to develop and digitize logistics operations for its various business groups. The ultimate goal is to virtualize the trading of steel and enhances the entire trading process from buy-sell to export-import.
A leading integrated biotech company, Chipscreen Biosciences is investing $2 billion yuan to establish a drug R&D base and headquarters. It will largely accelerate Chengdu’s biopharmaceutical industry into the global market.
“China’s westward movement in industries is ongoing,” said an official from Chengdu Hi-tech Zone at the ceremony. While remaining a magnet for domestic and foreign investment, western China demonstrates growing importance as China’s economic hinterland. Chengdu, as an example, not only plays a significant role in manufacturing, but also proves itself in developing high-end industries of advanced technology. The wealth of talent and human resources, reasonable labor and living costs and profound culture and hi-tech foundation make the city surprisingly inviting for global investors — not to mention the driving force of the “Go West” Policy. With a very central geographical location, the city possesses well-developed logistics for unlocking the greater western China market.
From a national perspective, the Singapore-Sichuan Hi-tech Innovation Park is yet another testament of the deepening of collaborative efforts and relationship between China and Singapore. The Innovation Park is located in the south park of Chengdu Hi-tech Zone. The total land area of SSCIP is approximately 10.34 square kilometers and aims to attract a residential population of 120,000 and an employed population of 120,000 to 150,000. “Besides the five confirmed projects, there are more than 20 projects at a contract discussion stage and 30 more projects that have expressed interest in coming on board, yet another 50 more projects at an initial contact stage,” said an official from the Chengdu Hi-tech Zone. From March this year, SSCIP will launch a series of investment promotion activities in the Yangtze River Delta, the Pearl River Delta and the Bohai Bay region.
“As one of the investors, we are looking forward to the development of western China, especially of Sichuan and Chengdu. We will make more efforts and work hard for speeding up the construction of the park, accomplishing more cooperation projects and introducing more high-end projects to achieve the mutual benefits and the win-win situation,” said Fock Siew Wah, Group Chairman of PSA international Pte Ltd in a visit to Chengdu in January.
Indeed, nobody will doubt that investing in China today is less a matter of deciding whether to do it than figuring out how and where to begin. It’s worth expecting that within the country’s determination of economic reform, tremendous opportunities are approaching for both Chengdu and western China as a whole.
SOURCE Chengdu High-tech Industrial Development Zone