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While ushering in its tenth founding anniversary, the Beijing Development Area (BDA) in suburban Beijing has much to celebrate. Infrastructure development began in 1992 in BDA as part of Beijing‘s effort to attract foreign investment and technologies and, in 1994, the BDA was designated as one of the 32 state-level development zones. By the end of March 2002, 996 enterprises had been set up in BDA, involving a total of US$3.83 billion in capital investment. Of the 500 companies listed by the Fortune magazine as the greatest in the world, 36 have set up enterprises in the BDA. The BDA is producing goods of some most famous brands, including Coca Cola, General Electric, AT&T, IBM, McDonald‘s and Nokia.
In a related development, the Fifth China Beijing International High-tech Expo held in May saw the conclusion of agreements on 387 projects valued at a total of US$3.75 billion. Of the 337 that concerned investment activities in high-tech projects worth a total of US$7.12 billion in contractual value, most went to the BDA. A number of transnational companies in the Fortune 500 list in many of these projects. Among them are the U.S.-based Du Pont, Electricite of france, and Hyundai of the Republic of Korea.
Thanks to development of those high-tech industries able to generate high added value, the BDA was able to achieve triple-digit growths for all it major economic norms in 2001. The BDA yielded RMB7.3 billion in gross domestic product (GDP), 152% over 2000; RMB42.4 billion in industrial output value, up 405%; RMB42.6 billion yuan in sales revenue, up 333%; and RMB2.8 billion in profit, up 278%. The BDA‘s exports in 2001 amounted to US$1.24 billion, eight times over the previous year. "Statistics may be dull, but we have to use more statistics so to help you acquire a clear understanding of our productivity," Li Fengling says.
The BDA Administrative Committee has transferred 307 hectares of land to investors for industrial use and, for each hectare, foreign capital attracted to the BDA so far averages US$11.8 million. In a single case, foreign investment is high as US$48.8 million per hectare. Factories are already producing on 214 hectares of the land having been transferred for industrial use. On average, RMB198 million yuan in industrial output value is being generated on each hectare, in addition to RMB9.13 million in tax payment. "Factories using standard workshops we have built for them are producing a yearly average of RMB605 million yuan in industrial output value," the official notes. "For use of a hectare of land space in the BDA, electronic companies generate a yearly average of RMB201 million yuan. The corresponding figure is RMB80.73 million yuan companies producing optical-mechnical-electrical products, RMB53.14 million yuan for food companies, RMB46.84 million for printing and packaging companies, RMB48.51 million yuan for new materials companies, and RMB33.02 million yuan for pharceutical companies, and RMB104.31 million yuan for cosmetics, garments and other companies."
The BDA plans to generate RMB10 billion yuan in GDP in 2002, up 37% over 2001; RMB58 billion yuan in industrial output value, up 37%; and RMB60 billion yuan in sales revenue, up 41%. The BDA is expected to contribute RMB3.5 billion yuan to the government coffer, a 31% increase year-on-year. It plans to attract an additional US$1 billion of foreign capital, and its 2002 exports are expected to reach US$1.5 billion in value.
The BDA is pressing ahead to develop itself into the chief engine for Beijing‘s economic development. By 2005, the last year of the country‘s current Five-year Plan for Economic and Social Development, it will have become able to generate RMB36 billion yuan or 10% of Beijing‘s industrial output value. "To put it another way," the official says, "the BDA will be responsible for 27% of any economic growth the Chinese capital achieves."
To achieve this projected target, Li Fengling continues, the BDA is being expanded in area, from 15 square kilometers to 25. Over the past two years, eight villages have been relocated to make room for the expansion scheme. On the 1,333 hectares of newly acquired land sitting astride the border of the Daxing and Tongzhou districts, construction has already been completed on a road linking the BDA to the city‘s fourth ring road, a gas-fueled thermal power plant, a 110KV substation, and a sewage treatment plant. "We‘ve spent a total of RMB5.4 billion on these infrastructure projects," Li Fengling says. "We are to start some more high-tech industrial parks there, including one special for Fujitsu of Japan and one for investors from Taiwan."
For 2002, funding for infrastructure development in the BDA will be RMB6.16 billion yuan. Construction will start on a 220KV substation and other infrastructure projects. "We‘ll complete construction of public utilities in the area, which covers 15 square kilometers at present," Li Fengling says. "But even more important for us is to continue improving our investment conditions."
The BDA is pooling its resources to accelerate the implementation of the most important - or the largest - projects, projects expected to play a pivotal role in its development. They include the Xingwang International Industrial Park, GE Industrial Park, Fujitsu Industrial Park, Beijing University Software Park, and North China Microelectronics Center. "We‘ll spare no effort to ensure that these projects are put into operation as scheduled," Li Fengling says, adding that Xingwang involves Nokia as the main investor.
For one thing, the BDA Administrative Committee has committed itself to cutting the red tape for project approval and simplifying customs procedures, in such a way as to ensure what he chooses to call "zero stockpiling (of products)" for enterprises. "Beginning this year, no fees will be collected from investors except those that are internationally recognized as legitimate," the official says.
In a related development, agreements on 395 projects were signed during the China Beijing International High-tech Week held in the Chinese capital May 23-28. These involve a total of URS7.35 billion in agreed capital input. Of these, 337 or more than 96% are investment projects, which call for a combined capital investment of US$7.12 billion, nearly 97% of the agreed total. More than 62% of the agreements are on high-tech projects. What merits special mention is the fact many transnational companies signed agreements with Beijing during the High-tech Week, including Du Pont and U.S. Gas Chemicals of the United States and Electricite of France.
The High-tech Expo, or the May Fair, has been an annual event since 1998. The latest May Fair had the participation of 35 Chinese provinces, municipalities and autonomous regions. Foreign participants numbered more than 5,000, including leaders of two dozen international organizations, 40 CEOs from among the 500 companies listed by the Fortune magazine as the greatest in the world, and more than 100 Nobel Prize laurels and other leading experts.
In a related development, the Fifth China Beijing International High-tech Expo held in May saw the conclusion of agreements on 387 projects valued at a total of US$3.75 billion. Of the 337 that concerned investment activities in high-tech projects worth a total of US$7.12 billion in contractual value, most went to the BDA. A number of transnational companies in the Fortune 500 list in many of these projects. Among them are the U.S.-based Du Pont, Electricite of france, and Hyundai of the Republic of Korea.
Thanks to development of those high-tech industries able to generate high added value, the BDA was able to achieve triple-digit growths for all it major economic norms in 2001. The BDA yielded RMB7.3 billion in gross domestic product (GDP), 152% over 2000; RMB42.4 billion in industrial output value, up 405%; RMB42.6 billion yuan in sales revenue, up 333%; and RMB2.8 billion in profit, up 278%. The BDA‘s exports in 2001 amounted to US$1.24 billion, eight times over the previous year. "Statistics may be dull, but we have to use more statistics so to help you acquire a clear understanding of our productivity," Li Fengling says.
The BDA Administrative Committee has transferred 307 hectares of land to investors for industrial use and, for each hectare, foreign capital attracted to the BDA so far averages US$11.8 million. In a single case, foreign investment is high as US$48.8 million per hectare. Factories are already producing on 214 hectares of the land having been transferred for industrial use. On average, RMB198 million yuan in industrial output value is being generated on each hectare, in addition to RMB9.13 million in tax payment. "Factories using standard workshops we have built for them are producing a yearly average of RMB605 million yuan in industrial output value," the official notes. "For use of a hectare of land space in the BDA, electronic companies generate a yearly average of RMB201 million yuan. The corresponding figure is RMB80.73 million yuan companies producing optical-mechnical-electrical products, RMB53.14 million yuan for food companies, RMB46.84 million for printing and packaging companies, RMB48.51 million yuan for new materials companies, and RMB33.02 million yuan for pharceutical companies, and RMB104.31 million yuan for cosmetics, garments and other companies."
The BDA plans to generate RMB10 billion yuan in GDP in 2002, up 37% over 2001; RMB58 billion yuan in industrial output value, up 37%; and RMB60 billion yuan in sales revenue, up 41%. The BDA is expected to contribute RMB3.5 billion yuan to the government coffer, a 31% increase year-on-year. It plans to attract an additional US$1 billion of foreign capital, and its 2002 exports are expected to reach US$1.5 billion in value.
The BDA is pressing ahead to develop itself into the chief engine for Beijing‘s economic development. By 2005, the last year of the country‘s current Five-year Plan for Economic and Social Development, it will have become able to generate RMB36 billion yuan or 10% of Beijing‘s industrial output value. "To put it another way," the official says, "the BDA will be responsible for 27% of any economic growth the Chinese capital achieves."
To achieve this projected target, Li Fengling continues, the BDA is being expanded in area, from 15 square kilometers to 25. Over the past two years, eight villages have been relocated to make room for the expansion scheme. On the 1,333 hectares of newly acquired land sitting astride the border of the Daxing and Tongzhou districts, construction has already been completed on a road linking the BDA to the city‘s fourth ring road, a gas-fueled thermal power plant, a 110KV substation, and a sewage treatment plant. "We‘ve spent a total of RMB5.4 billion on these infrastructure projects," Li Fengling says. "We are to start some more high-tech industrial parks there, including one special for Fujitsu of Japan and one for investors from Taiwan."
For 2002, funding for infrastructure development in the BDA will be RMB6.16 billion yuan. Construction will start on a 220KV substation and other infrastructure projects. "We‘ll complete construction of public utilities in the area, which covers 15 square kilometers at present," Li Fengling says. "But even more important for us is to continue improving our investment conditions."
The BDA is pooling its resources to accelerate the implementation of the most important - or the largest - projects, projects expected to play a pivotal role in its development. They include the Xingwang International Industrial Park, GE Industrial Park, Fujitsu Industrial Park, Beijing University Software Park, and North China Microelectronics Center. "We‘ll spare no effort to ensure that these projects are put into operation as scheduled," Li Fengling says, adding that Xingwang involves Nokia as the main investor.
For one thing, the BDA Administrative Committee has committed itself to cutting the red tape for project approval and simplifying customs procedures, in such a way as to ensure what he chooses to call "zero stockpiling (of products)" for enterprises. "Beginning this year, no fees will be collected from investors except those that are internationally recognized as legitimate," the official says.
In a related development, agreements on 395 projects were signed during the China Beijing International High-tech Week held in the Chinese capital May 23-28. These involve a total of URS7.35 billion in agreed capital input. Of these, 337 or more than 96% are investment projects, which call for a combined capital investment of US$7.12 billion, nearly 97% of the agreed total. More than 62% of the agreements are on high-tech projects. What merits special mention is the fact many transnational companies signed agreements with Beijing during the High-tech Week, including Du Pont and U.S. Gas Chemicals of the United States and Electricite of France.
The High-tech Expo, or the May Fair, has been an annual event since 1998. The latest May Fair had the participation of 35 Chinese provinces, municipalities and autonomous regions. Foreign participants numbered more than 5,000, including leaders of two dozen international organizations, 40 CEOs from among the 500 companies listed by the Fortune magazine as the greatest in the world, and more than 100 Nobel Prize laurels and other leading experts.