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Now that China has become a full member of the World Trade Organization (WTO), China‘s economic and technological development zones, which are chosen to experiment with the implementation of China‘s reform and opening policy, need to find solutions to a range of new questions. In what direction the zones should develop? How to sharpen the competitive edge of the zones so that they will play an even more effective role in promoting the development of the local economies? To these questions, my answer is one of accelerating technological innovations to make the zones intelligence-oriented.
An intelligence-oriented development zone features a combination of the knowledge-driven economy, scientific management and sustainable development. First of all, an intelligence-oriented economic zone should rely on new and hi-tech industries, new and hi-tech enterprises and a contingent of highly qualified specialists for development. Secondly, it should concentrate on innovation in ways that conform to international practices and cater to the modern market economy. Thirdly, it should apply the methods of modern scientific management in a perfect manner. And last of all, it should be ecologically and culturally sound, affording a clean, tranquil living environment, permeated with a cultural atmosphere and full of vitality.
Development of intelligence-oriented development zones is our strategic choice in the wake of China‘s entry into the WTO. State-level economic and technological development zones came into being since 1984. And since then, these have become important showcases of local economies and played a pivotal role in efforts of their respective areas to build up a foreign market-oriented economy. State-level development zones have developed into new economic engines able to ensure a rapid grouping of the various factors of production and a high speed of economic growths, into bases designated to promote scientific and technological progress. Through their development, we have found a set of new methods for managing regional economies. At present, however, economic and technological development zones are facing tough challenges, challenges that accompany the ever-intensifying process of economic globalization, the arrival of the information era and the changes in China‘s macro-economic situation.
Economic and technological development zones are the first in China designated to try out the market economy and international practices. In the wake of China‘s WTO entry, they should fully exploit their competitive edge as regional economic centers take as the ultimate objective the development of industries that are competitive on the world market. In striving to become intelligence-oriented, economic and technological development zones will effectively restructure their industrial setup, rebuild an industrial advantage, and realize their shift from a quantitative expansion to a qualitative leap forward. They will accomplish the historical mission that calls for a self-rebuilding.
Development of intelligence-oriented development zones is the inevitable choice by economic and technological development zones to promote their economic and social progress in the 21st century. The rapid pace for the development of economic and technological zones is attributed mainly to the preferential policies they are allowed to practice. In the new phase of their development, however, they will have new and special functions to perform. The preferential policies were once the driving force for the rapid progress observed in economic and technological zones. As implementation of China‘s reform and opening up forges deeper and in an all-round way, the preferential policies, while helping spur regional economic development, have become less important. In view of this, economic and technological development zones should abandon the old mentality of relying solely on policy privileges for development. Instead, they must spare no effort to create a new competitive edge.
Agriculture will remain the foundation for economic growths in the future, but it will have to depend on non-agriculture industries for further development. Non-agriculture industries are mostly in cities and depend on infrastructure facilities there for survival and expansion. For this reason, development of cities will be vital to the development of non-agriculture industries and, in turn, promote economic growths in surrounding areas. The current Tenth Five-Year Plan period, nay, the period from now to the mid-21st century, will be of key importance to development of the country as an accelerated pace of urbanization and modernization constitutes a salient feature of China. Construction of the development zones is, in itself, a massive drive of urbanization. Many cities have been expanding on the basis of construction of development zones. For example, Shanghai has opened up the Pudong New Area that covers 522 square kilometers. Wuhan City has decided to expand the land area of its development zone from 31 square kilometers to 110. In just ten years, Suzhou City has doubled in area thanks to the development of the Suzhou Development Zone. In fact, it is same worldwide. Since 1954, many new cities have come into being on basis of construction of development zones.
Development zones have enjoyed the most vigorous economic development relative to other parts of the country. International experiences indicate that a country, a region or a city cannot become economically prosperous if it fails to ensure a constant development of financial, commercial and cultural undertakings. To enable development zones to build up a new competitive edge, we must follow the kind of strategies that call for developing new urban centers that are highly modernized and allow application of international practices. At the same time, we should improve the functions of the existing cities and make the local financial, market, ecological and cultural environment perfectly so as to ensure a well-coordinated development of the second and tertiary industries. In developing intelligence-oriented areas, there is the need for us to attach equal importance to developing the productive forces and regulating the relations of production. Attention must be paid not only to technological development but also improvement of enterprise management, not only development of the second industry but also of the tertiary industry, not only economic development but also the work to accelerate the urbanization process.
To become intelligence-oriented is a realistic choice for the Zhengzhou Economic and Technological Zone in seeking an even faster development. Economic growths imply not only the speed of economic development, but also the structural efficiency of an economy and its quality and performance. A high speed of economic development is possible only when the economic structure is rational. In other words, the structure of an economy is the engine for its development. Two yardsticks are used to measure the level of development for a given economy: the aggregate volume of the economy and the speed of its development, and the structure of the economy and its efficiency. The Zhengzhou Economic and Technological Development Zone has already done a good job of infrastructure development, developed a fairly good investment environment and by and large accomplished the task of primitive accumulation of capital. For an extraordinarily high speed of development in the early 21st century, it is a must for the zone to speed up an innovation-oriented economic system and rationalize its industrial structure through readjustment. To make itself intelligence-oriented by developing an open, advanced industrial structure is undoubtedly a fundamental requirement if the zone is to realize the projected shift.
To attract investment projects in ever-growing numbers and more advanced technologically through increasingly tough competition, the Zhengzhou Economic and Technological Development Zone should strive to full display its unique characteristics, develop name brand products to its credit and increase its appeal to investors. To achieve the purpose, what is essential is to allow investment not only in the form of capital but also of intellectual property, technology, knowledge or information and translate these into products of the highest value to society. In other words, there is the vital need for the zone to develop an innovation-oriented capital market along with a number of enterprises producing name band or intelligence-based products that enjoy a ready market in China and abroad.
Practice over the past two years shows that it is hopeful for the Zhengzhou Economic and Technological Development Zone to eventually become intelligence-oriented. The zone has built up a software park, a high-tech industrial Park, an industrial park special for high-tech companies started by Chinese who have returned after obtaining degrees abroad, and a technological innovation center. It now boasts a system of electronics information, mechnical-electrical integration and modern bioengineering industries, and has to its credit a range of products with exclusive intellectual property rights, a high technological content and a high market prospect. In August 2001, the central authorities designated the zone as a state-level center for technological innovations. Some 60% of the investment projects attracted to the zone in the year are high-tech in nature, and high-tech projects were responsible for more than 40% of the zone‘s 2001 economic growth. We have developed a framework of administration that allows a small government and is effective enough to boost the zone‘s development. Besides, we have instituted the one-station service system to streamline the procedures for the handling of investment-related matters. Thanks to this and other measures, the year 2001 saw one investment project put into operation in every 12 days in the zone. The zone is now home to enterprises set up by numerous world famous conglomerates.
In the new century, the Zhengzhou Economic and Technological Development Zone will undergo the following strategic changes or shifts:
A shift from urbanization of the zone in physical form to improvement of the zone‘s urban functions; 2. A shift from land development to industrial and capital development; 3. A shift from reliance on preferential policies for development to work for an all-round improvement in the zone‘s investment environment; 4. A shift from government-orchestrated development to market-oriented development; 5. A change of the zone‘s basic function from one of self-development to one of serving the effort of Zhengzhou City to accelerate the process of urbanization and of Henan Province to achieve economic and social development throughout the province.
An intelligence-oriented development zone features a combination of the knowledge-driven economy, scientific management and sustainable development. First of all, an intelligence-oriented economic zone should rely on new and hi-tech industries, new and hi-tech enterprises and a contingent of highly qualified specialists for development. Secondly, it should concentrate on innovation in ways that conform to international practices and cater to the modern market economy. Thirdly, it should apply the methods of modern scientific management in a perfect manner. And last of all, it should be ecologically and culturally sound, affording a clean, tranquil living environment, permeated with a cultural atmosphere and full of vitality.
Development of intelligence-oriented development zones is our strategic choice in the wake of China‘s entry into the WTO. State-level economic and technological development zones came into being since 1984. And since then, these have become important showcases of local economies and played a pivotal role in efforts of their respective areas to build up a foreign market-oriented economy. State-level development zones have developed into new economic engines able to ensure a rapid grouping of the various factors of production and a high speed of economic growths, into bases designated to promote scientific and technological progress. Through their development, we have found a set of new methods for managing regional economies. At present, however, economic and technological development zones are facing tough challenges, challenges that accompany the ever-intensifying process of economic globalization, the arrival of the information era and the changes in China‘s macro-economic situation.
Economic and technological development zones are the first in China designated to try out the market economy and international practices. In the wake of China‘s WTO entry, they should fully exploit their competitive edge as regional economic centers take as the ultimate objective the development of industries that are competitive on the world market. In striving to become intelligence-oriented, economic and technological development zones will effectively restructure their industrial setup, rebuild an industrial advantage, and realize their shift from a quantitative expansion to a qualitative leap forward. They will accomplish the historical mission that calls for a self-rebuilding.
Development of intelligence-oriented development zones is the inevitable choice by economic and technological development zones to promote their economic and social progress in the 21st century. The rapid pace for the development of economic and technological zones is attributed mainly to the preferential policies they are allowed to practice. In the new phase of their development, however, they will have new and special functions to perform. The preferential policies were once the driving force for the rapid progress observed in economic and technological zones. As implementation of China‘s reform and opening up forges deeper and in an all-round way, the preferential policies, while helping spur regional economic development, have become less important. In view of this, economic and technological development zones should abandon the old mentality of relying solely on policy privileges for development. Instead, they must spare no effort to create a new competitive edge.
Agriculture will remain the foundation for economic growths in the future, but it will have to depend on non-agriculture industries for further development. Non-agriculture industries are mostly in cities and depend on infrastructure facilities there for survival and expansion. For this reason, development of cities will be vital to the development of non-agriculture industries and, in turn, promote economic growths in surrounding areas. The current Tenth Five-Year Plan period, nay, the period from now to the mid-21st century, will be of key importance to development of the country as an accelerated pace of urbanization and modernization constitutes a salient feature of China. Construction of the development zones is, in itself, a massive drive of urbanization. Many cities have been expanding on the basis of construction of development zones. For example, Shanghai has opened up the Pudong New Area that covers 522 square kilometers. Wuhan City has decided to expand the land area of its development zone from 31 square kilometers to 110. In just ten years, Suzhou City has doubled in area thanks to the development of the Suzhou Development Zone. In fact, it is same worldwide. Since 1954, many new cities have come into being on basis of construction of development zones.
Development zones have enjoyed the most vigorous economic development relative to other parts of the country. International experiences indicate that a country, a region or a city cannot become economically prosperous if it fails to ensure a constant development of financial, commercial and cultural undertakings. To enable development zones to build up a new competitive edge, we must follow the kind of strategies that call for developing new urban centers that are highly modernized and allow application of international practices. At the same time, we should improve the functions of the existing cities and make the local financial, market, ecological and cultural environment perfectly so as to ensure a well-coordinated development of the second and tertiary industries. In developing intelligence-oriented areas, there is the need for us to attach equal importance to developing the productive forces and regulating the relations of production. Attention must be paid not only to technological development but also improvement of enterprise management, not only development of the second industry but also of the tertiary industry, not only economic development but also the work to accelerate the urbanization process.
To become intelligence-oriented is a realistic choice for the Zhengzhou Economic and Technological Zone in seeking an even faster development. Economic growths imply not only the speed of economic development, but also the structural efficiency of an economy and its quality and performance. A high speed of economic development is possible only when the economic structure is rational. In other words, the structure of an economy is the engine for its development. Two yardsticks are used to measure the level of development for a given economy: the aggregate volume of the economy and the speed of its development, and the structure of the economy and its efficiency. The Zhengzhou Economic and Technological Development Zone has already done a good job of infrastructure development, developed a fairly good investment environment and by and large accomplished the task of primitive accumulation of capital. For an extraordinarily high speed of development in the early 21st century, it is a must for the zone to speed up an innovation-oriented economic system and rationalize its industrial structure through readjustment. To make itself intelligence-oriented by developing an open, advanced industrial structure is undoubtedly a fundamental requirement if the zone is to realize the projected shift.
To attract investment projects in ever-growing numbers and more advanced technologically through increasingly tough competition, the Zhengzhou Economic and Technological Development Zone should strive to full display its unique characteristics, develop name brand products to its credit and increase its appeal to investors. To achieve the purpose, what is essential is to allow investment not only in the form of capital but also of intellectual property, technology, knowledge or information and translate these into products of the highest value to society. In other words, there is the vital need for the zone to develop an innovation-oriented capital market along with a number of enterprises producing name band or intelligence-based products that enjoy a ready market in China and abroad.
Practice over the past two years shows that it is hopeful for the Zhengzhou Economic and Technological Development Zone to eventually become intelligence-oriented. The zone has built up a software park, a high-tech industrial Park, an industrial park special for high-tech companies started by Chinese who have returned after obtaining degrees abroad, and a technological innovation center. It now boasts a system of electronics information, mechnical-electrical integration and modern bioengineering industries, and has to its credit a range of products with exclusive intellectual property rights, a high technological content and a high market prospect. In August 2001, the central authorities designated the zone as a state-level center for technological innovations. Some 60% of the investment projects attracted to the zone in the year are high-tech in nature, and high-tech projects were responsible for more than 40% of the zone‘s 2001 economic growth. We have developed a framework of administration that allows a small government and is effective enough to boost the zone‘s development. Besides, we have instituted the one-station service system to streamline the procedures for the handling of investment-related matters. Thanks to this and other measures, the year 2001 saw one investment project put into operation in every 12 days in the zone. The zone is now home to enterprises set up by numerous world famous conglomerates.
In the new century, the Zhengzhou Economic and Technological Development Zone will undergo the following strategic changes or shifts:
A shift from urbanization of the zone in physical form to improvement of the zone‘s urban functions; 2. A shift from land development to industrial and capital development; 3. A shift from reliance on preferential policies for development to work for an all-round improvement in the zone‘s investment environment; 4. A shift from government-orchestrated development to market-oriented development; 5. A change of the zone‘s basic function from one of self-development to one of serving the effort of Zhengzhou City to accelerate the process of urbanization and of Henan Province to achieve economic and social development throughout the province.