Pudong continues to fly higher
(ZOU HUILIN)
10/12/2001
In the wake of the global economic slowdown, China's plan to expand foreign trade and to attract more foreign investment is encountering greater challenges. However, Pudong's export-oriented economy seems to be undisturbed and still maintains rapid growth, according to the Shanghai municipal government. Vice-mayor Zhou Yupeng said Pudong has been a strong magnet for foreign investors, thus becoming one of the hottest destinations for international capital. Zhou added: "Thanks to its advantageous geographic location, Pudong is backed up by the Yangtze Delta, the most prosperous region in China, while facing the East China Sea, an important channel to the outside world." Zhou believes, therefore, that Pudong is beefing up Shanghai's economy by attracting more foreign investment in the first eight months of this year compared with the corresponding period last year. The latest statistics show that by the end of this August, Pudong has attracted 7,192 investment projects valued at $37 billion from over 70 countries and regions since its opening-up in 1992. The Pudong district government has attracted 557 investment projects since the beginning of 2001, up 24.9 per cent on the same period last year. The contractual capital of the 557 projects added up to US$1.3 billion, one fourth of the foreign investment attracted to the city during the same period. Zhou also pointed out that foreign investment is functioning as the major impetus to adjust Pudong's and even Shanghai's industrial structure. The cumulative total of contractual foreign investment in Pudong reached US$15.6 billion, among which US$6.3 billion flowed into tertiary industry in Pudong. The added value of the tertiary industry accounted for 48 per cent of Pudong's GDP with a 2 per cent annual increase rate. Foreign investment has enhanced the level of technology, as over 70 per cent of the investment was injected into high- and new-tech businesses and R&D centres of multinational companies in Pudong. Zhou revealed that foreign investment has contributed a lot to constructing Pudong's infrastructure and optimizing its urban planning. The new policy of the district government to grant more companies export rights has substantially enlarged Pudong's export volume. In the first eight months, exports surpassed US$7.5 billion, a 26.9 per cent increase over the same period the previous year. The increase rate is 20 per cent higher than that of the whole country. "Although after the terrorist attacks in the US the world economy is likely to shrink more seriously, we will strive to realize the plan to attract US$2 billion of foreign investment and make exports reach US$11 billion," said Wang Ande, vice director of Pudong district government. Wang pointed out that the district government should detect the latest trends of the world economy and adjust government functions to the change of trends, saying "the government will implement new strategies to boost foreign trade and attract more investment." Recently, the government has taken measures, together with Shanghai Customs, the Commodity Inspection Bureau and the People's Bank of China, to boost foreign investors' confidence in fully tapping the resources of Pudong. Wang said the government will encourage more multinational companies to set up their regional headquarters in Pudong with more market access and preferential policies. At the same time, Pudong welcomes foreign investment institutes with simplified business registration processes and national treatment. The government will attract additional investment from these multinational companies by offering them preferential policies, the same as those offered to new investors like tax cuts. In order to serve the companies already in Pudong better, a hotline is open for complaints of those companies on work efficiency of the government and bureaus related to those companies. The number is 6854-1227 or 6854-1291. The access to the exporting market is also widened to increase foreign trade by granting more export quotas to companies for bidding. On the other hand, the government has just awarded those companies that are performing well in expanding exports like Philips Electronics, Intel, HP, Lucent, and Huahong NEC.
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