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Weifang banks on internationalization
2015-12-15

Plans to make high-tech zone a national pilot area, ZHUAN TI reports.

China has been adapting to its new normal of economic growth in recent years. The Weifang government has deepened reform by promoting technology development, internationalization, ecology development and improved law enforcement. The local authorities hope such moves can accelerate industrial upgrading, develop local industrial features and maintain growing market prospects.

Weifang decision-makers believe internationalization will generate strong power to support cities' development. They plan to accelerate their internationalization process to build the Weifang High-Tech Industrial Development Zone into an internationalization pilot area in Weifang.

The development zone strives to promote internationalization in innovation, industrialization and living environment to attract foreign experts to the region.

'3+1+N' Model

Wang Xianling, deputy secretary of the CPC Weifang committee and secretary of the CPC Weifang High-Tech Development Zone Working Committee, believes that internationalization is a key strategy to enhance quality and operational efficiency of the city.

The 3+1+N Innovation System is a unique strategy developed by the zone to promote innovation. According to authorities of the development zone, the model is supported by three innovation platforms, one overseas incubator and many development institutions including the China Academy of Machinery and Science and Technology.

Blue Wisdom Valley is the core technological hub in the development zone. Three national leading industrial parks supported by Peking University, Tsinghua University and the Chinese Academy of Sciences are also situated in the valley.

Weifang banks on internationalization

Blue Wisdom Valley is the core technological hub in the development zone. Three national leading industrial parks are situated in the valley.

It is the first time that three parks representing top-level technologies in China have gathered in one city outside Beijing.

A sculpture named Chong Gou, which translates as "Restructure", in the valley symbolizes the strategy of the development zone.

"Chong Gou symbolizes never-ending exploration and innovation in the development zone," said Lyu Chuanchang, director of the BWV service center. "The development zone will serve as a power engine in promoting regional industrial upgrade, innovation and green development."

BWV is a market-oriented, government-supported and professionally operated innovation platform. It acts as a research results commercialization and technological resources sharing platform.

It promotes cooperation between the development zone and research institutions such as the China Academy of Machinery Science and Technology, Northeastern University and Shandong Academy of Information and Communication Technology.

There are nine public technological platforms and 233 business research and development centers at BWV. It is the center of innovation and high-end industries in Weifang.

In 2014, the InnoSpring Incubator went into operation in Silicon Valley. It is Weifang's first overseas technology enterprise incubator, according to the development zone.

"Silicon Valley is the innovation hub of the world," said Pan Haoquan, director of the zone's international cooperation office. "We will have better connections with Silicon Valley through the InnoSpring Incubator. We hope we can have cooperation in projects, technology, talents and resources sharing."

The zone administration said InnoSpring is the first of its kind in Wei-fang to incubate businesses abroad and accelerate business development in the Chinese market. It is a gateway between Weifang and Silicon Valley.

Weifang banks on internationalization

Lovett Homes, an architecture and technology company in Weifang, is engaged in architectural service outsourcing and instructs American workers online to turn Chinese ideas into reality. photos provided to China daily

In the past year, Innospring has cooperated with leading institutions including the Hanhai Incubator; the University of California, San Diego; and the Houston Technology Center. More than 40 US companies have opened offices in the incubator.

The development zone partnered with the China International Technology Transfer Center to establish the Weifang International Technology Transfer Center, which aims to attract advanced technologies from Germany, Israel and the United States. The authorities plan to provide financial support to companies that are keen on promoting technological innovation, academic exchanges and brand building.

By strengthening cooperation with incubators in Israel and Russia, top global talents and technologies are flowing into the development zone, said the authorities.

Local companies such as Harrens Inspection and Neo Ocean Software are expanding knowledge channels by developing incubators abroad.

Created in the zone

Song Chifeng, deputy secretary of the CPC Weifang High-Tech Development Zone Working Committee and director of the zone's administration committee, said promoting cross-industry innovation, continuous innovation and disruptive innovation are important to support Weifang's internationalization.

The authorities are promoting the concept of "created in the development zone" to better connect with the global market. The development zone encourages companies to establish international brands to strengthen product competitiveness in overseas markets. The development zone has 771 global brands, including 326 registered in 2015.   

"The increasing number of international brands suggests our products are competitive in the global market," said Hu Wenxing, member of the CPC Weifang High-Tech Development Zone Working Committee and director of the zone's market supervision administration.

Shengrui Transmission Corp is an innovation star in the development zone. Its 8AT automatic transmission received the national Patent Golden Award in the transmission sector in China in 2011.

Shengrui was an engine parts supplier when it was launched in 2003.

Weifang banks on internationalization

An 8AT production line at Shengrui Transmission Corp. The company is an innovation star in the Weifang High-Tech Industrial Development Zone.

Liu Xiangwu, chairman of the board of Shengrui, said a few years ago that low-end manufacturing businesses would not remain sustainable.

Shengrui has been exploring a companywide transformation since 2007 when the low-end market was prosperous. The management has focused on automatic transmission development, especially the 8AT transmission that represents the most advanced technology in the industry.

Shengrui partnered with many parties to promote its 8AT transmission development, including Beihang University, Ricardo in the United Kingdom and Jiangling Motors Co.

The Jiangling Windland X5 SUV equipped with Shengrui's 8AT was rolled out in September 2014, becoming the first China's automobile to feature the 8AT.

"8AT combines Germany's design, the United Kingdom's technologies, South Korea's equipment, Japan's management and Chinese production," said Yin Chunlei, a department manager in Shengrui. "Global cooperation supported the development of 8AT."

In addition to its R&D centers in Weifang, Shengrui has other R&D centers in Qingdao and Beijing. It also has R&D centers in Germany and the United Kingdom.

In August 2015, Shengrui launched a branch in Rochester, New York. Shengrui is seeking better development in the US market after establishing strong relationships with global giants such as Fiat, John Deere and Navistar.

Yin said that learning from global automotive businesses in the initial stage and then expanding in the global market was a wise decision for Shengrui.

"The demand for traditional products is declining in 2015. However, the demand for new products is increasing," Yin said. "If we did not have 8AT, we would see slower development."

"Industry globalization is one of the most important strategies for companies to achieve better results under the new normal," said Pan of the international cooperation office.

Continuous overseas acquisition is Weichai Power's strategy to achieve industry globalization.

Weifang banks on internationalization

China Weichai Power formed a long-term partnership with Germany's forklift truck maker Kion at a signing ceremony in 2012.

In 2009, Weichai acquired Moteurs Baudouin SA .

In 2012, Weichai took control of the world's largest luxury yacht manufacturer Ferretti. It formed a long-term partnership with Germany's forklift truck maker Kion in the same year.

In 2013, Weichai partnered with the Ferrari racing team in Formula One and signed an alliance agreement.

In 2014, Weichai acquired Linde Hydraulic, relaxing China's dependence on imported hydraulic products.

Weichai was ranked 70th in the Fortune 500 ranking for Chinese companies in 2015.

GoerTek, the electro-acoustic components, electrical accessories and LED packaging manufacturing company in Weifang, is also taking measures to support the national transformation from "Made in China" to "Created in China".

The company acquired Denmark-based loudspeaker maker Dynaudio in 2014.

The move is a milestone in GoerTek's globalization process. GoerTek will obtain valuable technologies from Dynaudio. Those advanced audio technologies will allow GoerTek to run a complete industrial chain.

GoerTek started business as a sub-contractor for a Taiwan supplier and rapidly grew into one of the largest suppliers of Apple. It is taking a leading position in the bluetooth earphones, 3-D glasses and MEMS microphone global markets.

GoerTek's products are distributed in countries and regions including Japan, South Korea, North America and Western Europe. It is one of the most important acoustic and optic products research and development centers in the world, according to company.

"Traditional manufacturers will not have good development if they do not explore technologies and resources in overseas markets," Pan said.

Authorities said more than 100 companies in the development zone have expanded their distribution channels in foreign markets. Companies in the development zone also established more than 100 representative offices, sales center and research and development centers abroad.

International lifestyle

The authorities are enhancing the living environment in the development zone to make the region more suitable for international residents.

Weifang banks on internationalization

Teachers at the Ameri-Can International Academy speak with students after class.

The authorities expect the region to develop a leading international community in Weifang by 2020.

The development zone is breaking the language barrier by installing signs in other languages in public areas. Door signs in the Second Incubator are in Chinese, English, Japanese and Korean, so visitors can find related offices easily.   

"Developing an international living environment is a key task for the development zone," said Zhang Xiaoqing, deputy director of the zone's international cooperation office.

This year, the development zone has invested 1.14 billion yuan ($178.18 million) on 79 municipal engineering projects and 17 community construction projects.

There will be more international kindergartens, medical centers, apartments for foreign residents, cafes and bars to meet the demand of foreign experts and investors, said the authorities.

The Ameri-Can International Academy was established in June 2014 by the development zone and the CIBT Education Group. The international school has students from countries including Brazil, Singapore and South Korea. The development zone has built another international school and plans to build one more.

The development zone also launched the first English-language newspaper in Weifang and an international television channel in 2015. It published a booklet to provide foreigners with better knowledge about the region.

Local companies are also enhancing the living environment for foreign experts. GoerTek and Weichai plan to build two international communities that include clubs, residential apartments and hospitals for foreign experts.

Han Bing and Liu Cuiying contributed to the story. Contact the writer at zhuanti@chinadaily.com.cn

 
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