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CHINA> Special Reports
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From bust to boom: Changchun resurgent
By Jiang Shan (China Daily)
Updated: 2009-09-11 07:49
Due to the impact brought by the international financial crisis at the beginning of the year, the macroeconomic condition of the Changchun Economic & Technological Development Zone (CETDZ) experienced a temporary slump. However, under the efficient management of the administrative committee of the zone, the local economy has gradually rebounded and stabilized. In the first half of 2009, the regional GDP reached 17.11 billion yuan, increasing by 19.7 percent compared with the same period of last year. Fixed-asset investment, industrial investment, and domestic and foreign investment in actual use all achieved substantial increases of different levels. The manufacturing industry has grown steadily. In the first half of 2009, the auto parts industry realized an output value of 16.5 billion yuan, accounting for 45 percent of the total industrial output value. The grain processing industry increased by 23 percent compared with the same period last year, with Dacheng Group - a leading corn processing enterprise in China -achieving 13.69 billion yuan, an increase of 31.8 percent, contributing to the regional GDP significantly. Investment has also played a prominent role in advancing economic growth. The construction industry saw an output value of 1.7 billion yuan, accounting for 10 percent of the regional GDP, compared to last year's 7 percent. Commercial investment increased its proportion by 8 percent. The industrial structure has further rationalized. The service industry realized a value of 4.43 billion yuan and increased its proportion of the GDP. Investment promotion The administrative committee of the zone has strengthened efforts to promote investment and improve infrastructure and services for local businesses. Because of the authorities' efforts in investment promotion, 89 projects are currently under negotiation, including six each worth 1 billion yuan, nine worth 500 million to 1 billion yuan, and 17 worth 100-500 million yuan. According to the negotiation progress, 24 projects are expected to be signed with a total investment of 13.5 billion yuan in the near future. The Biochemistry Park, a part of CETDZ, achieved progress in introducing investment, infrastructure construction and setting up an R&D center during the past six months. Seven projects are expected to be kicked off while another nine are already on track. An investment of 265 million yuan has been put in the Special Vehicle Park for infrastructure construction. There are 26 projects scheduled for the park with four completed and eight ongoing. The Equipment Manufacturing Park is undergoing negotiations with 20 key enterprises located in Changchun looking to cooperate in the future. The CETDZ has received a loan of 4 billion yuan for the purpose of infrastructure construction, of which 2.18 billion yuan has already been put into actual use. The ample funds ensure further infrastructure and project construction. New plan The CETDZ administration committee has investigated the current situation and discussed the challenges and opportunities the zone is facing. Some officials have been sent to the Yangtze River Delta region to learn advanced management experience from the industrial zones there. Generally speaking, the economic trends are becoming better and better, which lays a firm foundation for the next step of development. However, there are still problems and difficulties existing in the progress, such as the impact of the international financial crisis, the slow introduction of foreign direct investment, and a comparatively weak policy support. To overcome the challenges, the administrative committee of the zone has a new plan for the second half of 2009 and the future. The latter half of 2009 will be a very important period for the CETDZ to keep developing, with more favorable factors than adverse ones in the future. According to the national and provincial guideline of developing several key industries, preferential policies will be provided to the CETDZ to develop local industries. The CETDZ has competitive capabilities and unique industrial advantages to get a head start. The new plan will prioritize the development of three pillar industries - chemicals, auto parts and modern service industries, promote the growth of the food and photo-electronic information industries, and support the pharmaceutical industry. The committee will also strengthen the introduction of foreign investment. By introducing more foreign investment, the CETDZ is able to ensure both infrastructure and project construction. Multinational corporations and the top 500 companies in the world are targets to negotiate and cooperate with. Only with ample funds can the CETDZ keep developing at a steady pace. The new plan will also pay more attention to northern area planning and construction. In the future, the CETDZ's northern area will be the key area to carry out projects and introduce foreign companies due to its convenient transportation network and preferential policy support. |
