Special Supplement Yantai series III: Economic zones power Yantai's growth

A group of economic zones are developing rapidly in Yantai, leading its growth and opening-up process.

Sixty percent of Yantai's hi-tech enterprises and more than 50 percent of its foreign investment are concentrated in these areas.

Since the setting up in 1984 of the Yantai Economic and Technological Development Zone, the first State-level economic zone in the city, an export processing zone, a hi-tech industrial park and more than 10 economic zones with different characteristics have been established in Yantai, all of which have contributed to the breakthroughs achieved in economic development of the region.

Relying on their own diligence and wisdom, the city has, over the past 20 years, been instrumental in transforming the barren saline land of Yantai into today's modern garden city, which attracts the world's attention. Its development zones have now become investment hotspots.

Nearly 40 of the global top 500 enterprises, from 37 countries and regions, including the Republic of Korea, the United States, Japan, and Hong Kong Special Administrative Region, have begun operations in these zones, creating an endless supply of material wealth for Yantai.

The zones have five product clusters - car, cell phone, computer, shipbuilding and equipment manufacturing. They are home to China's important production bases for fiber, vehicles and auto parts, 3G mobile communications and desktop computers, and consumer electronics.

They also produce a large number of brand name products, such as Chevrolet Sail cars, Doosan excavators, LG mobile phones and Niushida chemical fiber.

In this new scenario of rapid growth, the Yantai Development Zone is moving toward becoming a major industrial, hi-tech, and environmentally optimized zone.

The Yantai Export Processing Zone, approved by the State Council, was completed in 2004, becoming the second State-level economic zone in Yantai, after the Yantai Development Zone.

Late last year, it was designated as one of seven experimental regions in the nation for the carrying out of expanded and bonded logistics and other functions.

Other functions added to the zone's original function of processing and manufacturing, include bonded warehousing, logistics, distribution, research and development, testing, maintenance, international trade and re-export trade.

The Yantai Export Processing Zone is located in the city's northern area, giving it the advantage of district and harbor facilities.

The zone also has access to an advanced expressway in the north, and is a vital link between Yantai Port and the rapidly developing eastern region.

The streamlined bonded logistics offered by the zone, together with its smooth interaction with the port, has attracted transnational logistics companies to the area, which has acted as an impetus to the port's development.

Yantai Export Processing Zone has met the current policy and functional requirements of China's bonded areas and bonded logistics parks.

It is the leader among all the regions undergoing opening-up in the country and also enjoys preferential policies, enabling it to become a customs special regulatory region.

Four logistics enterprises have registered in the region, while more than 10 renowned logistics companies from overseas including the United States, the Republic of Korea, Japan, New Zealand and Singapore are evaluating investment options in the area.

The business value of bonded logistics in the zone is expected to surpass $100 million this year.

Till date, Yantai has built two State-level and nine province-level economic zones.

The infrastructure and investment environment in the zones have improved steadily, along with gradual enhancement of industrial advantage. The economic zones have become symbols of Yantai's reform and opening up, and are models of industrial development, the assembling of high and new technology, and city construction.

Last year, exports and actual utilization of foreign investment of the two State-level and nine province-level economic zones reached $4.51 billion and $1.26 billion respectively, accounting for 51 percent and 58 percent of the city's total utilized foreign investment.

(China Daily 05/30/2007 page24)