Changchun reaches milestones in 2007

The Changchun Economic and Technological Development Zone witnessed robust economic growth in 2007.

The zone's gross domestic product (GDP) reached 26.6 billion yuan during the year, increasing 37 percent compared with 2006.

Incremental industrial value grew 32 percent to 17.5 billion yuan, while industrial output value soared to 62 billion yuan, an annual increase of 42 percent.

Pillar industries played a leading role in realizing this phenomenal growth of the development zone in Changchun, capital of north China's Jilin province.

The traditionally advantageous automobile and auto parts sector maintained a strong growth momentum and contributed 31.2 billion yuan to the zone's total industrial output value last year.

The food processing industry also achieved 17.62 billion yuan in output value last year, increasing 25.9 percent year-on-year.

With a growing consumption rate and the support of preferential policies, the emerging modern service industry in the zone realized an incremental value of 5.6 billion yuan, up 30 percent from 2006.

The big companies also made an outstanding contribution to the zone's total industrial output value.

Sixty-one key industrial enterprises achieved 53.7 billion yuan in output value, accounting for 86.6 percent of the zone's total.

In spite of the rapid economic development, the zone was able to cut its energy consumption by 4.6 percent year-on-year, thus using the least energy among all of Changchun's development zones.

Investment boom

Investment projects are a driving engine for the local economy, and the Changchun municipal government gave top priority to supporting the progress of investment projects last year.

Based on the municipal government's plan, the zone authorities have intensified efforts in facilitating project construction.

Last year alone, 184 projects were under construction in the zone. So far, 28 of them have been put into operation.

According to the administrative committee, the investment projects under construction have set a record in the zone's history in terms of number and investment value.

The zone has secured 40 big projects, each with an investment value of 100 million yuan or more, and with five exceeding 1 billion yuan each.

Meanwhile, fixed-asset investments amounted to 15.9 billion yuan, an increase of 46 percent year-on-year, including 10.1 billion yuan in industrial sectors.

Incremental annual output value of the new projects is expected to reach 85.4 billion yuan once they all become operational.

By the end of last year, the zone had another 206 new investment projects lined up for construction.

According to the figures released by the zone administrative committee, actual used foreign and domestic investments in 2007 stood at $689 million and 4.94 billion yuan respectively, increasing 24 and 16 percent year-on-year respectively.

Industrial parks

Industrial parks are the backbone of the zone's economy. Parks for corn, special purpose vehicles (SPV) and auto parts industries, in particular, have provided perfect platforms for related investment.

With a high level of technological development in the use of corn as biological energy, the corn industry park, supported by vast fertile cornfields in northeast China, has attracted 80 projects, of which 14 have been signed, involving a total investment value of 1.56 billion yuan.

As the birthplace of the country's auto industry, Changchun has strong manufacturing facilities and a well-trained labor force. First Automobile Works (FAW), a leading Chinese car manufacturer, is headquartered in the city.

Thus the zone enjoys a unique advantage in developing the automobile and auto parts sector.

Over years of development, the auto sector has become one of the pillar industries of the zone.

China's demand for automobiles jumped to second highest in the world in 2006, yet the nation still lags behind in manufacturing SPVs. In view of this, the zone set up a SPV park in 2007, seeking to enhance China's strength in this segment.

The park, the first of its kind in China, was designated as a key SPV production base in the country by the China Association of Automobile Manufacturers last year.

At present, five SPV manufacturers, including FAW Special Vehicle Co and Tempo Commercial Vehicle Co, have established operations there, producing 341 types of SPVs.

At the same time, 83 makers of auto parts offering thousands of components, and 10 research and development centers seen as a strong force to ensure sustained development of the SPV industry, have added value to the park.

Sound environment

Following a 2.12 billion yuan investment in infrastructure construction in 2006, authorities poured a further 1.73 billion yuan into the zone last year in a bid to improve the investment environment.

The money has been used to build and extend 16 roads, begin or continue the construction of three transformer substations and five boiler houses, complete the building of a number of factories and an exhibition complex, as well as add 300,000 sq m of green belt and revamp public facilities in the zone.

The authorities are exploring a new development mode for the zone in order to shift its focus from being a manufacturing base to a technology innovation base.

With 10 firms recognized as hi-tech companies by the authorities last year, the number of hi-tech companies in the zone has now reached 91.

Local companies are being encouraged to strengthen technological innovation. After technical reforms, 17 companies created an incremental output value of 1.96 billion yuan in 2007.

Improving administrative services is also high on the agenda for the zone.

Key companies in the zone are invited to the zonal authorities' regular meetings, a move aimed at helping investors solve problems they may encounter.

In 2006, the zone ranked 15th among 54 nation-level economic and technological development zones in terms of comprehensive investment environment, according to an evaluation by the Ministry of Commerce.

Locals benefit

Locals have benefited a lot from the zone's dynamic growth, with the government allocating 348 million yuan as a special fund to improve living standards.

A system of basic medical care insurance has been extended to both urban and rural residents in the zone.

Insurance coverage in terms of medical care, endowments and work injury has been expanded to include more people.

In 2007, the government invested 11.5 million yuan in revamping facilities in residential communities.

Moreover, the authorities hosted 53 job fairs, which helped 3,733 locals find jobs.

Rural residents also had their share of the boom, with per capita income of farmers in the zone increasing by 12 percent over 2006 figures.

(China Daily 03/05/2008 page17)