REGIONAL> Development
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REGIONAL> Development
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Hunan hopes for better development
By Qian Yanfeng (China Daily)
Updated: 2008-06-30 15:00 But Hunan is not only on the lower-cost side. The province has a sound industrial chain with engineering machinery, non-ferrous metallurgy, information technology, software and food processing ranking high within the country. Two of China's leading engineering machinery manufacturers, Sany Heavy Industry and Changsha Zoomlion Heavy Industry Science & Technology Development Co Ltd, are in Hunan. "Many people don't know how advanced manufacturing has become in Hunan, which truly is world-class," says Jeffrey Bernstein, an independent director at Valin Steel Tube and Wire Co Ltd based in Hunan's provincial capital Changsha. He is also the chief trade representative for the United States state of Ohio in China. "Hunan is logistically favorable to companies looking to invest in inland China," says Bernstein. "It is attractive to foreign companies that are seeking access to new markets as the people there are getting increasingly wealthy and many suppliers and customers could be found there." The interest in foreign direct investment in Hunan is amply reflected in the 18 percent growth rate in airport traffic and almost 10 percent in logistics cargo last year. According to Bernstein, there is already $6.4 billion of foreign direct investment in Hunan, and of that $4.4 billion has been used. The province is also accelerating the improvement of its business environment and offering investment incentives through the construction of large-scale logistics centers, human resources training, preferential policies and the development of other related service industries. However, Hunan still needs to build on its R&D capabilities and speed up innovation in the manufacturing industry, says Xiang Lili, director of the provincial commerce department. "While we welcome labor-intensive manufacturing industries to help absorb the labor force in Hunan, we also want to attract more high-end manufacturing industries such as electrical information, bio-pharmaceutical and new materials in first-tier cities to build up independent innovation and create our own brands," says Xiang. Changsha, for example, is fast climbing up the industrial value chain with the development of service outsourcing. As one of the first few cities in China approved by the government as a base for the development of service outsourcing industry, the city now boasts 700 enterprises within the industry. Many of them are engaged in overseas service outsourcing business, especially in software and animation. With strong science and technology strength and abundant talent, the city provides one-stop service for companies looking to invest there and help build up their core business, says Zhao Yuesi, director of the municipal economic committee. Resource preservation is also a top priority, says Zhou Qiang, governor of the province. In December 2007, three cities within the province - Changsha, Zhuzhou and Xiangtan - were officially tapped to be "national pilot zones for developing an environment-friendly and a resource-saving society". These cities will usher in a new model of industrialization and urbanization in China, Zhou says.
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