Kunshan in right place and time

An aerial view of Kunshan, East China's Jiangsu province Photos Provided to China Daily

 

Adjacent to Shanghai in East China's Jiangsu province, Kunshan is one of the most economically developed cities in China, topping the Forbes China List of Best County-Level Cities for three years in a row.

It is also one of the country's most attractive cities for tourists.

The city's GDP in the first six months of this year hit 125 billion yuan ($19.6 billion), and imports and exports totaled $39.9 billion, said Guan Aiguo, Party chief of Kunshan.

"Kunshan's GDP in 2011 reached 240 billion yuan, which surpassed those of several other provinces," said Guan.

Revenues in its service industry in 2011 reached 90 billion yuan, up 22.4 percent from 2010, and taxes paid by service companies saw an increase of 22.2 percent.

According to Guan, by the end of the 12th Five-Year Plan (2011-2015), Kunshan plans to double its GDP to 400 billion yuan (US$63.5 billion).

Since the start of the five-year plan, it has utilized foreign capital totaling more than $19 billion and contributed 3 percent of China's total trade volume each year.

The city's unique geographic location contributes greatly to its rapid development.

"It just takes about 15 minutes to drive from Huaqiao, a township of Kunshan, to Shanghai's Hongqiao airport," said Yan An, deputy director of the city's publicity department. "It's also along the Beijing-Shanghai high-speed railway, which is very convenient for tourists and businesspersons."

Strategies, advantages

Kunshan's new strategies and advantages in financial services have also helped to spur its continued rapid economic growth, which was about 14 percent higher than the previous year.

"The efficiency of the Kunshan government is well known throughout the country and among those who are familiar with China's investment environment," said Zhao Meng, assistant to the director of the city's Huaqiao International Service Business Park.

"All the members of the local government are devoted to providing good service to investors, even working during weekends and holidays," said Zhao.

Investing in Kunshan is easy and clear, with local government workers explaining the process and accompanying investors through every step, if needed.

More companies have chosen to invest in Kunshan due to its various advantages, including the local government's service, said Zhao. At the 2011 Kunshan Modern Services Industry Investment Seminar, 31 projects worth a total of 9.5 billion yuan were signed.

Foreign direct investment surged 45.4 percent to 646 million yuan over the previous year.

The financial sector of the city last year saw a 25 percent increase in revenues, which hit 9.7 billion yuan, and 70 equity investment funds with about 30 billion yuan under management started operation.

In 2011, the city government took many initiatives to expand the range of financial outsourcing services and stimulate new forms of business process outsourcing (BPO), as financial services outsourcing has become more important to the city's development strategy.

Revenues from domestic outsourcing grew 60.8 percent and offshore outsourcing reached $129 million.

To attract more enterprises to set up headquarters in Kunshan, the local government also offered various policies, which have turned out to be fruitful.

More than 20 world-renowned enterprises have located their headquarters in Kunshan. Thirty companies last year came to the city. Total registered capital of companies headquartered in the city had reached 9.55 billion yuan by 2011.

The city has so far attracted more than 6,700 projects from 56 countries and regions, of which 83 have investments from Fortune 500 companies.

The Kunshan government has focused on a thriving service sector and effective industry restructuring as well achieving a well-balanced industrial structure.

Emerging industries, such as electronic information, robots, industrial mold creation, biological research and renewable energy, are starting to develop rapidly in Kunshan.

"Take the mold production industry for example, more than 800 companies (in this industry) have operations in the city, and the sales of 34 of them have reached 50 million yuan," said Huang Jian, member of the standing committee of the city.

"In 2011 the sales of molds totaled 13.5 billion yuan, which accounted for one-ninth of the country's production (in this category)," Huang said.

"The city's capacity for innovation is vital for its rapid growth and success in the future," Huang said. "The government invests 6 percent of the budget, about 1 billion yuan, into research and its application to promote technological innovation every year."

Kunshan has topped the list of the most innovative Chinese cities at the county level for five years in succession, according to China's Ministry of Science and Technology and the Chinese Academy of Social Sciences.

The city also puts great emphasis on education. It holds six universities and cooperates with many famous domestic and overseas universities, including Duke University, Carnegie Mellon University, the Massachusetts Institute of Technology, Tsinghua University, Peking University, and the Chinese Academy of Sciences.

Kunshan is also known for its livable environment, and attracts millions of foreign and domestic tourists every year.

Zhouzhuang, a beautiful water township nicknamed the Venice of the East, is one of the most renowned scenic spots in China and is known across the country for its delicate watery views. The exotic bridges and houses along the rivers impress every visitor.

Kunshan also has 26 forest and wetland parks and a 44 percent urban green coverage rate. It was recognized with the UN Habitat Scroll of Honor Award for its excellent environmental quality in 2010.

Li Zhuoxuan contributed to the story.

Contact the writer at cangwei@chinadaily.com.cn