Hubei's capital poised to grow

Innovation, industry drive GDP in provincial seat

Wuhan, capital city of Hubei province, is a rising star among cities in Central China due to its rapid economic development in recent years.

Local officials said the city, which has a population of around 10 million, has seen its economy grow at an average annual rate of 12.5 percent over the past several years, making it one of the fastest-growing cities in the nation.

Official statistics show that the city's GDP hit 675.62 billion yuan ($107.42 billion) in 2011, more than double the 2006 figure. Its economy topped the list of all cities in central China and ranked fifth among 15 major cities nationwide.

Wuhan's good economic performance is partly attributed to its industrial strength, a senior city official said.

In 2011, four major industries - auto and auto parts, information and electronics, steel production, and equipment manufacturing - each generated an economic output of more than 100 billion yuan.

The performance of the city's optoelectronics industry was even more outstanding, with Wuhan companies capturing a 55 percent share of China's optical fiber market and 25 percent of the market worldwide in 2011.

Other industries, such as petroleum engineering, food processing, alternative energy, environmental protection, and services outsourcing, are also forging ahead rapidly.

Innovation capacity

Its capacity for innovation is another element that has contributed to Wuhan's rapid growth, local officials said.

Wuhan ranked first among China's top 10 most innovative cities in the year 2011, according to a list released in January that was compiled by Guangming Daily, the Chinese Academy of Science and Tsinghua University.

This honor is the result of the efforts the city government has made to promote innovation since the State Council approved the Wuhan East Lake High-Tech Zone to establish a national demonstration zone of independent innovation in 2009.

As of January, the innovation zone had established 13 technology business startup parks, 11 industrial technology alliances as well as more than a dozen technical centers and other service agencies to help new companies get off the ground.

"All of these qualities are helping attract investors," a city official said.

As of the end of 2011, nearly 6,000 foreign enterprises had established their operations in the city.

According to figures released in August, 93 of the world's top 500 companies have invested in 124 projects in Wuhan, with the number expected to exceed 100 within the year, the official said.

In order to sharpen its competitive edge in attracting investment, the city government also launched an effort to streamline administrative procedures in 2011.

Better service

The government has done away with a large chunk of procedures that enterprises must go through and made some services free. It is even grouping relevant government departments to offer one-stop services to enterprises, local officials said.

As a result, the time span for enterprises to finish administrative procedures for starting business in the city's high-tech zone has been reduced to 15 working days on average, with the longest no more than 60 working days.

The city's appeal to investors also lies in its sound infrastructure, local officials said.

A key transport hub in China, Wuhan has dozens of railways, roads and expressways.

The city has 138 financial institutions, including banks, insurance companies, and securities companies, making it the fifth financial center after Beijing, Shanghai, Guangzhou and Shenzhen.

Wuhan International Expo Center, which has a total floor space of 180,000 square meters, is the fourth largest exhibition center across the country.

The city's bonded logistics area is also among the first batch in China.

lifusheng@chinadaily.com.cn

(China Daily 10/15/2012 page24)