Chengdu Hi-tech Zone gained 1.05 billion US dollars in exports from January to November in 2007, increasing nearly 50 percent comparing to the same period of last year and taking up more than 25 percent of Chengdu's total exports. Its net export amount ranks the first of all the city's industries. Chengdu Hi-tech Zone is a perfect example of China's model of foreign trade and exports as it is one of the pilot parks embodying the policy of the Ministry of Science and Technology to create a world-class high-tech park and also present a unique pattern.
To promote foreign trade by industry
According to the instruction from Hu Hongbing, the district director of Economic and Trade Development Bureau, Chengdu has its own special export processing zones. Chengdu Hi-tech Zone seems to be doomed to be the fresh blood and nurturing force for Chengdu's foreign trade industry for its core and radioactive location.
After years of accumulation, Chengdu Hi-tech Zone has developed to an industrial pattern with leading industries like IT, biomedical, precision machinery manufacturing, and industrial scale continues to expand leading gradual apparent regional advantages. In 2007, the added value of the three leading industries is expected to rise to 75 percent of that of the park as a whole, increasing 13.5 percentage points compared to 2003. Among them, the added value of IT will reach 60 billion yuan, increasing 45 percent; added value of biomedical industry to achieve an increase of over 30%; the added value of precision machinery manufacturing industry will increase by over 40 percent.
According to Hu Hongbing, the three leading industries are the major source of export. "These three industries have certain comparative advantages. For example, a drill of Hundred Cityray is worthing hundreds of thousands of yuan. It really contains high technical standard, thus greater international competitiveness. Biomedical industry also shows good development prospects for the Ministry of Science and Technology has granted Export Base plate. Furthermore, the emerging software and services outsourcing have made tremendous contributions for the export of high-tech zones. Up to November, software and services outsourcing export have gained100 million US dollars."
In addition, he pointed out that traditional industries such as auto parts and modern Chinese medicine could also become the potential export advantages through technical upgrading.
Independent Promotion of Brand
Someone from Chengdu Hi-tech Zone thinks that our country was in the climbing stage in exports. "As a whole we are still at the low-end of industrial chain, and we are still at a disadvantage place in trade. Plan is under brewage about how to promote comparative advantage and export higher added value products in high-tech zones" someone said.
According to Hu Hongbing, independent brands are also facing imperative promotion, requiring momentum and mechanism for export. Some enterprises, especially enterprises in the mainland don't have a correct understanding of their own brands. Because of the high threshold of exports and the numerous rules, they simply do low-end work for foreign brands. It is a normal process to begin with, but it is very unfavorable to the country's economic development when it lacks later corrections and lasts for a long term."said Hu Hong bing, enterprises will have to give up most of the profit from product design to manufacture if they are not working on their own brands.
Misunderstanding of the policy also results in wrong concept of some enterprises in the Chengdu Hi-tech zone. Exporting enterprises in the coastal areas usually use export credit insurance. "Why pay the guarantee fee? It is considerable secure to do business with old customers." They did not see the point that the export credit insurance can reduce export risks, and can also become a means of financing.
Chengdu Hi-tech Zone is also trying to eliminate the fear of SME about exporting. "In monetary policy and trade policy, the high-tech zones have to provide convenience for enterprises." Hu Hongbing said that from 2005, Sichuan Department of Commerce and Sichuan Department of Finance decided to support enterprises achieving good business performance with subsidies, so as to encourage the export enterprises in Sichuan. In response, the Chengdu Hi-tech Zone has improved the management system for export goals and established a work contacting mechanism for foreign trade section of key projects and service system for improving export, so the structure of export products has been further optimized.
Hu Hongbing said: "These policies are mainly targeting at the small and medium enterprises, hoping that they can gradually establish international vision and concept of building bigger and stronger independent brands."
