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Profile of Xiangfan Hi-tech Industrial Development Zone
Xiangfan Hi-tech Zone is approved by the State Council as a state level development zone in November, 1992. In order to merge resources, complement superiorities and quicken development, Xiangfan Municipal Party Committee and Government under the approve of Hubei Provincial People’s Government in February, 2005 decided to merger former Xiangfan Hi-tech Industrial Development Zone and former Xiangfan Economic and Technological Development Zone of Motor Industry to Xiangfan State-level Hi-tech Industrial Development Zone. 
   
With a general population of 120,000, it has an overall area of 96 square kilometers among which built-up area is 17 square kilometers. It is not only the core zone of master planning of Xiangfan City, but also an aggregating area for Motor Industry and Military Enterprises, and an area with densest technologies and intellects neighboring Hubei, Henan, Chongqi and Shaanxi. Currently the Hi-tech Development Zone has attracted the investments from more than 20 countries and regions such as America, Japan, France, Germany, Korea, South Africa, Singapore, India, Hong Kong, Taiwan, etc. There are 1766 registered enterprises among which 152 are Hi-tech enterprises under the approve of the Scientific and Technological Office; 4 are ranked in world top 500 enterprises; 4 are listed companies; 2 have tens and billions of industrial output value; 2 have an output value between 2 and 5 billion yuan; 3 have an overall income of more than 1 billion.  

Along the lines of ecological environment, characteristic architectures, mating facilities and modern functions, a hi-tech development industrial park and a Auto industrial park were built up in the zone. In the hi-tech development industrial park which focuses on development of aviation and space flight, optical-mechanical-electrical integration and so on, 37 enterprises have settled down; in the auto industrial park which has a general layout area of 8 square kilometers above which 40 enterprises are being built and 7 have started their production.

With the economic and social development, Xiangfan Hi-tech Development Zone has been making great progress in both inviting businessmen and attracting capital and project construction. Ranking the 35th place among 53 national-level hi-tech development zones in the whole country, it was awarded the title of “an excellent development zone” by Hubei Provincial People’s Government in 2006. In the past 15 years it has formed 4 pieces of advantages gradually in terms of both inviting businessmen and attracting capital and opening to the outside world.

First of all, with the excellent dominance of location, it lies on the north outskirt of Xiangfan City which is a famous historical and cultural city well-know as the channel of seven provinces, as well as one of China Best Cities. Neighboring Xiangfan Railway Station and Xiangfan Airport, it is crossed by No.316 and No.207 national highways. Four freeways such as Wei-Fan, Xiao-Xiang, Han-Shi and Xiang-Jing meet in the area, which lead to other big cities such as Beijing,Shanghai, Guangzhou, Xi’an and so on. From the development zone, it takes 5 minutes to arrive at national freeway network, 10 minutes to Xiangfan Railway Station and 15 minutes to Xiangfan Airport.

Secondly it has increasingly outstanding industrial dominance. Through 15-year-long construction and development, Xiangfan Hi-tech Development Zone has formed the industrial structure of one supporting industry and three groups of industries. One supporting industry is the auto industry. It has set up the industrial structure of integration of entire car and key parts of car. There are main enterprises for auto design, trial and manufacture as below: a car R&D center with the scientific research facilities of advanced world standard; a motor quality detection center (test-running yard) with the most self-contained functions the biggest scale in Asia;    

Thirdly as for the dominance of policy, Xiangfan Development Zone as one of 2 national-level hi-tech development zones in Hubei Province can play four national cards, namely, national-level hi-tech development zone, national-level center for establishing business, national industrial base for auto power and key components and parts, and national trial field. Among them national industrial base for auto power and key components and parts is one of 7 biggest national characteristic industrial bases. The enterprises which established their business in the zone can not only obtain the high-grade and efficient services, but also enjoy preferential policies on reduction and exemption of taxes which are authorized by the country. All above create a favorable external environment for self-innovation and rapid development of the zone. 

Fourthly it has the dominance of particular environment. Entrenching the concepts such as “environment is productivity” and “subject of service market is important”, we offer favorable service by means of multiple stratification, wide field and omni range to the enterprises in the past 15 years. In terms of hardware construction, we have recently invested 1 billion in total to better the infrastructure construction continuously; relying on Xiangfan Custom Office, Inport & Export Inspection and Quarantine Bureau, Bonded Physical Distribution Center and Freeway Passenger Station, we have set up the first highway port in the whole province so as to ensure the inport & export trade. As for the construction of soft environment, we have set up series of system of policies on merchants and traders’ investment. In order to create a good environment for the production of enterprises, we have also simplified the procedure on business affairs and improved the efficiency of work, meanwhile, we have carried out a perfect system on business dialogue and negotiation to know how the enterprises go and help them resolve the problems in the process of production operation.    

In the period of the 11th five-year plan, under the demand of the theory of scientific development we shall put forward the guideline, namely, using the hi-technology, expanding the industrial field, extending the complement and gathering development. Depending on the development flat “one zone two parks”, we shall carry out the strategy that innovation makes the zone lasting, project makes it flourishing, industry makes it puissant and opening makes it motive, aiming to set up the industrial development structure that auto industry and hi-tech industry will become the supporting industries, the focus will be on the auto power and key parts and components, optical-mechanical-electrical integration, revelation, aviation and space flight, and modern service industry will be mating. In 5 years the zone will become more influential, competitive and characteristic among top 53 national hi-tech development zones.  

Our development object is to keep the economic development rapidly and strengthen its capacity to improve the economic development of the whole city; to optimize the industrial structure aiming to strengthen the competition of the supporting industry with brilliantly feature; cultivate initially a new industrial point of growth; to exploit and industrialize a mass of creative technological achievements with a highest level within the country as well as a set of hi-tech products with a higher market share so as to form a more competitive hi-tech enterprise group; complete basically the exploitation of would-be built-up area of the zone and reconstruct the spatial layout unitarily; to strengthen the capacity of technological innovation so as to form the development framework of the zone, namely, the combination of incubators, major industries and industrial groups.

In order to ensure the relevant indexes to reach the standard of top 53 national hi-tech development zones, we shall make much more effort in five respects.     

Firstly the rapid economic development should be kept. By 2010 the GDP of the zone will break through 30 billion yuan, the gross revenue up to 100 billion yuan, the gross industrial output value up to 90 billion yuan in which the production value of hi-tech enterprises will break through 80 billion yuan; the full caliber tax revenue will break through 5 billion yuan; the fixed asset investment of the whole society will add up to 10 billion yuan; the foreign capital used in the same year will reach 150 million dollars; the foreign currency by exporting goods will reach 150 million dollars. 

Secondly independent innovation ability of technology should be strengthened. Centering on major industries, we shall set up a first class flat for innovation and business creation by attracting national and provincial ranked major laboratories, domestic and foreign R&D institutes and universities and colleges so as to strengthen the R&D ability of the current enterprises. By 2010 we will set up 8 national ranked enterprise R&D centers, 20 provincial ranked enterprise R&D centers and 102 enterprise R&D institutes. We will also construct more than 5 special incubators with different features and let above 500 hi-tech enterprises graduate. 

Spatial distribution should be extended and optimized. By 2010 7.5 square-kilometer would-be built-up area will be built up and 4.5 square-kilometer part of it will complete replacement and exploitation; the two big park will need new development space, the would-be built-up area will be extended above one time more broadly than before and the distribution space will need producing. The two parks will have their own use zoning in reason. The area of land on which R&D institutes, hi-tech enterprise incubators and hi-tech enterprises will built will take up above 60% of the whole land.  

Fourthly economic structure should be optimized. We shall upgrade the regional industrial structure and promote the freshness and processing of the industrial structure in a high degree; break through the limit of mainly dependence on motor industry, change the supporting industries from singleness to multiple, cultivate new industries to strengthen the development; in addition to promote the dominant hi-tech industrial groups, the value of the industries with potential development such as revelation, aviation and space flight will be doubled higher than that in 2005, other hi-tech industries will meet their value; we shall cultivate 2-3 new industrial groups centering on big enterprises, special divisions of labor and cooperation of medium and small-sized enterprises; we shall focus on private enterprises and make them the subjects of development; we will quicken the development of finance, agency service, physical distribution and so on and achieve the task that the income of service can take up 15% of GDP of the whole zone.

Fifthly modern urban morphology should be shaped. On the demand of the general layout of sub center city meeting provincial city, the emerging domain of city is to construct industrial parks for business, and modern communities for living. We shall take effective action to change the villages into the towns with the zone and quicken integration of urban and rural areas. The strategy that the new zone is extended northward has been completed. We shall make the he-tech development zone a main flat that can help the industrial structure of Xiangfan be upgraded and the industrial distribution be adjusted, as well as the space that can ensure Xiangfan to achieve affluent society in large scale, and finally make it sub center and modernized urban area of Xiangfan. 

For the advantage of investment of business gusts, under the demand of Municipal Party Committee and the Government of Xiangfan we shall better the infrastructure, promote the efficiency of work, optimize the environment of investment and quicken the development so as to open a new chapter, which can ensure the economy to develop well and rapidly.  We shall make greater effort to achieve the annual production value of motor industry.
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