Distinguished Leaders and Guests, Dear Friends,
September in Guangzhou is really pleasant. In this beautiful autumn, on the occasion of the third anniversary of the Guangzhou Multinational Corporations (MNCs) Association, we are here opening the 2nd Guangzhou Multinational Corporation Forum, which is of great significance for us to pursue innovative development for MNCs and regional economy against new situations. The Guangzhou Development District (GETDD) is a paradise for innovation and entrepreneurship, attracting many domestic and international investors since its establishment in 1984. From 2001 to the first half of this year, the total accumulative value of contractually utilized FDI was US$9.032 billion and that of actually utilized FDI, US$4.272 billion . There are 1310 projects of foreign investment, with 13 of them exceeding US$100 million in value and 60 over US$50 million. Altogether, 98 out of the Fortune 500 corporations have started their businesses in GETDD. We have six pillar industries, namely IT, fine chemicals, metallurgy and metal processing, automobile and auto-parts, food and beverage, as well as electrical machinery and equipment manufacturing. Meanwhile, GETDD quickly introduces modern service sector and grows its economic strength to become a major growth opportunity in Guangzhou, ranking the first among all national-level development districts in main indicators of economic benefits.
Now, in the new stage of economic growth in China, GETDD faces new opportunities and challenges. We are in urgent need of finding new ideas, patterns and paths of economic development. From the practical situation in GETDD, its main task at present and in the near future is to pursue innovation in five areas—opening up, indigenous growth, pattern of development, institution and environment.
First of all, innovation in opening up. Export-oriented economy and improvement in the inbound businesses and investment are the foundation of our district as well as a guarantee of our sustained, stable and rapid economic growth. In line with economic globalization, regional economic integration and the changing situation of domestic economy, we've found new ways of attracting business and investment by shifting from focusing on sheer volume in the past to highlighting added value. We'll further improve the benefits of opening up, with a greater emphasis on project quality and technological benefits. Meanwhile, we also highlight our work on inviting projects of Fortune 500 corporations and MNCs, leading domestic and international projects, key technological programs, major tech-innovation programs, and projects of modern service industry. Special attention will be delivered to attract more MNC regional headquarters, R&D institutions, manufacturing bases, and purchasing and distribution centers to develop our industrial clusters. We also absorb more businesses of advanced manufacturing, high- and new-tech and modern service industry to keep up the strong driving force of export-oriented economy. We'll encourage Fortune 500 MNCs in GETDD to bring with them more driving force, more powerful products and their core technologies and to expand their investment and production here for greater development and return.
Second, indigenous innovation. Building an innovative nation is now part of China's national development strategy. Following this strategy, GETDD has made great efforts in tech innovation with outstanding results. We have invested 15 billion RMB in building Guangzhou Science City and an Eco-Science Park featuring unique Lingnan landscape. The Guangzhou Science City is now China's national base of IT industry and bio-industry, and national demonstration zone of intellectual property rights. It's a large-scale carrier of innovation with great strength in China, joining over 1,000 S&T enterprises and 210 R&D institutions of all kinds, including independent R&D units from Fortune 500 corporations. This year, our district is redoubling our efforts in supporting technological progress by tripling the financial support to relevant sectors over that of the last year, exceeding 100 million RMB. In the next stage, we will continue to pursue technological innovation by opening up ourselves, setting our main task as building a complete regional innovation system. We are also building a fundamental platform covering six respects—human resources, investment and financing, tech-infrastructure, R&D, industrialization and tech-services. According to the inherent relation of tech companies' innovation chain, we will build a multi-faceted and continuous system of supportive policy, offering solutions to tech companies during their overall process from the seed phase to maturity. Together with a complete development roadmap for tech companies, we are making GETDD the most active in innovation both at home and abroad. Our objective is that, by 2010, we'll have introduced or built five high- or new-tech companies with a production value at or over 10 billion RMB, dozens of high-tech enterprises whose production value reaches or exceeds 1 billion RMB, and thousands of small- and medium-sized tech firms. Within three to five years, the standard of technological progress in GETDD will be among the leading ranks in development districts in China, and, moreover, be heading toward the league of first-rate science parks worldwide.
Thirdly, innovation in the pattern of development. Adjustment in national policies, shortage and rising cost of resources like land, energy and labor, compounded with higher environmental protection standard, are calling off the traditional resources-driven pattern of development and calling for innovation, a shift away from being resources-driven to innovation-driven. In light of the requirements of sustainable development, we'll continue with new industrialization, with extra focus on quality of growth, on resources, intensive and efficient use of land in particular, and on environmental protection. As regards the intensive use of land, we'll dispose of idle land in conformity with law and improve the efficiency of land usage. In protecting the environment, we'll expand and build eight waste water treatment plants in the coming years. By 2009, the daily waste water treatment capacity of GETDD will have reached around 400 thousand tons from the present 61 thousand tons, and all the waste water in the built-up area will be properly treated. Our priority is also given to circular economy. Last year, GETDD was selected as the provincial pilot zone for circular economy in Guangdong. Now we are applying for the national one. Well-known enterprises like Amway are also part of our circular economy initiative as pilot enterprises. We do hope, with the joint participation of government, enterprises and various circles of society, GETDD will look better and greener and enjoy harmony between people and nature.
Fourthly, institutional innovation. GETDD has all along been a testing ground for China's institutional reform. The Chinese, Guangdong and Guangzhou governments have great confidence in the institutional innovation in GETDD, which results in their great support. This February, Ministry of Commerce issued a document to entrust GETDD with the role of inspecting and managing some foreign invested enterprises in the service trade area. Guangdong Provincial Government and Guangzhou Municipal Government are in support of GETDD's application for national pilot zone for overall reform. Next, we'll try to apply to national, provincial and municipal authorities for experimentation of institutional reforms in economic, administrative, S&T and social management, thus breeding greater institutional advantages for GETDD's new wave of accomplishment.
Fifthly, environmental innovation. A good environment is key to retaining enterprises and talents in GETDD and is the foundation of development. Upholding the philosophy of building a business-friendly and livable environment, we are laying emphasis on urban infrastructure and supportive facilities. Now under construction are some key affiliated facilities, such as apartment building for tech staff, AAA hospital, sports center, star hotel and shopping center. With a beautiful environment, we are dedicated to developing real estate sector as well. In three years, we are to form a sub-downtown in east Guangzhou, guaranteeing livable surroundings for scientists and entrepreneurs. We cordially invite more MNCs to invest in GETDD, build a modern, new urban district, invest in high- and new-tech sector and modern service industry and locate their R&D center and regional headquarters in the picturesque Science City. And together, we'll witness the birth of a modern new town featuring unique Lingnan landscape. Thank you.
(Full text of Chen Jie, Deputy Chief Executive of Luogang District, Guangzhou Municipality at the 2nd Guangzhou Multinational Corporation Forum on September 24, 2007, as transcribed)