Zhongshan transforms itself, invests in regional cooperation

An avenue in Zhongshan

With a pioneer scheme for yachts to travel freely between Macau and Zhongshan becoming a reality this July, the topic of improving cooperation between the two cities is heating up. It was one of the themes addressed at the Zhongshan European and American Business Forum, which was held last Saturday.
The scheme seems to have been the catalyst for cooperation-based dialogue. Both governments expect Macau and Zhongshan to lead the way for a more diversified Guangdong-
Macau that extends beyond industrial benefits.
In light of this success, developers are already eyeing Zhongshan’s coves to build integrated residential communities with condos, villas and berths, and to introduce a world-class marina lifestyle. Some of the other sectors that are expected to benefit from this cooperation include boat manufacturing, logistics and tourism.
A border checkpoint building was recently capped at the Zhongshan Marina, and is scheduled to commence operations in June and to start welcoming visitors in July. By then, visitors will be able to travel a mere 45 minutes by water between Zhongshan and Macau’s Inner Harbor.
“It didn’t happen by chance, but rather naturally, due to the two cities’ historical origins, geographical advantages and industrial features,” said the deputy director-general of Zhongshan Foreign and Overseas Chinese Affairs Bureau, Zhang Junfeng, when explaining Zhongshan and Macau’s intention to build a stronger partnership.
“The yacht scheme [that] we will launch this year is a very good attempt. Both sides are striving to find a good cooperative point, and on that basis, we’ll extend the space and scope for cooperation, finding more win-win opportunities from which the regions can benefit mutually,” he told the Times on the sidelines of the forum, as part of a new session at Zhongshan’s “3.28 Trade and Investment Fair,” which has become the city’s annual tradition since 1990.
“We’ve been thinking that Zhongshan has a quite solid foundation in secondary industry, such as the processing and manufacturing industries; and Macau has its unique advantage in international trade, especially through connecting with Portuguese-speaking countries. So we hope Macau can help the products made in Zhongshan go global, and that can in turn help Macau diversify its industry base,” he added.
Known as the hometown of the founding father of modern China, Sun Yat-sen, Zhongshan was called Xiangshan County in ancient times. It was eventually renamed to honor Sun. According to the presentation made by Zhongshan authorities, Macau was also historically under the jurisdiction of Xiangshan County, and many of its local residents originate from Zhongshan.
Zhongshan, which is 30 minutes away by light rail transit from Zhuhai’s Gongbei border, achieved a GDP of USD45.4 billion last year. Seventy-two percent was contributed by the output value of its professional towns. The prefectural-level city is home to 16 provincial professional towns and 35 national industrial bases, and is trying to upgrade them with new technologies and international standards through improved regional and global engagement.
In 2013, an area of about 230 square kilometers in Zhongshan was to be developed into a new district, which was to be named after Sun Yat-sen’s birthplace. The area, which exceeded Macau in size by seven and a half times, will be jointly developed by the MSAR and Zhongshan governments in accordance with a framework agreement signed last July.

A trade fair was held in the city on Saturday

Compared to the plan on Hengqin for development led by large companies, the Tsuihang New District is expected to offer more opportunities to small and medium-sized enterprises. It starts with an area of five square kilometers in which to build a Guangdong-Macau comprehensive cooperation demonstration zone, and is said to defy the conventional cooperation model of running cross-­border industrial zones.
According to the Party Secretary of Zhongshan, Xue Xiaofeng, “the Tsuihang New District is accelerating, with several projects implemented and infrastructure development involved.” “The Tsuihang New District has increasingly become a popular destination for investment, and contracts will be signed on projects estimated to be worth 5.9 billion yuan during this fair,” Xue said in the opening remark of the “3.28 Trade and Investment Fair.”
As for the demonstration zone, a civil servant from the Tsuihang New District has revealed that “the industrial planning has just started.” Moreover, the district has set up a European Industrial Zone, which is targeted at steadily growing industries.
The fair’s theme clearly indicated that the city is striving to restructure, transform and upgrade itself economically, and warmly welcomes more talents from beyond Zhongshan’s borders who have “new projects, products, and ideas.” The Party Secretary vowed that the government wants to build Zhongshan into “a talent magnet” and to make it “an ideal choice for starting a business.”
“Realizing that talent and innovation are the leading factors in advancing economic restructuring and upgrading, Zhongshan vigorously advocates and promotes large scale entrepreneurship and innovation. In 2014, the percentage of social research and development funds in total GDP has been raised to 2.4 percent. The industrial technological reform investment was up by 66 percent,” he stressed.
Mr Zhang also discussed the theme of Zhongshan’s technological reform, suggesting that the city’s industrial transformation and improvement is precisely where the opportunity lies for foreign enterprises, who are invited to introduce their core technologies and new perspectives to the urban area.
He explained that the city’s investment and business environment is advantageous, and that its cooperation mechanism with foreign enterprise is becoming more and more flexible after years of opening up and reform. Moreover, he said that the city has accumulated a large group of experienced talents in the fields of management and technology.
“The business conditions in mainland cities have shifted significantly. The foreign enterprises that are present in Hong Kong and Macau can also consider investing some part of their production chain in Zhongshan. We also hope that they can come here to take a look, and get to know our environment for business, living and social services, so that they can consider building up cooperation, and perhaps even invest and settle down here,” he added.
Speakers from the United States and Europe also praised Zhongshan as a “very well-run city,” where authorities have strived to create attractive conditions for foreign businesses.
“One thing that’s going to change dramatically over the years in China is that, for a long time now, China has been a low-cost producer of volume products, and that’s going to change dramatically in the next 10 to 15 years. If you look at the vision that we are given from Beijing, China wants now to step out of its cheap, cheap labor, and they want to begin the next chapter with innovation, high technologies, etc. Like it or not, that’s where China’s going,” said Mr Eugene O’Hagan, an international business recovery specialist at the forum.