Industrial Parks in Tibet
Published by:
China Knowledge Press Pte Ltd
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ISBN: 978-981-08-6189-6
at Smashwords
© China Knowledge Press Pte Ltd, 2010
China Knowledge Rating System and Year 2010 Rating Results
Rating China’s Industrial Parks
The culmination of years of research, surveys, interviews and site visits, the China Knowledge Rating System assigns ratings to industrial parks based on five broad factors subdivided into 21 attributes with a view to guiding foreign investors looking to set up in China.
The Rating System not only indicates the best industrial parks in China, but also serves as a guide to understanding China’s economy and future directions for development and to finding the hottest investment spots in a vast land of approximately 9.6 million sq km.
The rationale behind this large-scale research project, and the resulting Rating System, lies in the significance of industrial parks to China’s economic development and to the country’s ability to attract foreign investment.
However, the Rating System also offers more to investors; it allows existing and potential investors to gauge investment locations to find the one that will best suit their business needs. The Rating System is based on factors that include location, infrastructural development, contracted and utilized foreign direct investment (FDI), availability of human resources and administrative efficiency, giving investors a good sense for which industrial park is most suitable for their particular industry, product or service.
The importance of industrial parks to China’s economy cannot be underestimated. In 2008, the GDP of 54 state-level Economic and Technological Development Zones (ETDZs) reached RMB 1.53 trillion (US$220.3 billion), accounting for 5.1% of the nation’s total. Meanwhile, the 54 state-level High-tech Industrial Development Zones (HIDZs) contributed 9.7% of China’s total value-added industrial output.
Similarly, in terms of attracting FDI, these industrial parks have played a pivotal role. In 2008 the utilized FDI secured by state-level ETDZs reached US$19.5 billion. This translates to 21.1% of the national total. While data is not yet available for HIDZs and Free Trade Zones (FTZs), estimates based on past data indicate that state-level ETDZs, HIDZs and FTZs attracted an amount equivalent to nearly one-third of China’s total utilized FDI each year.
The ability of industrial parks to attract FDI is an important consideration for many foreign investors. Certainly, areas that attract the most foreign investment are the hottest destinations for subsequent capital inflows; they are also the areas that are developing faster and promising and delivering returns.
With hundreds of industrial parks to choose from, finding the ideal industrial park can be problematic for foreign investors unacquainted with the local context. An evaluation of industrial parks is thus particularly critical to aid such investment decisions. Additionally, as many major industrial players are based in industrial parks, in-depth, detailed descriptions of important industrial parks will guide investors in mapping out the industries they are most interested in.
Scope of Ratings
Industrial parks in China are of varying sizes and are at different levels and stages of development.
Some industrial parks are located within other industrial parks. For instance, Export Processing Zones (EPZs) are subsumed under ETDZs or HIDZs, in order that they may leverage the established facilities and resources of the enterprises in the ETDZ and HIDZ. Hence, some EPZs are not graded individually, but as a part of the larger ETDZ or HIDZ within which they are located.