On April 9, investors signed contracts to launch projects inside the Xi'an International Trade and Logistics Park in the latest example of the growing popularity of Shaanxi's provincial capital as a destination for investment.

Projects that will be housed in the park include an industrial park for European companies, a photovoltaic cell factory, an optoelectronics plant, a cloud computing center for mobile applications, and a hospital.

According to the park's management, a total of 27 investment agreements involving a cumulative investment of 81.52 billion yuan ($13 billion) were signed during this year's Investment and Trade Forum for Cooperation between East and West China.

Qiang Xiaoan, director of the park's administrative committee, said that in addition to the traditional trade and logistics projects, it was "really encouraging" that investors are bringing projects to the park in emerging industries, such as the cultural and creative industry, the Internet of Things and advanced manufacturing.

"These projects will help improve the modern service industry of the park and will help to enhance the park's sustainable development."

He added that the administrative committee of the park will do its best to ensure the smooth execution of these projects and will provide all services necessary to the investors.

Twelve of the 27 projects involved investments from overseas, and combined foreign investment in them totaled $2.67 billion. Qiang said investors are mainly from the United States, France, Japan and Indonesia, as well as the Hong Kong Administrative Region and Taiwan. Of the projects, 18 had total investments of more than 200 million yuan each, while eight projects had investments in excess of 1 billion yuan each.

At the ceremony, Han Song, deputy mayor of Xi'an and secretary of the park's Party committee, said that these projects will be of landmark significance to the development of this park and the Xi'an Free Trade Zone, which is part of the park.

Han said the area will host dedicated industrial parks for businesses from Japan, Taiwan and ASEAN member countries, which "will help Xi'an become integrated into the global economy, sharpen its competitiveness and attract more international industries to the city".

The deputy mayor said he also hopes that these projects will enable the Xi'an Free Trade Zone and the park to play a greater role in promoting the regional economic development of northwestern China.

New projects

Located in the Xi'an Free Trade Zone, which was officially approved by the State Council in February last year, the European industrial zone will be built with funding from French investment company J2C and cover an area of 20 hectares. It will include an exhibition center for imported French commodities as well as logistics facilities and plants for making and processing luxury French brand bags, garments and goods.

Over time, the park will gradually develop into a complete industrial system supported by bonded processing, after-sales services, design, research and development.

The ASEAN international industrial park in the free trade zone occupies an area of 200 hectares and will be constructed using investments from the Sandratex Group totaling 10 billion yuan. The park will be made up of the bonded processing bases of established international brands, deep processing facilities for rubber products, and an exhibition and trading center of imported and luxury goods from Southeast Asia and Africa.

Xi'an Huanghe Photovoltaic Technology Co Ltd is also planning to construct a production line in the zone for 300-megawatt photovoltaic cell panels, and its products will be exported to European and US markets.

The Hong Kong (Dongguan) industrial park in the free trade zone will become an area where Hong Kong enterprises can cluster on the mainland. These enterprises are expected to focus on processing and international trade.

The Japanese industrial park, which has a total investment of about $300 million, will be a key entry point for investment by Japanese enterprises into China's inland regions. This park is expected to attract enterprises engaged in equipment manufacturing, IT and electronics.

Driving engine

These new projects are set to boost the development of the Xi'an International Trade and Logistics Park, which is important as the region's only inland international port.

Han Song said the park stands ready to offer help and services for investors from all over the world and will work hard to take full advantage of the park's strengths.

He said he is confident that the park will serve as an engine to drive the economic development of Xi'an and the whole province. Its effect will even be felt throughout the northwestern region as a whole, he said.

To expand its capacity, the park has signed a cooperation agreement with the nearby Lintong industrial zone to develop the zone into a production base for the park. The investment for the development of this 12-square-kilometer zone was 50 billion yuan.

The deputy mayor said the zone will offer sufficient space for the expansion of the trade and logistic park, and industrial projects could then be established in the zone to achieve a mutually beneficial cooperation between the park and the zone.

Han said Xi'an will serve as an example for innovation at a time when the country is developing the western regions. He said the park and its experiences may hold the key to the overall development of China's inland regions.

luhongyan@chinadaily.com.cn

(China Daily 04/18/2012 page7)