Tuesday, December 5, 2006




Industries
The four supporting industries of Changzhou are: agricultural machinery manufacture, electricity transmission & transformation equipment manufacture, engineering machinery and vehicle manufacture and new style textile garment. Electronic information, new type material and biological medicine are 3 new booming industries in the area. Changzhou has become an important manufacturing base for diesel engine, high speed locomotive, transformer, super VCD and DVD, jeans, engineering machinery etc. There are about 28.000 manufacturing enterprises in Changzhou that provide various associated products
for manufactures around the world.

Changzhou has about 350 software enterprises. The combined revenue of these enterprises was more than US$ 120.9 million in 2004. However, these software enterprises are still poor performers on the international markets. The main reason for these poor performances is the lack of innovation and their relatively small scale. Japan is the most important export market for Changzhou’s export industry. On the boarder of the Yangtze river is the Changzhou National High and New Technology Industry Development Zone situated. At the side of the college town Wujin High a New Technology Industry Development Zone is engaging to constructed a bonded logisticscentre, Jingtong Industry Park and New Type Material industry park. The electronics information industry, the equipment manufacture industry, the new material industry and the modern service industry will be formed in a near future. Changzhou has established one high and new technology development zone on state level and 9 development zones on provincial level.

The State-Level High-Tech Industrial Development Zone
The State-Level High-Tech Industrial Development Zone was founded in 1992 and has grown into an important investment designation in the Jiangsu Province. The zone is a powerful engine for Changzhou’s economic development. Efforts of local authorities to improve facilities and services have supported the growth of the zone. The zone had in 2005 five provincial-level engineering technology centres and approximately 100 high tech enterprises. There are more than 4000 enterprises registered in the zone, about 1000 of these enterprises are industrial and about 600 are foreign. Until 2005 authorities forged the zone as an export-orientated development model. The model required labour-intensive processing and lower set-up costs which coincided with the circumstances of China’s initial reform and opening stage. The model boosted the regional economic growth in the past but defects became apparent with the deepening of the countries opening up policy. Some of the enterprises in the zone were weak in the terms of technological and scientific innovation. Most joint-ventures relied on overseas parent companies and were lacking independent research and development capacity. Local enterprises were mostly engaged in low-profit production because of the shortage in core competitive technology. The zone’s party committee points out that it is necessary to increase the high-tech contend of industries when the economics have developed to a certain level. The Yangtze River Delta cannot maintain growth without technological innovation. Authorities have embarked on new supportive measurements to help local enterprises to develop their own brands and technologies to penetrate into high end markets. The authorities will encourage foreign companies to settle down in the district and will assist competent enterprises to establish and improve their own engineering technology and R & D centres. Nowadays the focus has been shifted from attracting capital investment to advanced technology. Changzhou’s aim is to shift from a low to a high profit industry.
The National Torch plan
The National Torch plan is a high-tech development plan from the Chinese government that gives funding to academic institutions and new small companies to commercialise products of academic research and build 19 software parks around the country. The National Torch plan was approved in 1988 and involves the formulation of a complete set of policies, laws and regulations for the development of high tech industries, the establishment of a venture capital system and the establishment of high and new technology industrial development zones.

In 1995 the Ministry of Science and Technology started to select and recognize high quality software parks in China as National Torch Plan Software Industry bases. These industries are entitled to State support and relevant State preferential policies.In accordance with the National Torch plan a software park will be set up in the Changzhou State-Level High-Tech Development zone. Starting in 2005 the Changzhou local government has arranged a special annual fund for the next 3 years of $2.4 million dollar (US) for the construction of the base. The Xinbei government district will also fund the software park with $604.600 US dollars and will provide 13.33 hectares of land for the base of the software park.


The Jiangsu Province Urban System Plan
In 2001 the Jiangsu provincial government attempted to formulate an Urban Region Planfor coordinating the development of Suzhou, Wuxi and Changzhou (SWC). The provincial government gave birth to the so called SWC plan in 2002. The plan was strongly supported and highly praised by the Ministry of Construction and became a model for urban region planning and a solution to heavy urban competition. The plan was the first urban region plan that was approved by the government. The plan was produced by theJiangsu Urban and Rural Planning institution and the Urban Planning Institution of Nanjing University.

The four major objectives of the plan were:
1. To make use of the dominate role of the Suzhou, Wuxi and Changzhou urban region in regional economic development;

2. Alleviate serious urban competition and enhance urban and regional competitiveness. This includes coordination of the development of various cities, simulate city cooperation, sharing resources, cooperation and coordination of industry development;

3. To improve the relationship between SWC and Shanghai and created and create a win-win situation;

4. To enhance regional competitiveness in response to challenges of economic globalisation and WTO accession.

The content of the plan focused on the following 5 categories: industry planning, spatial planning, environment protection, tourism planning and infrastructure. Research1 has shown that the implementation of industry planning, spatial planning, environment protection and tourism planning were unsuccessful. The main problem is the conflict between individual (each city) and collective interests (province and SWC) which can not easily can be solved by provincial government. Lack of necessary coordination mechanism and interest conflicts among governments at various levels are also major causes of unsuccessful planning implementations.

Economics
The GDP (gross domestic product) of Changzhou was in 2004 110.06 billion Yuan (US$ 13.8 billion) and in 2005 130.2 Yuan (US$16.4 billion), which is an increase of 17.7 percent. The GDP per capita increased from US$ 3000 in 2003 to US$ 4.000 in 2004 and to US$ 4.500 in the 2005, an increase of 12.5 percent. The main force of the cities economic drive is the high-tech industry. Figure 2 and 3 show the GDP of Changzhou and the GDP per capita in Changzhou.


1 Xiao Long Luo and Jianfa Shen, “Why urban region planning does not work well as expected?”, A case study of Suzhou-Wuxi-Changzhou Urban Region Planning, Department of Geography and Resource Management, The Chinese University of Hong Kong

The State High-Tech zone increased its GDP with 25.4 percent to US$ 1.58 billion in 2004, which is 7.4 percent higher than the cities average. The gross industrial value of the zone reached a value of US$4.6 billion in 2004 and is up with 41 percent on yearly basis. The sales revenues hit US$ 4.4 billion, an increase of 42.5 percent and the profit and taxes were US$ 350.6 million and were up with 40 percent.2 The number of large enterprises rose in 2004 from 418 to 453 an increase of 35. 69 of these companies had sales revenues over US$ 12.1 million, the year before there were 49 companies who reached this amount of revenues. The incremental value of the primary industry was US$ 63.5 million, an increase of 5 percent compared to 2003. The incremental value secondary industry had a value of US$ 1.1 billion and increased with 29 percent. The tertiary industry developed rapidly and grew with 20 percent, a incremental value of US$413.5 million. The high-tech zone’s investment in fixed assets increased with 30 percent year on year and reached a value of US$ 1.55 billion, 882.7 million of this amount went to industry3. Figures of the State High-Tech zone can be found in appendix 2. Changzhou attracted in 2004 investments in 129 foreign projects worth more than 2.2 billion (US dollar), about 650 million dollars is realized. This is an increase of 8 percent compared to 2003.

Employment
Residents are benefited by the economic growth of the area. In 2005 about 10.000 unemployed locals founded jobs. The authorities provided free vocational training for the urban unemployed and the rural poor. The authorities also launched a campaign to transfer rural labour to the urban area. Training will be provided to 6000 rural worker per year, about 5000 of these workers are expected to move to the city to work. By the year of 2008 one of every farmer households will be engaged into non-agricultural businesses. The average income of rural people is expected to reach US$ 892, an increase of 12 percent on yearly base.

Education
There are many educational institutions in Changzhou. There are several universities including the Ho Hai University and the Jaingsu University of Science and Technology. Middle schools include the Changzhou Middle School and The Changzhou International School. There are more than 13 colleges and scientific research institutions, 5 vocational schools and more than 700 training centres

Tourism
The Chinese tourism industry has been growing at an exponential rate in the last years, surpassing even the most traditionally popular tourists designations. China was the most visited nation in Asia Pacific in 2001 with more than 33 million arrivals. The World Tourism Association forecast that China will be the most visited nation in the world by 2020. The increase in visitor numbers will require sufficient planning and coordination of
development. Changzhou is famous for its Dinosaur Park in the North district of the city. The city is the home of the Tianning Temple and is building a new pagoda (Tianning Baota). The pagoda has reached its full height and it the tallest in the world. Changzhou is also famous for its combs that can be purchased in most places in the city. The Hong Mei Park, the archaeological ruins of the sunken city, the Tianmu Lake Tourism Resort and the Maoshan Mountain Tourism Resort are high grated tourisms places and a visit worth. Changzhou was in 2001 named “ China Excellent Tourism City” by the State Tourism Administration. The city offers a wide range of accommodation and has more than 200 fine restaurants of Chinese or Western Cuisine.

Environment
Changzhou is a National Clean City and a National Model City in Environmental protection. Its has 17 scenic sports and there are 7 national demonstrative spots for industrial or agricultural tourism. The ecological Tianmu Lake Resort is designated by the State Environmental Protection Bureau. To improve the environment there were more than 10 large green public areas established. The Red Plum Park, Orchid Park, People’s Park, Lushu Park and Jingchuan Park have been expanded. The green area occupies 38.8 percent of the total urban area, the public green area per capita is 8 squire meter.

Changzhou’s honors
Changzhou has been awarded many honours including:
• The earliest city for the experiment on comprehensive reform of economic structure and city to open to the outside world;
• One of the 50 Chinese cities with the biggest comprehensive power;
• China Excellent Tourism City;
• National Clean City
• National Model City in Environmental Protection;
• Provincial Green City;
• National Award for Human Inhabitation Environment;
• One of the 50 Chinese cities with best investment environment;
• National Advanced City in Development of Science and Technology;
• National Excellent City in Public Safety;
• National Advanced City in Social Progress.

Strengths and weaknesses of the Region
Changzhou’s economy and population has been growing with an enormous amount over the last years. The strengths of the region are the low operation costs in the High-Tech district (half of the cost in Shanghai), the competitive labour costs, its location, low overheads and a skilled workforce. The weaknesses are the poor communications and competitiveness between Wuxi, Suzhou and Changzhou, the lack of innovation in industries like the software industry and the weak position of local companies in the international market.


Reference list
Wikipedia free encyclopaedia, http://en.wikipedia.org/wiki/Changzhou

World Tourism site,
http://www.worldtourism.org/regional/east_asia_&_pacific/states/china/MissionChangzhou.pdf#search=%22changzhou%20%20wto%22

Chinese government site, http://www.changzhou.gov.cn/czenportal/

China Practice Group,
http://www.perkinscoie.com/content/ren/updates/china/august2001.htm

China Jiangsu Provincial Economic and Trade Office in Europe,http://www.china-jiangsu.org/

China Dialy News, Special Supplement, Monday May 16 2005
http://app1.chinadaily.com.cn/fortune2005/ft050516p14n.pdf#search=%22changzhou%20china%20daily%22

Why Urban Planning Does Not Work Well as Expected, a case study of Suzhou Wuxi
Changzhou Urban Region Planning, Department of Geography and Resource Mangement, University of Hong Kong
http://mumford.albany.edu/chinanet/shanghai2005/luoxiaolong_en.pdf#search=%22urban %20planning%20changzhou%22

Appendix 1 Main infrastructure Changzhou

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