Page 58 - 2016_SpecialReport_web
P. 58
6 Special Report on the State of Business in South China
3. Fujian Province
Cross-Strait Trade Hub 2013Fujian’s Major Industrial Products
National Rank (total 30 provinces/municipalities)
Directly facing Taiwan, Fujian’s coastline provides easy ac-
cess to cross-strait trade and business. The province used to be Product National Rank
the sole hub for all air and sea transportation to Taiwan, but
several years ago the government began permitting direct links Chemical Fiber 3
with other parts of the country, following which Guangdong
and Jiangsu surpassed Fujian in terms of attracting investment Televisions 3
from Taiwan. Nonetheless, Fujian stands to gain the most from
the continuing improvement of cross-strait relations, both Cloth 6
economically and in terms of its importance to the state gov- Paper
ernment. The main economic engines in Fujian are Xiamen,
Fuzhou, Quanzhou, Zhangzhou and Putian. There are also a Hydropower 8
number of less well-known economic gems hidden throughout
the province. Microcomputer Equipment 6
Economy Mobile Telephone 8
The economies of Fujian and Taiwan are closely related and Beer 10
complementary – with the pillar industries of both regions
consisting of electronics, petrochemicals and machinery. If Source: National Data(Official website of NBS)
this favorable economic factor can be properly utilized, gains
from the increased trade between the two regions could ben- A prime example of an equipment manufacturer headquar-
efit both sides amid the ongoing global economic downturn. tered in Fujian is Lonking Holdings, one of the largest construc-
In May 2013, the capital city of the province – Fuzhou – set up tion machinery manufacturers in China (making and distribut-
an administration office to handle the certification of origin for ing loaders, road rollers, excavators and forklifts). In late 2011,
goods made in Taiwan. the company invested RMB3.5 billion in an excavator manu-
facturing line in the Longyan Economic Development Zone.
In June 2012, China’s State Administration of Industry and The project is estimated to produce 15,000 excavators annually.
Commerce issued 16 new policies to promote the development
of the region and strengthen its bond with Taiwan. The new poli- To fuel such industry, Fujian province has taken measures to
cies empowered local offices to directly handle registration appli- promote energy production. For example, a household waste-
cations and other business-related licenses for enterprises funded fuelled power plant in Fuqing city was completed and entered
with overseas capital, rather than going through the Beijing office, operation in 2011.
and thereby making it more convenient for Taiwanese enterpris-
es to gain market access. Additionally, the new policies allowed The provincial government focuses on attracting foreign in-
Taiwan-funded enterprises to use traditional Chinese characters vestment in 13 industries, namely electronics and information
on outdoor advertisements and register company names with Tai- technology, machinery, petrochemicals, steel and non-ferrous
wanese idioms. All these measures were aimed to reduce the com- metals, shipbuilding, new energy, bio-pharmaceuticals (tradi-
mercial costs to Taiwan-funded enterprises and help to attract tional Chinese medicine), logistics, new materials, construction
more large-scale companies and projects to Pingtan. materials and textiles. Other key industries in the province in-
clude aquaculture and fisheries.
Historically, Fujian’s key industries have been agriculture,
footwear and clothing, but in recent years the area has increas- Spotlight on Xiamen
ingly focused on high-tech and electronic goods. Fujian’s indus- While Fuzhou is the capital of Fujian province, Xiamen is
trial clusters have become stronger in electronic information,
equipment manufacturing and petrochemicals, with these in- one of China’s four original special economic zones (along with
dustries accounting for more than 60 percent of total industrial Guangzhou province’s Shenzhen, Zhuhai and Shantou) and a
output value. key trade hub – its port and airport are both the third busiest in
the region, behind Guangzhou and Shenzhen.
58
The import and export volume connected to trade conducted
by foreign-invested enterprises takes up more than half of the total
volume in Xiamen, which in turn occupies more than half of the
total import and export volume of the entire province. These pro-
vide opportunities for service outsourcing enterprises in Xiamen to
open up their overseas markets.
Xiamen’s more prominent service outsourcing businesses in-
clude information technology service outsourcing targeted to-
wards the Japanese market, logistics and supply chain outsourc-
3. Fujian Province
Cross-Strait Trade Hub 2013Fujian’s Major Industrial Products
National Rank (total 30 provinces/municipalities)
Directly facing Taiwan, Fujian’s coastline provides easy ac-
cess to cross-strait trade and business. The province used to be Product National Rank
the sole hub for all air and sea transportation to Taiwan, but
several years ago the government began permitting direct links Chemical Fiber 3
with other parts of the country, following which Guangdong
and Jiangsu surpassed Fujian in terms of attracting investment Televisions 3
from Taiwan. Nonetheless, Fujian stands to gain the most from
the continuing improvement of cross-strait relations, both Cloth 6
economically and in terms of its importance to the state gov- Paper
ernment. The main economic engines in Fujian are Xiamen,
Fuzhou, Quanzhou, Zhangzhou and Putian. There are also a Hydropower 8
number of less well-known economic gems hidden throughout
the province. Microcomputer Equipment 6
Economy Mobile Telephone 8
The economies of Fujian and Taiwan are closely related and Beer 10
complementary – with the pillar industries of both regions
consisting of electronics, petrochemicals and machinery. If Source: National Data(Official website of NBS)
this favorable economic factor can be properly utilized, gains
from the increased trade between the two regions could ben- A prime example of an equipment manufacturer headquar-
efit both sides amid the ongoing global economic downturn. tered in Fujian is Lonking Holdings, one of the largest construc-
In May 2013, the capital city of the province – Fuzhou – set up tion machinery manufacturers in China (making and distribut-
an administration office to handle the certification of origin for ing loaders, road rollers, excavators and forklifts). In late 2011,
goods made in Taiwan. the company invested RMB3.5 billion in an excavator manu-
facturing line in the Longyan Economic Development Zone.
In June 2012, China’s State Administration of Industry and The project is estimated to produce 15,000 excavators annually.
Commerce issued 16 new policies to promote the development
of the region and strengthen its bond with Taiwan. The new poli- To fuel such industry, Fujian province has taken measures to
cies empowered local offices to directly handle registration appli- promote energy production. For example, a household waste-
cations and other business-related licenses for enterprises funded fuelled power plant in Fuqing city was completed and entered
with overseas capital, rather than going through the Beijing office, operation in 2011.
and thereby making it more convenient for Taiwanese enterpris-
es to gain market access. Additionally, the new policies allowed The provincial government focuses on attracting foreign in-
Taiwan-funded enterprises to use traditional Chinese characters vestment in 13 industries, namely electronics and information
on outdoor advertisements and register company names with Tai- technology, machinery, petrochemicals, steel and non-ferrous
wanese idioms. All these measures were aimed to reduce the com- metals, shipbuilding, new energy, bio-pharmaceuticals (tradi-
mercial costs to Taiwan-funded enterprises and help to attract tional Chinese medicine), logistics, new materials, construction
more large-scale companies and projects to Pingtan. materials and textiles. Other key industries in the province in-
clude aquaculture and fisheries.
Historically, Fujian’s key industries have been agriculture,
footwear and clothing, but in recent years the area has increas- Spotlight on Xiamen
ingly focused on high-tech and electronic goods. Fujian’s indus- While Fuzhou is the capital of Fujian province, Xiamen is
trial clusters have become stronger in electronic information,
equipment manufacturing and petrochemicals, with these in- one of China’s four original special economic zones (along with
dustries accounting for more than 60 percent of total industrial Guangzhou province’s Shenzhen, Zhuhai and Shantou) and a
output value. key trade hub – its port and airport are both the third busiest in
the region, behind Guangzhou and Shenzhen.
58
The import and export volume connected to trade conducted
by foreign-invested enterprises takes up more than half of the total
volume in Xiamen, which in turn occupies more than half of the
total import and export volume of the entire province. These pro-
vide opportunities for service outsourcing enterprises in Xiamen to
open up their overseas markets.
Xiamen’s more prominent service outsourcing businesses in-
clude information technology service outsourcing targeted to-
wards the Japanese market, logistics and supply chain outsourc-
