It opportunities in Chongqing

Chongqing, once known as the "rear", is now striving to become the forefront of global it manufacturing. Author: Su Juan Chongqing Mayor Huang outside have individual name-"Chongqing CEO", in his eyes, the most important is it industry. "2000, Chongqing IT industry output value only 2 billion yuan, 2010 amounted to 100 billion yuan, 10 years rose 50 times times." It is expected that by 2015, Chongqing IT industry output value of up to 1 trillion yuan!　　"In other words, in 5 years, Chongqing's IT industry output value is 10 times times higher, in the global IT industry growth is facing great challenges today, Chongqing has what kind of opportunity to achieve such growth?" How to make the global pen basic computer base into the West Wing Microelectronics Industrial Park (hereinafter referred to as the West Wing Park) is located in Chongqing's western New town, the total planning area of about 37 square kilometers, adjacent to Chongqing University City and Chongqing Railway Logistics park, inner and outer ring high-speed, Chongqing high-speed, Cheng-Yu inter-city fast rail and the planning of the 4 light rail lines across the road, 3 km from West Railway Logistics Park. At the same time, the park opened a direct access to the International Communications Bureau 3 data broadband dedicated channel.　　Chongqing Light Rail before the opening, to enter here, need to pass a five or six-minute drive to the tunnel, often congestion, traffic is not very convenient. But this does not seem to hinder its future development, the tunnel mouth is marked with the big slogan-"Build the western Silicon Valley." Zhongqing will be here as the focus of information industry development, Hewlett-Packard, Foxconn as the representative of the notebook computer industry cluster is concentrated here. As the main construction side of Chongqing notebook computer base, our park last year's output value has a billion of yuan, this year the park output value exceeded tens of billions of dollars, plan next year production value to hundreds of billions of dollars! This is an order from the government. Zhu, deputy director of the West Wing Park management committee, said he was also deputy general manager of Sillon Park Development Co., Ltd. Can you believe that this 10 times-fold-speed growth in output?　　However, this does not seem to be a myth under the strong impetus of the Chongqing municipal government. On November 30, 2010, Acer, the laptop manufacturer, and the Chongqing municipal government signed a formal contract to set up its second operating headquarters in Chongqing, with an annual output of 40 million laptops per year. The picture is Chongqing Party Secretary Bo Xilai and Acer CEO Gianfanco Lanch as the traditional manufacturing base of China's Pearl River Delta, Yangtze River Delta and other areas after years of rapid development, land, labor, energy and other factors of production supply tightening, industrial upgrading pressure, business costs increase, manufacturers have considered to migrate to the western cities.　　Recognizing such opportunities, the Chongqing municipal Government has taken the initiative to focus on the notebook industry, which is one of the few market-growth industries in the financial crisis, up more than 20% per cent. HP is the first to land in Chongqing "Golden Phoenix". That's the story. May 12, 2008, the mayor of Huang rate group to the United States headquarters to discuss investment matters, at this time received a Wenchuan earthquake news. So he worked with the staff to find the relevant data, prepared a combination of disaster and Chongqing calendarNew information on geographical situation since history. The next day of negotiations, when he will be such a detailed data, risk analysis of details to the senior HP, the other side is very surprised, said that will send a delegation to Chongqing site to see.　　October 2008, HP 4 million notebook computer sales contract settled in Chongqing. Huang went on to calculate that, in 2008, global laptops produced about 160 million units, which could reach 320 million or 350 million units by 2011 and 2012. HP's 1/4 share in the global market means there will be 40 million incremental growth in the future. Will the new production be spread on the Chinese coast?　　Or is there a new layout? So he made a great ambition: The notebook computer needs 80% parts in Chongqing local production, making parts transport almost no logistics costs, leaving 20% very few strategic goods in the world configuration. If 3 years later, Chongqing has not honoured its promise, the total logistics costs caused by the government subsidy.　　As a result, HP decided to put 36 million computer export production bases in Chongqing. Then they realized that when the brand maker decided the location, the OEM manufacturers would follow, to the following. In February 2009, Huang went to Taiwan to meet Terry Gou, a Foxconn. A meeting, Huang ingenuity to say to Gou, he is not to invest, but to send orders, and Foxconn discuss a strategy. "HP gave Chongqing 40 million computers, if you are interested, Chongqing City can at least 1/3 or 20 million production to Foxconn to do, your spare parts manufacturing base, also take to Chongqing." "Huang said. Mr. Gou quickly called Foxconn's 4 vice presidents and 10 departmental managers, and the meeting had been extended to 3.5 hours in less than half an hour.　　Better news is that after taking HP, Foxconn and other projects, more than 100 parts suppliers also followed, the cluster effect was unconsciously formed. January 26, 2010, Chongqing Shapingba West Wing Micro-electric Park, Hewlett-Packard China's second comprehensive computer production base in Chongqing completed production, opened the Chongqing notebook computer manufacturing year. The image of Hewlett-Packard Company will be the first line of "Chongqing made" notebook computer, hostesses surrounded by the booth around the manufacturing industry cluster effect also led to research and development. HP, Foxconn, Quanta, Britain and other enterprises of the research and development centers have come to settle, so that Chongqing from a single notebook computer production base, expanding into it manufacturing research and development institutions of the place. Thus, Chongqing finally found the idea in the information industry, which is based on notebook computer production and processing of IT manufacturing center.　　Such opportunities for Chongqing is rare, to know that the early years of Chongqing in the information industry is not smooth road, experienced color TV, communications, chips and other failed to shape the attempt. The ultimate consolidation of Chongqing notebook computer Regional advantage is Acer's drop. December 1, 2010, Acer and the Zhongqing government signed a plan to invest 150 million U.S. dollars to set up a globalManufacturing base and Operation headquarters. This is the only composite base in the global strategic layout of Acer. Huang said, "Chongqing originally said 1+3+100,1 refers to Hewlett-Packard, 3 is a foundry manufacturer, will be ' 2+6+200 ', meaning that two brands (HP and Acer), 6 generations of industry and commerce, the other parts manufacturers reached more than 200."　　"These enterprises in place, will form 1 trillion yuan sales value, 100 million notebook computer plus parts of the industrial layout." Chongqing in the development of IT industry to follow the experience is: large companies to promote industrial cluster development, to do the whole industry chain construction, the past, the Pearl River Delta, the development of the Yangtze River delta is very good to prove this point.　　At this time of the Zhongqing government, more like a wolf with the spirit of the enterprise, want to do it, while trying to do. Three major layout to undertake industrial transfer economics of industrial transfer theory, originated from the American economist Vernon's industrial product life cycle Theory and Lewis's labor-intensive industry transfer theory, on the basis of unbalanced development law, recognized the reality of regional imbalances, that the conditions of good places should be developed faster, and through the industry and factors from the high gradient to the low gradient of the transfer, driving the conditions of poor development.　　This theory puts economic efficiency first in regional development and productivity distribution, emphasizing efficiency priority and fairness, which is of great significance in formulating regional development strategy. Zhongqing is facing the opportunity of industrial transfer. However, this opportunity has a strong time limit and the scope of space selection, outside Chongqing, Chengdu, Xi ' An, Wuhan and other cities have a unique location advantages, the competition between cities has a "one-time shuffle" nature.　　Whether or not to seize this opportunity, the key lies in whether Chongqing has the unique internal advantages to attract industrial structure transfer. Compared with other cities in the Midwest, Chongqing has the most prominent policy advantages. 2009, the State Council in the form of "document third" to clarify the development of Chongqing's thinking. Chongqing becomes the only bonded port in the interior. If businesses are collecting 25% of income tax on the coast, only 15% in Chongqing. But to convince enterprises to "fly the peacock Southwest", but also to solve the transport costs of worry, the old problem let the southwest missed the last 20 years of development opportunities. To this end, Chongqing opened the Chongqing-Shenzhen Railway Transport, the freight passage to the products from Chongqing to Europe, the logistics cost of Shanghai, Jiangsu almost the same. Chongqing through Xinjiang to Russia to Europe and rail transport, the cost of Shanghai and Shenzhen to transport to Europe, but the cost of the same, but saved more than 20 days, Chongqing will start next year 500,000 square meters of new terminal building. Such logistics advantages make long-term as the rear of Chongqing, is expected to become the forefront of international manufacturing.　　The so-called, turn around, the rear becomes the front. What is expected to be well addressed is the problem of labour resources. In the past, the rise of the coastal generation of manufacturing, allowing the southwestern high density of labor to migrate to the coast, they have access to only subsistence income. In order for them to return to the local, Chongqing changed the old Social security model, now as long as in Chongqing for 5 years, it is possible to obtain local accounts. The government is still adding industry and tradeEasy to build dormitories, to the junior staff living, intermediate staff can live public rental, senior staff can buy their own commercial housing, to give personal tax rebate subsidy. This is tantamount to the government and society to the staff life, enterprises only build factories, do not have to build dormitories, saving investment. "Let the migrant workers work at home, and truly integrated into the city, to live, to create value here, to earn money for the elderly to support the family, thus also solve the problem of local employment, is a matter of many things."　　Zhu, deputy director of the West Wing Park management Committee. The "Financial Settlement Centre" is another strategic move by Zhongqing. In the past, China has 1.1 trillion of dollars in processing trade volume of financial settlement overseas, China's coastal provinces have received only the processing costs of labor, and most of the tax in the investment when the "free of five to halve", tantamount to forfeiture of what money. After working with HP, Chongqing has launched a pilot reform of its foreign exchange management system, opening the country's first offshore account and making the renminbi freely convertible. Through hard negotiations with HP's top brass, it eventually led it to move the Asia-Pacific Settlement Center to Chongqing. This ended China's history of processing trade without clearing houses, adding high value-added directly to Chinese manufacturing.　　Chongqing's plan is that the next two years to attract more than two or three companies to increase the settlement business more than 100 billion U.S. dollars, so that Chongqing will form about 300 billion U.S. dollars in settlement, the country has 1 trillion U.S. dollars processing trade, where the amount of settlement accounted for 1/3, will truly become China's inland International Settlement Center. The combination of these three concepts is the "Chongqing model". Through this model, Chongqing wants to create a "smile curve" of processing trade two high-end. "Because when you integrate parts here, high-end research is also available, and when you put sales and billing in your place, there is also the high-end value added."　　Huang said in a public speech. The road of transformation is still long. Relying on labor-intensive it manufacturing industry, Chongqing has launched regional market competition inside. For it enterprises, to create a professional cluster effect as the characteristics of the West Wing Park, and the state-level development zone treatment of the Liang Jiang New district, are available to choose the location.　　The current notebook computer production base is located in the West Wing Park, but Acer can still be located in the two Rivers new area, it seems that both sides have a competitive advantage. Planning Land 10.3 square kilometers of the West Wing comprehensive Free trade zone and the Western Logistics park and adjacent to the scale of 150,000 people of Chongqing University City Mutual Promotion, forming a benign interactive industrial ecological environment. Once the subway is unblocked, the environment here is better suited to "work", and the cost of land and living is more advantageous than the New River. Chongqing Enfis Software Co., Ltd. is Huang personally to the Chinese Academy of Sciences recruit back entrepreneurial software research and development enterprises, one to the West Wing Park, for its provision of nearly 3000 square meters of office environment, independent decoration can be exempted from a certain age of rent. After more than 3 years of expansion, now has formed 140 people scale. "Although the traffic is not very convenient now, we go to the university city next to recruit interns is very convenient." "Enfis Information Software department general manager Zhang RadiumSaid。 On the morning of May 19, 2010, Chongqing "International Channel of iron and sea transport" held the shipping ceremony, the depths of more than 2000 kilometers inland Chongqing City can compete with Shanghai and other coastal cities, if the destination is Europe, Chongqing can even spend a day less transportation in transit time. The picture is the Chongqing Container Center station of China Railway, the container train of HP electronic products manufactured by Foxconn is ready to open the station. As a state-level development and opening new zone, besides enjoying the current policy of Pudong and Binhai, it also superimposed the Western development, integrated urban and rural comprehensive reform, the State Council 3rd documents, The inland bonded port area and so on a series of preferential support policy. "We do not have a week 6th, not busy, are enterprises to actively find us to enter the park." "Liang Jiang New District Management Committee Services Promotion Bureau project manager Deng Yue said." It is said that the fastest enterprises in the park, one weeks to finish all formalities.　　In order to attract high-end talent to enter, for the annual income of more than 50,000 senior executives, they exempt from personal income tax, in addition to their children to go to school and housing are heavily subsidized. It may take time to examine how investment attracted by various preferential policies can be further developed in Chongqing and can fundamentally drive the economic transformation of the southwestern city.　　Many local officials and experts agree that now the development zone, the new area has not been the Shenzhen SEZ in the system of breakthrough space, mainly rely on tax relief and land concessions to attract investment, easy breeding a large number of "migratory birds" enterprises-Other development zone policy more favorable immediately went away, unable to form a long-term stable industrial chain. Only the formation of a real industrial cluster effect, the formation of high school low-end talent Echelon and reservoir, Chongqing's information industry development, is considered to have flowing. To look back on the early years of Chongqing's telecommunications and chip industry, the development of the cause of the end, on the one hand, because of the special telecommunications policy, handset manufacturers can not get the relevant production license, another important reason is afraid of the lack of high-end research and development talent, and Xian, Chengdu, the two areas　　Chongqing Colleges and universities in the high-end scientific and technological talent reserves slightly weak. There is much more to the problem: how long is the profit cycle for the notebook computer industry? Can Chongqing get a big list of computer makers in transition to tablet computers? Is it possible to lure telecoms and the chip industry along with it? In the era of Internet-led business change, can Chongqing have a new technology card besides laptop? In the strong introduction of foreign investment can also take into account the development of local SMEs, to support local entrepreneurship and innovation?