l          Introduction

Fengxian District is located on the southeast edge of the Changjiang River delta, facing Hangzhou Bay southward, leaning on the Huangpu River northward, adjacent to the Yangshan Deep-water Harbor eastward and the Shanghai Chemical Industrial zone westward. As a new industrial base in southern Shanghai, Fengxian has witnessed rapid growth on its way to become the southern gate of Shanghai, which aims to develop into an international economic, financial, trade and nautical center.

Since the turn of the century, Shanghai has been carrying out a new round of implementation of the “Furthering Eastward and Proceeding Southward” development strategy. As a potential hotspot, Fengxian has stepped onto the road of rapid economic growth. In recent years, its economy has demonstrated a trend of synchronous development of the first, second and third industry. The joint development of various economic elements has enabled rapid upgrading in the economic quality and the overall economic strength.

l          Industry Features and Development Plan

In the strong growing trend in recent years, Fengxian has forged four major industrial economic sections, namely, Areas A and B of Shanghai Comprehensive Industrial Park, the Fengxian Sub-Zone of Shanghai Chemical Industrial Park and the Shanghai Seaport Comprehensive Economic Development Zone. Six backbone industries are cultivated with much attention attached, namely, yacht building, optic instrument and electronics, modern telecommunication equipment, modern logistic equipment, fine chemical engineering, biopharmaceutics and deep processing of farm produce and byproducts. Seven industrial bases shall be established with much care and assiduous efforts. Respectively, they are the modern telecommunications equipment manufacturing base (in dependence on the Shanghai Industrial Park), the foreign trade and export processing base, the optic instrument and electronics industrial base, the fine chemical engineering industrial base (in dependence on the Chemical Industrial Park), the deep processing base for farm produce and byproducts (with its stress on the modern agricultural park) and the gulf tourism and entertainment base. According to the requirement of regional function development, extra efforts should be made to boost the construction of Shanghai international yacht development base, forming a yacht industrial cluster combining vessel building, service, yacht culture, and entertainment industries.

I.           Shanghai Comprehensive Industrial Park (http://www.fscidz.gov.cn/)

Shanghai Comprehensive Industrial Park is the pivot industrial park of Fengxian oriented toward the 21st century. It is the only large-scaled industrial park in Shanghai that accommodates both an industrial zone and an export processing zone. The A Area has a planned area of 33.38 square kilometers, and the already-in-place infrastructure is capable of meeting the requirement of rapid development in the next 30 years. Over the past decade, the park has gradually shaped such backbone industries as electronics and information, modern biology and pharmaceutics, new and high-tech material, electricity transportation and distribution equipment, etc. A variety of renowned foreign and domestic companies have settled down in the park successively. Many are ranked among the World top 500, including General Electric, SGL Carbon Group, Pioneer High-tech Company, Panasonic, Hino Engines Company, Exedy Corporation, Mahle Group, Autoliv Inc, Rumford Auto, Plastic Kritis SA., etc. Some famous Chinese companies also join in, among which there are China Putian, Shanghai Lei Yun Shang Pharmaceutical Co., Ltd, TCL Shining Air-Conditioner Group, Tuozhong Electric Appliances Group, Zhejiang Cixing Bearings Group and others.

II.          Shanghai Minhang Export Processing Zone (http://www.fscidz.gov.cn)

Approved by the State Council, Minhang Export Processing Zone was set up inside Shanghai Comprehensive Industrial Park on March 10, 2003, and formally began close-customs operation in November, 2003. Based on the automobile industry and automobile parts and assemblies industry, the export processing zone has seen continual development in the industries of electronics and information, new material, precision machinery and equipment. The export processing zone is aimed at developing into an IT and IC production base, which will lead to consequent enhancement in its economic strength and the overall economic efficiency and capacity. In this way, with the exalted international competitive power, Minhang Export Processing Zone will become one of the most vigorous and attractive development areas with a cluster of renowned companies as well as an elegant and convenient environment.

III.        Shanghai Optic Instrument and Electric Industrial Base

In order to implement the “The Blueprint of Shanghai’s Preferential Development of Advanced Manufacturing Industries”, on May19 2005, another brand new advanced manufacturing industry base, Shanghai Optic Instrument and Electronic Industrial Base was set up in Fengxian district. According to the requirement of the Shanghai government, Shanghai Economic Commission, Shanghai Foreign Economic Relations and Trade Commission, and Shanghai Science and Technology Committee will continually provide extra support to the newly established base.

IV.       Shanghai Chemical Industry Park Fengxian Sub-Zone (http://www.fscip.cn)

The Fengxian Sub-Zone is an important part of Shanghai Chemical Industry Park. It is located in southern Shanghai to the north of Hangzhou Bay, and occupies a total area of 12 square kilometers. During its construction, the advanced concept of “integration” that is utilized in many world-class large scaled chemical industry parks has been introduced. By optimal integration of resources and full utilization of the radiation effects of upstream products like naphtha and ethylene and midstream products like isocyanate, styrene and polycarbonate, metropolitan-type industries are the focuses of development, such as fine chemical engineering, chemical industry machinery, packing material, chemical storage and transportation and so on. Furthermore, the integration of projects, accessorial facilities, logistics and transportation, environmental protection and administrative service shall be realized. All the above measures will combine to stike a balance between production and ecology, a harmony between development and environment.

Over the past five years’ development, the Fengxian sub-zone has collected a number of reputed foreign companies, such as Alison Group, Air Products, Dainichiseika, Asahi Kasei, etc. Favorable policies, low business cost, close related industrial chain, the integration of production, scientific research, marketing, procurement, logistics and supporting facilities, which have combined to provided domestic and foreign investors with extensive growth prospect.

V.         Shanghai Seaport Comprehensive Economic Development Zone  (http://www.shseaport.com/)

Approved in April 2003, the district-level economic zone is established by Shanghai Fengxian District Committee and Government, with an initiative to better implement the regional economic development strategy of "Two Points & One Line in Four Directions", as well as to proactively take advantage of the radiation effect of the two international ports of Shanghai, Yangshan Deepwater Harbor and the air harbor of Pudong International Airport.

The seaport development zone neighbors on the Lingang New city, which is still under construction, and which is the outcome of a major strategic decision of the Shanghai Municipal Committee and government in a holistic view of the development in 21st century. Relying on the powerful radiation effects of the Lingang New City and the two ports just mentioned, and incorporating its own advantages and characteristics, the seaport development zone shall vigorously boost modern logistic and trade service industries such as cargo transportation, processing, storage and logistic equipment and so on. The plan is to build an international logistic equipment city featuring harmonious environment, digitalization and internationalization in five to seven years. Meanwhile, a new Volkswagen car-making project with an annual capacity of 300,000 cars is going to set up in the Nicheng Town of the Lingang New City, in the east of seaport zone. This will form an interactive linkage with the automobile parts and logistic equipment manufacturing industries of the seaport zone.

VI.       Fengxian Modern Agricultural Zone (http://www.fxmar.com/)

As one of the four municipal agricultural zones of Shanghai, its development plan was formally approved in April, 2000. After four years’ operation, considerable accomplishments have been made in infrastructure and function development. Famous companies including Ever Bright Group and Hande Food Company have already respectively set up their facilities here.

The agricultural zone holds three major functions, namely, investment and development, science and technology incubation, and ecological tourism. Covering 20 square kilometers, it can be divided into two sections:

1.         The food processing trade zone, which covers ten square kilometers. This is the incubation and production area of food processing trade, farm produce processing, biological technology and pharmaceutical research and development. With its radiation to and demonstration effects on the related industries in the neighboring region, Fengxian Modern Agricultural Zone will well develop into the biggest food industry base in Shanghai and match the first class counterparts nationwide.

2.         The natural ecologic zone, which covers another ten square kilometers. This section will serve as the “green lung” for the Binhai New City of Fengxian. Up to now, an ecologic forest of five square kilometers integrated with a variety of precious trees and multi-form garden scenery construction has been completed within this zone.  Along with the development of Fengxian New city, it will serve as a god-given green leisure square on the southern outskirts of Shanghai.

VII.      Shanghai Harbor Tourism Zone

After full exploration of the tourism resources around the harbor, Fengxian has formed the plan to build a Gold Coast with Blue Water and Golden Sand and to further develop into a famous harbor tourist and leisure resort accordingly. In the near future, the gold coast landscape of “clean water, soft sand, curve coastal line, beautiful scenery for a pleasant tour” will appear in the Shanghai-Hangzhou Bay.

l          Investment Environment

I.           Pleasant Climate

Close to both the Changjiang River and the East Sea, Fengxian district enjoys the subtropical monsoon climate, with dominant southeast wind throughout the year. Warmth and humidity, plenty of sunshine and rain, and four distinct seasons make it a pleasant place to live. With dust quantity in the air merely a tenth of downtown Shanghai, Fengxian also boasts of the best air quality on the Shanghai terrene. The area is an alluvial plain of Yangtze Delta, with a flat surface relief. In 2004, the annual rainfall is 1,162 millimeters, non-frost period is 225 days, and the average temperature is 15.7℃.

II.          Advantageous Geographic Position

Fengxian possesses an advanced and expeditious traffic system. Four highways, namely, A4, A20, A30 and A3 run through its territory in four directions. Major municipal projects like the Pudong railway and two light rails either under planning or construction invariably pass through Fengxian, which also serves as a bridgehead of the ongoing projects of Coastal Highway and Trans-Hangzhou-Bay Bridge, which interlink coastal economic zones of China.