During the fourteen-year development and opening-up process of Jinqiao Export Processing Zone, we stick to upgrading the level of export-oriented economy, expand the function of the development zone and improve supports for advanced manufacture industry, in order to develop the zone into a first-class advanced manufacture base and an export base for industrial products in China, as well as the symbol and a “window” of national development zones. We have upgraded the base function of the advanced manufacture industry by focusing on the following three aspects.

I. Embody characteristics of advanced manufacture industry, and quicken the development of Jinqiao Export Processing Zone from a new starting point

The aggregation of advanced manufacture industry is the main achievement of the zone through the fourteen-year development and construction. It’s the zone’s key characteristic different from other national development zones, and also the advantage for the zone to realize sustainable development. In 1993, the industrial output value of Jinqiao Export Processing Zone was RMB3.24 billion, and reached RMB103.8 billion in 2003, increased by 32 times in 10 years. Among RMB103.8 billion in 2003, electronic information accounted for 40.4%, motors and components 36.2%, new household electrical appliances 11.5%, food and bio-medicine 4.2%. In 2003, the production value of high-tech industry accounted for around 50% of the gross industrial output value of the zone.

Firstly, promote the development of industries such as motors, information and electronics, modern household electrical appliances, food and biomedicine and precise instruments.

We develop both advantageous industries and strong industries. And especially in motor industry, we make great efforts to develop a relatively complete industrial chain integrating motor design and research, manufacture, logistics, industrial service and consumption culture. Based on General Motor, Jinqiao Group signed five contracts on the transfer of land use right with Shanghai Automotive Industry Corporation (Group)（SAIC）in the second term project of General Motor as well as the layout of components supporting production and sales service.

Therefore, in Jinqiao Export Processing Zone, there have been 32 motor and supporting service projects, which have been put into production and operation. In 2003,these projects achieved gross industrial output value of RMB37.8 billion, profits of RMB9.3 billion and tax of RMB5.1 billion. These projects have attracted total investment of US$2.6 billion, making Jinqiao Export Processing Zone account for 60% of the total sedans of top and medium grade produced in Shanghai. The disperse and spillover effect have been developed preliminarily.

Secondly, give priority to “Two high, one low” products, quicken the speed to upgrade the construction of advanced manufacture base.

Export Processing Zones are export bases of our country. Therefore, we should focus on upgrading the level of manufacture bases in intensifying development, construction and investment invitation. When introducing chip package and photoelectron projects with a large investment scale and hi-tech content, we actively introduce export enterprises with the features of technology development, OEM & ODM, procurement integration into Jinqiao, and continuously develop the futures of advanced manufacture bases, in order to quicken the development of Jinqiao Export Processing Zone. Rockwell Automation Company is a multinational with annual sales revenue over US$4.3 billion, which has branches in more than 80 courtiers and serves global customers. Rockwell Automation Shanghai Branch established in Jinqiao Export Processing Zone , with the total investment of US$8 million, mainly engages in design, assembly and production of industrial automation product system, auxiliary equipment and components. The establishment of Rockwell Automation Shanghai Branch in the zone promotes the collaboration with scores of authorized channel partners and 19 key universities in China, so as to provide manufacturers with the best products, solutions, service support and technology training. It enriches functions of enterprises established in Jinqiao Export Processing Zone.

Thirdly, effectively adjust the highlights of investment invitation and continually optimize the industry structure of the development zone.

With the world economic structure stepping into new adjustment, the industrial shift from developed countries to developing countries now has new features. One is shift contents, which is from common processing and manufacture industry to advanced manufacture and hi-tech industry; the other is the process of the shift, which assumes a trend from a shift dominated by manufacture to linked shift of manufacture, research and service; and the final is the shift mode, which assumes a trend from single shift to regional aggregation and a whole industry chain shift.  

So far, Jinqiao Export Processing Zone has attracted 38 enterprises which are among top 500 enterprises in the world, including General Motor, Koda Electronic, Siemens Mobile, Huahong NEC Electronic, Panasonic Plasma and Sharp Electrical Appliance. In the past ten years, the zone recorded an annual 14% growth rate of foreign investment, i.e. from US$2.67 billion to US$11.55 billion of 2003. The zone’s manufacture output value increased from RMB3.24 billion to RMB103.8 billion in 2003, up 37% annually.

II. Optimize Regional environment and Enhance Comprehensive Competitiveness of Development Zone

       In the new round of development and competition, the core issue is to improve and advance investment soft environment of the development zone including services, management and supporting facilities rather than investment hard environment of “Seven Supply and One Level” and “Nine Supply and One Level”. In order to provide enterprises located in the zone with a favorable environment for their work and life, Jinqiao development zone, highlighted by two-end extension of manufacturing, is engaged in fostering and developing producer services and improving industry service functions of the development zone in recent years. Centered on modern manufacturing, we fully make use of Jinqiao’s current industry development and regional environmental advantages to develop product display, accessory procurement, industry design, technical development, product trading, component storage, product package and other professional intermediate service industries. The purpose is to facilitate the improvement of manufacturing’s quality and level, promote extension of manufacturing’s function chains, and lay a solid foundation for improving market environment, function environment, humanistic environment and competitive environment of the export processing zone. On the other hand, Jinqiao Export Processing Zone makes efforts to support and introduce “Modern Service industry” from multinational corporations, making it become one growth pole of recycling economic development in Jinqiao Export Processing Zone and its neighboring areas. Great efforts will be made to develop modern logistics industry, i.e. to rebuild logistics system in the development zone, speed up construction of international economic and trade EDI system and establish an open modern logistics network system by virtue of E-business technology.