Pointing the way toward development
Print Edition
CHANGNING’S economic future will focus on high-end services, high-tech manufacturing and creative industries, according to the district’s latest industry development guidance catalogue.
The document is divided into 36 industries, including aviation services, information services, modern commerce and trade, professional services, financial services, social services, exhibition and tourism, high tech industries, bio-medicine, energy saving and environmental protection. The catalog covers the industrial base of Changning and most areas of its future development.
These fields fall under the framework of modern service industries and strategic emerging industries, said Zhan Lei, vice director of Changning’s development and reform commission.
Authorities in the district, located in Shanghai’s west side, are expected to provide various preferential policies to a variety of industries in different sub-categories. They are using an “encouraged” list to build a local industry system to further optimize the industrial structure with a modern service sector as its main driver, while also promoting the development of creative industries.
The widely discussed “one license with more addresses” policy is among Changning’s latest efforts to support its Internet plus life service industry. The policy was launched on a large scale for the first time in Shanghai. It is expected to make it easier for enterprises to enter this industry.
Two companies in Changing have already been granted permission to put two registered addresses on their business licenses. Companies with multiple outlets or branches do not need to apply for multiple licenses thanks to the new policy.
Targeted approach
Businesses on the “encouraged” list of the guidance catalog are classified in three levels of significance. Those that Changning is giving priority to in their development are leading industries with huge potential. They are also major tax payers with strong innovation ability.
Industries that Changing is “focused on” developing are mainly upstream and downstream enterprises of leading firms. They play significant roles in promoting the regional economy.
Businesses that Changning “supports” are those which play supporting roles in regional economic development.
Changning underwent a structural adjustment during the period of 12th five-year-plan (2010-2015). By the end of the period, the service industry contributed 98 percent of the district’s tax revenue, with the modern service industry accounting for 75 percent of the total. More than 90 percent of the 30,000 total enterprises in Changning engage in service industries.
Changning is combining its previous industrial development efforts with the cultivation of its service industry to accomplish its transition, according to district director Gu Honghui.
However, the guidance catalog is not the final word of Changning’s future development, Zhan emphasized. Its content will be constantly adjusted and improved in accordance with the development of market entities and dynamic change of industrial structure, Zhan explained.
Industries which do not fit market direction and district development plans will be removed from the list while emerging businesses with potentials will be added to the document, according to Zhan.
Aviation pilot zone
Also in line with Changning’s industrial development strategy, a pilot zone for the aviation service industry will be established in the Hongqiao area.
The aviation service industry will take a leading role in Changning’s development during the period of 13th five-year-plan, Zhan introduced.
The pilot zone now houses 493 aviation and logistics companies. Another 59 enterprises are expected to move in within the year, according to Zhan.
In the first half of the year, local aviation and logistics companies produced 4.78 billion yuan (US$724 billion) in tax revenue, up 17.4 percent from a year ago.
Changing plans to turn the pilot zone into a business hub in the Asia-Pacific region, an economic highland integrated with financial services, information services, modern trade and commerce.
The pilot zone will include a cluster of tax and duty free merchandize, the business aircraft industry and supporting financial services, professional aviation services and air freight.
Compared with high-end aviation services, the Internet plus life service industry is much more down to earth.
The municipal government has given Changning the green light to set up the city’s first pilot zone for Internet plus-based service industry in an attempt to foster 20 international brands and 100 elite service companies by 2018.
The planned zone is about 37 square kilometers in size, covering the whole district. Administrative approval is not required for the setup of a service company in the zone.
Those engaged in health care, health product sales, and waste recycling will have a lower threshold as well.
Furthermore, Linkong Industrial Park in the west of Changning is a national e-commerce demonstration base that’s also an ideal platform for the pilot zone.
Internet plus life service businesses in the park reported 537 million yuan of tax revenue in the first half, up 91.7 percent year-on-year.
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