Suzhou Industrial Park (SIP) in Jiangsu province will focus on international competitiveness with a modern and international urbanized area combining information innovation and an eco-friendly environment.
Following the Chinese government's goal to start a new decade with an emphasis on sustainable development and new technology, SIP is making efforts to forge the park into a national demonstration area for industrial transformation.
According to Ma Minglong, a member of the standing committee of the Suzhou Committee of Chinese Communist Party and secretary of SIP Party Working Committee, since SIP's establishment 15-years ago as a pilot area and demonstration zone for reform and international cooperation, the site aims to combine the experience of Singapore with its own features to set up its image as an advanced manufacturing base in China.
In the 1990s, SIP greatly attracted foreign-funded enterprises and in the early part of the 21st century, it optimized and upgraded its high and new technology industry. In recent years, the SIP rapidly made multiple development of its modern service and greatly contributed to the local economy of Suzhou in Jiangsu province.
"These have consolidated our leading status among the development zones in China," said Ma. "However, industrial transformation is key to the success in keeping its status as a leading flagship national industrial park."
The financial crisis over the last couple of years had forced officials of the SIP to rethink its strategy in order to stay relevant and competitive.
"The current financial crisis has told us that foreign manufacturing is more vulnerable to the crisis," Ma said. "Whenever there is turbulence in the world economy, the impact is serious. Therefore, it is an urgent task for the SIP to transform into an area with active independent science and technology innovation and the development of emerging industries."
To this end, the SIP has started since 2004 to implement four plans and one project to speed up its transformation from external expansion to internal growth, from resource-reliance to innovation, from manufacturing to service, and from human resource advantage to talent resource advantage.
The four plans aim to upgrade manufacturing, emphasize on service industry, science and technology progress, carry out ecological optimization program while the one project indicates the launch of start-up projects by industrial pace-makers, he explained.
The plans and project have helped in upgrading from an export-oriented economy to an innovation-oriented economy and formed a sound foundation for the industrial transformation of the SIP.
"Our understanding from the financial crisis is that there is always a technological renewal, as well as a boom in new sectors with every crisis," said Ma.
Today, advanced manufacturing and modern service industry have become the "duel engines" for the development of SIP. A modern industrial system powered by domestic and foreign funds, led by high and new technology industry, and supported by advanced manufacturing and modern service industry has taken shape in the park.
During the process, we realized that the State-owned enterprises directly under the central government could be a unique strength for the development of the industrial park as they operate according to market changes, Ma said.
These enterprises own advanced technologies and experience in management and are abundant in talent and funds. "They have well-established brands and are enthusiastic in seeking projects with local governments," Ma said.
Unlike the multinationals, it is much easier for them to move their research and development centers into the park, which suits the goal of the transformation of the SIP, he added.
Currently, China Energy Conservation Investment Corporation, China Poly Group Corporation and China Ocean Shipping (Group) Company have invested in the park.
The SIP has formed competitive industrial clusters in the sectors of IC, TFT-LCD, auto and aviation components, software and service outsourcing, and biopharmaceutical.
It has not only become the first batch national emerging industrialization industry demonstration base, but also "the State-level overseas high-level professional innovation and start-up base".
In 2009, the SIP attracted six headquarters-type economy projects, set up 29 R&D institutions of various kinds, 55 national high and new technology enterprises and more than 300 emerging industry projects.
As a guiding principle of industrial transformation, the SIP worked out its "3+5" plan which sets industrial optimization and upgrading as the ultimate goal for transformation.
It greatly developed the leading industries of electronic information manufacturing, machine-building and modern service industry as well as the emerging industries of biopharmaceutical, nano opto-electrical new energy, integrated telecommunication, software and animation and games, and ecological environment protection.
According to Ma, the SIP has formed an industrial cluster of biopharmaceutical, diagnosis technology and medical equipment, R&D service outsourcing, and nano-technology that is based on the Suzhou Biological Nano Park, and the Nano Institute of the China Academy of Sciences. It has gathered a group of pharmaceutical enterprises that hold the front-end technology in the world.
Currently, the SIP generated 16 per cent of the economic aggregate of Suzhou with only 3.4 percent of the land and 5 percent of the city's population. Its GDP energy consumption per 10,000 yuan stands at 0.34 ton standard coal, representing one-fourth of the nation's average level.
Its unit COD and SO2 discharge is one-eighteenth and one-fortieth of the national average level, making it an important growing pole in the regional economic and social development.