Zhongguancun special: Suburban enterprises gain as Zhongguancun expands

Song Yanlin has been in a good mood these days ever since October, when the State Council gave the green light for Zhongguancun to include part of Huairou's Yanqi Economic Development Area, where his company is located.

"Of course it is of great significance for us," said Song, general manager of Beijing Zhongke Nano-Think Print Technology Co Ltd.

He said being part of Zhongguancun would enable his company to enjoy a series of favorable policies.

Established in 2009, the company mainly focused on research and development of nanomaterials-based printing technologies in its early days.

When the company wanted to expand the scope of its business later, it had to apply to change its business license, a time-consuming process that can stall a fast-growing company anxious to seize opportunities in the market, Song said.

"But things are more flexible if you are a Zhongguancun company. You don't have to change the license every time you want to do something new as long as what you do is legitimate and connected with what you have been doing."

Because it is affiliated with the Institute of Chemistry at the Chinese Academy of Sciences the company also had to submit applications before it could take many actions, such as buying a new piece of equipment, in the past, Song said.

Now that the company is in the Zhongguancun system, administrative procedures will be substantially reduced, he said.

Zhongguancun companies are also entitled to benefits aimed at encouraging technological innovation and commercialization, including the equity incentive program.

Because his company is based on the technical achievements of the Chinese Academy of Sciences, which are considered to be State-owned assets, Zhongke was ineligible for this incentive before being integrated into the Zhongguancun system, Song said.

He said Zhongke will also benefit from Zhongguancun's brand image, adding that the company has already attracted new clients through an exhibition Zhongguancun organized.

A total of 71 high-tech enterprises, including Song's, and nearly half of Huairou's Yanqi Economic Development Area have been included in the Zhongguancun system, said Zhou Fushu, director of Zhongguancun's newly established Huairou park.

"By joining Zhongguancun, we have been put on a faster track to development," Zhou said.

He said development zones in different districts and counties used to vie for projects in their reach, resulting in disorderly competition and energy inefficiency.

Now these problems are gone because Zhongguancun's administrative committee will decide what is proper for each of its 16 parks, Zhou said.

He said this will help the Huairou park switch its focus from urban industries to high-tech industries so that it can help more high-tech startups to get off the ground.

Zhou also said his park will also benefit from Zhongguancun's reputation.

"Whenever Zhongguancun is mentioned in China, people associate it with high-tech industries. This plus its advantages in human resources and other favorable polices would help boost our development."

To achieve a smoother integration into Zhongguancun, the Huairou park has restructured itself.

"As of Dec 21, we have successfully separated the administrative committee's government functions from business management. Thus we can provide better services for companies in the zone," Zhou said.

About Zhongguancun

The history of Zhongguancun dates back to the establishment of Zhongguancun Electronics Street in the early 1980s.

In May 1988, the State Council approved the Beijing New Technology Industrial Development Trial Zone, the predecessor of the Zhongguancun Science and Technology Park and the first high-tech park in China.

In March 2009, the State Council approved the construction of the Zhongguancun National Demonstration Zone and drafted a plan to build Zhongguancun into an S&T innovation center with a global influence.

In January 2011, the State Council released the Development Plan Outline for Zhongguancun National Demonstration Zone (2011-20), marking a new starting point for Zhongguancun's development.

During the past two decades, it has gathered nearly 20,000 high-tech enterprises, such as Lenovo and Baidu, and has formed an industrial cluster for advanced technology in such fields as electronic information, biomedicine, alternative energy and environmental protection, new materials, advanced manufacturing, aerospace, R&D and services.

As the most intensive scientific, education and talent resource base in China, Zhongguancun is home to nearly 40 colleges and universities, including Peking University and Tsinghua University, in addition to more than 200 national (municipal) scientific institutions, such as the Chinese Academy of Social Sciences and the Chinese Academy of Engineering, 67 State-level laboratories, 27 national engineering research centers, 28 national engineering and technological research centers, 24 university science and technology parks and 29 overseas student pioneer parks.

In the first 10 months of 2012, the gross income of enterprises in Zhongguancun hit 1.7 trillion yuan ($272.5 billion), an increase of more than 20 percent. The figure is expected to reach 2.3 trillion yuan by the end of the year, its administrative committee said in a report.

Now Zhongguancun has at least one park in each of Beijing's 16 districts and counties.

lifusheng@chinadaily.com.cn

(China Daily 12/31/2012 page12)