After the State Council, China's cabinet, approved the Shanghai-Hangzhou maglev project in early
March, work on the 175-kilometer-long line is expected to start
this year and be in operation before Shanghai Expo in 2010.
Although it remains far away from official operation, the
potential for economic cooperation between the two cities has
warmed up.
On April 11, a signing ceremony for Hangzhou-Shanghai economic
cooperation projects was held in Pudong, Shanghai. In total 48
agreements have been signed including 15 foreign investment
projects and 33 Shanghai-Hangzhou cooperation projects. These
projects involve US$372 million of foreign investment and 9.777
billion yuan (US$1.22 billion) domestic.
Jianggan District of Hangzhou adjoins Qiantang River and West
Lake, covering 210.22 square kilometers with a permanent population
of 0.5 million. On the occasion of Shanghai-Hangzhou economic
cooperation fair local officials did their utmost to promote the
district.
The district received close attention from participants and
investors for its position as the terminal of Shanghai-Hangzhou
maglev line. The German Chamber of Innovative Economy, Shanghai
Dongchang Enterprise Group Corporation and Shanghai Gangsheng
Industrial Development Co. Ltd signed deals with the district
government involving foreign investment of nearly US$30 million and
total investment of 800 million yuan (US$99.85 million).
The successful investment promotion conference was the first
step in the ripple effect caused by the maglev railway, said Wu Qun
from the office of Jianggan Investment Promotion Bureau.
"When we attended similar conferences previously, we put
emphasis on our role as the new city center of Hangzhou," he said.
"This year we have one more advantage?-- transportation."
The Shanghai-Hangzhou maglev line?-- Hangzhou's biggest
passenger transportation center of the future?-- subways, the
Beijing-Hangzhou Grand Canal and fast bus lines make Jianggan
District a transportation hub.
But more advantages can be listed.
"Jianggan District, as the future central business district and
the large residential zone of Hangzhou, has excellent prospects and
significant development potential," Wu said.
Qianjiang New Town in Jianggan District will be the Hangzhou's
CBD, new landmark and service platform. It will mainly engage in
finance, commerce, trade, information services and tourism.
Dingqiao Community is the biggest newly-developed residential area
in the city. When? completed it will be a modern community
with a population of 100,000 and developments focused on living,
leisure and tourism.
At the Shanghai-Hangzhou economic cooperation fair, officials
from Jianggan District visited the headquarters of many
Shanghai-based companies. Some of them have already signed initial
investment agreements involving 2 billion yuan (US$249.3
million).
Jianggan District is not the only one securing big deals.
The delegation of Shangcheng District signed deals with 25
Shanghai-based companies involving a total investment of 1.769
billion yuan (US$220.5 million). Fourteen domestic companies will
invest 1.6 billion yuan (US$199.47 million) while 11 foreign firms
are investing US$21.2 million. The Shanghai Zhicheng Enterprise
Development Corporation alone plans to invest 350 million yuan
(US$43.6 million) to set up a Honglou Hotel.?
Last year, Gongsu District of Hangzhou introduced six projects
from Shanghai, with contractual foreign investment of US$58 million
and actual utilized capital of US$68 million. At the investment
promotion fair this year, Gongsu District signed a 500 million yuan
(US$62.3 million) deal in Shanghai which ranged across building
materials, auto service, commerce and trade. Shanghai Itochu
Commerce Co. Ltd, a subsidiary of Fortune Top 500 Company Itochu,
and a large Hong Kong retailing enterprise have also decided to
invest there.
During the fair, Hong Qinghua, mayor of Jiande City, along with
his investment promotion delegation, paid a visit to Shanghai
Zhengda Investment Group for cooperation potentials in tourism and
trade. The city signed four agreements involving domestic
investments of 450 million yuan (US$56.1 million) and foreign
investment of US$15 million.
Shanghai and Hangzhou are both located in the Yangtze River
Delta and have the most developed economies and significant
business drive in China. The two cities are only about 170
kilometers apart and the lives of the people are similar. All this
presents unprecedented potential for? economic cooperation
between the two cities.
The fair attracted many Fortune 500 companies, foreign-funded
companies, large and medium-sized Chinese enterprise and investment
agencies. In addition, 53 of China's top 500 private enterprises
were represented.
Ten of the 15 foreign investment projects are investing over
US$10 million each. Twenty-five of 33 domestic investment projects
are investing over 100 million yuan (US$12.5 million) each. The
projects of Fuyang International Electronic City and Fuchun River
Tourism Zone involve US$120 million and 2 billion yuan investment
respectively?-- a showstopper at the investment promotion
fair.
(China.org.cn by Tang Fuchun, April 27, 2006)