Research Report on the Investment Environment of Foshan City, Guangdong Province About Deloitte Global Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. Deloitte provides audit, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges. 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This communication is for internal distribution and use only among personnel of Deloitte Touche Tohmatsu Limited, its member firms, and their related entities (collectively, the "Deloitte Network"). None of the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. All information concerning Foshan, Guangdong Province quoted in this Report is provided by competent authorities of Foshan based on data available as of June 2018. Apart from images copied from the Deloitte photo gallery, the use of images herein is authorized by the said competent authorities. © 2018. For information, contact Deloitte China. Preface Located at the heart of the economically vibrant Pearl River Delta (PRD), the City of Foshan is conveniently connected to Guangzhou on the east, and Hong Kong and Macau to the south. It enjoys great strategic im- portance as a significant part of the Guangdong-Hong Kong-Macau (GDHKMC) Bay Area, the Guangzhou-Fos- han integration plan, the Guangzhou-Foshan-Zhaoqing (GZFSZQ) Economic Circle and the PRD Economic Zone, as well as a critical hub along the Belt and Road”. As the third largest city in Guangdong Province, Foshan boasts a strong economy, and was ranked 16th in the 2017 rankings of Chinese cities by GDP. During the 12th Five-Year Plan period (2011-2015), Fos- han upheld the strategy of building an industry-driven city. It prioritized smart manufacturing on its agenda of industry transformation and upgrading, while optimiz- ing its competitive sector clusters in the manufacturing industry, such as sectors of household appliances, ce- ramic building materials, metal products, automobiles and auto parts, and machinery equipment manufactur- ing. The city also nurtured strategic emerging industries including electronic information, energy saving and environmental protection, and healthcare and wellness. Such focused efforts made by Foshan in transformation and upgrading of its industry structure had enabled the city to enter more specialized areas and move up the value chain steadily. During the 13th Five-Year Plan period (2016-2020), Foshan is leveraging the opportunities brought by the coordinated implementation of China’s strategies of the GDHKMC Bay Area, the innovation-driven devel- opment and the Belt and Road Initiative. Envisioning to shift from “Made in Foshan” to “Created in Foshan”, the city is focusing on high value-added industries and innovation-intensive industries. Its unremitting pursuit of an innovation-driven development model centered on advanced technologies will further im- prove industries’ competitiveness and enable more sustainable development. High-Speed Train Travel 1h Zhuhai Car Travel 1h30m Guangzhou Baiyun 60km International Airport W u h a n - At a time of new opportunities, Deloitte China (here- inafter “Deloitte” or “we”) is honored with the request from Foshan Investment Promotion Agency to develop this Research Report on the Investment Environment of Foshan City, Guangdong Province for investors from an objective third-party perspective using specialized research and analysis methodologies. In addition to information and data on the economic and industrial development of Foshan, this report also includes views and insights obtained through inter- views with various government officials and companies’ management in the city, combined with Deloitte’s rich experience in the research of investment environment and industrial development. The Research Report aims to present a comprehensive overview of the investment environment in Foshan from the following five aspects: • Government policies and services • Business environment • Infrastructure • Human resources • Living environment The Report also analyzes the development planning of Foshan and featured services provided by competent authorities, presenting insights into its advantages in investment environment and development prospects, specifically: • Premium geographic location and favorable business and living conditions • Targeted government policies and efficient adminis- trative services • Unique industry clusters and strong innovation mo- mentum As China deepens its progress on economic growth model shift as well as transformation and upgrading, Foshan is further aligning with the national strategies to create a more attractive, competitive and sustainable business environment. Sanshui District Nanhai District Foshan West Railway Station Guangzhou Baiyun International Airport Guangzhou Guangzhou South Railway Station Foshan Foshan 2h G u a n g z h o u z R a i l w a y P s a s e h n g a t y r D e d iy c a t e i l d i n Z o - i a n a K s a a o q o i n F g - I u t e L o e r l c h Beijing-Zhuhai Expressway z y e h a g Guangzhou Second Ring Expressway M n R n i a n u i L c n a y a a i u R w p g l G l i i o r G - dR l l w g z ea g h e o o p a uh n Hi y g a - S y i G First Ring Road of Foshan e I y a w o l i a n u d L e e g n e p Ring Expressway S - h a g i H Zhaoqing Foshan District Huangpu Port Huizhou Macau Shenzhen Bao’an 127km International Airport u o h z g a u G - Chancheng g n i n G n u a a N g h o u - S h e n z h e n R a i w y Guangzhou-Shenzhen-Hong Kong Express Rail Link L i n e e l c G r i n C u s a n o Gaoming District Nansha Port Pearl River Delta New Line Airport Shunde District Zhongshan Foshan Zhuhai Jinwan 155km Airport r g t e i e h o u - F G o s h a u c a n z C c n g m z n h E g i n o u - G F o i a s a u h h o a n - n Z h n q g o u - Z a c Jiangmen Shenzhen Bao’an International Airport Guangzhou-Foshan Metro Line Metro Line 2h20m Sanshan Port Dongguan h n z e u ha n t r i t R a i w Macau 2 1 2 13 9 e r A y B u Macau International Airport 3 9 13 a c M - o g n o H - g n Zhuhai Jinwan Airport 11 Zhuhai Hong Kong 1 11 4 Shenzhen Hong Kong International Airport 43 Foshan Foshan Foshan 20m Foshan 135km Foshan 2h10m Guangzhou 1h Shenzhen 181km Hong Kong 2h d u G Foshan Urban Rail Transit Planning Map (2017-2022) Table of Contents Chapter I Chapter II Overview of Foshan City Basic Facts..................................................................................................................................3 Local Economy ..........................................................................................................................4 Business Environment A Cluster of Competitive Manufacturing Industries.........................................................7 • Traditional Household Appliances + Smart Manufacturing • Traditional Manufacturing + Machinery Equipment Strategic Emerging New Industries ....................................................................................10 • Electronic Information & Energy Saving and Environmental Protection • Medical and Health Care Platforms Enabling Industry Development ......................................................................12 Innovation and Start-up Environment...............................................................................14 • R&D and Innovation Advantages Analysis • Industry-University-Research Partnership & Talent Cultivation for Innovation and Entrepreneurship Chapter III Infrastructure Transportation Network........................................................................................................17 Public Infrastructure ..............................................................................................................19 Chapter IV Human Resources Human Resources ..................................................................................................................21 Chapter V Living Environment Education and Healthcare....................................................................................................24 Urban Living .............................................................................................................................25 Cultural Landscapes...............................................................................................................26 Chapter VI Government Policies and Services Transparent and Targeted Government Policies ...........................................................28 • Policies in Support of Industry Development • Policies in Support of Technological Innovation • Policies in Support of Talent Development • Policies in Support of Financial Development Innovative and Highly Efficient Government Services ...................................................32 Chapter VII Summary and Vision Summary and Vision ..............................................................................................................34 Appendix Appendix I: Distribution Map of Industry Parks ..............................................................37 Appendix II: Contact Information of Main Government Agencies for Investment Services in Foshan, Guangdong Province.........................................................................39 Research Report on the Investment Environment of Foshan City, Guangdong Province 1 Chapter I Overview of Foshan City Basic Facts Premium Location and Emerging Opportunities Located at the heart of the economically vibrant PRD region, Foshan is close to Hong Kong and Macau, and ad- jacent to Guangzhou on the east. It is a significant part of the Guangzhou-Foshan Metropolis Circle and the GZFSZQ Economic Circle. The city is now conveniently connected by the diversified transportation network comprised of the Guangzhou-Foshan Intercity Railway Line, the Guang- zhou-Foshan-Jiangmen-Zhuhai Intercity Railway Line, the Guangzhou-Shenzhen-Hong Kong High-Speed Railway Line, the Hong Kong-Zhuhai-Macau Bridge and other in- frastructure. As a result, Foshan is further integrated into the “one-hour economic circle” of the GDHKMC Bay Area1, ready to promote human resource exchange, currency cir- culation, policy communication, financing, and information sharing among the cities in the Bay Area. Leveraging the premium location, Foshan is making every determined ef- fort to take the emerging opportunities in the new era and push forward innovation-driven development, with a view to becoming a bright pearl in the west of the PRD region. Smart Manufacturing and Innovation-driven Development As an industry center in the GDHKMC Bay Area and a leading city on the west bank of the Pearl River in terms of equipment manufacturing, Foshan is well placed to capitalize on its advantages in this industry, with smart manufacturing at the core, to promote cluster-based and high-tech-driven development facilitated by an integrated value chain, as part of the efforts to achieve comprehensive transformation and upgrading. To function as a major participant in the synergic inno- vation system of the Bay Area, Foshan is implementing its strategic planning of “First Ring Innovative Circle”. Efforts are continuously made to develop an attractive leading-edge area of global influence, supported by a ful- ly-fledged technological innovation system. The city aims to pursue the innovation-driven development model of “Glob- al Technologies + Made in Foshan + International Markets”, Titles & Honors so as to achieve its strategic goals of shifting from “Made in Foshan” to “Created in Foshan”, and from “Large Industrial City” to “Strong Industrial City”. Closer Cooperation and Better Integration for the Bay Area Development Foshan is committed to making joint efforts with its first-tier neighbors, such as Guangzhou, Shenzhen and Hong Kong, to build the Bay Area into a world-leading city cluster. For example, it is co-constructing the Nan- sha Port with Guangzhou and Zhongshan, to further im- prove the transportation network within the Bay Area. It has also reached cooperation intention with Hong Kong on 11 key projects in 7 areas, on the basis of a new cooperation model between the two cities. Through all these efforts, Foshan has been deeply integrated into the nationally strategic GDHKMC Bay Area project. Foshan is ready to further strengthen the backbone of the PRD city cluster together with other cities in the Bay Area, through pioneered innovations in regional open- ing-up and cooperation models as well as shifted driving force for development. It aims to help the Bay Area de- velop into a region with the most comprehensive market economic system and the most vibrant economy. Rich Cultural Heritage and New Development Momentum Having nurtured and inherited the Lingnan Culture, Foshan is recognized as a National Historical and Cultural City in China, and the home of Cantonese Opera, martial arts and lion dancing. It boasts rich cultural heritage, time-honored architecture of typical Lingnan style, and abundant intan- gible cultural heritages, presenting a panorama of Lingnan culture and folk customs. It is also a city of creativity that pioneers in innovatively using modern art and cultural events and advanced technologies to optimize its cultural environment. With an integrated culture featuring valuable traditional and modern elements, Foshan is demonstrating unique and vigorous merits to the world. 2 Research Report on the Investment Environment of Foshan City, Guangdong Province 3 • National Historical and Cultural City • National Model City • National Garden City • The City of Martial Arts in China • The Leading City in Education Modernization in Guangdong Province • National Leading City in Technological Advancement • National Double Support Model City • Award for Best Practices to Improve the Living Environment (awarded by the United Nations) Note: 1. GDHKMC Bay Area refers to a city cluster comprised of the special administrative regions of Hong Kong and Macau, and nine cities in Guangdong Province, namely: Guangzhou, Shenzhen, Foshan, Dongguan, Huizhou, Zhuhai, Zhongshan, Jiangmen, and Zhaoqing. Local Economy Economic Development at a New Level • Since the beginning of the 12th Five-Year Plan period, Foshan has made great progress in economic growth, with its GDP increasing by approx. RMB 300 billion. In 2017, the GDP of Foshan grew year on year by 8.5% to RMB 954.96 billion1. With a steady progress, Fos- han ranks third in Guangdong Province in terms of GDP, and 16th among the Top 100 cities in China. • In 2017, the industry structure of Foshan has been further optimized towards “tertiary, secondary, pri- mary industry” (in the order of the proportion of con- tribution to GRP, from highest to lowest). Specifically, the ratio of primary-secondary-tertiary industries changed to 1.5:58.4:40.1 in 2017 from 1.7:59.6:38.7 in 2016. The value added of the secondary industry reached RMB 557.02 billion, the most among the three industries, while the value added of the tertiary industry was RMB 383.35 billion, serving as a new driver for local economic growth. Transformation and Upgrading of the Consumer Market • In 2017, the total retail sales of consumer goods in Foshan grew 10.0% year-on-year to RMB 332.04 bil- lion, maintaining at a double-digit growth. Dedicated to upgrading the consumption patterns and mak- ing innovations in consumer goods supply, Foshan encourages traditional retail businesses to develop e-commerce, to promote the integration of and in- teraction between online and offline markets in the new wave of opportunities created by the “Internet+” model. The city has opened the door of the consum- er markets’ transformation and upgrading with the new retail pattern of “Online + Offline”. Table 2: Foshan’s Total Retail Sales of Consumer Goods (2011-2017) Local Economy (Continued) Table 1: Foshan’s GDP and Its Composition (2011-2017) Further Growth of Imports & Exports • In 2017, Foshan witnessed a year-on-year increase of 6.1% in the total volumes of import and export trades, to RMB 435.74 billion, with the export volume increasing by 1.7% to RMB 315.36 billion, and the im- port value increasing by 19.6% to RMB 120.38 billion. In 2017, the volume of the import and export trades in Foshan with the Association of Southeast Asian Nations (ASEAN) and the USA continued to grow at a double-digit rate. The volume of trades with countries along Belt and Road accounts for 31.4% of the city’s total import and export volume, among which the volume with Thailand, Malaysia, India and Vietnam amounted to more than RMB 10 billion. Win-Win Results by Going Global and Bringing in • Over the past few years, the outward investment made by Foshan-based Chinese companies has seen a dramatic growth. From 2015 to 2017, 112 outward investment projects were launched, with over USD 5.8 billion invested by local Chinese companies, rising by 2,066.67%. Local companies in Foshan, represented by the Midea Group and Guangdong SACA Precision Manufacturing, have started going global, expanding beyond the domestic market. • As of February 2018, 10,497 foreign direct investment (FDI) projects have been launched in Foshan with the total investment value amounting to USD 80.88 billion, including a contractual FDI of USD 41.93 billion. Among the foreign investors are 60 Fortune 500 companies investing in 116 projects in industries including food, auto parts, electrical equipment and chemicals. Fos- han has risen as an attractive investment destination for more and more multinational companies. Table 4: Some Fortune 500 Investors in Foshan USA Anheuser-Busch, Walmart, DuPont, Invista, Kohler, Tyco, Genpact Japan Toshiba, Toyota, Honda, Aeon, ITOCHU, Sumitomo Corporation Volkswagen, Siemens, Fiat, BP, Total, Veolia, Europe ArcelorMittal, Basf, Shell Table 3: Import and Export Value of Foshan (2011-2017) (In RMB Billion) 955 (In RMB Billion) 433.3 383.5 384.5 402.6 435.7 408.7 371.2 2015 2016 2017 Import & Export 658 2011 670.9 2012 701 2013 760.3 2014 800.4 863 2015 2016 • 2017 2011 2012 Import 2013 2014 Export Primary Industry Tertiary Industry   GDP Secondary Industry Vibrant Capital Market Continuous Growth of Industrial Economy Steady Increase of the Overall Industrial Output Value In 2017, the overall output of Foshan’s industrial en- terprises with an annual revenue of RMB 20 million or more increased by 8.7% to RMB 2,235.07 billion. With the strategic goal of building an advanced, intelligent and en- vironmentally friendly industrial sector, Foshan strives to develop into a large but also strong industrial city. Largest Scale of Investment in Industrial Technology Reform in Guangdong Province In 2017, Foshan invested RMB 77.15 billion, a year-on- year increase of 39.4%, in industrial technology reform, ranking first in Guangdong Province. By investing in manufacturing facilities including industrial robots, nu- merical control machines, and fully automatic produc- tion lines, the city is on the way of transforming from “Made in Foshan” to “Created in Foshan”. Buoyant Development of Private Sector In 2017, the total industrial output of the private sector in Foshan increased by 10.2% to RMB 1,584.55 billion, contributing to 81.3% of the industrial growth of Foshan. Many private sector brands have established a presence in China and the rest of the world, such as Haitian Flavouring and Food, Jianlibao, Midea and New Zhong Yuan Ceramics. • Thecapitalmarketprovidesanimportantplatformforthe optimal economic development of Foshan. As of 2017, 54 companies in Foshan have gone public (including two companies that have gained approval and are preparing for their IPO), with the market capitalization amounting to RMB 972.2 billion. Foshan, therefore, has been ranked seventh among the cities in China in terms of the market cap of listed companies. This is the first time that Foshan has been listed among the Top 10 cities. • At the same time, Foshan has been promoting high and new technology companies and those with an annual revenue of RMB 20 million or more to engage in the multi-layered capital market. So far, 142 high- and new- tech companies have been listed on the mainboard and technology board of the Guangdong Equity Exchange and 3 have gone public in China through IPO. These public companies have become the main force of the economic development in Foshan. Table 5: Major Business Players in Foshan Local Companies Listed in Fortune 500 Midea Group Co., Ltd. Country Garden Holdings Co., Ltd. Local Leading Companies Haitian Flavouring and Food Qunzhi Photoelectric Galanz Group Lesso Technology Vanward New Electric New Pearl Ceramics Xingfa Aluminium Esquel Group Keda Clean Energy Foshan Electrical and Lighting (In RMB Billion) 2011 2012 2013 2014 2015 2016 2017 193.1 202 226.4 256.1 268.7 301.8 322 Hong Kong Others Hutchison Whampoa Limited, Esquel, Sun Hung Kai Properties, New World Development, Shui On Land AB InBev, Keppel Logistics, CapitaLand, LG, Posco Note: 1. Unless otherwise expressly stated, all currencies are reported in RMB in this report. Source: 1. Statistical Communiqué of Foshan (2011-2017); 2. The Yearbook of Foshan 2017; 3. The official website of the Foshan Municipal Statistics Bureau; 4. The official website of the Foshan Municipal Government Source: 1. Statistical Communiqué of Foshan (2011-2017); 2. The Yearbook of Foshan 2017; 3. The official website of the Foshan Municipal Statistics Bureau; 4. The official website of the Foshan Municipal Government 4 Research Report on the Investment Environment of Foshan City, Guangdong Province 5 Chapter II Business Environment Overview: As a key manufacturing base of household appliances in China, Foshan leads the country in the production and sales of white goods, including mi- crowave ovens, washing machines and refrigerators. Building on its solid strengths in the household appli- ances industry and a full-fledged sector cluster, Fos- han has nurtured a large number of leading compa- nies and renowned brands of household appliances. The household appliances industry, as the core of Fos- han’s traditional industries, generated a total output value of around RMB 211.17 billion in 2017, up by 9.1% over the previous year, accounting for 24.7% of that of Foshan’s six major traditional competitive industries. Leading Companies: Midea Group, Galanz Group, SHIMPO, vanward Connection of All Industrial Segments A Cluster of Competitive Manufacturing Industries Serving as a Chinese manufacturing base in the GDHKMC Bay Area, the city of Foshan has devoted efforts to es- tablish a new industry development pattern on the foundation of its strengths in traditional industries supported by the pillar of advanced manufacturing with a focus on strategic emerging industries. In response to a series of China’s national strategic initiatives, including “Made in China 2025” and the “Integration of Informatization and In- dustrialization”1, Foshan is currently committed to improving the quality and efficiency of production in its six major traditional industries, including household appliances, ceramics and furniture, while following a path towards smart high-end upgrading featuring technological innovation and “Internet+” models, as part of its endeavor to facilitate a full-fledged chain across all its traditional competitive industries and foster a cluster-based new driving force. Traditional Household Appliances+ Smart Manufacturing Drawing on the core technologies of smart manu- facturing, Foshan is continuing its efforts to promote innovative development of its traditional household appliances manufacturing towards smart upgrading across the industry. Household Appliances Industry Building on a variety of key technologies of smart manufacturing and advanced experience in smart manufacturing of industrial robots, numerical control machines, and other equipment, Fos- han is stepping up its efforts to develop digital management on supply chains, automatic manufacturing, and smart household appliances, as an endeavor to facilitate optimized upgrading and innovation across the household appliances industry. Internet + Smart Manufacturing Over the past few years, Foshan has made great efforts to deepen the integration of manufacturing industries with Internet, big data and artificial intelligence technologies, and facilitate the expansion of the digital economy. By promoting the innovative “Internet + Smart Manufacturing” business models, such as web-based collaboration, cus- tomization, online value-added services, and shared manu- facturing, it is driving the manufacturing industries towards digital, web-based and intelligent-oriented development. In the robot industry, for example, Foshan is proactively rolling out the Smart Manufacturing Program and the Robots-driven Development Initiative, and has launched the Plan of Foshan to Promote Robots Applications and Support the Robots Industry Development (2018-2020), to encourage companies to transform industrial technolo- gies for the development of smart manufacturing. Midea Group, a Fortune 500 company based in Foshan, is cooperating with KUKA, a world leading supplier of robots, for the research and innovation in big data and AI tech- nologies. It strives to offer automation and business solu- tions applicable to different complicated manufacturing situations, laying the ground for potential human-robots collaboration in smart manufacturing. • Internet of Things (IoT) • Cloud computing Supply chain • 3D printing • Man-machine interaction • Sensors Manufacturing • Microprocessor • Sensors • Network com- munications Household Appliances 6 Research Report on the Investment Environment of Foshan City, Guangdong Province 7 Note: 1. Integration of Informatization and Industrialization: an in-depth integration of information technology and industrial applications in a mutually supple- mentary manner to foster a new industrial development model fuelled by the synergistic effects of information technology and industrial applications. Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Development and Reform Bureau; 3. Foshan Municipal Economic and Information Bureau A Cluster of Competitive Manufacturing Industries (Continued) As the only pilot city in China for manufacturing transformation and upgrading, Foshan has been boosting the trans- formation and upgrading of traditional manufacturing driven by machinery equipment manufacturing, as part of its unremitting endeavor to promote integration of different manufacturing sectors. The city has focused on optimizing the allocation of available resources, while promoting industry development and quality improvement, in an effort to accelerate synergistic and innovation-driven development of both advanced and traditional manufacturing. It is mak- ing every effort to become China’s national center for manufacturing innovation and a city strong in manufacturing. Traditional Manufacturing + Machinery Equipment The manufacturing of general and specialized machinery equipment in Foshan is featured by special-purpose light machines for ceramic, textile, and plastic production. With the help of automatic and advanced technologies and equipment, the city’s competitive traditional industries covering ceramic, metal, furniture and textile production are developing towards innovative upgrading with internationally advanced equipment and technologies. A Cluster of Competitive Manufacturing Industries (Continued) In line with the national strategy to promote green, smart and IT-based development for the automobile manufactur- ing industry, Foshan has seized the opportunity to expand the scale of its automobile industry, while optimizing the industry structure and spatial layout, to build a leading automobile industry cluster in China worth RMB 100 billion through the accelerated clustering of industry elements and innovation resources in the city. Ceramic Production Metal Production Furniture Production Textile Production Traditional Automobile Manufacturing Featuring Solid Industry Foundation The automobile and parts manufacturing in Foshan maintained a high-speed growth in 2017, with the an- nual total output value reaching over RMB 71.96 billion, accounting for about 7.0% of the city’s gross output val- ue in advanced manufacturing. Foshan has launched a series of pilot projects for smart manufacturing of traditional auto parts led by leading corporations such as Toyota Boshoku, Aisin Seiki and Delian Group, thus forming an industry cluster of au- tomobile accessories including engines, electronics, molds, tires and coatings. Foshan is now home to four automobile manufacturers, including FAW-Volkswagen South China Base and Nanhai Automobile Factory of Beiqi Foton Motor, and two spe- cial-purpose vehicle manufacturers (Yuehai Automobile Factory and Luzhiyou Machine Manufacture Co., Ltd.), which produce an extensive variety of automobile products. Foshan operates one of the three major automobile manu- facturing bases in Guangdong Province, which is equipped with complete industrial facilities for production of whole vehicles and auto parts and accessories and serves as a significant contributor to the smart, high-end and clustered development of China’s automobile industry. New Energy Vehicle (NEV) Manufacturing Showcasing Great Clustering Effect The NEV industry represents one of the three prioritized strategic emerging industries in Guangdong Province, and also a focused area in the initiative of constructing an industry belt for advanced equipment manufacturing along the west bank of the Pearl River. As a result of the city’s continuous efforts to foster a new driving force for the auto industry through exploration of new paths to develop NEVs, Foshan has so far established a well clustered NEV production base covering the areas of R&D and production of essential parts, battery recycling and reusing, and whole vehicle manufacturing. Foshan is also making focused endeavor on innovative key technologies and their commercial applications, while developing critical materials and core parts with independent intellectual property, such as fuel cells. The persistent efforts on innovative R&D of cutting-edge technologies have provided inexhaustible impetus for the city’s further development of NEV industry. Case Study The “NEV Town” is established in Shunde District of Foshan to focus on the development of new energy and smart net- work, specifically, production of NEVs and core parts and accessories, and development of the Internet of vehicles (IOV), cloud computing and big data technologies. As of now, more than 20 leading companies in automobile inno- vation have signed up and moved into the town, including the Headquarter Base of China OptimumNano New Energy Vehicle Innovation Alliance and Hikvision IOV Joint Lab. Dedicated to optimal industry development driven by R&D and innovation, the “NEV Town” is building a Foshan-based world-class innovation ecosystem for the auto industry. Overview: Renowned as China’s hub of ceramic production, Foshan is equipped with the most complete chain of sup- porting services and com- mercial facilities, and the most innovative industry clusters in China, produc- ing many world reputable ceramic brands. Leading Companies: Dongpeng Ceramics, Monalisa Group, New Pearl Ceramics Overview: With a solid foun- dation of metal production, Foshan is also known as a stainless steel processing and trade center. In 2017, it achieved a 17.3% increase of the total output value of metal production over the previous year, marking an industry development in both quantity and quality. Leading Companies: Guangya Aluminium Industry, Huanan Steel, Xingfa Aluminium Overview: As a key manufacturing base for higher end furniture in China, Foshan is home to around 1,000 furniture manufactur- ers, selling products to many European and American countries, as well as Japan, with an increasing presence in the global market. Leading Companies: Wision Furniture Man- ufacturing, Alishunlin Furniture Traditional Manufacturing Industries Integrated Development │ Cooperation for Win-Win Results Machinery Equipment Manufacturing Overview of Machinery Equipment Manufacturing In 2017, Foshan achieved a total output value of RMB 130.95 billion in general equipment manufacturing, an increase of 13.4% over the previous year, thanks to its development of world leading technol- ogies and machinery equipment products ranging from ceramic presses and dry-type transformers to mattress machines and injec- tion molding machines. Innovation-driven and Integrated Development Propelled by the vibrant growth of its machinery equipment manufacturing industry, Foshan is vigorously pushing forward an innovative development across all competitive traditional industries, with a focus on the high-value-added segments in these industries. To this end, enterprises are encouraged to develop and put into use new equipment, materials and techniques, to achieve transformation and upgrading facilitated by automation, high-end and internationally advanced technologies. As of now, leading enterprises in these industries in Foshan have developed innovative products including functional ceramics, low-carbon textiles and customized furniture. In the context of integrated development of competitive traditional industries and the machinery equipment industry, Foshan is accelerating resource integration through industry clusters to create an ecosystem featuring win-win results through cooperation across all industries. Auto Parts Manufacturing Major Enterprises • GSE New Energy • Teamgiant New Energy • Dongfang Precision Science & Technology • Brunp Recycling Tech Vehicle Manufacturing Major Projects • Corun CHS Hybrid Electric Vehicles • NEV Production and Hydrogen Power R&D Center of Changjiang Automobile • Greenwheel Pure Electric Passen- ger Vehicles • Feichi Buses Integrated Innovation Key Platforms • Guangdong NEV Essential Parts Industry Base • South China NEV Integrated Inno- vation Industry Park • South China Base of National Fuel Cell and Hydrogen Technology Re- search Centre Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Development and Reform Bureau; 3. Foshan Municipal Economic and Informa- tion Bureau. 8 Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Development and Reform Bureau; 3. Foshan Municipal Economic and Information Bureau Overview: Foshan has fostered a mature man- ufacturing and sales base supported by well-established supply chains for a wide range of textile products rep- resented by the Zhang- cha knit works, Xiqiao fabrics, and Jun’an jeans, remarkably contributing to the regional industry development. Leading Companies: Esquel Textiles, Seazon Textile and Garment Research Report on the Investment Environment of Foshan City, Guangdong Province 9 Strategic Emerging Industries Strategic Emerging Industries (Continued) Known as one of the most promising sectors in the 21st century, the medical and health care industry presents a huge potential market. In an active response to the Plan of Healthy China 2030, Foshan prioritizes the development of four major segments – biomedicine, medical devices, health services and healthy food and beverages, as part of its efforts to foster a highly concentrated cluster of medical and health care industry featuring a complete value chain. Electronic Information Industry Considered as the forefront of automation reform and smart device application, the electronic infor- mation industry plays a crucial role in intelligent transformation. Taking advantage of the smart man- ufacturing boom, Foshan has been vigorously devel- oping the electronic information industry to boost the growth of the new economy and upgrade the traditional manufacturing towards intelligentization. • Based on the Made in China 2025 Foshan Action Plan, Foshan has seized the golden period of electronic information industry to prioritize the development of semiconductor chip manufacturing and integrated circuit design. With Nationstar, Qunzhi Photoelectric, Halomicro, Gowin Semiconductor and other top com- panies leading the way, the city has been proactively nurturing electronic information industry clusters. • In this field, the PRD region has seen a great integration of major industry resources and synergistic develop- ment. As a major player in the PRD City Cluster, Foshan has made full use of the regional industry advantages to proactively engage in the Guangzhou-Shenzhen Sci- ence and Technology Innovation Corridor, strengthen cooperation with Dongguan on innovation resources, and further integrate into the synergistic innovation system of the GDHKMC Bay Area. Cases Study – Infore Environment 1 A Complete Value Chain Biomedicine Based on biological technologies such as genetic engineering, mi- crobial engineering and enzyme engineering, Foshan-based com- panies have independently developed drugs with new mechanisms of action and biological targets, antibody drugs, new structural proteins and polypeptide drugs, which have enhanced the core competitive edge of the city’s biomedicine industry. Leading Companies: Otsuka Pharmaceutical, Medi-World Phar- maceutical, Dezhong Pharmaceutical Diverse Industry Incubators • Nanhai Biomedicine Base and Transla- tional Medicine Center of Guangdong Academy of Medical Sciences • Guangdong Health and Medical Big Data Industry Park • Guangdong Bio-industry Park for Inno- vation and Technology Transfer • China (Nanshan) Medical and Health Care Industry Valley • Chinasun Pharmaceutical Machinery Industry Base in Foshan • Nandan Mountain Health Care Cultur- al Industry Park • China (Sanshui) International Food and Beverage Base Case StudyYifang Energy-Saving and Environmental Protection Industry Over recent years, Foshan has been devoted to pro- moting the development of energy-saving and environ- mental protection, resource recycling technologies and equipment, as well as supporting energy-saving service industries, which leads to the scale and clustering de- velopment of the environmental protection equipment manufacturing industry and the establishment of a green and low-carbon industry ecosystem. • Foshan is taking advantage of key industry platforms like the Southern China Cluster of Environment Service Industry and Shunde Energy-saving and Environmental Protection Equipment Industry Base, and leading com- panies like Keda Clean Energy and Infore Environment Technology Group; it is also engaging actively with Chi- nese Academy of Sciences to jointly establish a platform for industry innovation and promote the R&D of new energy-saving technologies, aiming to build itself into a well-known exemplary city home and abroad in the en- ergy-saving and environmental protection industry. • In addition, Foshan is piloting new business models such as third-party environmental governance, con- tract energy management, green finance, PPP financ- ing, and innovative green think tanks, providing a new driving force for the development of energy-sav- ing and environmental protection industry. 2 Medical Devices Foshan has improved its innovativeness in upgrading the pro- duction of medical devices through breakthroughs made in applications of biological 3D printing, pluripotent stem cell induction and other state-of-art technologies, with a focus on high-performance diagnostic equipment such as imaging devices and medical robots, high-value medical consumables such as bi- odegradable vascular stents, and mobile medical products such as wearable devices and telemedicine equipment. Leading Companies: Qinlian Medical Apparatus and Instru- ments, TiCar Biotech 3 Health Services Foshan has been committed to improving services for health examination, counseling and rehabilitation, and elderly care, while strengthening its capability of delivering customized health management services. It also encourages coordinated development of health care, tourism, culture and the Internet to create new industries, modes and patterns of business. Leading Companies: Starcastle Senior Living 4 Modern Chinese Medicine and Food & Beverages Foshan has placed a great emphasis on the R&D of purification technologies for marine organisms, active ingredients in tradi- tional Chinese medicine and other raw materials using new-type bioreactors and large-scale industrial fermentation devices, in an endeavor to promote the upgrading of modern Chinese medi- cine, traditional and healthy food and beverages. Leading Companies: Yifang Pharmaceutical, Haitian Flavoring and Food, Hong Fu Loi Healthcare Product, Jianlibao, Budweiser, Red Bull, Coca-Cola, Heinz Technology Group Infore Environment Technology Group (SZ000967) is a leading integrated environmental service provider in Chi- na specialized in environmental protection equipment, environmental governance and system services. The company fully utilizes “Internet Plus”, big data, and cloud computing and other emerging technologies, and has independently developed an integrated stereo monitor- ing platform for smart environmental protection, smart watersheds, smart industry parks, smart atmosphere and sponge cities. It is committed to providing custom- ers with customized and integrated environmental gov- ernance solutions covering “Monitoring + Governance + Operation”, facilitating Foshan to achieve breakthroughs in environmental protection and smart manufacturing. Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Development and Reform Bureau; 3. Foshan Municipal Economic and Information Bureau Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Development and Reform Bureau; 3. Foshan Municipal Economic and Information Bureau 10 Research Report on the Investment Environment of Foshan City, Guangdong Province 11 Industry Platform – Electronic Information Industry Park Located at Lishui Town of Nanhai District, Foshan Electronic Information Industry Park focuses on the development of a new generation of IT sectors comprised of cloud computing, big data, Internet of Things, mobile Internet, smart cities and electronic information. Enjoying superior geographical advantages, it has fostered coordinated development with Guangzhou Huangjinwei Industry Park which focuses on a new generation of information technology and artificial intel- ligence. The two industry parks have been sharing industry investment promotion catalogues and encouraging free resources flow in the region, with a view to fully integrating the industry resources of the two cities to enhance region- al collaborative innovation capabilities and jointly create a Guangzhou-Foshan electronic information industry cluster. Pharmaceutical As a leading company in modern Chinese medicine, Yifang Pharmaceutical is dedicat- ed to reforming traditional Chinese medi- cine (TCM) decoction with the assistance of modern plant extraction technologies. For years, the company has made scientific research and innovation the major driving forces for its development, and developed a new model that integrates production with research and applications to enable a sys- tematic R&D on the production processes, quality criteria, clinical efficacy and safety of TCM formula granules. For its strong techno- logical achievements made in facilitating the industrialization of its TCM formulas, Yifang Pharmaceutical has won a series of awards and honors, including Second Prize of the National Award for Scientific and Techno- logical Progress, and First, Second and Third Prizes of the Guangdong Provincial Award for Scientific and Technological Progress.  Platforms Enabling Industry Development Supported by three key industry development platforms, namely Foshan National High-tech Industry Development Zone, Guangdong High-tech Service Zone for Financial Institutions, and Sino-German Industrial Service Zone, Fos- han has continuously promoted the innovative development, transformation, and upgrading of its local industries, contributing to the capacity upgrading of the regional economy. Platforms Enabling Industry Development (Continued) With the building of the GDHKMC Bay Area and the deeper integration of Guangzhou and Foshan, an increasingly open innovation system has been emerged in the region. Foshan’s development strategy, the “First Ring Innovative Circle”, is being implemented in the layout of “one core connecting five platforms with multiple routes” featuring the Chancheng-Nan- hai-Shunde (Sanlong Bay) High-end Innovation Cluster as the core. Foshan takes the road of “internationally advanced tech- nology + Foshan smart manufacturing + global market”, marking a new era of innovation-oriented development. Fos- han National High-tech Industry Development Zone – National Independent Innovation Demon- stration Zone in the PRD Region Overview With a solid industry foundation, Foshan National High-tech Industry Development Zone presents remarkable R&D and inno- th vation capacities, ranking the 29 among all national-level high-tech industry devel- opment zones in 2017. So far, this Development Zone has formed high-tech industry clusters led by industries of automobiles and auto parts, high-end equipment, opto-electronics, new materi- als and healthcare, along with distinctive industry parks represented by Guangdong Intelligent Manufacturing Demonstration Base, Guangdong Bio-Pharmaceutical Industry Base, and Guangdong New Light Source Industry Base. It is now home to 1,020 high-tech companies, 91 Fortune 500 companies, and 76 listed or NEEQ (National Equities Exchange and Quota- tions) listed companies, achieving a signifi- cant clustering effect. Highlight: Innovation-driven Development Foshan High-tech Industrial Development Zone has continuously enhanced coop- eration among businesses, universities, and research institutes with a focus on innovation-driven development. It is vig- orously integrating innovation elements such as international investment and ad- vanced technologies to build itself into a national-level innovative distinctive park, a provincial-level intelligent manufacturing center, and a regional innovation center on the west bank of the Pearl River. Guang- dong High-tech Service Zone for Financial Institutions – Capital Cluster and Financial Innovation Center in the PRD Region Overview Located by the bank of Qiandeng Lake, the core area in the Guang- zhou-Foshan Metropolis Circle, Guangdong High-tech Service Zone for Financial Institutions serves as a significant supportive base for building Guangdong into a province strong in finance. The Zone has attracted 369 financial institutions and renowned enter- prises including the People’s Bank of China, HSBC (Hong Kong and Shang- hai Banking Corporation), American International Assurance, China Life Insurance, Capgemini SE, KPMG In- ternational Cooperative, and Oracle Corporation, with a total investment of nearly RMB 70 billion. The res- ident projects are from high-end service-oriented sectors, including banking, insurance, securities, service outsourcing, private equity and ven- ture capital, financing and leasing, and online financing, which have pooled 50,000 financial professionals. Highlight: Finance Town As one of the first provincial-level pi- lot distinctive towns, Qiandeng Lake Venture Capital Town in the Zone has embraced an array of innovative business forms of private funds, such as angel investment, venture capital, risk investment and equity in- vestment, thus creating an enabling venture capital eco-environment for the city’s financial sector. Sino-German Indus- trial Service Zone – Platform in South China for Strategic Cooperation with European companies Overview Established in 2012, Sino-German Industrial Services Zone is one of the six major strategic cooperation platforms in Guangdong Province, hosting a large number of industry facilities such as Guangdong Tan- zhou International Convention and Exhibition Center and Sino-Europe- an Center, together with incubators including Guangdong Intelligent Manufacturing Demonstration Center and South China Robotics Innovation Research Institute. Sup- ported by a wide range of industry platform services and an enabling environment for innovation and en- trepreneurship, the Zone serves as a magnet which has attracted more than 100 renowned companies from China and abroad to settle down, covering intelligent manufacturing, biopharmaceuticals, and convention and exhibition. Highlight: International Strategic Cooperation Sino-German Industrial Services Zone, where the Secretariat of Si- no-German Industrial City Alliance1 is located, is proactively promoting cooperation among member cities of the Alliance on expanded eco- nomic and trade development, pro- duction capacity upgrading, talent training, mutual financial assistance and cultural exchanges. One Innovative Core Located on the border of three districts of Foshan, the Chancheng-Nanhai-Shunde (Sanlong Bay) High-end Innovation Cluster enjoys remarkable geographical advantages with a total area of 93 km2 or so. As an innovative core, it has attracted and nurtured a host of national key laborato- ries, high-tech enterprises and innovation teams to integrate innovation resources, talents and achievements. The Cluster is being developed into an eco-friendly and livable place that meets first-class standards domestically and globally, a powerhouse for innovation-driven growth of the GDHKMC Bay Area, and an exemplary zone for practicing the new development concept. Five Innovative Platforms Nanhai-Sanshui Industry Cooperation Zone One Innovative Core Five Innovative Platforms Multiple Innovative Connecting Routes Foshan Airport Economic Area Pearl River Delta New Line Airport Gaoming District Guangzhou Baiyun International Airport Nanhai District Nanhai-Sanshui Industry Coopera- tion Zone (covering Foshan High-tech Industry Development Zone) Qingnian Lake Electronic Informa- tion Industry Park Guangdong High-tech Service Zone for Financial Institutions Guangzhou South Railway Station Sanlong Bay High-end Innovation Cluster National (Foshan) Military-civil Integrated Innovative Demon- stration Zone Foshan West Railway Station Shunde District The Industry Cooperation Zone, with a total area of 109 km2, covers the Shishan Town of Nanhai District and the Leping Town of Sanshui District. It is making significant efforts in advanced manufacturing industries includ- ing smart manufacturing, equipment manufacturing and biological medi- cine, with a view to agglomerating the city’s emerging strategic industries, and building an e-commerce logistics center and a pilot zone integrating finance, technology and industry. Guangdong High-tech Service Zone for Financial Institution Located at the bank of Qiandeng Lake in Nanhai District, the 11.4-square- kiometer Service Zone is positioned to be a premium financial business district offering radiating industry benefits to other cities in the PRD region. National (Foshan) Military-civil Integrated Innovative Demon- stration Zone Located at Xingtan Town of Shunde District, the Demonstration Zone cov- ering an area about 95 km2 aims to develop cutting-edge technologies in smart device manufacturing, wearable device manufacturing and bio-in- telligent manufacturing, becoming an industrialization center for global smart technologies and a hub of IoT supply chain. It is ready to cluster military-civil integrated industries as well as global emerging strategic in- dustries, and play a main part in China’s new economy, with its influences radiated to the GDHKMC Bay Area. To further implement the military-civil integrated development strate- gy, Foshan has proactively promoted platform building for military-civil integrated industries in Nanhai, Sanshui and Chancheng Districts, con- tributing to the rapid and sound development of these industries. Qingnian Lake Electronic Informa- tion Industry Park Covering an area about 23.8 km2 in Lishui Town of Nanhai District, the Industry Park will develop synergistically with Baiyun District of Guangzhou in emerging IT in- dustries including cloud computing, big data, IoT, mobile Internet, smart cities and electronic information. This cooperation between Foshan and Guangzhou is a cru- cial part of the “Guangzhou-Shenzhen Sci- ence and Technology Innovation Corridor” initiative, aiming to build a cluster of high- tech and innovation industries. Foshan Airport Economic Area According to the construction plan of the Pearl River Delta New Line Airport, the Foshan Airport Economic Area, which will be divided into a new city town, a logistics zone and a high-end manufacturing zone, is to be built as a new airport center in the west PRD region, with a focus on industries such as commercial aviation, financial ser- vices, cross-border e-commerce, modern logistics, international trade and high-end manufacturing. Note: 1. Sino-German Industrial City Alliance was jointly established by Foshan, major industrial cities in Germany, and participated by major industrial cities in other Europe countries and along the Belt and Road. Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Bureau of Financial Management; 3. Foshan Municipal Economic and Information Bureau 12 Source: 1. Foshan Municipal Bureau of Commerce; 2. Foshan Municipal Science and Technology Bureau Research Report on the Investment Environment of Foshan City, Guangdong Province 13 Sanshui District d a i t a o v R n g n I l n a i c i c g o l o R T e o n o t R h i s r n i g F n i a n N h s o o F r t f h o e e a t o s u R t n Chancheng District n F t o i e l o l s i g e n n s e h n t I t x M E t i n S s r a u t e n c f a W u n g R i n g a i n o u t h w e s t F o s h a n Innovation and Start-up Environment Propelled by the innovation-driven development strategy, Foshan has continued its efforts to build platforms for R&D and innovation, and start-up incubation, with a view to strengthening the clustering of innovative elements and the transformation of technology into productivity. Meanwhile, Foshan has been vigorously developing a market-ori- ented technological innovation system featuring businesses as the main driving force and close industry-universi- ty-research partnership, as an endeavor to build itself into an international center for manufacturing innovation. Innovation and Start-up Environment (Continued) Remarkable Strength in R&D and Innovation In recent years, Foshan has been actively facilitating the expansion and quality improvement of high-tech enterprises, which are rising as the innovative growth pole of the city. In 2017, the number of national-level high-tech enterprises in the city increased by 1,159 to 2,547 in total, leading to enhanced clustering development. Driven by the leading enterprises, Foshan has won a number of awards for R&D and Innovation. In 2017, Foshan won 14 provincial science and technology awards and 49 China Patent Awards, the total number of which made a record high, ranking the 3rd in Guangdong Province. In addition, Foshan leaps into the front ranks of Guangdong Province in terms of the number of invention patents. In 2017, the total number of applications for patent was 73,948, rising by 39.49% over the previous year, among which the applications for invention patent totaled 25,899 and the patents granted reached 36,767. Proven Clustering Effects of Innovative Platforms Foshan has continued its efforts to push ahead with the development of innovative platforms. In 2017, the number of provincial-level engineering centers in Foshan increased by 233 to 628, ranking the 2nd in Guangdong Province; the number of provincial-level key laboratories of enterprises increased by 4 to 21; about 49.07% of the industrial enterprises with an annual revenue of RMB 20 million or more have set up R&D institutes, while the percentage is 100% for the industrial enterprises with an annual prime operating revenue of over RMB 0.5 billion. A well-developed and sound incubator system enables innovation and entrepreneurship. As of the end of 2017, Foshan was home to 77 technology business incubators, with 18 at the state level and 30 at the provincial level, and 59 makerspaces that included 20 at the state level and 30 at the provincial level, contributing to the incubation of more than 100 high-tech start-ups. Source: 1. Foshan Municipal Science and Technology Bureau A Record High on Fiscal Input in Technological Innovation Over the past few years, Foshan has steadily increased its fiscal input in technological innovation, and optimized the fund structure and financial support forms, such as R&D subsidies and innovation vouchers, aiming to lead and encourage the wide participation of people from all walks of life and more investment in the innovative activities across all sectors. In 2017, Foshan’s total fiscal input in innovation grew year on year by 34.96% to register a record high of about RMB 4.73 billion. The whole city’s R&D expenditure in 2017 amounted to RMB 24.7 billion, contributing 2.5% to its total GDP, up by 0.18% over 2016, maintaining a year-on- year growth momentum. Foshan has established strategic partnership with many leading universities and research insti- tutions including Chinese Academy of Sciences, Chinese Academy of Engineering, Tsinghua Uni- versity, Zhejiang University and German Fraun- hofer Society. In a bid to facilitate cooperation and communication among businesses, universities, and research institutions, Foshan has made great efforts to build platforms that focus on technolo- gy innovation and commercialize the local techno- logical breakthroughs, and set up industry parks, along with observation tours and other diversified measures. As a result, the city has pooled top- notch talents and cutting-edge R&D achievements to co-build a technological innovation highland. Case Study Based on “an Institute, a Technology Park and a Fund”1, the industry-university-research partnership between Foshan and Tsinghua University was formally forged in 2016 when the two parties signed a strategic cooperation agreement designed to promote coordinated innovation by the govern- ment, businesses, universities and research institutions. This deepened collaboration between one of China’s top univer- sities and the city renowned for its manufacturing industry will ensure a bright future for smart manufacturing. In the activity of “Visiting Tsinghua” in 2017, entrepreneurs in need of 65 technologies from 54 Foshan-based enterprises had in-depth talks with a group of experts and scholars from different schools and departments of Tsinghua University, including Institute of Microelectronics, Department of Me- chanical Engineering, and School of Materials Science and Engineering. The research breakthroughs achieved by the experts and scholars have been precisely aligned with the technological needs of the Foshan entrepreneurs, further- ing the effective integration of the university’s innovation achievements and Foshan’s industry resources. Industry-University-Research Cooperative Platforms in Foshan Tsinghua University (Fos- han) Advanced Manufac- turing Research Institute Zhejiang University (Foshan) Technology Transfer Center Guangdong Universities Technology Transfer Center Civil-military Integration Incuba- tor for Technology Transactions and Civil-military Integration One-stop Service Platform Guangdong Technology University CNC Equipment Cooperative Innovation Institute (Phase II) Shunde Innovation Park of Science and Technology Park of South China University of Technology South China Industry Base of Changchun Institute of Optics, Fine Mechanics and Physics, Chinese Academy of Sciences Jinan University Science Park (Shunde) Case Study Foshan National Torch Innovation Pioneering Park, with an area of over 200,000 m2, serves as an important incubator for promoting technological innovation and transforma- tion of technology into productivity. It was established by the concerted efforts of Torch High Technology Industry Development Center under the Ministry of Science & Technology, Guangdong Science and Technology Depart- ment, and Foshan municipal government. Operating a national-level high-tech company incubator and a technological innovation and R&D center, the Park has attracted a host of start-ups run by high-caliber pro- fessionals and incubated numbers of high-tech projects. It is the powerhouse for strategic emerging industries’ op- timization and upgrading and the innovative development of the tech-based programs in Foshan. Talent cultivation is essential to an innovation-driv- en city. Therefore, Foshan collaborated with South- ern Medical University and Guangdong University of Finance & Economics in building their Foshan campuses covering both full-time undergraduate and postgraduate courses. It also joined forces with Beijing Foreign Studies University and Univer- sity of Science and Technology Beijing in setting up graduate schools, with two National Demon- stration Bases for Joint Training of Postgraduates established. Moreover, the city is stepping up to develop high-level science universities based on Foshan University and cultivate more talented pro- fessionals for local technological innovation. In 2017, municipally recognized innovation teams in- creased by 19 to 76 in aggregate, providing a sufficient supply of talents for the city’s innovation and entrepre- neurship. In the meantime, Foshan held 23 competitions on innovation and entrepreneurship of different levels, including the Sixth China Innovation & Entrepreneurship Competition (Foshan Division), the Fifth “Zhujiang Angel Cup” Innovation & Entrepreneurship Competition, and Foshan Bank Innovation & Entrepreneurship Competition. The competitions attracted about 800 participant teams and over 600,000 online and offline audience, creating an innovatively vibrant atmosphere in the city. 14 Research Report on the Investment Environment of Foshan City, Guangdong Province 15 Note: 1. “An Institute, a Technology Park and a Fund”: “An Institute” refers nology Park” to the Leaguer Science Park (Foshan), and “A Fund” to a RMB Source: 1. Foshan Municipal Science and Technology Bureau; 2. 2017 Foshan Municipal Government Work Report to Foshan and Tsinghua University Cooperative Innovation Institute, “A Tech- one-billion government support fund for advanced manufacturing. Talent Cultivation for Innovation and Entrepreneurship Industry-University-Research Partnership e v i s n F e h i t s h c g a e n l r I e n p r p t u m S t o C g P n i d l l i u B a t f o r m Chapter III Infrastructure Chancheng District Nanhai District Shunde District Haizhu District Liwan District The Guangzhou-Foshan Metro Line is the first rapid intercity underground rail line in China. Nine other rail lines directly running between Guangzhou and Foshan will have been constructed by the end of 2020. The operation of the Guang- zhou-Foshan Metro Line has shortened the time it takes for a round trip between Foshan and Guangzhou, which has facilitated economic and cultural exchanges between the two cities through the sharing of resources including intellectual, research and innovative achievements. It has therefore ena- bled integrated development of the two cities and enhanced the competitive edges of the Guangzhou-Foshan Metropolis Circle and even the whole PRD region. Guangzhou-Foshan- Zhaoqing Expressway Guangzhou-Foshan Expressway & Foshan-Kaiping Expressway Guangzhou-Zhuhai Expressway West Line Erenhot-Guangzhou Expressway (Guangzhou-Sanshui Section) Guangzhou-Gaoming Expressway Guangzhou-Kunming Expressway (Guangzhou-Zhaoqing Section) Guangzhou-Zhongshan- Jiangmen Expressway Foshan-Qingyuan- Conghua Expressway Foshan-Jiangmen Expressway Foshan West Railway Station Foshan West Railway Station, the largest high-speed railway station in China with entrances and exits below the level of the tracks, serves the Guangzhou-Foshan Metropolis Circle and the whole PRD region as an important passenger transport hub. It will be further developed into an intermodal transportation system integrating rail transporta- tion, intercity transit lines, metro lines, tram and other means of passenger transportation. Transportation Network Foshan boasts a well-developed transportation network, which makes it a significant part in the development of the Guangzhou-Foshan Metropolis Circle, the GZFSZQ Economic Circle and the “one-hour economic circle” of the GDHKMC Bay Area. In recent years, Foshan has been striving to develop an intermodal transportation system aimed at achieving integrated regional development, and has made joint efforts with Guangzhou to build an international hub city cluster. Expressways • An interconnected expressway network across Fos- han has taken shape, consisting of two ring express- ways, four expressways running from north to south and five from east to west with a total length of 486.7 km constructed by the end of 2017. The convenient and efficient expressway system has enabled Foshan to be connected with Guangzhou in a multidimen- sional road transportation network and through a jointly built intermodal transportation corridor, further strengthening the role of Foshan as a critical hub in the west of the PRD Greater Bay Area. way PRD Region Second Ring Expressway ▲ Expressway Network of Foshan Rail Transportation Guangzhou-Foshan Metro Line The Guangzhou-Foshan Metro Line operates 22 stations along the route at a total length of 33.5 km, further pro- moting the integration of Guangzhou and Foshan. Foshan Section Guangzhou Section Rapid Rail Transit Lines Connecting Guangzhou and Foshan • Foshan is served by rail transportation hubs including Foshan West Rail- way Station, Foshan Railway Station and Sanshui South Railway Station, and is traversed by Guangzhou-Zhuhai Railway, Guangzhou-Maoming Railway and other railway lines. • As the railway which enables access to Nansha Port has been put into operation along with the construction of the freight stations in Guan- yao Town and Danzao Town, and the Guangzhou-Maoming Railway line ceased freight transport services, Foshan has been well connected to the neighboring ports like the Nansha Port in Guangzhou and the Gaolan Port in Zhuhai thanks to the enhanced development of the road-rail and sea-rail intermodal transports. • Foshan has planned to construct national rail transportation hubs jointly with Guangzhou which serve China’s hinterland and the ASEAN Economic Development Zone. By 2020, it will take only three hours from Foshan West Railway Station to Changsha or Guilin, four hours to Guiyang, Wu- han or Xiamen, and ten hours to Shanghai, Beijing or Xi’an. High-speed Railways The GDHKMC Bay Area has been covered by a well-developed high-speed railway network with Guang- zhou as a hub at the center. The operating Beijing-Guangzhou, Guiyang-Guangzhou, Nanning-Guangzhou and Xiamen-Shenzhen High-speed Railway lines have connected the Bay Area with the rest of China. The high-speed railway network will be further developed as the railway lines under planning or construction are put into operation including the Ganzhou-Shenzhen, Shenzhen-Maoming and Guangzhou-Shantou High-speed Railway lines, as well as the Guangzhou-Shenzhen-Hong Kong Express Rail Link. Source: 1. Foshan City Transportation Bureau; 2. Foshan Investment Promotion Agency; 3. The 13th Five-Year Plan of Foshan City 16 Research Report on the Investment Environment of Foshan City, Guangdong Province 17 s s e r p x E g n i R Foshan PRD Region Guangzhou PRD Regio essway PRD Region Second Ring Expressway n R i n g E x p r Transportation Network (Continued) Public Infrastructure Air Transportation Pearl River Delta New Line Airport (under Planning) Location of Airports in Foshan and Surrounding Cities • Located in Gaoming District, Foshan City, Pearl River Delta New Line Airport, an important feeder airport of the nine major airports to be built by Guangdong, is one of the backbones of the world-class airport cluster in the PRD region. Mainly serving the mid-western PRD region and surrounding areas, the airport contributes to form an internation- al aviation hub cluster jointly with Guangzhou Baiyun International Air- port, driving Foshan shifting from a node city into a regional hub city. • Foshan has already launched the preliminary work so as to start the first-phase construction of the Pearl River Delta New Line Airport by the end of 2018. Planning to build an airport econom- ic zone, Foshan aims to develop the airport into an aviation hub in western GDHKMC Bay Area. Sharing Conveniently Accessible Air Transportation of Sur- rounding Cities • Enjoying the premium geographical advantage at the center of the GDHKMC Bay Area, Foshan shares convenient airport resources with Guangzhou and Shenzhen. It takes less than one hour driving from downtown Foshan to Guangzhou Baiyun International Airport and Shenzhen Bao’an International Airport, benefiting Foshan with con- venient domestic and international air transportation. Ports •  Water transportation is an important component of Foshan’s comprehensive transportation system. With 13 container termi- nals, Foshan enjoys convenient container water transportation, providing daily shuttle barge routes to major coastal hubs includ- ing Guangzhou, Shenzhen, and Hong Kong. • Foshan has 78 navigable rivers with a total navigable length of about 1,084 km, which accounts for 10% of that of Guangdong Province and 1.13% nationally. The watercourses flowing past Foshan connect Yunnan Province, Guizhou Province, and Guangxi Autonomous Region to Guangzhou, Shenzhen, and other coastal areas, as well as Hong Kong and Macau, among which the Xijiang Trunk Line is navigable for 5,000-DWT vessels, providing direct ac- cess to the Pearl River and the South China Sea. Guangzhou Guangzhou Baiyun Internation- al Airport Shenzhen Shenzhen Bao’an International Airport In recent years, Foshan has further strengthened its efforts to optimize the use of existing land resources and develop industrial infrastructure including Foshan Pearl River Delta New Line Airport Land Supply Following the strategy of implementing Three-Old Transformation1, Foshan has been focusing on transform- ing village-level industrial parks to discover and unleash the potential of land resources, as part of its efforts to maximize the efficiency of land supply. Meanwhile, “emptying the cage for new birds”, a strategy for upgrading industries, is carried out for intensive and efficient use of land and increased efficiency of land supply. Foshan has made enduring efforts to shift from increasing land supply to optimizing the use of existing land resources with a focus on improving the quality of land use, thus securing sustainable socioeconomic development of Foshan. Energy Supply Water Supply With 32 water plants in urban and rural areas, including 4 to be expanded, Foshan provides all citizens with access to clean water, and is focusing on de- veloping itself into a national water saving city. Non-residential water is rated at RMB 2.19-2.60/m3. Electricity Supply Foshan will develop grid-connected PV power systems by the power dis- tribution side, build new 500 kV and 220 kV substations, and increase the capacity of existing substations. Gas Supply Ring-shaped networks of high pressure gas pipeline will be built across Foshan to ensure gas supply from diversified sources. The high pressure gas pipelines of Foshan will be connected with those of other cities including Guangzhou, Zhongshan and Jiangmen as part of the sweeping efforts to build interconnect- ed high pressure gas pipeline networks. By 2020, 100% of its urban areas will have access to fuel gas, 45% of which will be delivered through gas pipelines. Information and Communications Foshan has been steadily developing information infrastructure and has made remarkable achievements in building mobile networks. As a result of its constant efforts to install shared communication conduits, more than 83% of the households in this city have access to fiber optic internet. The quality of free WLAN at public places has been improved, contributing to a healthy and harmonious internet environment. 4G networks provided by the three telecommunica- tions giants in China and free WiFi hotspots are now available on all Guangzhou-Foshan metro trains. Leveraging the technological ad- vantages enabled by the “Internet Plus” strategy, Foshan is speeding up its efforts to build itself into an information-based smart city. Note: 1. Three-Old Transformation, a unique reconstruction strategy implemented in Guangdong Province, focuses on the transformation of old towns, factories and villages. Source: 1. Official website of Foshan Municipal Bureau of Land Resources and Urban-Rural Planning; 2. Official website of Foshan Municipal Economic and Information Technology Bureau; 3. Overall Urban Plan of Foshan City (2011-2020) energy supply, and information and communications with a view to laying a solid foundation for economic growth. Guangzhou Baiyun International Airport As one of the three major aviation hubs in China, the airport gains a leading position in passenger throughput globally with an airline network covering more than 210 des- tination airports worldwide. Shenzhen Bao’an International Airport It is a large-scale modern international air- port featuring multimodal transport of sea, road, air and railway. Airport Cluster With the most fine-meshed airport network in China and even around the world, the passenger throughput of the clustering airports in the GDHKMC Bay Area has exceeded that of the three airports in the New York Bay Area. Table 6: Electric Rates of Foshan (RMB/kWh) Large-scale Industries 0.61~1.00 (1-10kV) 0.61~1.00 (20kV) 0.58~0.96 (35-110kV) 0.56~0.92 (≥220kV) General Business Sectors 0.83~1.36 ( < 1kV) 0.80~1.32 (1-10kV) 0.80~1.32 (20kV) 0.78~1.28 (≥35kV) Port Cluster Joint construction of port cluster is crucial for the development of the GDHKMC Bay Area. As of the end of 2016, Guangdong had 2,811 berths at ports and harbors, of which 304 were at 10,000 DWT or above. The annual freight throughput of the ports in Guangdong has reached 1.67 billion metric tons, ranking second na- tionwide, while the container throughput has totaled 59.48 million TEUs annually and ranked first in China. Foshan Port The Largest Inland Port in Guangdong As one of the 28 national major inland ports in China, Foshan Port is an impor- tant hub of the comprehensive trans- portation system in the PRD region. Guangzhou Port An Asia-Pacific Modern and Comprehensive Hub Port Enjoying rich hinterland resources and well- equipped infrastructure, Guangzhou Port boasts full-fledged collection and distribution transport system with full utilization of berths. Source: 1. Foshan City Transportation Bureau; 2. Foshan Investment Promotion Agency; 3. The 13th Five-Year Plan of Foshan City 18 Research Report on the Investment Environment of Foshan City, Guangdong Province 19 About 1.5-hour drive About 2.5-hour drive Chapter IV Human Resources Table 7: Part of the Shared Higher Education Resources between Guangzhou and Foshan Sun Yat-sen University Foshan University Southern Medical University South China University of Technology South China Normal University Jinan University Guangdong University of Finance & Economics South China Agricultural University Human Resources In recent years, following the strategy of building an increasingly competitive Foshan by pooling more talents, the city has focused on creating more support platforms and a favorable development environment to attract profes- sionals with expertise in R&D, innovation and management, guaranteeing talent supply for building itself into a na- tional-level manufacturing innovation center. High-level Professionals Resources High-level Professionals • As of the end of 2017,the professional talent pool of Foshan has expanded to about 1.44 million people, a large number of which are high-level professionals, including 223 engaged in innovation and entrepreneur- ship with municipal-level recognition, who have brought a variety of high-end technological achievements and pioneering technology-based projects to the city. 95 Highly-educated Professional Resources Higher Education Resources • Foshan is now home to 13 higher education institutions, including campuses of universities such as South China Normal University, Southern Medical University, and Guangdong University of Finance & Economics, graduate schools and industry-featured colleges. The city plans to build a high-level university for science and technology, and a university of applied sciences, striving to have 20 higher education institutions by 2020. • In 2017, Foshan hosted a total enrolment of some 45,000 undergraduates and postgraduates, and 30% of the 4.1 million working population in the city have re- ceived 2- to 4-year higher education. • In addition, Foshan has shared higher education resources with Guangzhou thanks to the Guang- zhou-Foshan integration plan. At present, an annual supply of 300,000 graduates from 27 universities and colleges in the two cities satisfies the market demands for various professionals. academicians of CAS (Chinese Academy of Sciences) and CAE (Chinese Academy of Engineering) as well as experts qualified in the “1,000 Talents Program” and “10,000 Talents Program” of China 115 experts enjoying a special subsidy from the State Council of China professionals qualified in the “Pearl River Talents Plan” and the “Special Support Program for Talents” of Guangdong Province Cultivating Talents • Foshan boasts 59 post-doctoral workstations, ranking first among prefecture-level cities in China, and 17 CAS/ CAE academician workstations specializing in new mate- rials, advanced manufacturing, new energy, and energy conservation and environmental protection, which have risen as a major driver for the enhancement of techno- logical innovation capability of local corporations. Recruiting Overseas Talents • Foshan has attracted overseas academicians, experts and medalists of the WorldSkills Competition through vig- orous efforts including building up international talent-at- tracting cooperation platforms like global liaison offices, attending the Conference on International Exchange of Professionals, and hosting matchmaking meetings for international high-level talents and projects. In recent five years, Foshan has recruited about 5,000 overseas profes- sionals, 1,000 of which were employed in 2017, gaining significant momentum for upgrading and transformation of industries and talent structure of the city. 23 20 Research Report on the Investment Environment of Foshan City, Guangdong Province 21 Source: 1. Foshan Municipal Science and Technology Bureau; 2. Foshan Human Resources and Social Security Bureau; 3. Foshan Municipal Statistics Bureau Exemplary Case One of the high-level universities for science and technol- ogy in Guangdong Province and one of the pilot schools of the “100 Universities Project” initiated by the Ministry of Education of China to build a collaborative big data plat- form, Foshan University currently boasts 5 provincial-level engineering research centers including the Guangdong Engineering Research Center for Smart Manufacturing Equipment, 1 provincial-level key laboratory, 3 engineering R&D centers of the Department of Education of Guang- dong Province, 6 municipal-level engineering R&D centers and 17 municipal-level technology innovation platforms. Human Resources (Continued) Vocational Talent Resources Vocational Talent Pool • By the end of 2017, Foshan had a rich pool of voca- tional talents consisting of 729,000 skilled personnel, including 184,000 highly skilled professionals and 24,000 with senior professional titles. Vocational Education • Foshan has been committed to modern vocational education by supporting the development of tech- nical and vocational training schools. As of 2017, Foshan had nine technical schools with a current enrolment of 13,700 students and a graduate em- ployment rate of over 98%. About 25 companies and associations have established vocational training schools, six of which have set up provincial-level workstations for technicians specialized in ten oc- cupations. In 2017, Foshan offered 37,998 people vocational trainings, playing a leading role in China. Human Resource Costs Figures released by Foshan Human Resources and So- cial Security Bureau in June 2017 show that employees’ average monthly salary in 2016 was RMB 5,599. Cur- rently, Foshan-based companies assume 18.2% of the social insurances and a minimum 5% of the Housing Provident Fund for their employees. As demonstrat- ed by the table below, Foshan is highly competitive compared with China’s major cities regarding human resource costs, supporting the long-term operation and development of the local companies. Table 8 Comparison of human resource costs between Foshan and China's top cities 7,425 7,480 5,599 23% 7,706 6,504 Foshan Human Resources Service Foshan Guanzhou 28% 27% Shenzhen 36%6% Beijing Shanghai Industry Park Foshan Human Resources Service Industry Park is the first one of its kind established in Guangdong Province. It gathers a cluster of emerging human resources ser- vice providers in recruitment, consultation, training, outsourcing, labor dispatching and other talent services, providing efficient, professional and intensive HR ser- vices to both employers and employees. The Park now houses an array of leading HR service providers includ- ing zhaopin.com, LeaderHR, Randstad and Manpower, creating a talent service powerhouse to serve even the whole GDHKMC Bay Area through market-driven and government-guided development. Employees’ average monthly salary in 2016 (in RMB) Percentage of the five social insurances and the Housing Provident Fund paid by companies Note: 1. Figures in this table are rounded to the nearest whole number. 2. The Housing Provident Fund paid by companies is calculat- ed at 5%. The average monthly salary of 2016 in the table was released in June 2017. By the time this report was finalized, the figures of 2017 had not yet been made public. 3 Source: 1. Foshan Economic Statistics 2. The Yearbook of Foshan 2016; 3. Information provided or released by Foshan Human Resources and Social Security Bureau 22 Research Report on the Investment Environment of Foshan City, Guangdong Province 23 Chapter V Living Environment  Education and Healthcare Foshan is a city of great importance to the GDHKMC Bay Area. In the ongoing Guangzhou-Foshan integration pro- cess, the arrangement of educational and healthcare resources has been constantly improved to ensure a mutually beneficial sharing of high-quality resources, and to create a more coordinated public services system. Urban Living As a modern international city with distinctive Lingnan cultural identities, Foshan is where natural beauty meets the comfort of urban living. Its urban appeal is further enhanced by the sophisticated public infrastructure, and a diverse calendar of recreational activities. The high-quality living environment has attracted people from all over the country to live and work in the city, and to indulge in its unique charm. Urban amenities The city operates an extensive array of cultural, sports and leisure facilities, such as public libraries, science and technology museums, cultural centers (stations), museums, stadiums, golf courses, theatres, and cinemas, enabling the local residents to ensure a high quality of life. A well-balanced and comprehensive education system • As the first “model city for promoting modernized education in Guangdong Province”, Foshan has developed a comprehensive, multi-layered system for providing high-quality modernized education for all. Table 9: Number of Educational Institutions in Foshan (2017) Adequate healthcare resources • Foshan is rich in healthcare resources. It is home to 42 general hospitals at Level II or above – including the First People’s Hospital of Foshan, Second People’s Hospital of Foshan, and Foshan Municipal Hospital of Traditional Chinese Medicine – and 15 specialized hospitals at Level II or above – such as Foshan Maternal & Children’s Hospital, Foshan Stomatology Hospital and the Third People’s Hospital of Foshan. • As envisioned in the 13th Five-Year Plan for Deepening the Medical and Health System Reform in Foshan, published by the municipal government aimed to develop a health service system that suits local economic and social development needs, by 2020, Foshan will become a leading city in China in terms of comprehensive healthcare services. 100% coverage of hierarchical diagnosis and treatment information management Over 98% enrolments for the basic healthcare insurance Zero price markups in medicine and medical supplies Improvements in the critical illness insurance program Table 10: Number of healthcare institutions in Foshan (2017) Asia Art Park of Foshan Business facilities Foshan boasts a good many internationally renowned chain hotels, including Intercontinental, Crowne Plaza and Sheraton, along with high-end residential properties developed by Country Garden, Vanke and Sunac China – all favorably located in comfortable surroundings. It is home to a network of urban complexes, such as Lingnan Xintiandi, Vanke Mall, Shunlian Square, and Florentia Village, offering the convenience of daily shopping and entertainment. In addition, the multifunctional Foshan International Conference & Exhibition Center and Guangdong (Tanzhou) International Convention and Exhibition Center ideally serve the purposes of exhibition, convention and performance. Category Number Kindergartens 914 Primary schools 409 Middle schools 142 High schools 58 Institutions of higher education 13 Secondary vocational schools 47 Special schools 7 Cultural activities Foshan offers a diversity of cultural activities, such as Guangdong (Foshan) Creative City Expo, Hong Kong Foshan Festival, Foshan Kung Fu (Action) Film Festival, and the world-renowned Nickelodeon-themed project, a central feature of the Foshan Cultural and Ecological Coastal Park. An increasing number of cultural events add to the city’s vibrant cultural scene, such as the National Academic Exhibition of Masters of Chinese Calligraphy in Celebration of the 160th Birth Anniversary of Kang Youwei, the concert series of “Music in Foshan – Musical Charm of Qin Celebrating the Beauty of Four Seasons”, and the 27th Golden Rooster and Hundred Flowers Film Festival. Modern arts merge and collide with the traditional Lingnan culture, representing the city’s unique cultural richness. Sports events Every year, a variety of major sporting events are held in the Century Lotus Stadium, Lingnan Pearl Stadium and Foshan International Sports and Cultural Performing Arts Center, including the Beijing Olympic Diving Trials, the 10th FINA World Junior Synchronised Swimming Championships, the 2016 Foshan FIE Women’s Sabre World Cup, the 13th National Games of China Badminton Qualifiers, and FIBA Basketball World Cup 2019 Asian Qualifiers. These domestically and internationally recognized sporting events have not only improved the visibility of Foshan, but also cultivated a sporting culture in this dynamic city. Lingnan Xintiandi • In 2017, Foshan EtonHouse International School (FEIS), the first school for overseas students in the city, was set up. With its distinctive international education programs, FEIS has a growing presence in cities around the Pearl River Delta. • For the next five years, Foshan plans to promote innovation- and creativity-focused education, from aspects of faculty resources, course structure, activities, environment, R&D programs, supportive platforms, and evaluation. The aim is to develop a unique and scalable Foshan model of maker- oriented education, supported by a comprehensive system for cultivating high-caliber professionals with innovation expertise. Foshan Lingnan Mingzhu Gymnasium Category Number Public hospitals 50 Private hospitals 60 Primary healthcare institutions 1549 Specialized public healthcare institutions 48 Others 8 Source: Information provided by the official websites of: 1. Foshan Municipal Education Bureau; 2. Foshan Municipal Government; 3. Foshan Municipal Statistics Bureau; 4. Guangzhou Municipal Education Bureau; 5. Guangzhou Municipal Statistics Bureau. Source: 1. Foshan Master Plan (2011-2010) ; 2. The official website of Foshan Municipal Government. 24 Research Report on the Investment Environment of Foshan City, Guangdong Province 25 Cultural Landscapes Eight Top Attractions in Foshan Crisscrossed by rivers and lakes, Foshan is abun- dantly rich in water and lush greenery. A blend of ecological beauty and fascinating history, the city features a great many cultural attractions and for- mer residences of celebrities with domestic and international fame. The distinctive cultural land- scapes combine to nurture the charming Lingnan culture, one of the most unique and vibrant region- al cultures in China. Xiqiao Mountain of Nanhai Qinghui Garden of Shunde Flowers’ World of Shunde Zaomu Mountain of Gaoming Ancestral Temple of Foshan Nanfeng Ancient Kiln of Chancheng Lotus World of Sanshui Nanguo Peach Garden of Nanhai The Xiqiao Mountain is a national 5A-level tourist attraction, known as one of the two most iconic mountains in southern Guangdong for its varied and stunning scenery. Boasting 72 distinctive peaks and 42 deep caves, it is dotted with lakes, waterfalls, springs, brooks, rocks, cliffs, ponds, and pavilions. Cultural attractions abound in the Xiqiao Mountain National Geological Park, including the quarry ruins dating back to the Ming dynasty (1368–1644) and the Stone Age ruins. The unique culture of the Xiqiao Mountain, which values diver- sity, inclusion, openness, and innovation, represents the essence of Lingnan culture. Favorably located on the border between Guangzhou and Foshan, the Nanhai Film & TV Town is one of the four CCTV Film & TV Production Bases. Its architectural complexes bring different historical periods back to life, including the Taiping Heavenly Kingdom City, Jiangnan Watertown, and Old Hong Kong & Macau Streets. Featuring a delicate blend of Chinese and Western elements, they offer perfect backdrops for out- door scenes of dramas and movies, and for major cultural events. The Town features a beautiful southern landscape with clear waters and green mountains, making it an ideal des- tination for recreational tourism. Known as “a palace of oriental folk arts”, the Ancestral Temple of Foshan is a folk art museum housing collections of ancient ceramics, wood carvings, castings, and architec- tural artworks. A national cultural heritage site of China, it consists of the Ancestral Temple architectural complex, Confucian Temple, Huang Feihong Memorial Hall and Ye Wen Hall. Every year, performances and exhibitions are held on a regular basis, such as the First Writing Ceremony for Children held in the Confucian Temple, the Huang Fei- hong Lion Dancing, and Cantonese Opera performances. The museum captivates both Chinese and overseas tour- ists with its vast collections of spectacular artworks that represent the best of the local Lingnan culture. Source: Information provided by the official websites of: 1. Foshan Municipal Tourism Bureau; 2. Foshan Municipal Government; 3. The Ancestral Tem- ple of Foshan. Xiqiao Mountain of Nanhai Nanhai Film & TV Town Ancestral Temple of Foshan 26 Research Report on the Investment Environment of Foshan City, Guangdong Province 27 Chapter VI Government Policies and Services  Transparent and Targeted Government Policies Guided by the development concept of innovative upgrading and transforma- tion, Foshan is promoting all-round insti- tutional innovation to support industry development, technological innovation, human resource services and financial services. Targeted government policies have been issued to boost emerging in- dustries and modern service industries, and facilitate advantageous traditional industries in moving up the value chain, so as to strengthen the generators of the city’s economic growth. Transparent and Targeted Government Policies (Continued) Policies in Support of Technological Innovation Government Grants for Technology Projects Foshan city government has released targeted policies to encourage increased investment in science and technolo- gy, including measures to reward scientific and technolog- ical achievements, and city-level measures to fund sci-tech innovation teams, major projects, innovation platforms and patents. These grants will also help create a diversified multi-channel investment system, comprehensively improv- ing the city’s environment for scientific and technological innovation. To Promote Incubation of Technology Companies A number of incentives have been put in place to boost tech incubators and create a favorable environment for mass entrepreneurship and innovation, including subsidies for incubators’ expanded space and support- ing facilities, compensations for incubation investment and credit loans, and rewards for exceptional operation performance. For instance, a recognized state-level tech incubator will be granted RMB 1 million. To Facilitate Technology Commercialization To unleash the potentials of education and re- search institutions (ERIs) in technology commer- cialization, efforts have been made in the city to: (i) establish government funds for technology R&D and commercialization; (ii) develop innova- tion platforms featuring coordination between governments, industries, and ERIs, (iii) encourage ERIs to inaugurate market-driven technology commercialization organizations, and (iv) require all the gains from technology commercialization to be owned by these organizations. • A total of RMB 28 bil- lion was invested in R&D in Foshan. • TheratioofR&Dexpendi- tures to the city’s GDP increased to 2.8%. • A total of at least RMB 100 million is expect- ed to be allocated for Foshan’s city-wide inno- vation voucher program between 2016 and 2018. To Support Business Expansion and Growth Financial support programs have been rolled out to help Fos- han-based businesses continuously improve their competitiveness. These programs cover a variety of areas including office subsidies, financing guarantee services, rewards for significant contributions to the local GDP and rewards for excellent senior executives. In ad- dition, facilitating measures such as “Project-specific Consideration” and “Company-Specific Policies” have been implemented to attract and support industry-leading companies. To Reduce Business Operating Costs “Ten Measures in Foshan” have been put in place to reduce a full range of business costs for optimized efficiency, including costs in tax payment, land use, social security, utility services, transportation, financing, procurement and operations, and institutional costs. These policy measures are designed to inject more vitality to the real economy sector and develop Foshan into one of China’s most attractive low-cost areas for the manufacturing industry. To Promote Industry Transformation and Upgrading While proactively nurturing strategic emerging industries, Foshan has made vigorous efforts to optimize and trans- form traditional industries. To this end, earmarked funding programs are launched to motivate traditional busi- nesses to transform and upgrade their technologies with wider applications of robotics and smart equipment. For instance, to enable a better layout of the high-end manufacturing industry, the local government will provide a pilot demonstration enterprise for the “Made in China 2025” strategy with a financial aid of up to RMB 5 million. To Protect Intellectual Properties Intensive efforts have been made to develop Foshan into a National Intellectual Property (IP) Demonstration City. To this end, a state-level IP protection center was established as the first of its kind in Guangdong Province, and the city’s IP right defense assistance system and judicial protection system improved. Meanwhile, a well-functioning IP service ecosystem has been created thanks to the patent financing policies and dedicated grants for patent financing, pat- ent protection and model entities in IP. To Boost Technological Innovation with “Innovation Vouchers” An innovation voucher program has been in place in Foshan to reduce the financial burdens of innovation for Micro-, Small and Medium-sized Enterprises (MSMEs), and encourage them to in- crease R&D investment. Innovation vouchers are open to technol- ogy-based MSMEs planning to purchase technological innovation services, such as R&D and design, financial technologies, intellectual properties, inspection and testing, and technological intermediary consulting. An eligible enterprise may claim up to RMB 100,000, which will be provided to its service providers by the Foshan Mu- nicipal Science and Technology Bureau and the Foshan Municipal Bureau of Finance in accordance with relevant rules. To Encourage International Market Expansion To help businesses enter overseas markets, efforts have been made to promulgate more guiding policies, increase financial support, improve administrative services and create cooperation platforms. For example, a RMB 100-million earmarked funding program has been designed to facili- tate the establishment of new institutions for an open economy, providing financial aid for offshore trade projects, overseas parks for international industrial capacity cooperation, international cooperation platforms, ef- forts to avoid trade frictions, and other relevant projects. To Attract Investments and New Projects With a view to creating a more attractive investment environment and encouraging the settlement of new businesses and projects, targeted fa- vorable policies have been released to attract and support new projects, especially those in strategic emerging industries such as electronic informa- tion, civil-military integration, biopharmaceuticals and airport economy. For example, a civil-military integration project may receive a settlement subsidy of up to RMB 1 million. For critical sectors and significant projects, special supports will be provided in terms of capital, land, energy and other factors. Take the land use as an example. A dedicated land use plan may be devel- oped after taking into account the layout, scale and time arrangement. Source: 1. Foshan Investment Promotion Agency Source: 1. Foshan Investment Promotion Agency 28 Research Report on the Investment Environment of Foshan City, Guangdong Province 29 Policies in Support of Industry Development Transparent and Targeted Government Policies (Continued) Transparent and Targeted Government Policies (Continued) • Foshan has launched a series of targeted incentive policies for financial institutions, including Financial provision of subsidies for business registration in Foshan, capital increase to expand business Policies operation, use of office space, and recruitment of management and financial professionals. These policies aim to promote the clustering of key financial industry elements, to further increase the value added of this industry in Foshan. • Meanwhile, Foshan is encouraging and supporting large local companies to establish urban com- mercial banks, private banks, and financial companies to promote creation of a diversified and full-fledged financial ecosystem. Both Financial and Policy Incentives to Encourage Companies to Go Public • Tobuildamulti-tiercapitalmarket,Foshanissteppingupitseffortstosupportcompaniestogopublic by launching incentive policies such as the Three-Year Action Plan of Foshan for Encouraging Publicly Traded Companies (2016-2018) and Measures of Foshan on Supporting Publicly Traded Companies. Companies that successfully go public are entitled to a financial reward of up to RMB 29 million. • Inaddition,Foshanhasestablishedariskmitigationfundforbondfinancingtoprovidecreditenhancement services for companies issuing bonds. Through provision of subsidies for the partnered credit enhance- ment organization, companies are supported to operate bond financing with lower costs. Fiscal Support for Small and Medium-sized Enterprise (SME) Financing Policies in Sup- port of Talent Develop- ment Following the strategy of building a more competitive Foshan through enhanced talent development, the city government has moved up talent development on its agenda and has listed it as a “Top Pri- ority Program” within the mandate of the highest leadership. Continuous efforts have been made by the city government to further enhance its talent development programs with increased financial support provided for targeted and intensive measures to attract and recruit more and better need- ed professional talents, including provision of financial subsidies and one-stop service cards. Highly Attractive Incentive Policies for the Financial Industry Diverse Policies for Building a Highland of Talent Development Increased Subsidies for Talent Team-building Newly-recruited municipal-level techno- logical innovation teams Subsidies: RMB 2-20 million Newly-recruited provincial-level techno- logical innovation teams An incentive package for each team: 50% of the provincial financial support Enhanced Re- cruitment of Talent Team Leaders Newly-recruited world-leading experts, including Nobel laureates, CAS and CAE academicians, and strategic scientists Project-specific tailored support Newly-recruited Chinese state-level leading experts, including professors of the Changjiang Scholars Program, and experts recruited under the 1,000 Talents Program in Innovation and Entrepreneurship Housing allowance: RMB 4 million Newly-recruited experts under the Pearl River Talents Program, and other provin- cial-level leading experts Housing allowance: RMB 3 million Newly-recruited leaders of university key dis- ciplines, and other local-level leading experts Housing allowance: RMB 2 million Doctorate Holders and Postdoctoral Fellows Newly-recruited post-doctoral fellows Housing allowance: RMB 300,000 Research subsidies: RMB 300,000 Newly-recruited doctorate holders Housing allowance: RMB 200,000 Postdoctoral station fellows Research subsidies: RMB 200,000 Living subsidies: RMB 180,000/year Allowances for spouse between jobs: RMB 3,000/month Organizations building new postdoctoral stations/company-based sub-postdoctoral stations/ postdoctoral innovation practice bases Subsidies for establishing new stations: RMB 1,000,000/500,000/400,000 respectively Holders of Senior-level Professional Titles Newly-recruited holders of senior-level/ associate senior-level professional titles Housing allowance: RMB 300,000/200,000 Mid-/En- try-level Professionals Newly-recruited holders of mid-level professional titles, senior technicians, and master or bachelor degree holders Housing rental allowance: RMB 9,000 / 6,000 • NolessthanRMB500 million each year is ear- marked in the municipal fiscal budget for talent at- traction. • More than RMB 3 billion each year is invest- ed from the district-level fiscal budget for talent de- velopment. • More than RMB 100 million each year is invested from the mu- nicipal fiscal budget to at- tract high-caliber Chinese and overseas talents. • The Foshan municipal government has made proactive efforts to provide government-guided fiscal support under a newly expanded fiscal support management system. It has established a dedicated fund to provide an easier and more affordable way for business financing, along with a variety of targeted fiscal support funding pro- grams to serve the needs of SMEs. Guidance Fund for Innova- tion and Entrepreneurship Programs in Foshan This funding program operates a total asset of RMB 10 billion as a guid- ance fund to attract more funds which sum up to 10 times larger, of which RMB 3.04 billion invested by sub-funds or their administrative institutions have been in place. Policy-supported Small-loan Protection Insurance Risk Compensation Fund for Loans of Quality Tech- nological Improvement and Innovation Programs As of the end of 2017, this dedicated funding program has provided refinancing support for 2,845 loan transactions with a total amount of RMB 28.05 billion, benefiting 1,622 companies. A total of 58 programs of 53 companies have been granted with credits totaling RMB 367 million. Since the launch of related policies one year ago, a total of RMB 158 million of loans on credit has been granted to SMEs. Dedicated Fund for Business Financing Operating a total of RMB 190 million, this program has helped 337 technolo- gy-based SMEs in Foshan be granted credits totaling RMB 2.98 billion. Risk Compensation Fund for Credits of Technolo- gy-based SMEs In Support of Talent Attraction & Development Programs Each talent attraction and devel- opment program recognized as exemplary, innovative and prac- tically effective is granted with a financial support of RMB 500,000 to 2 million from the municipal fiscal budget. 1 Talent Development in All Specialized Areas An additional salary allowance of RMB 100,000 to 1 million is granted to each of the recog- nized outstanding specialists in all professional areas across the city, including innovative and entrepreneurial professionals, top-notch youth, cultural experts, school principals and teachers, medical doctors, and artisans. 2 Talent Referral Program A reward of RMB 50,000 to 200,000 is granted to each person making a successful referral of a provincial-level technological innovation team, or a state/provincial-level lead- ing professional. 3 Source: 1. Implementation Rules for the Reform of Talent Development Mechanism in Foshan issued by Foshan Municipal Government; 2. Foshan In- vestment Promotion Agency 30 Research Report on the Investment Environment of Foshan City, Guangdong Province 31 Source: 1. Foshan Municipal Bureau of Financial Management; 2. Foshan Municipal Economic and Information Bureau Innovative Talent Devel- opment Mechanism Innovative and Highly Efficient Government Services As part of its efforts to promote the “One Stop & One Network” reform of government services, the Foshan municipal government has in recent years developed a series of mechanisms to streamline its administration, delegate more power to lower-level governments with a strengthened regulation system, and provide better public services. All these mecha- nisms aim to enhance the city’s attractiveness to investors, capability of pooling resources, and regional competitiveness, thus building an international and market-oriented business highland with a facilitating environment. • Foshan’s“Internet+GovernmentServices”projectisofficiallylistedunderChina’sNational-sponsored “Internet + Government Services” Demonstrative Program. • TheAdministrativeServiceCenterofFoshanMunicipalGovernmentwasawarded“PrizeforOutstand- ing Contribution of Chinese Government Services” at the 2nd National Government Services Exposition. • Foshan’s“OneStop&OneNetwork”administrativereformprojectwasonceagainselectedasoneof “China’s Top 50 Internet + Governance Projects” in 2017. • FoshanisratedNo.1provinciallyintermsofcitizens’satisfactionwithpublicservicesintheResearch Report on Development of Service-Oriented Local Governments in Guangdong Province. “One Stop & One Network” Government Service Reform in Foshan Foshan has made intensive efforts to bring advanced information technologies, such as the Internet and big data, into its undertaking of building an “Internet + Government Services” system that features optimized and streamlined administration under standardized regulation, seamless sharing of government information, and convenient and efficient interaction between the government and citizens, thus pushing forward the constant enhancement of the city’s government services in both quality and efficiency. Separation of Acceptance and Review Procedures for General Services Standardized Operation Based on an Electronic Transfer Process Universal Application and Joint Approval Multichannel Services and Expanded Access As part of the efforts to simplify service procedures, 1,182 administrative service items, which used to be separately accepted and processed, are streamlined under six categories of general services to be accepted at the same service window, followed by a uniformed internal review and approval process across different administrative departments. As of the end of 2017, a total of 1,381 general service windows have been set up at the municipal, district and township (commu- nity) levels across the city to substantially handle “all cases under the general service categories”. By standardizing 102 universal tags including the naming of service items to be processed, appli- cation documents to be submitted, and the approval procedures involved with the application of an electronically managed process system, the city has unified its management of 1,833 service items to be processed by 55 administrative departments, enabling standardized administrative approval services across departments, districts and industries. In order to better serve the needs of applicants, Foshan has put in place an interdepartmental joint review and approval mechanism, which replaces the previously different forms issued by various departments with one universal form and facilitates data and information sharing across different departments to eliminate the repetitive work of submitting application documents to each relevant department. Under this mechanism, applications are accepted at the same general service window to be reviewed and approved under a joint process by all involved departments based on shared information within a set time limit. Foshan has provided direct access to as many as 546 administrative service items at any service location across the city, a number of which can be processed in Guangzhou. Furthermore, the city’s administrative service system has been greatly expanded through various online platforms including the online service center, self-service terminals, mobile service Apps and 12345 hotline, bringing into shape an integrated multichannel services model of online and offline services, and enabling seamless connection between the government services and citizens. Currently, 84% of the administrative services can be completely processed online. Foshan has estab- lished A “Universal Service Model” aimed at providing systemat- ic, standardized, and non-differentiated administrative ser- vices. Foshan has ena- bled “Expanded Access” to administrative services across de- partments, admin- istrative levels and regions. Foshan has devel- oped “Interdepartmental Coordination” to deliver highly effi- cient and precisely targeted administra- tive services. On-Site Visit to Local Companies The Foshan municipal government has rolled out a program in which government officials are sent out to visit local companies, getting first-hand feedback through direct communication, and helping companies sort out problems facing their development. In 2017, the program covered a total of 11,000 companies, and over 90% of the issues raised by companies were followed up by relevant departments within the same day of visit. Source: 1. Documents on Experience Sharing of Innovative Government Service Development in Foshan ; 2. Notice of the General Office of the Foshan Municipal People’s Government on Implementing Proposals on Accelerating the Advancement of “Internet + Government Services” and Deepening the “One-Stop & One-System” Government Service Model Reform [2016] No.909; 3. Information provided by Foshan Administrative Service Center. 32 Research Report on the Investment Environment of Foshan City, Guangdong Province 33 Chapter VII Summary and Vision  Summary and Vision Based on the analysis of the investment environment of the City of Foshan, this report summarizes the four most attractive advantages for investment in Foshan as follows: Summary and Vision (Continued) Industry Transformation and Upgrading Driven by High Technology In the new era of economic development, Foshan has been firmly com- mitted to a distinctive “Smart Manufacturing + Internet” roadmap for in- dustry transformation and upgrading, placing equally great importance on smart-manufacturing-based innovation of manufacturing production and innovation of industry development based on “Internet +” approaches. The solid industry foundation and well-developed industry layout have made Foshan a top destination for investors and entrepreneurs from China and abroad. Foshan has attracted the settlement of many advanced industry programs represented by Toray, Changjiang Hydrogen-Powered Automotive and KUKA Robotics, facilitating the coordinated innovative de- velopment across the industries and injecting vigor into the industry trans- formation and upgrading. Meanwhile, the industry platforms like Foshan High-tech Industry Park, Guangdong High-tech Service Zone for Financial Institutions and Sino-German Industrial Service Zone have been rapidly developing with outstanding achievements delivered to offer strong sup- port for the industry transformation and upgrading in the city and the regional economic development. 2 Smart Manufacture + A Talent Development Highland Driven by Innovation and Entrepreneurship Facilitated by the “First Ring Innovative Circle”, Foshan has been step- ping up its efforts to develop enabling platforms for technological innovation and entrepreneurship, pooling resources for innovation and encouraging commercialization of scientific and technological achievements. The move aims to develop a market-oriented technolo- gy innovation ecosystem featuring deep company-university-research institute integration with enterprises as the main force, thus making Foshan an international hub for industry innovation. Fully aware of the importance of talent as the source of innovation, Foshan is committed to providing an optimal environment for talent development driven by innovation and entrepreneurship. In order to bring out the potential of talents, the city has taken a series of meas- ures including promoting a whole package of talent policies, estab- lishing the “Foshan Talent Benefit Card” system, as well as launching training programs on innovation and entrepreneurship. Internet 3 First Ring Innovative Circle Premium Location with Emerging Opportunities Foshan boasts a premium location at the heart of the PRD region, which has brought emerging opportunities to the city. Facilitated 1 by a diversified network of transportation, Foshan has been closely connected with well-developed cities and regions like Guangzhou, Shenzhen, Zhuhai, Hong Kong, and Macao, and deeply integrated into the central part of the GDHKMC Bay Area. Under the Guang- zhou-Foshan integration plan, Foshan and Guangzhou have aligned with one another in many areas including industry platform, human resources and commute network. In the years to come, the two cities will carry on their efforts to share critical industry resources such as innovative technologies to promote their integrated devel- opment strategy of “Guangzhou R&D + Foshan Manufacturing”. With concerted efforts, Foshan will continue to closely cooperate with Guangzhou contributing to the building of a key zone in the world- class PRD city group, and a vital hub in cooperative development of the GDHKMC region. A Pivotal City in the GDHKMC Bay Area 4 One Stop & One Network Service-Oriented Government Facilitating Company Development Foshan is committed to developing a service-oriented government, pro- viding practical and highly efficient administrative services for local com- panies. In a bid to create an enabling environment for business operation and growth, Foshan has been making efforts to serve the needs, relieve the burdens, and reduce the costs of local companies, as best exemplified by the “One Stop & One Network” administrative service reform which fea- tures comprehensive services, joint approval and full access within the city. Regarded as a “bright pearl” on the west bank of the Pearl River, Foshan has made substantial progress in terms of government services as well as industry upgrading and innovation. During the 13th Five-Year Plan period, Foshan will further optimize its business environment. While carrying on the rich heritage of Lingnan Culture, Foshan strives to become a gateway for opening up, a test field for mechanism reforms, and an ideal place for innovation and entrepreneurship, as well as for living and working. 34 Research Report on the Investment Environment of Foshan City, Guangdong Province 35 Appendix 2 Sanshui Park of Foshan National High-tech Industry Development Zone (Leping Town) 1 China (Sanshui) International Beverage and Appendix I: Distribution Map of Industry Parks Location: Leping Town, Sanshui District 2 Food Base Location: Xinan Sub-district, Sanshui District Planned Area: 8 km2 Leading Industries: food and beverages Chancheng District 1 China Pottery Valley 2 South China Innovation Valley (South China Power Creative Science Park) 3 Zhihui Town by Green Island Lake 4 Fengshou Street 5 Smart New City 6 Chancheng European Industrial Park 7 South China Life Science Park Nanhai District 1 Guangdong New Material Industry Base 2 Automobile Industry Park 3 National-level Electronic Information Industry Base 4 National-level New Industrialization Demonstration Base 5 CAS-FS Biotech and Pharmaceutical Center 6 Nanhai National Eco-industrial Demonstration Park 7 Guangdong New Energy Car Core Component Industry Base 8 Nanhai Japanese SME Industrial Park 9 Guangdong New Light Source Industry Base 10 High-end Industry Service Area of Dajin Intelligence Gathering Land 11 Guangdong-Hong Kong-Macau High-end Service Cooperation Demonstration Area Shunde District 1 China Southern Wisdom Valley 2 Shunde Intelligent Manufacturing Industry Base 3 Shunde Exhibition Center 4 Shunde New Energy Vehicle Manufacturing Industry Base 5 Shunde Producer Services Cluster 6 Shunde Innovation and Entrepreneurship Valley for Smart Household Appliance 7 International Pan-home Furnishing Eco-industry Park Gaoming District 1 Smart Machinery Equipment Manufacturing Industry Base 2 New Energy Vehicle Industry Base 3 New Material Industry Base 4 Textile Technology Industry Base 5 Healthy Food Industry Base 6 New Energy Industry Base Sanshui District 1 China (Sanshui) International Beverage and Food Base 2 Sanshui Park of Foshan National High-tech Industry Development Zone (South & North Parks) 3 Sanshui New City 4 Aerospace Smart City for Military-civil Integrated and Coordinated Innovation 5 South China New Energy Vehicle Integrated Innovation Industry Park Planned Area: 110 km Leading Industries: machinery equipment 3 manufacturing, automobile and parts, electronics and electrical appliances, new energy and materials, and medical devices Zhihui Town by Green Island Lake Location: Nanzhuang Town, Chancheng District Planned Area: 0.23 km2 Leading Industries: smart manufacturing, new materials and new energy 2 South China Innovation Valley (South China Power Creative Science Park) Location: Zhangcha Sub-district, Chancheng District Planned Area: 0.22 km2 Leading industries: power supply, high-end equipment, healthcare and Internet 6 Sanshui District 2 4 3 3 1 1 5 2 Guangdong New Energy Vehicle Industry Base Location: Danzao Town, Nanhai District Planned Area: 5.49 km2 Leading Industries: hydrogen-rich materials and hydrogen production equipment R&D, hydrogen fuel cell and powertrain China Southern Wisdom Valley Location: Lunjiao Sub-district, Shunde District Planned Area: 0.77 km2 for commercial purpose, including 30,000 m2 for offices Leading Industries: smart manufacturing, bio-pharmaceutical and modern information services Shunde Intelligent Manufacturing Industry Base Location: Western Ecological Industry District, Shunde High-tech Industry Development Zone Planned Area: 1.80 km2 for industrial purpose, including 110,000 m2 for factories and 30,000 m2 for offices Leading Industries: smart Manufacturing, machinery equipment and medical device 4 5 7 8 10 6 Nanhai District 6 Guangdong (Sanshui) Daily Chemical Industry Base China Intelligent Safety and Security Industry Park Location: Danzao Town, Nanhai District Planned Area: 0.67 km2 Leading Industries: production safety, fire control safety, transportation safety, public security and information security Cangjiang Industrial Park Location: intersection of Gaoming Avenue and Haitian Avenue, Gaoming District Planned Area: 13.39 km2 Airport Economic Area 9 2 Chancheng4 7 3 1 7 District 1 2 6 11 5 3 5 2 6 5 4 Shunde District 1 Gaoming District 3 1 6 2 4 Xijiang New City 3 Shunde Exhibition Center Location: Genghe Town, Gaoming District Planned Area: 100 km2 Location: Yuehua Road, Hecheng Sub-district, Gaoming District Planned Area: 20 km2 Location: Gongzhan Road, Beijiao Town, Shunde District Planned Area: 1.54 km2 for industry purpose Leading Industries: exhibition and related services, technology service and industry finance 36 Research Report on the Investment Environment of Foshan City, Guangdong Province 37 Appendix II: Contact Information of Main Government Agencies for Investment Services in Foshan, Guangdong Province Foshan Municipal Bureau of Commerce Foshan Investment Promotion Agency Address: 135 Middle Fenjiang Road, Chancheng District, Foshan City, Guangdong Province (zip code: 528000) Tel.: 86-757-83036005 (English) 86-757-83035510 (Japanese) Email: Foshancn@126.com Website: www.fsboftec.gov.cn www.fipa.fscom.gov.cn Foshan Investment Promotion Agency Address: 33F, Building 2, AIA Financial Agency, 1 East Denghu Road, Guicheng Sub-district, Nanhai District, Foshan City, Guangdong Province (zip code: 528000) Tel.: 86-757-86360279 Email: FoshanFIPA@126.com Chancheng District Investment Promotion Agency Address: 2F, Administrative Service Agency, Smart City Building T8, 28 Jihua First Road, Chancheng District, Foshan City, Guangdong Province (zip code: 528000) Tel.: 86-757-82340951 Email: ISC@chancheng.gov.cn Nanhai District Economy and Technology Promotion Agency Address: 3 South Tianyou Road, Guicheng Sub- district, Nanhai District, Foshan City, Guangdong Province (zip code: 528200) Tel.: 86-757-86293812 Email: invest@investnanhai.gov.cn Shunde District Investment Promotion Agency Address: 2F, Administrative Building East, 3 Demin Road, Daliang Sub-district, Shunde District, Foshan City, Guangdong Province (zip code: 528333) Tel.: 86-757-2283 2266 Email: investshunde@qq.com Gaoming District Economy and Technology Promotion Agency Address: 21 Panlong Street, Xinghe Road, Hecheng Sub-district, Gaoming District, Foshan City, Guangdong Province (zip code: 528500) Tel.: 86-757-88822168 / 88881150 Email: gmjkcj@163.com Sanshui District Economy and Technology Promotion Agency Address: 37 Jianlibao North Road, Xinan Sub-district, Sanshui District, Foshan City, Guangdong Province (zip code: 528100) Tel.: 86-757-87768888 / 87768788 Fax: 86-757-87755681 Email: investss@163.com Research Report on the Investment Environment of Foshan City, Guangdong Province 39 China Public Service Team Deloitte (Shanghai) Floor 30, Bund Center, No. 222, East Yan An Road, Shanghai, China Vivian Jiang Deloitte China Deputy 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Henrique, Macau Tel.: + (853) 2871 2998 Fax: + (853) 2871 3033 40 Research Report on the Investment Environment of Foshan City, Guangdong Province 41 Deloitte Touche Tohmatsu Certified Public Accountants LLP, Guangzhou Branch 26/F, Yuexiu Financial Tower, 28 Pearl River East Road, Guangzhou, 510623, PRC Tel.: + 86 (20) 8396 9228 Fax: + 86 (20) 3888 0575 Contacts of Deloitte Offices in China (Continued) Acknowledgements Companies interviewed (in random order) Midea Group Co., Ltd. Country Garden Holdings Co., Ltd. Infore Environment Technology Group Co., Ltd. ANDRITZ (China) Ltd. Guangdong Yifang Pharmaceutical Co., Ltd. Monalisa Group Co., Ltd. Guangdong Esquel Textiles Co., Ltd. Foshan Branch of FAW-Volkswagen Automotive Co., Ltd. Guangdong High-tech Service Zone for Financial Institutions Sino-German Industrial Service Zone Photographs provided by: Investment Service Center of Chancheng District, Foshan Economy and Technology Promotion Bureau of Sanshui District, Foshan Investment Promotion Agency of Foshan Hi-tech Zone Administrative Committee of Foshan Sino-German Industrial Service Zone Well-being Shunde Brochure 2014 Foshan EtonHouse International School Midea Group FAW-Volkswagen Automotive Co., Ltd. Guangdong Yifang Pharmaceutical Co., Ltd. Infore Environment Technology Group Co., Ltd. Foshan NationstarOptoelectronics Co., Ltd. Yaotong Yang, Xuan Gao, Songjiang Tan, Jiankang Liang Yujie Zhang, Jingwang Chen, Weishan You, Qingji Pan (Note: The ranking is in no particular order. The list above may not cover all the authors of photographs used in the Report. If there is any infringement, please contact Foshan Investment Promotion Agency as soon as possible.) 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