Favorable policies keep projects on fast track

time: 2019-08-09
source: Chinadaily·High-tech report

 “Capital investors link a project with the local government. But a lot of preparations in advance are also important for the project.”

Hu Jie, general manager of Weifang Hi-Tech Zone Guochuang Investment

By Yuan shenggao

An advanced equipment pro- duction project partially invest- ed in by Tsinghua Holdings Capital broke ground on June 30 in the Weifang Hi-Tech Industri- al Development Zone.

The site is scheduled to start production later this year, according to the investment company.

One of the highlights of the project is that it only took 18 days for investors to announce the groundbreaking after agree- ments were signed between the zone’s government and the inves- tors of the project.

“We did not rush to make deci-sions, though the time it took to make the final decision was short,” said Wang Shaoxiong, from Tsinghua Holdings and who is in charge of the equipment pro- duction project.

Wang said the project’s opera- tors were well-informed about the development of the Weifang Hi-Tech Industrial Development Zone, which helped them to make a detailed evaluation about the zone according to their investment standards.

“We (Tsinghua Holdings Capi- tal) also compared the zone with many other regions, and we believe it is the most desired investment destination,” Wang said.

In recent years, the zone has been working to innovate on its investment attraction model and has been keen to partner with leading investment companies to more effectively identify indus- trial leaders to support its long- term growth.

Local officials said investment companies are more professional in identifying and evaluating top businesses in industries com- pared to governments.

After evaluating a series of sur- veys and studies, the zone estab- lished the investment company Weifang Hi-Tech Zone Guoch- uang Investment to launch a fund of funds, or FOF, to attract investment.

Meanwhile, the zone has coop- erated with fund management companies such as China Crea- tion Ventures and Tsinghua Hold- ings to launch structural funds.

Beijing-based TSC Laser Tech- nology Development is another company attracted to the zone under the new investment attraction model.

The company specializes in 3D printing technology. Its products are mainly used in fields such as aviation and aerospace. Head- quartered in Beijing, the compa- ny has branches in Shenyang of Liaoning province, Xi’an of Shaanxi province and Tianjin municipality.

The TSC project in Weifang, which started construction in March, will be put into produc- tion at the end of October. Its industrial output value is expect- ed to be more than 20 million yuan ($2.9 million) in 2019, according to the company.

Wang said he was impressed by the zone’s government’s work- ing efficiency during their first meeting.

“On that day, all parties involved in the project, including Weifang Hi-Tech Zone Guoch- uang Investment, Weifang Hi-Tech Innovation and govern- ment departments such as urban planning, gathered together to discuss the project,” said Wang.

Supported by the zone, the project received initial approval from the local government in only one day, compared with one or two weeks in previous years. Tele- conferences and video conferen- ces enabled all project-related personnel to be on call at all times.

Shortly after the groundbreak- ing ceremony, government depart- ments started a new round of work to ensure construction of the project goes smoothly.

“Capital investors link a projectwith the local government. But a lot of preparations in advance are also important for the project,” said Hu Jie, general manager of Weifang Hi-Tech Zone Guoch- uang Investment.

According to Hu, though the processing time is shortened, the zone’s government still applies strict standards in processing investment applications.