The Economist 18 January 2014

8/12/2019 The Economist 18 January 2014

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Tianjin Economic-Technological Develo pment

Area (TEDA) in eastern China has never shied

away from grand ambitions. As one of China sfirst industrial zones, established in late 1984,

it strived to be the best from the outset. And it

has consistently achieved its intention, having

placed first in the country s ranking of National

Industrial Parks for the past 15 years.

Maintaining that pacesetting position as it

enters its fourth decade in existence is TEDA s

current focus as younger peers nip at its

heels. However, i t s rising to the challenge in

typically enterprising fashion.

TEDA is located south east of Beijing on the

coastline of the Bohai Sea, 40 kilometres from

China s major metropolis of Tianjin. Its enviable

geographical position has been a significant

factor in its rise to pre-eminence in the country,

with over 15,000 foreign and domestic

companies now established within the zone.

However, it s TEDA s ability to anticipate, adapt

and react to China s fast-changing economic

context that s given it its edge.

China s stronghold on low-cost manufacturing

is loosening as wages rise and it s currency

appreciates. As the country s competitiveadvantage in manufacturing weakens, demand

for advances in technology and automation

have intensified, driving the economy up the

value chain. It is these opportunit ies that TEDA

has been perfectly positioned to capitalise on,

securing its role as a leading driver of change in

the diversifying Chinese economy.

TEDA s novel 2 2 2 3 4 roadmap set

the zone on the right track from the start:

to strengthen 2 industries (advanced

manufacturing and modern services),

foster 2 economic engines (investment and

technology), serve investors in 2 ways (caring

for existing ones and encouraging new

prospects), create more balance between 3styles of ownership (overseas, state-owned

and private), and accelerate its geographical

expansion in 4 surrounding directions.

Going forward, some key areas of

development have ensured TEDA is poised

to maintain its poll position among China s

industrial zones, while making a vital

contribution to the sustainable restructuring of

the Chinese economy.

Investment in technology has long been a

priority. Five per cent of the zone s revenueshave been reinvested in technology-related

infrastructure, grants, and as backing to

companies searching for bank funding. The

result is a vibrant tech scene, anticipated to be

worth a staggering 250 billion yuan by 2015.

At its forefront is the highly innovative Binhai

Cloud Comput ing Park, situated within TEDA s

boundaries. The park s infrastructure boasts

impressive bandwidth and power supply, and

is home to the Tianhe-1 A Computer - voted

the world s fastest computer at the start of the

decade. Its cloud-computing platform supports

3D animation, oil exploration, pharmaceuticalresearch, financial risk modelling, and much

besides. The likes of IBM, Hewlett Packard,

and Tencent have taken advan tage of the

excellent infrastructure TEDA provides and

have established operat ions there.

Nangang, a 200km2 industrial park within

TEDA s administration tha t incorporates a port

on the strategic Bohai Sea, is focused on the oil

and energy-related indus try that s so critical to

China s sustained economic g rowth. Nangang

has seen rapid expansion since its inception in

2009 and is expected to top 800 billion yuan in

its first five years. Big petrochemical companies

looking to exploit China s burgeoning consumer

market, and attracted by Nangang s highenvironmental standards, are setting up there,

including Shell (who have built a state -of-the

art lubricant plant), Dow Chemical, Rosneft,

SABIC, and Air Liquide, along with many other

large domesti c entities.

The Chinese name for TEDA is comprised

of two words: peace and prosperity. TEDA

had the foresight to know that prosperous

companies require more than good business

infrastructure - they have social needs, too.

Attracting and retaining the best and most

innovative employees is critical for companieskeen to exploit the opportunities provided

by the upscaling of the Chinese economy.

o this end, TEDA has been conscious to

differentiate itself fr om other industrial park s

through the creation of alluring living spaces

and world-class facilities. And the approach is

proving successful, with growing numbers of

talented Chinese and expatriate professionals

taking up residence in the zone; attracted by

the international schools, healthcare options,

entertainment facilities, residential properties

and peaceful green spaces.

Now home to over 200 of the Fortune 500

companies, and with satellite offices in the

US, Japan, Europe, Beijing, Shanghai, Hong

Kong and Taiwan, TEDA is making a pivotal

contribution to China s sustainable economic

future. W atch to see where the footprints of

this forward-thinking and amb itious industrial

zone head next.

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The Economist 18 January 2014