The official launch of Beijing Yizhuang International Investment Development, the BDA's first financial platform.

 The opening ceremony of the Beijing  Overseas Scholars Center, a new one-stop shop for returning entrepreneurs.

Despite the global financial crisis continuing to wreak havoc on businesses in every sector, China believes that model initiatives, such as the Beijing Economic-Technological Development Area (BDA), offer clear hope for a return to economic success.

In early 2009, Chinese Premier Wen Jiabao embarked on a European tour aimed at boosting confidence among many of the world's faltering economies. Speaking to the London-based Financial Times, as part of that initiative, he reassured world leaders that: "China will do its best to ensure its economic growth rate remains at around 8 percent".

He also outlined a number of measures the Chinese government was planning to stimulate its domestic economy. The effectiveness of these measures can today be judged by a visit to the BDA, based in the Yizhuang area of Beijing, known as e-Town.

Devised as a dedicated high-tech industrial and modern manufacturing base, the BDA is now home to more than 2,600 companies, representing more than 30 countries and regions. These companies include some of the World's Top 500 companies, such as Nokia, Daimler, General Electric, Bayer, Corning Display Technologies, Matsushita, Bosch Rexroth, Sanyo, Coca Cola, Kimberly, Schneider Electric, Aventis, Mitsubishi, ABB, LG, DHL, Cummins, Tetra Pak, Kraft and Lotte. The combined gross industrial output of the BDA now accounts for an astonishing one-fifth of the total produced in Beijing.

The BDA ascribes its success to the provision of a sound investment environment and a world-class software and hardware service for the enterprises that have chosen to relocate within its precincts. Following more than 10 years of rapid development, industries such as electronic information, biological pharmaceuticals, automotive and equipment manufacturing continue to grow steadily. The economic miracle of Yizhuang has also had huge knock-on benefits for the whole of southeast Beijing.

When the cold front of the financial crisis first loomed into view, managerial staff of the BDA and Chinese government leaders responded promptly. They jointly launched a series of measures aimed at helping the enterprises in the area maintain their confidence and get ready to weather the difficulties.

These initiatives stemmed from a deeply-held belief that the BDA and its constituent companies are inextricably linked. The management has an abiding belief that the success of the investor means prosperity for the BDA.

The administrative committee of the BDA identified six key measures aimed at boosting the confidence of companies within the zone.

Key measure one: In line with its belief that nurturing highly-competent professionals is the key to its future development, the BDA announced the launch of a satellite campus of the Beijing Overseas Scholars Center in Yizhuang. This was launched to provide a "one-stop service" for returning students who wished to establish their own businesses in the area.

It was this commitment to attracting high-end talents, they believed, that would help the development of high-tech enterprises. It was intended to send out a clear signal amid the prevailing economic turbulence.

Additionally, the administrative committee of the BDA set up a special fund of 100 million yuan annually to tempt overseas talents to relocate to the area. Currently, experienced overseas professionals, looking to launch a business in the area, are entitled to a subsidy of 100,000 yuan from the BDA. Any business that successfully attracts overseas talents into the area is also entitled to a grant of 500,000 yuan.

Key measure two: In February 2009, to mark the arrival of the Chinese lunar New Year, BDA hosted a high-profile reception for a number of business leaders in China. The event was hosted by the administrative committee and other senior officials from the BDA. The guest list included senior executives from the top 50 tax-paying companies of 2008, such as Nokia (China), Beijing Mercedes-Benz, Bayer, Tetra Pak, Foxconn and Shiseido. During the evening, the guest companies were awarded a collective bonus valued at nearly 10 million yuan.

Making the presentation, Zhang Boxu, the director of the administrative committee, said: "The recipient enterprises contributed greatly to the development of the BDA throughout 2008. In the New Year, the BDA will continue to make efforts to attract investment, and promote both individual industries and the construction of urban infrastructure.

"It will also take measures to tackle the financial crisis and maintain steady and rapid development."

 The BDA's administrative committee signing a multi-billion yuan cooperation deal with Bank of Beijing.

BDA's signing of a mutually-beneficial memorandum of understanding with the Bejing Customs Commissioner.

Key measure three: In March 2009, Zhang signed a memorandum of understanding (MOU) committing the BDA to continu ed cooperation with Gan Rongkun, the customs commissioner of Beijing. Under the terms of the deal, both sides will strive to boost the further development of the BDA's high-tech, electronics information, biological, pharmaceutical, automotive and equipment industries.

In accordance with the MOU, any BDA-based business paying annual tax in excess of 50 million yuan will be entitled to a customized supervision service from Beijing Customs. The move will help enhance customs efficiency and optimize customs processing procedures.

Key measure four: In March 2009, the BDA administrative committee signed a strategic cooperation agreement with the Beijing branch of the Industrial and Commercial Bank of China. The bank will now provide at least 20 billion yuan of financial support for the BDA's program of promoting sustainable and coordinated development in the area. According to the agreement, the bank will provide preferential support for credit loan policies, scale of credit loans, business operational efficiency and financing channels for the BDA.

Key measure five: The management of the BDA will set up an improved financial services platform, one of the decisive factors for sustainable development. In March, the Beijing E-Town International Investment Co Ltd was launched, the first official financial platform developed by the BDA.

The registered capital of the company is 3 billion yuan and it has gained credit facilities of 3 billion yuan from Bank of Beijing, as well as 3.5 billion yuan from the Industrial and Commercial Bank of China.

Key measure six: In April, the BDA launched three separate subsidies, including the establishment of a special fund aimed at re-employing rural laborers whose lands have been utilized by the BDA. Under the terms of the initiative, any enterprise employing the affected rural laborers will be entitled to an annual subsidy of between 4,000 and 8,000 yuan per laborer.

The BDA has also introduced a vocational training subsidy fund and a lodging subsidy fund. These initiatives are designed to reduce financial pressures on both businesses and their employees.

(China Daily 04/17/2009 page12)