Will Zhejiang’s Qianwan New District become the automobile hub of China?

2019-11-16 00:46:57 source: Ye Ke

On November 14th, more than one hundred business professionals were invited to visit "Four New Districts" of Zhejiang Province, including Hangzhou Qiantang New District, Ningbo Qianwan New District ((hereinafter referred to as "Qianwan"), Shaoxing Binhai New District, and Huzhou South Taihu Lake New District. This tour is part of the series events during the 5th World Zhejiang Entrepreneurs Convention, which is scheduled for the purpose to introduce the “Great Bay Area” blueprint of Zhejiang.


(Photo/Ye Ke )


During the trip, we had a chance to visit Geely research institute, the R&D organ of Geely, one of China's leading automotive manufacturers. According to official statistics, at the end of 2018, Qianwan has brought in 22 of world top 500 enterprises, and congregated a large group of leading automotive companies, such as SAIC Volkswagen and Bosch. What makes Qianwan a choice for those automotive industry giants? 


Liu Zongliang, chairman of Zhejiang Ginye Auto Parts Co., Ltd cast some reasons. During the interview, he said that the most attractive aspects of Qianwan are the unique location and the pragmatic governance style of local government. In terms of the location, Mr. Liu said that thanks to the central location of Qianwan among Shanghai, Hangzhou and Ningbo, capitals and talents will be easy to flow in and get settled in Qianwan than any other places. "Most of my employees have bought their apartments here in Qianwan and decide to settle down here", he said. When referring to the local governance, he gave a thumbs up and said, "we biz people have much more spaces to develop our business as the local officials are down to earth and friendly to industrial things." 

From a global perspective, "Bay Area" has increasingly become important growth poles in the world economic development as well as an indicator for global competitiveness. As major urban agglomerations with strong urbanization, "Bay Area" and "Bay Area Economy" play key roles in the regional integration and urban expansion. Looking back to China, as it is known to most of sinologists, Zhejiang’s Great Bay Area blueprint aims to integrate development of the Hangzhou Bay economic rim, the Ningbo-Taizhou-Wenzhou port industrial belt, and the Yiwu-Ningbo-Zhoushan open channel. According to official documentations, the economic output of the three areas is expected to reach 6 trillion yuan by 2022. Following the strategy, all aforementioned four new districts will be built, featuring the integral development of industries and cities and the coexistence of people and nature in harmony. As one of the tentacles of the "Four New Districts", Qianwan is a rising star in the car world. 


Geographically, Qianwan is located in the northern part of Ningbo City of Zhejiang Province. It is the geometric center of Shanghai, Ningbo, Hangzhou and other cities, the gateway area for Ningbo to be connected with Shanghai and integrated into Yangtze River Delta. Qianwan is positioned as the world-class advanced manufacturing base, the strategic great platform for the integrated development of Yangtze River Delta, Shanghai-Zhejiang high-level cooperation leading area, as well as the Hangzhou Bay city-industry integrated development of future city. For capital and technology intensive sectors such as automotive industry, a steady capital flow and a big talent pool are key to the success. Adjacent to Shanghai, the capital hub and one of the talent pools in China, Qianwan has already won at the starting line. 


(Geographic position of Qianwan, Photo/Ye Ke)

Economically, Qianwan focuses on the development of vehicle manufacturing, manufacturing of automobile key parts, new energy vehicles, internet vehicles and automobile producer services. It is forming a perfect automotive industry chain with two leading manufacturers SAIC Volkswagen and Geely at the center. In 2018, Zhejiang released the auto industry development strategy plan that strives to invest 50 billion yuan on developing auto industry chain along the Hangzhou Bay area of Qianwan. People who do business without knowning policies are green hands. In the case of Qianwan, such kind of government supports will lay a solid foundation of the growth of local automotive industry. 

The fact that Qianwan will provide much more opportunities for automotive industry participants is already on the table. For investors and carmakers who are considering to expand or reorganise their business in China, Yangtze River Delta should not be missed and neither is Qianwan. 

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