Phase one of the basic infrastructure for the largest cross-Straits trade zone in the Yangtze River Delta Area kicked off at the Huaqiao International Service Business Park.

“This is a positive and timely signal, indicating Kunshan quickens the development of service industry for manufacturing enterprise,” said Xu Changle, Standing Vice President of Yangtze Valley Institute, East China Normal University.

The trade zone will assume four main responsibilities: trade, storage, delivery and logistics. With the support of its modern service industry, the transformation from “Made in Kunshan” to “Created in Kunshan” has become increasingly possible.

First platform for Taiwanese enterprises

According to the Managing Committee of the Kunshan Huaqiao Economic Development Zone, the cross-Straits trade zone is designed to contain four centers involved mainly in logistics, R&D, finance, and Telecom services, as well as other facilities for living and leisure to meet the Taiwanese enterprises’ and businessmen’s practical demands.

The logistics centre, based on Taicang Port, will consist of three separate sections for trade, exposition, and storage functions.

The R&D centre will introduce think tanks and training institutes from renowned universities and research organizations from home and abroad, helping to upgrade their technology and personnel abilities in Taiwan enterprises at Huaqiao.

The financial center will focus on providing capital support for Taiwanese enterprises.

The telecom service centre will attract Taiwanese telecom providers to supply a value-added service on data plans around the world.

According to statistics, more than 3400 Taiwanese enterprises with a combined investment of $32.6 billion have settled in Kunshan, located in central China’s Jiangsu Province. Their total amount of cross-strait trade is no less than $30 billion.

Kunshan has always focused on the manufacturing link, with R&D and sales outside. The establishment of the four centers will perfect the structure of the industryand impel enterprises to settle in, turning Huaqiao into a top platform for Taiwan commodities and enterprises.

Xu Changle emphasized the value of the service industry to manufacturing enterprises and spoke highly of Huaqiao’s service industry in regards to the enhancement of Kunshan’s manufacturing industry.

Appeal for industrial enhancement

Since last year, the movement of Taiwanese enterprises into northern and western cities has triggered doubts about Kunshan’s position for the first platform.

According to Xu, the resettlement of labor-intensive enterprises outside Kunshan is a must for industry enhancement. In addition to the removal of labor-intensive enterprises, highly pollutive companies have also been asked to move outside of Kunshan. Due to the higher costs, the labor-intensive manufacture industry is bound to move into central and western areas. In Kunshan, where foreign trade accounts for 70% of the local GDP, the industry enhancement plays a bigger role.

“Kunshan should introduce technology-intensive industry. Three development directions are ahead in the future. The first involves the transfer of some labor-intensive or highly-pollutive businesses.

The second is to increase the technology content in industries by technological innovation. The third concerns the development of services for manufacturing enterprises.” Xu said.

By Xie Fang