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Wenzhou Makes Heavy Investment to Foster New Urban Economy
【Fonts: Large Medium Small 【Source: Wenzhou·China 【Date: 2018.07.31】

According to the latest mid-year report on Wenzhou's economy, in the first half of this year, Wenzhou has made an investment of RMB 42.887 billion in the city's key construction projects, fulfilling 51.6% of the related annual plan. With the investment, commercial and trade projects have been implemented one after another, which promoted the city's industry transformation: Quite a few of high-end buildings have risen to the sky, and a batch of vacant old factory buildings have been transformed into cultural and creative enterprises' sites. With resolute policy decisions on the relocation of inefficient old factories, and the transformation of their production buildings for use by invited innovative organizations, Wenzhou acquired new growth drivers, and is constantly advancing its high-quality development.


New Urban Economy Begins to Take Shape


You can find the spaces for literal creation, artwork display and sales, and leisure and entertainment as well as brand restaurants and fashion shops at the recently-opened Dananli Cultural and Creative Block in this city’s Lucheng District. The streets have now become busy and lovely.


However, in the Wenzhou natives’ memory, only a few years ago, the block was less frequented: among the complexes at the bustling downtown, at the intersection of Shanqian Street and Huicheqiao Road, there stood only several vacated buildings.


In recent years, taking advantage of “large-scale illegal buildings demolition and rectification move”, and abandoning ossified and low-end development concept, the Wenzhou Municipal Government has been vigorously advancing the city’s structural adjustment and accelerating its transformation and development. Specifically, by vacating spaces, the Government is committed to building various modern services clusters, and creating cultural creative and entrepreneurial parks and makerspaces to foster the development of new economy, new industry and new business. The following are some examples: During constructing the Northern Zone (Phase I ) of the South Zhejiang Sci-tech City (a project with the largest old factory demolition area in Wenzhou), in only 68 days, agreements were signed with 48 enterprises for purchasing their old factory buildings; old industrial parks were transformed into the South Zhejiang Headquarters Park of the Zhubajie Network Platform to introduce a batch of e-commerce and creative design enterprises; at the Ruiniao E-commerce Park in Wanquan Town of the city’s Pingyang County, part of old factory buildings were reconstructed into Alibaba’s logistics Arm Cainiao’s 3PL warehouse, which has now opened…New urban business rudiment is being formed in Wenzhou.


If you are strolling in Wenchang Town of Longwan District, you will be amazed at the pleasing work environment there, especially the popular makerspaces, which have once been a dirty, noisy and disordered industrial park crowded with shabby factories buildings. Now, more and more makers are going to settle in the town. Wenzhou Youth Entrepreneurial Promotion Association, Hudson Institute, Funhill Med Wenzhou, and other projects have settled in the Semtlee International Sci-tech Park of the town ; the Beihang University Information Industry Park is planned to settle in a space constructed by the project owned by the town’s Oujiang New-Generation Entrepreneur Innovation Association, You-Create-We-Help Incubator or CEO Head Storm Parlor, etc.  

The related data shows that in Wenzhou, currently, there are more than 80 various crowdcreating spaces with a total area of over 1 million square meters.

Spaces Vacated for Service Industry Development

There have once existed many small low-tech cotton spinning mills in Fanzhi Village of Zaoxi Town, Cangnan  County. Then, the cotton fibers flew out of the mills and fluttered in the air of the whole village.


The spinning mills, founded in the 1990s, caused huge pollution to the environment owing to its development in extensive patterns for decades of years. In the past few years, in the illegal buildings demolition campaign, Zaoxi Town government pulled down more than 20,000 square meters of illegally-built factory buildings. The local villagers all applauded to the move. 


Under the new normal of economic development, Wenzhou is committed to transforming its growth mode, and is replacing old growth drivers with new ones through the optimized structural adjustment, and industrial transformation and upgrading. It is the first to be effected to eliminate backward and excessive production capacity. Wenzhou is making great efforts to make a breakthrough in this respect so as to open up a broader space for its development. This is a “tough battle” for urban and industrial transformation with no retreat allowed. 


In Lucheng and Ouhai districts, over 3,000 enterprises sitting in civil houses were closed; in Yueqing City (county-level), a rectification, focusing on dust-suppression, was conducted to the foundries with resolute elimination of unqualified ones; in Dajing Town, 85 enterprises’ buildings were demolished owing to their noncompliance with related codes; in Dongxin industry-city integration demonstration district of Rui'an City (county-level), 630,000 square meters of illegally-built buildings were pulled down... This year, Wenzhou has comprehensively rectified inefficient small enterprises with an averaged per-mu tax payment of less than RMB 10,000 , and eliminated 100 enterprises’ backward production capacity.    


Through dual constraints in ecological environment and technological transformation, Wenzhou has achieved remarkable results in energy saving and consumption reduction. Shabby manufacture workshops are removed from the city, and the environmentally-friendly industries in line with urban characteristics retained. In addition, informational, cultural and creative industries as well as R&D headquarters are being introduced.


Wenzhou’s governments, using their “visible hands”, are playing an important role in offering larger spaces for the development of the city’s industry-city integration. This year, the governments have put efforts into creating the cultural and creative industry with an output of RMB 100 billion, focusing on building a batch of quality cultural and creative product demonstration bases, such as provincial or municipal cultural and creative blocks, and cultural industry park, including Zhejiang Creative Park, as well as Wenzhou Online Literal Creation Crowdspace located in the South Zhejiang Yungu Park.  


Land-use Based Evaluation Urges Enterprises to Transform

An operator of a computer-controlled laser machine put an upper on its working platform, and the laser beam automatically shot from under the platform, producing 109 pinholes in less than 10 seconds. This is a scene appearing in the shoe-making workshop of Juyi group.


Adopting more machines to substitute for workers, and conducting IT-based transformation, Juyi Group, in its limited space, has remarkably improved production efficiency by 15%, and reduced production costs by 5% to 8% with its product qualification rate rising from the 95% to 98%. The company’s average per-mu output value of its used land has thus been significantly enhanced.


The key and difficulty of Wenzhou's industrial restructuring lie in realizing traditional industry transformation, and advancing emerging industry growth through  innovation. In the past few years, Wenzhou has vacated more spaces, and offered more resources for reallocation according to the comprehensive enterprises performance evaluation based on their land use area, so as to urge enterprises to conduct industry transformation and upgrading. Specifically, an enterprise will be allocated land, energy, and enjoy benefit from the policies in finance and sci-tech in accordance with multiple indicators such as resources holding, tax payment, and output value so as to transfer economic growth mode from extension to intension, and from quantitative expansion to qualitative improvement.


The reform of enterprises performance evaluation system based on land use has exerted pressure against Wenzhou’s enterprises, which urges them to explore high quality development. Driven by the reform, Chint Group introduced the world's most advanced intelligent manufacturing production line to synergize the upgrading of the industrial chains so as to promote ecological development. Last year, in the land-use based enterprise performance evaluation, a total of 1,205 companies in Wenzhou ranked first, accounting for 15.28% of the same grade of enterprises in Zhejiang Province; local enterprises above the designated size made an averaged tax payment of RMB 323,300, a rise of 33% YoY, and their averaged per-mu output value came to RMB 6.6321 million, a rise of 22.2% YoY.

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