Xi'an, known as Chang'an in ancient times, is one of the nation's most popular tourist attractions. One of the four great ancient capitals of the world during the Tang Dynasty, it now serves as the capital of Shaanxi Province. Present day Xian is an important economic, technological, commerce, trade and cultural center in the vast domain of central and western China.With a population of approximately 8.5 million and with nearly 30 million annual visitors, Xian is a second tier city with an impressive growth rate and has firmly established itself as a major market in mainland China.
China's entry into the WTO and the implementation of the Central Government's "Go West" strategy in 2001, which began the process of large-scale development of the country's western regions, has resulted in an unprecedented opportunity for Xi'an's current economic rise and renewal. Xi'an offers foreign investors a unique environment with its inherent advantages in science, technology, education, tourism, commerce and trade, manifested and reflected in both its ancient and modern civilizations, existing industrial bases and its golden location connecting the country's East and West as well as North to South.
In 2002, Xi'an was recognized, together with five other Chinese cities- Shanghai, Shenzhen, Tianjin, Suzhou and Wenzhou- as the ''The most innovative and vigorous in the World'' by the United Nations Industrial Development Organization (UNIDO).
Xi'an's principal strategic industry is IT and high-tech. There are more than 800 high-tech enterprises in Xi'an, and heavyweight firms like Intel, Sybase, SPSS, Fujitsu, NEC, Sorun, and Platform all have a presence in the Xi'an National Hi-tech Industrial Development Zone. Other industries driving Xi'an's growth are equipment manufacturing, tourism, service industries and cultural industries.
Among Xi'an's strategic economic advantages are its highly-trained workforce (with relatively low wage and salary levels), and the presence in the city of some of China's most prestigious universities, with a strong focus on science, technology and engineering.
The city's has ambitious economic development plans: its industrial orientation will encompass four more development zones and two more industrial bases. This will build on the success to date of the city's Economic and Industrial Development Zones. The Xi'an National Hi-tech Industrial Development Zone is already Xi'n's most important economic contributor, and the Xi'an Economic & Technological Development Zone, with its focus on modern manufacturing and hi-tech infrastructure has already attracted investment from major players like Coca Cola,GM, Siemens, Rolls-Royce, Mitsubishi, Volvo and ABB.
Xi'an City's
Strategic Industries
Xi'an has 5 pillar
industries: IT and hi-tech, equipment manufacturing, tourism,
modern services and cultural industries. These sectors are
complemented by strong development in the chemical industry,
pharmaceuticals, building materials, metallurgy and the food
industry. Some of the city's renowned enterprises include the
Xi'an Telecom Technology Co., Ltd., the Xi'an Kaimi Co., Ltd.,
Xi'an Haihong Bearing General Factory and the Shaanxi Best
Enterprise Group.
The IT and Hi-Tech Sector
Well-developed and highly advanced, the IT and hi-tech sector
is the most important industry in Xi'an, contributing 29.7% of
the city's total industrial output. The city boasts more than
800 hi-tech enterprises, of which 568 are software development
firms. Xi'an's software industry continues to grow and has been
successful in attracting investment from international firms
such as Intel, Sybase, SPSS, Fujitsu, NEC, Sorun, and Platform
to name a few. Many foreign firms, including Reynolds and
Reynolds and CompuPacific have established BPO (Business
Process Outsourcing) centers in the Xi'an Software Park.
Equipment Manufacturing Industry
There are now
several manufacturing-specific industrial zones in Xi'an,
incorporating ten industrial complexes including the
automotive and auto-parts sector, aeronautics and power
transmission equipment, with over 320 medium and large-scale
manufacturing enterprises employing over 210,000 people. In
2006, the city allocated 20.65 billion RMB to industrial
investment. Four more major equipment manufacturing bases are
under construction in the aeronautics, tool and dyes,
electronics and mechanical equipment sectors. To date, 88
foreign-funded equipment manufacturing projects have been
completed with a total investment of 34.7 billion RMB.
Tourism
Xian accommodates about 25-30 million tourists
per year, including just less than 1,000,000 guests from
overseas and generates roughly 25 billion RMB in revenue from
domestic sources, plus an additional 500 million RMB in
foreign currencies. Xi'an aims to develop itself into the
number one mid-and-western Chinese city in four major
tourism-related areas including volume of inbound and outbound
visitors, high quality tourism-related education and training,
conferences and exhibitions, and tourism-oriented
merchandising and souvenirs.
Modern Services
Modern services, hospitality and catering sectors have also
experienced tremendous growth in Xian. The service industry
employs almost 40% of the city's total working population. In
the future, Xi'an will give top priority to the development of
counseling and information businesses, intermediary services,
the insurance sector, accounting and legal services.
Culture Industry
Based on Tang dynasty culture, the Long
March, and folk songs of northern Shaanxi, Xi'an has made
strides in promoting its cultural industries, including Tang
porcelain, clay figurines, Chinese paper cutting, and shadow
play. Movie production is also on the agenda, as at present,
Xi'an is planning the construction of specialized zones for
film production, publishing, 3-D animation, computer gaming,
exhibitions, and leisure.
Human Resource Overview
Xi'an is an important base for scientific research,
higher education, national defense technology and hi-tech
industries in China, with its comprehensive strength in
science and technology ranking 3rd nationwide. By the end of
2006, Xi'an had over 660 independent scientific research
institutions, 122 national key laboratories, technological
research centers and industrial testing centers and 35
provincial key labs involving over 440 key subjects.
Xi'an now has 47 colleges and universities, 32
privately-funded higher education institutions and 30
non-governmental vocational schools. There are over 399,800
professionals in various fields and in 2006 there were more
than 130,000 college and university graduates. There are 42
academics from the Chinese Academy of Science and the Chinese
Academy of Engineering working in Xi'an, over 200 national and
over 400 provincial specialists, as well as 12 national survey
and design experts.
The local talent pool is highly-skilled, yet compared
to the coastal areas of China, salary levels are much lower,
which is especially attractive to labor-intensive,
manufacturing projects.
Government Efficiency
According to the World Bank's report on the investment
environment among 120 Chinese cities, Xi'an's government
efficiency ranked 57th in the country. According to the
Chinese Cities Comprehensive Competitiveness Report released
by the Chinese Academy of Social Sciences in 2007, the
management competitiveness of the Xi'an Municipal Government
ranks 54th while government innovation ranks 46th in the
country. These figures may be concerning for any organization
considering operating in this environment, and in fact
highlight the need for a partner on the ground in this region
aligned with your organization'interests. Partnership with a strong, well-connected and professional organization here can help to ensure that operations go smoothly and that your organization can take advantage of the immense opportunities available.
The Xi'an
government is making a concerted effort to improve their
standing among their mainland peers and has recently launched
a series of internal reviews and reforms to tackle the issues
in a proactive manner. Two new programs are highlighted below:
1. The "Green Light for Examination and Approval of
Investment Projects" plan is a program initiated by the city
government to provide "one-stop" service for foreign investors
and which has greatly simplified business procedures and
improved efficiency. A new service center (Xi'an Investment
Environmental Improvement Center) for handling questions and
complaints from foreign investors has been set up, enabling
foreign firms to better protect their rights and interests,
while making Xian a safer, more secure and comfortable place
to invest.
2. The city of Xi'an has held a series of meetings and
had ongoing dialogue with the customs bureau on how to
implement a more efficient customs-clearance program to speed
up the declaration-inspection-clearance time frame.
3.
The city has also perfected its train-to-ship transfer system,
with cargo container freight lines now connecting Xian with
the ports of Tianjin, Qingdao and Shanghai. The city is
organizing and creating a modern "electronic port", with
long-distance customs-clearance, declaration of export
rebates, examination and approval processing procedures all
available through online customs services.
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