Supply chain
Grounded on developing open economy Hangzhou continuously advancing four industries
Press release
Tuesday 16 August 2011

As one of the core cities around the Yangtze River Delta in Chinese mainland, Hangzhou characterized itself with an open economy development mode. During the period of the Eleventh Five-year Plan, 82 enterprises out of the world's fortune 500 were attracted to invest in 130 projects in Hangzhou, the total investment reached 4.345 billion US dollars. Ranked first in Zhejiang province and third in Yangtze River Delta in the field of using foreign capital, Hangzhou made itself an investment paradise for trans-national enterprises and international research and development organizations. What's more, there are 23 enterprises of mainland top 500 and 72 private enterprises of mainland private-owned top 500 setting their headquarters in Hangzhou.

With the start-up of Chinese mainland's Twelfth Five-year Plan in 2011, speeding up economy development mode shifting, pushing industry transformation upgrade, leading by science and technology, and promoting the green energy-saving industry development as the principal axis in mainland's economy development, Hangzhou is constructing a modern industry system and building a creative city industry, continuously increasing structure adjustment, and gradually sets some industries like electronic information, new energy, biological medical treatment, and financial service as the main impetus.

Promote electronic information industry that represented by IOT

We've witnessed a rapid development age for electronic information industry in the past three decades, with mature technology and customer's demand structure change, as well as internet's fast development, a new situation and pattern has appeared in electronic information industry's development. During the post-financial crisis period, international type factories put forward a lot of new type application concepts in order to stimulate another consumption demand wave, among them the cloud computing and IOT get the most attention. However in the Twelfth Five-year Plan, electronic information industry is still the key point, cloud computing and IOT are the most important, much resource is leading to this part, hoping to grab a niche for itself.

Accommodates to the above mentioned trend, Hangzhou also reaches rapid development in information technology industry recently, it possesses an important position in this field at home with 192.8 billion RMB takings in 2010 and 36% annual growth rate. Among them IOT, cloud computing, e-commerce, software and information service etc. are all important parts of Hangzhou's electronic information industry.

The production value from IOT was about 30 billion RMB in 2010, accounting around 15% of mainland's IOTs' production value. By the end of 2010, Hangzhou had congregated more than 100 IOT enterprises, formed a complete industry chain, including upstream chip design research and development, middle reaches of sensor/terminal unit manufacture, system solution and conformity, and downriver application of IOT and operation service, it is expected that the production value can reach 50 billion RMB and 100 billion RMB separately in 2012 and 2013.

To the extent of e-commerce area, Hangzhou is the only metropolis of China's e-commerce in mainland. By the end of 2010, Hangzhou owned 1300 B2B and B2C e-commerce websites, accounting more than 1/5 share in the nation. Alibaba and Taobao are the biggest B2B and B2C website separately in the terms of turnover in China. In 2010 the service income of Hangzhou's e-commerce enterprises reached 11 billion RMB, accounting about 55% of total mainland's industry income.

Drive the new energy industry with low carbon city construction

Since entering the new century, the high frequency of extremely bad weather and high-degree geologic destroy threaten human beings with increasingly serious natural problem, and also make people more and more realize the importance of using technological means to carry out energy saving and exhaust reduction, sustain to advance low carbon green. Furthermore, clear targets for China to control the emission of greenhouse gases were set at Copenhagen Conference on Nov. 25th 2009, which included a 40-45% drop of CO2 emission per unit of GDP by 2020 than in 2005, it is not only a responsible behavior to global environment, but also a manifestation for great change in mainland's economy development thoughts in the near future, we hope to make better efforts to save energy and reduce exhaust so as to develop green economy. The Twelfth Five-year Plan also has an entire layout for some new energy industry such as nuclear, wind, solar, and new energy car.

In order to boost economy's sustainable development, Hangzhou continuously adjusts industry structure and reinforces to build a low carbon city, and energetically encourages energy-saving environment protection industry's development, stresses on developing new rising industries like PV, wind and electric equipment production, new energy car, new-type battery, high-effect and energy-saving equipment manufacture, energy-saving lighting products. Now the energy-saving environment protection industry has begun to take shape in Hangzhou, the total production value reached 79.2 billion RMB in 2010, accounting 13.3% of this year's GDP. In the field of new energy car, Hangzhou is one of the 13 trial cities for carrying out the popularization of saving energy and new energy car demonstration, and one of the 5 trial cities of subsiding private new energy car buyers. To the end of March 2011, there were 23 new energy car enterprises been developed, and it is expected that electronic-power car owners will exceed 20 thousand by the year of 2012 in Hangzhou.

Promote biomedical industry based on Industrial cluster

With economic development and social structure change, human's life also start to have tremendous changes, from pure satisfaction for material life to stress on the improvement of life quality; meanwhile, as the demographic structure has entered to an aging society, we can conclude from the above trends that the importance of biology and medical industry is increasing day by day, along with the electronic information and new energy industry, they will become important parts of the new rising industry in the future.

Hangzhou has a lot of advantages in developing biomedical industry. Here owns Zhejiang province's main technology resource in biological area. And among 30 biological related colleges in Zhejiang province, 17 are located in Hangzhou, and there are 14 state and ministry level key labs of biology. It gives birth to a batch of mainland's leading backbone enterprises successively such as Jiuyuan gene, Tianyuan biology, Pukang biology, Aikang biology, Aoya biology, Zhongtai biology, those products involve many modern biological areas like gene medicine, bacterin, diagnosis reagent, technical level met world's top standard.

As a result, Hangzhou lists the biomedical as one of the key development during the Twelfth Five-year Plan period, and puts forward many measures in terms of matching the investment with environment in order to attract investment from international factories, it certainly will lead flourish development in subsequent related industry chain. At present Hangzhou has formed many industry clusters like modern Chinese traditional medicine, biological technology, biomedicine and bio-agriculture, there are more than 50 enterprises locate in "new medicine harbor" industry park of Hangzhou economy and technology development zone. The total production value of Biomedicine reached 28 billion in 2010, now an industry structure is formed with bio-pharmacy as precursor, chemical pharmacy as foundation and modern Chinese traditional medicine as key point.

Blend with Yangtze River Delta and advance financial industry

Financial service is a pusher and an engine for various industrial developments, when developing electronic information, new energy and bio-medicine etc., it depends on financial industry's full support. For the recent years, Hangzhou also committed to advancing financial industry's rapid development, and made efforts to develop into a southern financial center of Yangtze River Delta under the Shanghai international financial system, by depending on Hangzhou, serving Zhejiang, connecting Shanghai and influence periphery.

Hangzhou's financial industry mainly includes bank, insurance, negotiable securities, futures and other financial service, such as trust, asset management, finance lease, financing service, assurance and mortgage etc. By the end of 2010, Hangzhou have 275 financial organs, increased 33 compared to last year, mainly including 42 above province level banks, 8 country credit unions, 63 above province level insurance institutions, 3 stockjobber headquarters, 116 stock sales departments.

Hangzhou financial industry's annual production value increased into 60.51 billion RMB, with the annual growth rate 13.9%, financial industry production value increase accounting 10.2% of the city region's total production value. In terms of financial strength it ranked the fifth among mainland's cities, and the second among province's cities. According to Financial Entironment Evaluation in China released by finance research institute of Chinese Academy of Social Science in 2008 and 2009, Hangzhou ranked as first in two running year in terms of middle and big size cities' financial entironment evaluation.

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