Report: Guangzhou tops list of best economic development zones

What roles have the Chinese economic development zones, as pilots of the nation' s reform and opening-up, played in a new round of reform on power delegation and service optimization for better business environments?

Faced with macro-economic changes, accelerated new-style urbanization, and much-needed transformation of business models, how do these development zones enhance competitiveness and realize faster up grading with the help of better business environments?

As of now, China has 219 national-level economic development zones that collectively contribute about 10 percent of the national GDP and fiscal revenue, as well as 20 percent of China' s import and export and foreign funds utilization.

They outperform the national averages on all key growth indicators. The development zones have played even a bigger role in local economic performances, as some of them account for nearly 60 percent of the local GDP.

How are these development zones doing in terms of business environments? What deficiencies do they have in this regard? With these questions in mind, the 21st Century Research Institute, with technical support from JD Digit, issued the Report on Business Environment Index of Chinese Economic Development Zones 2019 on Aug 21.

The report assesses the business environments of Chinese economic development zones, based on a comprehensive ranking of the top 30 national-level zones by the Ministry of Commerce.

It provides analytical support to help development zones develop open economies, construct modern industrial systems, optimize internal and external cooperation platforms, enhance element input and intensified use of resources, establish a reference indicator system, and further improve their business environments.

According to assessment results, China' s top 10 development zones by business environment in 2019 are: Guangzhou Economic and Technological Development District (“GETDD”), Qingdao Economic and Technological Development Zone, Kunshan Economic and Technological Development Zone, Xi' an Economic and Technological Development Zone, Suzhou Industrial Park, Chengdu Economic and Technological Development Zone, Shanghai Caohejing Hi-tech Park, Changsha Economic and Technological Development Zone, Guangzhou Nansha Economic and Technological Development District, and Nanjing Economic and Technological Development Zone.

The report also advises development zones to utilize advanced technologies, such as artificial intelligence (AI), big data, and the Internet of Things to improve service and operation capacities, incentivize industrial clustering, and enhance their business environments.

An AI+Industry Development Solution Plan, proposed by JD City, has used digital gateway technology to overcome data barriers among the relevant authorities to realize “effective dialogues” of massive multi-dimensional data. In this case, it has the capacity to provide “AI+” solutions for fiscal, investment, IT, human resources, and social security authorities, including AI+Fiscal Allocation, AI+Business Promotion, AI+Company Support, and AI+Talent Acquisition.

According to the report, GETDD' s topping of the rankings of best Chinese economic development zones by business environment was driven by its No 1 GDP contribution, and its leading performance on ecological environment, infrastructure, and soft environment indicators (ranked fourth, fifth, and fourth, respectively), among domestic peers.

GETDD enjoys sound infrastructure, short average logistics time, a large base of high-tech companies, and a low rate of smog due to Guangzhou' s leading domestic cities in terms of smog-free days. The city also has a huge local market, which is consistent with its positioning as a domestic commercial center (with China’s top total retail sales of consumer goods per capita).

In recent years, Guangzhou has seen fast expansion of its permanent resident population, as it offers lower requirements on household registration among first tier cities. Overall, Guangzhou has substantive advantages in nurturing a pro-business environment compared to other Chinese cities, which are factors in GETDD’s No 1 ranking.

GETDD, for many years, has prioritized a pro-business environment in its development. For example, it set up a Business Environment Reform Bureau, the first specifically-named authority among the four largest cities in China (Beijing, Shanghai, Guangzhou, and Shenzhen). The new authority has changed the multi-window service landscape where more than one authority is involved.

Using “Blockchain + AI” technologies, CETDD has launched a pilot project of a “Business Service Blockchain Platform”, which enables a business registration model available “around-the-clock, remotely, and one-click away”. With this service, CETDD leads its peers in terms of registration accessibility and efficiency.

However, the report also notes that CETDD has room for improvement on technical innovation, as the city’s total technical investment is less than half of Beijing' s.

In the future, CETDD should enhance technical research investment, promote result transfer, and encourage a pro-tech environment. Research effort on technology should be supported by universities, research institutes, and tech labs. It also advises CETDD to provide more support for research and result transfer to promote local industrial upgrades.

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