Investing in Suzhou Industrial Park: Main Industries, Funding Incentives

In 2020, Suzhou Industrial Park (SIP) had 295 new overseas-funded tasks and registered 142 tasks with elevated capital funding. International capital really used additionally doubled in SIP final yr. In the meantime, when it comes to overseas commerce, Suzhou ranks simply behind Shanghai, Shenzhen and Beijing.

On this first article in a two-part collection, we introduce SIP and clarify why it has change into such a well-liked vacation spot for overseas direct funding in japanese China. Our follow-up article, in Half 2, will element the primary SIP incentives and enabling insurance policies supplied to firms and expertise.

Suzhou Industrial Park (SIP), positioned within the japanese metropolis of Suzhou, Jiangsu Province, is frequently favored by overseas buyers. Regardless of the COVID-19 pandemic, this technology-driven industrial park has seen substantial development in its overseas direct funding (FDI) inflows – precise use of FDI within the park has reached a report excessive of 1.97 billion US {dollars} in 2020, up 100.6% from 2019; Recorded FDI reached $ 3.52 billion, up 81.4 % year-on-year, in line with the official information.

What Makes Suzhou Industrial Park an Engaging Vacation spot for International Traders?

Suzhou Industrial Park was established in 1994 as a cooperative challenge between the Chinese language and Singaporean governments. As the most important industrial park in Suzhou, it covers an space of ​​whole jurisdiction of 278 sq. kilometers (together with the China-Singapore cooperative zone of 80 sq. kilometers).

It’s positioned round Jinji Lake, a small freshwater lake east of Suzhou, about six kilometers from the town heart. Suzhou Zone of Jiangsu Free Commerce Zone, launched on August 30, 2020, is principally positioned in Suzhou Industrial Park.

As a state-level Financial and Technical Growth Zone (ETDZ), SIP boasted of Rating n ° 1 amongst 218 such areas in China for 5 consecutive years (2016-2020) by the Ministry of Commerce in line with the general growth degree of the world.

SIP additionally ranked first amongst ETDZs when it comes to annual import-export quantity final yr. SIP’s whole imports and exports reached US $ 94.18 billion in 2020, almost one-third of Suzhou Metropolis’s whole import-export quantity. Suzhou’s whole import-export quantity reached US $ 322.3 billion in 2020, making it China’s fourth-largest metropolis when it comes to overseas commerce, proper subsequent to Shanghai, Shenzhen and Beijing.

As a state-level high-tech space, SIP’s rating dropped from fifth to fourth in 2020, after Beijing. Zhongguancun Science Park, Shanghai Zhangjiang Excessive Tech Parkand the Shenzhen Excessive-Tech Industrial Park.

In 2020, the SIP recorded a GDP of 290.7 billion RMB ($ 45 billion). With over a million residents (of which 807,800 are everlasting residents and 576,500 maintain a Suzhou hukou) and disposable revenue per capita over 77,000 RMB (11,900 USD), whole retail gross sales of merchandise from Consumption within the area reached 93.48 billion RMB (14.5 billion USD). .

Principal Industries of Suzhou Industrial Park

From 1994 to the early 2000s, with its low-cost workforce, SIP succeeded in attracting numerous foreign-financed enterprises (FIEs) to maneuver their manufacturing there, which allowed for regular industrialization. of the park.

From 2005, the park started to modernize its industrial ecosystem, specializing in selling high-tech companies and growing a contemporary service business. Suzhou Industrial Park now focuses on six main industries, formally known as the “2 + 3 + 1” industrial configuration. They’re:

• Two pillar industries – Subsequent Technology Data Expertise (NGIT) and high-end tools manufacturing.
• Three rising industries: biomedicine, nanotechnology functions and synthetic intelligence (AI).
• A contemporary service business.

Official information exhibits that by 2020, the overall output worth of the three rising industries – biomedicine, nanotechnology software and synthetic intelligence (AI) – reached 249.4 billion RMB ($ 38.4 billion), in 22.9% enhance.

Amongst them, the overall worth of biomedicine manufacturing exceeded 100 billion RMB (US $ 15.4 billion). Almost 1,700 firms linked to biomedicine are positioned there. As well as, the output worth of the built-in circuit business reached 40 billion RMB (US $ 6.2 billion), a rise of 11 %.

Diagram of overseas funding in SIP

Over the previous 20 years, SIP has attracted greater than 5,000 foreign-funded tasks, together with 156 tasks invested by 92 Fortune World 500 firms, and used $ 32.3 billion in overseas funding.

It has attracted over 5,000 FIEs from 70 nations and areas together with some world well-known manufacturers like Bosch, Siemens, Samsung, BD, Wyeth, Philips, Fijutsu and Johnson & johnson. It has additionally helped 309 Chinese language firms put money into 53 nations and areas.

Greater than 500 nationwide and overseas firms have arrange R&D facilities there. Round thirty world-class academic and analysis institutions are managed collectively with overseas universities. The Oxford Suzhou Heart for Superior Analysis, the Harvard Weitz Innovation Hub and different main scientific analysis establishments have settled within the park.

In 2020, the SIP had 295 new tasks financed from overseas and 142 tasks with elevated capital. Santen Pharmaceutical and Danaher arrange R&D and manufacturing bases in SIP final yr; Roche launched its new tissue diagnostics and reagents program; and Adidas initiated the development of Adidas good operations heart in SIP.

Favorable insurance policies encourage firms in goal sectors

To draw high-quality enterprises and abilities, Suzhou Industrial Park has carried out a collection of distinctive favorable insurance policies.

To spice up the “HQ financial system” within the SIP, the park provides money rewards and lease subsidies to eligible HQ companies. Money rewards and housing subsidies can also be given to prime expertise or pressing expertise working within the headquarters enterprise.

As well as, vital subsidies and incentives will likely be given to firms within the R&D and exploitation part of the three rising industries, specifically biomedicine, nanotechnology and synthetic intelligence.

For key entrepreneurial abilities, help similar to loans, lease subsidies and residential buy subsidies will likely be offered. And measures are being carried out to facilitate the entry, exit and work of overseas expertise in Suzhou.

In Half 2, we are going to focus on in additional element these favorable insurance policies supplied by SIP. Corporations concerned with investing in Suzhou Industrial Park can observe our protection at China Briefing. Our father or mother firm, Dezan Shira and associates, not too long ago opened its Suzhou workplace within the SIP. For extra data, please e-mail us at China@dezshira.com or Suzhou@dezshira.com.