Shanghai will spend RMB 10 billion to build Shanghai Automobile City in 10 years. After completion of the project, the automobile trade volume will reach 300 billion yuan per year, becoming the core market for auto trade in China and even Asia. The sun shines through the windows in December, warm and bright. Zhu Ningning pointed out the window. “We are moving towards Silicon Valley for automotive research and development.†Zhu is deputy director of the Shanghai International Automobile City Construction Leading Group Office, and Shanghai International Automobile City is what he calls the future of China’s automotive Silicon Valley. At the end of 2004, the cumulative investment in fixed assets reached 16.6 billion yuan; the capital for investment in foreign investment agreements totaled 700 million U.S. dollars. At present, there are 184 industrial projects including parts manufacturing projects, and 81 have been completed and put into production. Zhu Ningning disclosed that “here will be the core area of ​​the future Shanghai auto industry.†Shanghai has the status of the Chinese car capital for nearly 20 years because it owns SAIC Motors, the largest passenger car company in China. In the first eight months of this year, the total output value of Shanghai's auto industry increased by as much as 60.5%, ranking first in the industry's six key development industries. It contributed 29.4% to Shanghai's industrial growth, and it also ranked first in all industrial sectors. “In recent years, Guangzhou and Beijing have been very active in attracting foreign investment in the automotive industry. Shanghai International Automobile City has largely determined the future fate of the Shanghai auto industry,†said an executive from International Motor City. 10 years cost 50 billion Shanghai International Automobile City, located in the western suburbs of Shanghai, has a base area of ​​60 square kilometers and a green area of ​​48 square kilometers. It is adjacent to Shanghai Volkswagen, China's largest car company. The famous Shanghai Motor Speedway is located in the area. Shanghai will spend RMB 10 billion to build Shanghai Automobile City in 10 years. After completion of the project, the automobile trade volume will reach 300 billion yuan per year, becoming the core market for auto trade in China and even Asia. Among the three functional projects that have been started are the Shanghai Automotive Industry Quality Inspection Institute Expansion Technology Project, the Tongji Automobile Academy Construction Project, and the Shanghai Used Car Trading Market Construction. While building a 1.3 square kilometer R&D zone, the International Automobile City education zone has also started. At present, the first phase of Tongji University's Jiading Campus has been completed. The School of Automotive and Software of Tongji University has been relocated. By 2006, nine departments and 15,000 students of Tongji University corresponding to the advanced manufacturing industry will be moved to the postdoctoral workstation of Tsinghua University. To Anting, further strengthen this team of production, education and research. “At present, the International Motor City functional project has been completed, and this year and next year will be the harvest period of the International Motor City.†Zhu Ningning estimates that the Shanghai International Automobile City’s GDP growth rate will reach more than 20% in a few years, at least higher than the Shanghai average. 5 to 8 percentage points. After three years, the development of the tertiary industry will increase from the current 16% of GDP to 30%. The transformation of Shanghai’s “Shanghai International Automobile City†is a major decision for the Shanghai government to seek the transformation of the automobile industry,†said an official from the Shanghai municipal government. After 1992, Shanghai’s urban functions changed from the original national industrial manufacturing center to the international economic, financial, trade, and shipping centers. Shanghai, which used to be a manufacturing center, has gradually faded its low-value added manufacturing aura. The fundamental reason is the increase in the cost of business and labor in Shanghai. Therefore, they are pondering over how to develop their own Shanghai in service, and even mention the status of service trade to a new height and leaps into "two long-term adherences and coordinated development." That is, "the common development of the secondary and tertiary industries, giving priority to the development of manufacturing and service industries." The establishment of Shanghai as a service trade and financial center means that the traditional manufacturing industries that once supported Shanghai's economic development must move out. According to Qian Pingfan, deputy director of the Development Research Center of the State Council and the Research Institute of Industrial Economics, in terms of the automotive industry, Shanghai may become the center of China's automobile service trade and auto finance because the nation’s leading marketing talents and financial talents are all in Shanghai. The company's China headquarters and marketing center are also here, information on foreign and domestic automobile markets are gathered here, very smooth. Due to cost considerations, traditional automobile manufacturing is bound to gradually shift to surrounding areas. However, automobile manufacturing is a key industry in Shanghai's economy and it is obviously not in the short-term interest of Shanghai itself to meet the interests of Shanghai. Shanghai has always been highly competitive with attracting foreign investment from neighboring Suzhou. From the perspective of Shanghai, if the automobile manufacturing industry is put into Jiangsu and Zhejiang provinces, it will inevitably weaken Shanghai's important position in the automobile and related industries and it will be a great loss to Shanghai's GDP. The safest choice is to relocate the automobile industry to the remote suburbs close to Jiangsu and Zhejiang. For example, the Shanghai International Automobile City is selected to be 60 kilometers away from the city and close to the Shanghai-Nanjing Expressway in Anting. In order to be consistent with Shanghai's goal of building a financial service trade center, in actual operation, the International Automobile City plans to simultaneously satisfy four goals: to accelerate the formation of the pillar position of the automobile industry in the Yangtze River Delta region, and to promote the technical progress of the Yangtze River Delta automobile industry and related industries. Promote the development of the tertiary industry and drive the urbanization process in the Yangtze River Delta. Controversy in site selection At present, the Silicon Valley effect of Shanghai International Automobile City has not yet formed a climate. The main task now is to complete the vehicle, spare parts system and create a service trade center. It is understood that the International Auto City is still in its infancy and its trade target is local to Shanghai. It has not reached the results of the radiation Yangtze River Delta, and due to inconvenient traffic, it encountered a lot of difficulties in its operation. From Shanghai International Automobile City to downtown Shanghai, it takes 40 minutes to drive; if you take the Shanghai Volkswagen shuttle, it will return at least three hours a day or more. “I am now thinking about changing jobs. It takes five hours a day to be able to stand on the road.†Mr. Wu, who had just transferred to the logistics branch in Anting, complained that his family lived in Jinqiao and could not get a seat until he had changed his car. Volkswagen's shuttle bus, after three months of long journeys, he couldn't help it any longer. In fact, at the beginning of the location of Shanghai International Automobile City, the decision-making departments once had a great deal of controversy over whether to settle in Anting or Pudong. Up to now, many people still insist that Pudong has better conditions in Pudong. Pudong has ports and the infrastructure is quite large. The most important is that the Pudong policy has obvious advantages. The Pudong income tax is 15%. Anting is the same as the country. 33%. The world-famous auto giant Delphi chose Pudong because Pudong is more mature and has a better environment. Anting, who holds a Shanghai Volkswagen, seems to have a disadvantage in the game. However, in the game of Shanghai or the Yangtze River Delta, Anting’s advantage is highlighted. Prior to this, Shanghai had Pudong Zhangjiang Hi-tech Development Zone in the east, Baosteel’s steel base in the north, North Chemical Industry Park, and the west was blank. Externally, Anting has direct access to Anhui and Jiangsu. Therefore, setting up the International Automobile City project in Anting can not only improve the layout of Shanghai's industrial structure, but also enhance the radiation power of Shanghai to the Yangtze River Delta. Taking Anting as the center, 500 kilometers to draw a circle to accommodate the large and medium-sized automobile companies are Shanghai GM, Shanghai Volkswagen, Nanjing Fiat, Anhui Chery, Yangzhou Bus, JAC, Southeast of Fujian. An Anting Town, a dream town of Jiading District, is located in the northwestern outskirts of Shanghai. The humble south town is famous for hosting the F1 Shanghai Tournament in September this year. Currently, Anting is home to China’s largest spare parts park – GM, Ford, and Dai-Ke are manufacturing many of the components in China. They are commonly used as small car lights, ZF Shanghai. And so on. According to the plan, the Auto Museum and the Auto Exhibition Center will stand in Anting in 2005. Located in Anting, 60 kilometers west of Shanghai, it is well-developed with convenient transportation facilities. The expressway leads directly to the ramp. The gateway from West to East to Shanghai is located at Qingpu North Crane. Up to now, Anting has cumulatively introduced about 100 Chinese and foreign parts and components companies and introduced 3.55 billion yuan of funds. Among them, only 58 joint venture parts and components manufacturers such as Yanfeng Visteon, Shanghai Xiaolan, Natiefu, and Yichu General Motors have been established in SAIC. Xu Zheng from Jiangsu Jinxin Automobile Consulting Company commented that “This is the region where the parts companies in Europe have the highest degree of concentration.†According to the Shanghai 15th Plan, Anting Town is the core market and important distribution center for automobile trade in the Asia Pacific region in the future. In early 2004, the Jiading District Government opened 24 square kilometers in Waigang Town, adjacent to Anting, as an expansion area of ​​Anting Components Park, focusing on the introduction of secondary automobile parts manufacturing enterprises. The auto parts products produced by Shanghai companies have attracted the attention of multinational auto companies such as GM, Ford and Dai Ke. It was only five years ago. In 1999, some of Anting’s companies began to be included in the procurement system of these multinational companies, which was mainly for Shanghai GM and Shanghai Volkswagen. In May 2001 and October 2002, SAIC took the initiative to organize a two-component exhibition in Detroit, USA. Shanghai auto parts companies began to enter the North American market. The scale of the parts and components industry in Shanghai has now radiated to the surrounding Zhejiang region. "More and more multinational automotive companies are now cooperating with many parts and components companies in Zhejiang, and the daily purchase volume is in the hundreds of millions of yuan," said a person in charge of the Zhejiang Economic Commission. In June 2003, the relevant departments of Zhejiang Province initially determined that with Wanxiang Group as the leader, Xiaoshan City was established as the automobile parts industry base in Zhejiang. And granted 80 square kilometers, for the expansion of Wanxiang Group.
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