China Council for the Promotion of International Trade (ccpit) 2009 Preface

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8.9 Food City of China-Luohe, Henan

Luohe is a young and beautiful city on wide Henan south plain. In recent years, the up surging food industry has came to the fore as an eye-catching card of Luohe. On October 15th 2001, Shineway quality-assured meat from Luohe was designated as exclusive meat for the famous APEC in Shanghai. In 2002, Luohe frozen pork export made another high record, accounting for over 85% of the total volume in the province, stepping close to Sichuan, the first province in domestic frozen port export. During the Spring Festival in 2003, Shineway quality-assured meat and green vegetables from Longyun Group in Luohe, Henan were widely served on tables and aroused praise from Beijing citizens. In the same year, the production and sales revenue of Shineway Group both exceeded 10 billion yuan, which made it the only one in domestic meat processing industry.

In order to create scale advantage and enhance competitiveness, Luohe City actively leads small and medium food enterprises to develop in industrial clusters to form a collaborating network which is complementing to and on a par with industry leading enterprises. The government plays a role of planner and leader to formulate a series of food industrial park development programs. At the present time, a group of parks such as Shineway food industrial park, Third Ring Road Food Mall, and Aodeli industrial park begin to take shape. Four industrial chains are effectively driving the rapid economic growth of the city. Currently, a special industrial cluster phenomenon comes into being in Luohe: 140 food enterprises above scale are scattered in such an inland city with only 2.5 million population, accounting for 40% the overall industrial enterprises in the whole city; more than 50 food series of thousand types are involved; more than 130,000 people are employed, accounting for 40% of all employees. Annually processed food reach 5 million tons, among which, meat product 1 million ton, accounting for 35.7% of the whole province; annually slaughtered pigs reach 14 million, 4.5 times of slaughter volume in the whole city; annually processed and transformed grain reaches 3 million tons, 205 times of total grain output in the whole city; 600,000 tons of drinks are produced here. Luohe has become the largest meat product processing base, an important grain processing base in China, and an important drinks base in Middle China. Luohe boasts one China food industrial park, five provincial level food industrial parks, and two counties of top 500 counties in food industry. During the tenth five-year plan period, food industry in Luohe kept increasing faster than 20%.

8.10 Porcelain Capital of China-Jingdezhen, Jiangxi

Jiangdezhen is one of China's most famous cultural and historic cities. Situated in the south of Yangtz River, it earned a name of Heroic Town in South of the River. Jingdezhen and other three towns, Zhuxianzhen in Henan Province, Hankouzhen in Hubei Province and Fushanzhen in Guangdong Province, were listed as the Top Four Towns of China. It is one of the 24 historic cultural towns and national class A opening up cities firstly issued by State Council. In June, 1953, Jingdezhen became a municipality directly under the provincial government upon the approval of Government Administration Council. It covers a total area of 5,256 square kilometers and a population of 1.52 million, of which over 400,000 in downtown. Leping City, Fuliang County, Changjiang District and Zhushan District are under its jurisdiction.

Jingdezhen is the capital of porcelain known both in China and overseas. It owns a long porcelain history and profound cultural connotation. According to historical books Xinping porcelain initiated from Han Dynasty. In 1004, Emperor Jingde of Song Dynasty decreed to produce the porcelain used by the imperial court. From then on, people began to call this place as Jingdezhen. Successive emperors from Yuan Dynasty to Ming & Qing Dynasties all sent officials here to supervise the manufacture of ceramics for palace. They set up kilns and created numberless ceramic masterworks. Four ceramics of blue and white porcelain, colored porcelain, exquisite Porcelain and colored glaze porcelain are extremely famous. Porcelain Used by Mao Zedong, porcelain used on APEC Shanghai and state guesthouse and various art ceramics have won great praise. Jingdezhen porcelain has earned a high reputation of "white like jade, bright as a mirror, thin as paper, sound like a chime." With its elegant form and unique technique, the art of Jindezhen porcelain is a bright jade in the Chinese civilization. The Chinese writer Guo Moruo once acclaimed the splendid porcelain history and culture in Jingdezhen by saying, "The best porcelain of the world is in China, and China's best is in Jingdezhen". Porcelain connects closely Jingdezhen with the world.

Chapter 9 China's Light Industry Going Out

At present, China's opening up has stepped into a new historic era. China actively implements foreign investment strategy with a better blend to introduce in and go out. In October 2000, Chinese government officially put forward go-out strategy as an important content of basic national policy in opening up during the tenth five-year period. Go-out strategy is a significant measure of China to adopt itself to economic globalization and further improve opening up level. From national strategic perspective, China formulates policies and encourages dominant enterprises to invest abroad, carry out processing trade, cooperate in developing resources, promote international project contracting and expand labor service export. China encourages and supports enterprises of various ownership to invest abroad to promote goods and labor export and form a number of strong multinational enterprises and brand names as early as possible.
    1. Going-Out Strategy of Chinese Enterprises Makes Brilliant Achievement

Along with the in-depth development of economic globalization and integration, all countries in the world are involved more closely in economic globalization tide. Since entering WTO successfully, China has intimately combined its up surging open economy with global economy. China is active in introducing in while a group of outstanding enterprises are active in going out. Chinese enterprises are now playing a more and more important role in global economy. Based on local accumulation and growing up, they are going outward from China to take the opportunities and challenges of global market. During the implementation of go-out strategy for years, Chinese enterprises almost double in growth every year. The years 2003 and 2004 were the starting point of a new era to go-out due to specific policies issued by Chinese government to encourage enterprises. In 2004, a significant year of Chinese enterprises, Lenovo Group acquired IBMPC. TCL, a Chinese household appliance enterprise, acquired French Thomson.

In addition, Chinese foreign direct investment in current years is outstandingly featured in diversification pattern of investment subjects. According to the industrial distribution of domestic investment subjects, manufacturing industry accounts for 45.5% of total investment subjects, mainly involved in textile garment, shoes and cap making, textile, communication equipment, computer and other electric equipment manufacturing, electric machine and equipment manufacturing, handiwork and other manufacturing and medicine manufacturing etc. In 2008, China foreign project contracting generated a turnover of US$ 56.6 billion. The new signed contracts value US$ 104.6 billion, increasing around 35%.

Since reform and opening up, China's light industry took the lead to open up from closure and achieved great-leap-forward development by introducing advanced technology and management modes. With an eye to international market, light industry enhances the implementation of go-out strategy and performs actively in various international competition and cooperation. Go-out plays an important part to promote national economy and develop foreign relationships. Through go-out strategy, China has formed several crude oil and mineral resources bases from which has obtained oil, mineral, wood and fishing needed by national economy and social development. Chinese enterprises abroad are involved in improvement trade such as household appliance, mechanical and electrical products, textile, garment and light industry, which have promoted domestic industrial structure adjustment. Chinese enterprises go out and carry out economic cooperation in nearly 200 countries and regions. It benefits host countries in economic development, employment, and increasing tax and realizes mutual benefit and promote common development. It gains widespread popularity with all countries especially various developing countries. Go-out strategy implementation is playing a more obvious role in relieving domestic resource shortage, promoting industrial restructuring, expanding export, increasing employment, and improving foreign friendly cooperation relationships etc.

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