China Daily Global Edition (USA)
Free trade zone reinvigorating old manufacturing base in Northeast
The China (Liaoning) Pilot Free Trade Zone is looking to boost the equipment manufacturing industry in Shenyang, capital of Liaoning province.
The zone is playing an active role in revitalizing the old industrial base in Northeast China and enhancing cooperation with Northeast Asia.
According to the development plan for the Liaoning FTZ released by the State Council, China’s Cabinet, in March, the Shenyang section of the zone is to focus on developing advanced equipment manufacturing, vehicle manufacturing and related components, as well as components for the aviation industry, along with a modern service sector, including finance, technology and logistics.
Equipment manufacturing and maintenance enterprises in the FTZ are profiting from the growing demand for Chinese equipment worldwide. Northern Heavy Industries Group is just one example.
The company is expected to earn 1 billion yuan ($152.56 million) from its maintenance and remanufacturing business in the next five years.
Maintenance and remanufacturing are important parts of the circular economy as they help conserve resources, said officials at the Liaoning Department of Commerce.
A new supervision model applied to a special customs supervision area and aircraft maintenance businesses is being applied to bonded warehouses for imported aircraft accessories and raw materials, which provides support to the customs custody area in the Liaoning FTZ’s Shenyang section and the Shenyang aircraft maintenance center of China Southern Airlines.
The model not only shortens the customs clearance time and reduces business costs, it also reflects the strategic significance of promoting Shenyang’s aviation industry up the global value chain, said an official of the Department of Commerce of Liaoning province.
After the establishment of Shenyang section of the Liaoning FTZ in April, it has attracted 13,000 registered companies. A dozen or so companies come to the area to observe and study every day, according to Li Liming, deputy director of the Shenyang section of the Liaoning FTZ.
Hu Fang, executive director of Liaoning EO Technology, a company focusing on the research, development, producing and selling of wear-resistant materials, said: “Shenyang has a solid foundation for the machinery manufacturing industry and its product quality ranks top nationwide.”
“The establishment of the Shenyang section of the Liaoning FTZ provides a sound platform for us and other heavy equipment manufacturers to expand our business overseas,” he said.
Although the Shenyang section of the Liaoning FTZ shows strong growth momentum, it nonetheless faces some challenges, said Guan Enzhong, head of the department of commerce of Liaoning’s free trade zone office.
A lack of marketing awareness and a broad understanding of the overall market have contributed to limiting the growth of some longstanding State-owned enterprises and reducing their orders, he said.
To address this, an official with the China Council for the Promotion of International Trade said that the CCPIT Liaoning FTZ service center will make full use of domestic and international resources to promote the manufacturing industry in the Liaoning FTZ through promotion fairs, matchmaking events and exhibitions.