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Zhongguancun: China's 'Silicon Valley'
( 2001-12-26 10:59 ) (1 )

Thanks to its rich talent, technology and management resources, the Zhongguancun Science and Technology Park is specializing in technological research and development (R&D), high-tech enterprises incubation and high-tech business services.

"So far, Zhongguancun has become a hub for the headquarters, research and development centres and marketing departments of high-tech companies," said Ren Ranqi, vice-director of the park's administrative committee.

Experts said the rational allocation of resources might guarantee energetic technology renovation of the enterprises and reduce the developing costs.

Official statistics indicate that technology revenues from China's 53 high-tech zones totalled 40.1 billion yuan (US$4.8 billion) last year. And nearly half came from Zhongguancun.

Technology revenues made up 11.9 per cent of the park's industrial revenues -- 7.5 percentage points higher than the national average.

Due to the rapid progress of the technology upgrades, Zhongguancun's overall economy witnessed two-digit surges this year.

During the first 11 months, the high-tech added value in the park hit 39.2 billion yuan (US$4.7 billion), 34.4 per cent higher than the same period last year.

And the industrial output amounted to 112.1 billion yuan (US$13.5 billion), 38.2 per cent up from the same time period in 2000.

Li Zhengxin, manager of a small high-tech enterprise in Zhongguancun, complained that too many large offices were moving in and office rents were rising even though the infrastructure was not improving.

"A large group of small and medium-sized enterprises, the former backbone of Zhongguancun, is considering leaving," Li said.

But Lu Hao, director of the park's administrative committee, said the government has put infrastructure improvements on top of the agenda.

To guarantee the healthy development of Zhongguancun, fair competition and reasonable elimination mechanisms are necessary.