1.1 General Information about Changxing Economic and Technological Development Zone

Changxing Economic and Technological Development Zone (CXETDZ) was established in 1992 in Changxing County, Huzhou City, Zhejiang Province, and designated as a provincial-level development zone in 1994. In 2020, it was approved by the State Council as Zhejiang’s first state-level economic and technological development zone sitting in a county and upgraded into a demonstration zone for industry and city convergence. In 2015, CXETDZ was included into the pilot program for recycling reform of provincial-level zones and Zhejiang's first group of international industrial cooperation parks. In 2018, it entered into the pilot program of national high-end equipment manufacturing standardization. In 2019, the New Energy Town in CXETDZ was listed into the 15 provincial-level small towns with its own characteristics officially named and approved by Zhejiang People's Government, thereby becoming one of the first small towns in high-end manufacturing category. In 2020, CXETDZ was included into Zhejiang's pilot program of industrial chain leader system for development zones (regarding new energy vehicles and parts), the list of demonstration zones for Zhejiang's beautiful industrial parks and the province's third group of Ten Thousand Mu and Hundred Billion new industry platform (smart vehicles and key parts). Also, with satisfactory result from the comprehensive performance review for state-level economic and technological development zones, it entered China's Top 100 state-level development zones. As of the end of 2020, CXETDZ has fostered 10 companies listed in Shanghai Stock Exchange, Shenzhen Stock Exchange and Hong Kong Stock Exchange, and 38 companies listed in the NEEQ (also known as the New Third Board).

Nested in the center of the Yangtze River Delta, staring at Tianmu Mountain in the west and Taihu Lake in the east, and seamlessly connected to the downtown area of Changxing County, CXETDZ covers 116.25 square kilometers with the core area being 101.25 square kilometers. Its transport network consists of 4 express ways (i.e., Nanjing-Hangzhou, Shanghai-Jiangsu-Zhejiang-Anhui, Hangzhou-Changsha, and Shanghai-Jiaxing-Huzhou), 3 high-speed railways (i.e., Nanjing-Hangzhou, Shangqiu-Hefei-Hangzhou, and Shanghai-Suzhou-Huzhou), 3 railways (i.e., Hangzhou-Xuancheng, Changxing-Niutoushan, and Xinyi-Changxing), 2 national highways (i.e., G104 and G318), and 1 golden water course (i.e., Changxing-Huzhou-Shanghai Canal). What is more, with the high-speed railway Changxing Station in its jurisdiction, and being close to four international airports (i.e., Shanghai Pudong, Shanghai Hongqiao, Hangzhou Xiaoshan, and Nanjing Lukou) and three international seaports (i.e., Shanghai, Ningbo, and Zhapu), CXETDZ is favorably located so that it is easily to get to large and middle YRD cities including Shanghai, Hangzhou, Nanjing, Suzhou, Wuxi and Changzhou within one and a half hours.

1.2 Dominant Industries

In recent years, with full steam ahead CXETDZ has been developing its industrial clusters that covers an industrial chain (smart vehicles and key parts) and four industries (new energy, intelligent equipment, biomedicine and digital industry) through integrating, upgrading, introducing and incubating businesses, to meet the objective of “secondary entrepreneurship” and “building a development zone that is leading in Zhejiang and ranks highly in China” as determined by the Changxing Committee of the CPC and Changxing People's Government. By the end of 2020, more than 303 industrial enterprises above designated size resided in CXETDZ.

Smart vehicles and key parts: Along the development route of “pulled by assembly and driven by parts”, it has developed into an industrial cluster led by assembled vehicles and supported by key parts including control systems, drive systems, chassis, and car bodies, with development, design, manufacturing, trade and operations combined together. The Geely New Energy Car Assembly and Transmission Project with a total investment of CNY 32.6 billion introduced in February 2018 has been put into production.

New energy: An industrial chain from battery development, production and assembly, material processing, part manufacturing and sale to old battery recycling has been established, supported by famous rechargeable battery brands, e.g., Tianneng, Chaowei, Zheneng, Akcome, Taihu Electric, Clarios, JEVE, DSUN, Kunlunchem, and Sinochem Liantian, and four R&D platforms of at least provincial level, e.g., Tianneng State-level Technology Center, Chaowei Power Supply Research Institute, Tianneng Power Research Institute for Batteries and Materials, and China-Russia Research Institute for New Energy Materials and Technologies. Today, CXETDZ houses 28 enterprises above designated size including Tianneng Group, Chaowei Group, and Clarios.

Intelligent equipment: Over 35 enterprises including Noblelift, Bahuan bearing, Jixiang Aluminum, DUMIK, Zhongde, and Sky-e which are influential in respective segments such as material handling equipment, motors, drives, textile machinery, metallic products, and electric cables reside here. Specifically, Noblelift is listed in the main board of A-stock market and one of the major production sites for warehousing and logistics equipment in China. Of its products, manual hydraulic trucks take up about one-thirds of the global market share, having won the first place in the industry for many years in a row. The air-conditioning manufacturing system consisting of another influential enterprise, Hisense air-conditioner factory, and nearly 30 supporting suppliers such as Gon Science & Technology and Delphi, provides an annual capacity of 2.5 million inverter air-conditioners.

Biomedicine: Key projects in biomedicine, medical devices, nutritional supplements have made breakthroughs. Representative enterprises like Changxing Pharmaceutical, Ai-ge, and Jinbakai which settled here decades ago operate well. Clover Biopharmaceutical implemented by five national leading talent experts has been put into production. In addition, projects under development such as Naili Pharmaceutical Equipment, Safecare Biotech, and Kangyuan proceed well. Clover Biopharmaceutical is committed to the development and production of modern target drugs such as antibodies and receptors, in particular the S-trimmer COVID-19 vaccine expected to receive the market authorization in early 2022. Tonicare is specialized in development of new anti-tumor drugs including the third-generation anti-tumor drugs and the world's first new drug for brain metastasis after EGFR target drug becoming resistance.

Digital industry: Focusing on electronic components, software application-based services (e-commerce, embedded software), data storage and processing (big data and cloud), CXETDZ exerts great efforts into a digital sector. In this regards, Jimaike Microelectronics, Microtek, Taihu Yuanda, Heli Photoelectronic, and Hpwinner Opto set up facilities in Changxing to offer solutions to their downstream customers such as Shanghai Electric, Phillips Lighting, OPPLE, Midea, Haier and Hisense.

Representative companies:

Smart vehicles and key parts:

Geely Changxing New Energy Vehicle Co., Ltd.;

Changxing Geely Automatic Transmission Co., Ltd.;

Joyson Electronics;

Kayaku Safety Systems;

Fosun-Jeve

New energy:

Tianneng;

Chilwee;

Fusun Jeve

Clarios;

Akcome

Intelligent equipment:

Noblelift;

Demark;

Hisense;

Goldmt;

Sunder NC Tools

Biomedicine:

Changxing Pharmaceutical (Huahai Pharmaceutical)

Tonicare

Clover Biopharmaceutical

Ai-ge

Jinbakai

Digital industry:

GMT

Microtek;

Taihu Yuanda;

Hpwinner Opto;

Fanyalighting

1.3 Modern Logistics Park

Favorably located Modern Logistics Park is designed to serve local manufacturing enterprises with a coverage of the whole Yangtze River Delta by developing a multi-mode transport center (Changxing South railroad yard, highway port, and “railway-highway-waterway” port) to create a YRD logistics center.

With a total investment of CNY 545 million, Changxing South railroad yard covers a land area of 505 Mu and has two functional spaces (railroad work space and logistics area), which were constructed by Changxing government in partnership with China Railway Shanghai Bureau Group and Zhejiang Railroad Development Group. Currently, railroad transport with box cars, inland rail transport and railroad-seaport mode are available, making the yard an important hub for transporting materials needed and products manufactured by local producers. A total of 108,700 standard containers were transported via the railroad mode in 2020 alone.

Officially put into service in 2011, the highway port has a land area of 385 Mu where more than 300 logistics businesses are located. In 2018, Transfar Group was appointed to take charge of the port's operation to ensure a clean and well-organized port that requires less costs and delivers higher efficiency. Modern logistics services such as drayage, regional allocation, national dedicated transfer lines, warehousing, and cold chain logistics. The park recorded a taxable revenue of CNY 288 million from logistic and supply chain services in 2020.

The “Railway-Highway-Waterway” Port covers a land area of 390.73 Mu with a  total investment of CNY 623 million. 10 berths for vessels of 500 gross tonnage are proposed to be constructed in three phases. The first phase into which CNY 223 million is invested occupies a land of  146.2 Mu for 4 berths, office buildings, warehouses and relevant utilities. With shipping routes to Zhapu Port, Zhoushan Port and Shanghai Port, it will provide the safest means of transportation at the lowest cost for local producers to facilitate their international trade. The container throughput in 2020 reached 38,000 standard containers.

New business models for logistics: Furthermore, the park worked hard to introduce and encouraged local logistics enterprises to create new business models. Projects that have been completed and in development such as the Manufacturing Distribution Center, Xinda Highway-Railway Intermodal Container Distribution Center, Cross-border E-commerce Park, Tianchang Zhiku Logistics Park, Quanshang Tech E-commerce Warehouse Center, BNBMG Forests East China Operation Center play a vital role in combining sources of goods, enhancing the information infrastructures, developing e-commerce and lowering the logistics costs.

1.4 International Industrial Cooperation Park

The Park was approved by Zhejiang Provincial Government, with a planned area of 5 square kilometers. Its first and second phases were designed by FTA Group and built in accordance with German standards with the aim of making a industrial cluster, an ecological park, a space for smart manufacturing and a human-based community, providing first-class platform and precise service for European businesses in China. The third phase are high-standard plants  designed by a prestigious US industrial property developer specially for European and American customers. The built area of plants is about 220,000 square meters. Projects that have settled in the park include Primetals Technologies invested by Mitsubishi Heavy Industries, one of the Fortune 500 companies, Nadella, Aqseptence Group, Mersen, Iprotex GmbH, Changying Machinery and Hokuetsu Group.

1.5 New Energy Town

From “the capital of batteries” to one of the pioneers for innovation of new energy technologies in China, the New Energy Town located in CXETDZ has not only built a new energy industrial cluster with international influence, but also shaped a demonstration area for low-carbon life through the convergence of production, life and environment.

The area governed by the New Energy Town is against Changxing’s downtown area whose name is from Huaxi new port, an important waterway that crosses the area. This small down has received a lot of honors with respect to its comprehensive strength and beautiful landscape. As the headquarters of Tianneng and Chaowei, two listed battery giants, the Town houses more than 530 businesses. As a small town with its industrial characteristics in new energy, it gathers more than 100 enterprises in new batteries, new energy vehicles and key parts, solar thermal energy and solar photovoltaic energy, and new materials with Chilwee, Tianneng, Sinosteel, Zheneng, Leeden and DSUN as typical examples.

2.1.Changxing Profile

Sitting in the northwest of Huzhou, Zhejiang and nested in the heart of Yangtze River Delta, and at the junction of Jiangsu, Zhejiang and Anhui provinces, Changxing is favorably located. The county has an area of 1,430 square kilometers and a permanent population of about 673,800.

It enjoyes a long history and a rich culture. During the Wu-Yue Contention, a part of the Spring and Autumn Period (770 BC to 476 BC) in the Chinese history, King Fuchai of Wu sent his little brother Fugai to settle in Changxing and build a city here, which was named “Chang City”. Changxing was established in the third year of Taikang Reign during the Wu Emperor of Jin Dynasty (266 AD to 420 AD), more than 1,700 years ago. It is the birth place of Chen Baxian (503 AD to 559 AD), the first emperor of Chen Dynasty, which gives its nickname of “a place of emperor and Buddhism”. In addition, Changxing is one of the cradles of the Chinese tea culture. Gui Youguang (1507 AD to 1571 AD), a famous proser in Ming Dynasty and Wu Cheng'en (1500 AD to 1582 AD), a novelist in Ming Dynasty governed Changxing together.

Its economy grows rapidly with positive activities. Over the years, by upholding its industrial strategy, Changxing has developed the “1+4+2” industrial system where the new energy sector is included into the top 50 national industrial clusters. It is one of the top 100 counties with strong investment potential, one of the top 100 counties with strong industry, and a demonstration county for the high-quality development of manufacturing in Zhejiang Province. In 2020, the county recorded a GDP of 70.239 billion yuan, and total fiscal revenue of 12.176 billion yuan, of which, the local revenue was 6.755 billion yuan.

The county is famous for its social harmony and beautiful ecosystem. With an urbanization rate of 62.8 percent and a ratio of the income of urban residents to that of rural residents of 1.65, Changxing has become a demonstration county for the state-level new urbanization and a demonstration county for beautiful rural area in the new era. Being the champion for fifteen times in the Safe Initiative, Changxing was granted the “One-star Safe Golden Award”. Scenic sites including Tuying wetland and Guzhu tea area present amazing natural landscape. Furthermore, the Taihu Lake Longement Paradise, a world-class tourism complex, just stands within Changxing.

Changxing is a rising modern city with lucid waters and green mountains.

2.2 Investment Environment

Technological and financial services: Changxing is the only pilot county for developing Zhejiang province’s technological innovation system, included into the province’s test area for full innovation and reform in December 2016. There are 256 national high-tech companies, 5 provincial innovation leaders, 884 SME tech businesses and 43 provincial Agricultural tech enterprises; and 118 provincial research and development centers, 22 provincial research institutes and 4 key corporate research institutes. In terms of financial services, the Taihu Capital Square has housed over 1,100 financial institutions with innovative models such as QF Capital, Boarding Capital, Songshan Capital, and Longli Capital, ready for addressing difficulties in Entrepreneurial operation.

Education: Changxing has 3 national-level and 2 provincial-level key vocational schools and 4 provincial-level model senior high schools, among which, Changxing Senior High School is a provincial-level characteristic model high school. Zhejiang Transportation Vocational and Technical College affiliated to the Zhejiang Provincial Department of Transportation is a full-time general higher vocational college jointly established by the Ministry of Transportation and the Zhejiang Provincial People's Government. In 2020,  the county delivered 2,971 graduates from high-schools and middle vocational schools; of whom, 1,524 directly accessed to the employment market and more than 95% of the 1,524 stayed in Changxing. As end of 2020, over 70% of graduates seeking for higher education returned to Changxing for employment. In 2020, Changxing had 202,800 qualified professionals, of whom, 527 were high-level ones. Among these high-level talents, 29 are from the county’s own High-Level Talent Program, 31 are included into the provincial “Overseas Engineers” Program, 279 into the “South Taihu Lake Elite Program” and 57 into “South Taihu Lake Support Program”.

Health and medical services: Changxing is the only national-level public hospital comprehensive reform demonstration county in Zhejiang. Efforts put into the development of Changxing’s medical community has borne the fruit where systems are integrated for efficiency and quality, three hospitals connected for close linkage, and information support implemented for effectiveness. Relevant practices in this process have been fully recognized by the Health Commissions at all levels, and received great responses nationwide. The county has been awarded by the State Council, recognized as the national-level demonstration county for the comprehensive reform of public hospitals, and received the provincial outstanding awards for the reform for consecutive three years. Changxing County People's Hospital equipped with advanced and complete medical facilities was listed as a branch of the Second Hospital of Zhejiang Medical University. As of the end of 2020, there were 350 medical and health institutions in Changxing.

Dwelling: The county has been granted a series of honors such as the National Advanced City, International Garden City, China Human Settlements and Environment Award, National Ecological County, National Garden County, National Health County, and National Model County for Green Coverage. Its forest cover is 47.42% and the green coverage for the built land is up to 43.42%, which paves the foundation for the great natural environment. In addition, Changxing provides over 600 high-end catering and entertainment sites, in particular, the Taihu Lake Longement Paradise, a world-class tourism site into which 25.1 billion yuan is invested, has been opened.

Governmental services: The county has been upholding the purpose of “protecting each business like caring our own eyes” and highlighting the philosophy that “everyone marks the investment environment and everyone represents the county’s image”. The governmental services administration office has launched a raft of mechanisms including parallel approvals, joint approvals, agency service and one office for all, to simplify the approval process, shorten the approval duration, and optimize the service experience. The county is one of the best performers in Zhejiang province with respect to these reforms. In 2021, Changxing has completed the first approval reform project in Huzhou aiming to shorten the approval process to not more than 15 working days.