Guide to the Opportunities of Investing in Baoshan District
(for the Second China International Import Expo)
I. Investment Opportunities:
1 Favorable Location
As the gateway to the northern part of Shanghai, Baoshan District is lcoated at the convergence point of the Yangtze, the Huangpu and the Wusong rivers, with a shoreline of 46.5 kilometers. Covering an area of 293.7 square kilometers, the District has 2.03 million permanent residents, and administrates 12 sub-districts and two municipal-level industrial parks.
It takes a 40-minute drive from the Shanghai Pudong International Airport to Baoshan District, and a 30-minute drive from the transportation hubs of Hongqiao (Shanghai Hongqiao International Airport and Hongqiao Railway Station) there. There is a rapid traffic network in the District including Central Ring, Outer Ring, Suburban Ring, S7, Shanghai-Taicang Road, South-North Viaduct, and Yixian Road Viaduct, as well as Metro Lines 1/3/7 already in use, Metro Lines 10/15/18 under construction and planned Metro Lines 19/21/22/24/26/29.
2 Comprehensive Competitiveness
As an important part serving China’s “Belt and Road” Initiative and the development of Yangtze River Delta, Baoshan District is listed among the main districts for building Shanghai into an excellent international city in the General Urban Planning of Shanghai Municipality (2016-2040). Over recent years, Baoshan has been working hard to achieve a higher level of urban & rural integration towards the goal of building a key supporting district of developing strategic emerging industries and the best district of undertaking the shift of urban functions. It has also been making endeavors to grow itself into a modern, new riverside district characterized by the mutual promotion of innovation, creativity and entrepreneurship, the integration of ecology, production and life, and the coordination of being suitable for living, business development and traveling.
The whole district has made a leap-forward development in ecological enhancement and afforestation, with the greening coverage area expanding to 7,957.04 hectares, the forested land coverage rate reaching 29.36%, the greening coverage rate of the built-up area rising to 43%, and the per capita public green area increasing to 11.9 square meters. As a result, the local urban environment has been greatly improved. There are 21 tourist attractions in the District, including six national 4A-level tourist attractions, the second largest among all districts in Shanghai.
Education, culture, and health have all flourished. High-quality educational resources have been introduced, marked by the successful opening of Shanghai Hua’er Baoshan Experimental School and Shanghai University Baoshan Foreign Language School. The “Four Seasons of Culture” brand highlights the urban charm, and various events like Shanghai Baoshan International Folk Art Festival and Blackpool Dance Festival have exerted a broad influence. The “Health of Baoshan” initiative has been accelerating, and the allocation of medical resources has been further optimized. A number of municipal-level Grade III hospitals such as Huashan Hospital North Hospital and the Ninth People’s Hospital North Hospital have established a presence in the District.
Baoshan District has been implementing the rural revitalization strategy in depth. By prioritizing the development of agriculture and rural areas, focusing on the development of urban modern green agriculture, and highlighting the improvement of rural living environment, the District is making efforts to build rural revitalization demonstration villages and beautiful countryside demonstration villages at a higher standard. Construction for the “National New Urbanization Pilot” in Luodian Town and the “National Characteristic Town” in Luojing Town is well underway.
3 Industrial Positioning
During the “13th Five-year (2016-2020) Planning” period, Baoshan, with a vision for “deep integration and transformation-based development” and towards the goal of building Shanghai into “four centers”, as well as science and technology innovation center and an international metropolitan, is accelerating development through transformation and industrial restructuring, carrying out the “Four Brands” strategy and actively constructing a “1+4+X” modernized industrial system consisting of the modern services industry as the pillar, the strategic emerging industries as the guidance and the advanced manufacturing industry as the support in a scientific and technological innovation-led manner by seeking a breakthrough in the transformation of old industrial area, taking the route of city and orienting to innovation, harmony, sharing, being green, convenient and smart. Specifically, the “1+4+X” modernized industrial system refers to “1” brand industry – cruise industry, “four” leading industries - robotics & intelligent equipment, new materials, new generation information technology, biomedicine & life health, and “X” special services industries - construction technology services, energy conservation and environmental protection services and Internet platform economy.
4 Industrial Layout
For the past few years, Baoshan has unswervingly pursued the integration of regional resources, and taken the lead in Shanghai in making a district-level industrial map, defining the “four divisions undertaking different industrial functions”: the South Division (high-tech and business), which will cultivate headquarter economy, high-tech, business & office, R&D and design mainly in conjunction with building Shanghai into a science and technology innovation center; the East Division (the north part of the international shipping center), which aims to build the sub-center of Shanghai and strengthen the shipping, commercial & trade, scientific & educational and cultural functions mainly on the basis of the Cruise Terminal, Wusong Innovation Town and Yanghang City Hub in conjunction with building Shanghai into an international shipping center; the Central Division (producer services), which aims to build an area for commercialization of scientific and technological innovation results and cultivate such producer services as intelligent manufacturing, information service, R&D and design, cultural creativity, high-tech service and commercial service mainly; and the North Division (advanced manufacturing), which, in combination with the transformation of Luojing Port, will promote the linkage between the Port and the whole district, build the supporting area of advanced manufacturing, and focus on cultivating such strategic emerging industries as intelligent equipment manufacturing, new materials, new generation information technology and bio-medicine.
Meanwhile, Baoshan District is actively building a modern, new industrial system that meets the requirements of the new era, and making a “1+2+3+5” spatial layout of industries take shape. Specifically, there is “1” characteristic industrial belt: Binjiang Industrial Development Belt of Cruise, an arrangement for industrial upgrading from Cruise Terminal to Cruise Town; “2” municipal-level key restructuring zones: Nanda Eco-Smart City which is led by intelligent networked cars, artificial intelligence, energy conservation and environmental protection and smart medical care, and Wujing Innovation Town which is led by new materials, intelligent hardware, cruise services, energy conservation and environmental protection; “3” services industry development belts: a modern services industry development patterninnovation, entrepreneurship and creativity which stimulates the development of each other, clusters at different points and gets connected across Metro Lines 1, 3 and 7; “5” key industrial parks: Shanghai Robotic Industry Park, Baoshan Urban Industrial Park, Baoshan Industrial Park, Luodian Industrial Park and Yueyang Industrial Park, which place emphasis on the upgrading of manufacturing and the transformation of the entire region.
II. Investment Fields and Special Areas
Cruise industry:
To better serve the government strategy of developing the Yangtze River Economic Belt, and towards the goal of building Shanghai into an international shipping center and a world-famous tourist city with global influence, Baoshan, by leveraging Wusongkou International Cruise Terminal which is the biggest port for cruise liners in Asia and the world’s fourth largest port, has fully integrated the riverside resources, improved the functions of the home port, unveiled innovative supporting policies, improved the development environment, actively built the cluster of cruise liner industry, encouraged the Port-District linkage, gained steam in developing the cruise economy, made every effort to accelerate the building of a demonstration zone for cruise tourism development in China, and led the high-quality development of China’s cruise economy.
Baoshan strives to build the headquarter base of cruise liners with global influence, expands cooperation with Chinese and foreign cruise liners and actively creates the international cruise business district. It also accelerates the building of a demonstration base for international cruise services trade in Shanghai, attracts and brings together various company headquarters to establish a presence in the District. Now, Baoshan District is hosting approximately 150 cruise-related companies including MSC Cruises and COSTA. The whole district reports a direct scale of cruise economy at about RMB6.0 billion and sales of cruise voyages at about RMB16.0 billion.
Baoshan accelerates the building of a global-competitive home port of cruises, increasingly enhances the comprehensive services level of cruise home port, and actively creates the demonstration unit for standardization of services industry in China and the “international clean port”. It continues to promote the development of the cruise supply business, and makes efforts to build the material allocation and delivery center for international cruises of Shanghai with the functions of “global procurement and worldwide delivery”. Baoshan spares no effort to the highland of cruise economic development throughout the industrial chain, encourages the designers, repairers and builders of cruise ships to participate in the local cruise ship-building plan and gives a boost to achieving a breakthrough in the upstream of the cruise industry. It studies and formulates the policy in support of cruise ship repair/building development, guides and encourages relevant companies to settle down in the Shanghai CSSC International Cruise Industrial Park. It attracts other cruise-related companies into Baoshan for the purpose of forging a superior industrial cluster at a faster speed. Baoshan facilitates the industry & city integration and the district-port linked development, strengthens the linkage with the Shanghai FTZ and free trade port policies, and actively carries forward the filing of application for establishing an area under special Customs supervision. It paces up the industry & city integration by continuously optimizing the functional layout of the cruise-related riverside belt; it kicks off the overall development and construction plan of the local riverside area, and promotes the realization of the mega-traffic system at the cruise terminal. Baoshan improves the business environment for the development of cruise economy, increases efforts to attract investors, puts in place a channel for smooth communication between companies and the government, and creates a favorable environment for the development of cruise economy.
New material industry:
Baoshan strives to build a new material industry cluster. Relying on the industrial foundation of new metal materials and functional materials, and focusing on the High-temperature Superconductor Industrial Base of Shanghai, the Graphene Industrial Technology Functional Platform of Shanghai and the high-quality industrial cluster of Baosteel, Baoshan gives full play to its first-mover advantages in cutting-edge new materials such as super-carbon, super-semiconductor, super-silicon and fine steel, and fosters a new material industry cluster with leading innovation ability.
— The High-temperature Superconductor Industrial Base of Shanghai is located in Baoshan Urban Industrial Park. High-temperature superconducting technology is a cutting-edge technology of strategic significance. With the rapid development of urbanization and industrialization, the technology shows a prospect of finding wider applications in a slew of sectors including urban power grid transformation, magnetic levitation traffic, and large scientific devices. So far, China’s first kilometer-scale high-temperature superconducting cable demonstration project has been started at the base, and it is expected that the cable will be connected with the power grid for operation by the end of 2019.
— Baosteel is the fine steel industrial base of Shanghai. In recent years, Baosteel Group has implemented large-scale industrial layout readjustments, concentrating smelting, hot rolling and products under massive production of extended processing into Baoshan in a bid to build a northern base of selected iron and steel products. Thanks to the efforts, three specialized production centers including a carbon steel tube product manufacturing center, a stainless steel product manufacturing center and a special steel manufacturing center, as well as a extended processing base of steel products located in Luojing Town, Baoshan have taken shape.
— The Graphene Industrial Technology Functional Platform of Shanghai is a service platform for the industrialization of graphene technology jointly established by Shanghai Science and Technology Commission and Baoshan District. It is located in Shanghai Baoshan Urban Industrial Park. The platform, with the graphene industry at the core, is aimed to focuse on graphene applications, systematically integrate the innovation and entrepreneurial resources of graphene, lead the advancement direction of graphene industry technology, promote the formation of graphene industrial cluster in Shanghai, and a highland of innovative talents in the grapheme sector. The platform is an important demonstration window for building Shanghai into an internationally-influential science and technology innovation center.
Robotic & intelligent manufacturing industry:
In 2018, the output value of robotics and intelligent manufacturing in Baoshan District reached RMB37.33 billion, accounting for nearly 20% of the total output value of industries above designated size in the District. There are 117 robot-related enterprises above designated size in Baoshan.
Shanghai Robotic Industrial Park situated at Gucun Town is home to more than 50 robotic and supporting companies, e.g. Fanuc Robotics which ranks No. 1 globally, SH Machinery leading China’s auto assembly sector, Fronius which is a global market leader in robotics wielding, YHOK which is a leading industrial robot researcher, developer and manufacturer in China, headquarters of SINYLON and Flight Simulator of AVIC which focus on intelligent equipment manufacturing. Besides, such scientific research institutes as National Robot Testing and Assessment Center have also established a presence in the park. Science and technology innovation carriers of intelligent equipment mainly including robotics occupy an area of 100 thousand square meters now, and will scale up to about 350 thousand square meters by 2020. YASKAWA, one of the four largest industrial robotic makers in the world, is engaging in active cooperation with Baoshan District, and expects to see the launch of YASKAWA semiconductor robots, a national key programme with a planned investment of RMB5.0 billion, at the end of the year.
On the basis of gathering key enterprises, Baoshan District will introduce more high-quality projects and endeavor to build a role-model area for bundled development of China’s robotic industry.
Bio-medicine industry:
Baoshan District focuses on the R&D and industrialization of innovative medicine. It has clustered a group of bio-medicine enterprises with strong international competitiveness, including such key pharmaceutical enterprises as Shanghai Fosun Long March Medical Science Co., Ltd., Huanghai Pharmaceutical Co., Ltd. and Hunan Jingfeng Pharmaceutical Co., Ltd.
To enhance industrial agglomeration, Luodian Town of Baoshan District is actively preparing for setting up the “Shanghai Life Health Industrial Park”. The park, relying on such premium enterprises as Hunan Jingfeng Pharmaceutical Co., Ltd., Zhaohui Pharmaceutical Co., Ltd. and Shanghai Jingze Biotech Co., Ltd. which are already located in the Industrial Park of Luodian, will promote the industrial incubation of biomedicine technology and the application of innovative services, and offer a one-stop, integrated specialized support and whole-process services, including early-period incubation, attraction of investors, manufacturing and service application, in an effort to build the best place for smart medicine, rehabilitation and caring.
Platform economy:
In recent years, following the industrial development trend of the “Internet plus Supply Chain Innovation” in China and giving full play to the characteristics of the local economy, Baoshan District has been vigorously developing the Internet platform economy represented by the bulk commodity e-commerce platform. With over 40 key Internet platforms including banksteel.com (ranking first in the country), ouyeel.com (Shanghai Iron and Steel Exchange) (ranking second in the country) and mysteel.com (having global influence), it has built the largest steel e-commerce trading center in China with the transaction volume (invoicing) representing 56% of the national total, making Baoshan a highland for gathering the transactions of China’s steel e-commerce platforms and providing the information services on bulk commodities. mysteel.com affiliated to Shanghai Mysteel E-Commerce Co., Ltd., as a world-renowned industry information website, publishes the steel price on a daily basis, which is the benchmark reference price for China’s steel trade settlement. What’s more, the Shanghai Rebar Price Index and the China Iron Ore Price Index, both published by the website, are quoted by the Chicago Mercantile Exchange, the Singapore Exchange, Vale and BHP Billiton, respectively, and thus become the first “China Indexes” among the global commodity trading indexes.
III. Investment Services
“1+9” serial policies of Baoshan for supporting industrial development
Since 2011, Baoshan District has implemented the “1+9” policies to support industrial development. “1” refers to the general opinion on management of the special fund for industrial development, while “9” refers to the nine measures for management of special fund respectively for the cruise economy, advanced manufacturing, modern services, scientific and technological innovation, financial services, energy conservation and emission reduction, cultural creativity, agricultural industrialization, and talent growth. The implementation of these policies has brought about good results. The advanced manufacturing industries such as robotics and new materials have developed rapidly, the “four neo-economy” including cruise industry, platform economy and mobile Internet, as well as modern service industries have accelerated their gathering, a number of well-known enterprises at home and abroad have established their presence here, a batch of major transformation projects have been launched, and a suite of innovative carriers have developed rapidly. The regional economic structure has been gradually optimized, and the comprehensive economic strength significantly improved.
The “1+9” policies , focusing on the building of a science and technology innovation center, are designed to accelerate the clustering of innovative resources and talents for innovation and entrepreneurship, and to promote the transfer and commercialization of scientific and technological results. The policies target strategic emerging industries, advance the transformation and upgrade of conventional industries, and drive manufacturing to become intelligent, green, service-oriented and high-end. The policies also place emphasis upon the development of emerging service industries and the introduction of innovators, and aim to cultivate new technologies, business formats, models and industries.
One-stop business application:
Baoshan District provides considerate “dish-ordering-like” services to enterprises from the “incorporation of an enterprise” to “its opening of business”. With a one-stop service zone for opening of an enterprise at the Administrative Service Center, the District gives reasonable instructions to the applicants via the intelligent guiding system, and guides them to a designated window for business handling, which greatly shortens the waiting hours and streamlines the handling process. At the same time, assistants are available to provide applicants with whole-process, all-directional advice and guidance and accompany them in business handling. In addition, they also pffer many kinds of other services like quick handling, entrusted handling and certificate mailing. The shift from “one door” to “one window” enables advance matchmaking and extension of previously separate window services, gets data connected and process reengineered, further increases the facilitation of enterprise opening and continuously optimizes the local business environment.