Wangxuewei Nyc
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Shenzhen – China’s New Bangalore November 1, 2006 New York, United States of America Wang Xuewei Director - General Shenzhen Bureau of Trade & Industry
Content
Shenzhen – China’s New Bangalore Ⅰ General Survey of SZ’s Social-economic Development Ⅱ Major Efforts in the Development of Service Outsourcing ⅰ Strengths of SZ in developing service outsourcing ⅱ Platform for development ⅲ Policies & measures to support the development of service outsourcing industry
General Survey of SZ’s Social-economic Development
Shenzhen in 1982
General Survey of SZ’s Social-economic Development
Shenzhen Today
General Survey of SZ’s Social-economic Development
Between 1980 and 2005, the economy of Shenzhen witnessed an extraordinarily rapid and steady growth with an annual growth rate exceeding 30%. Billion RMB 500 400 300 200 100 0
Year 2000
Year 2001
Year 2002
Year 2003
Year 2004
Year 2005
General Survey of SZ’s Social-economic Development
Rapid & Steady Growth of the Economy Key economic statistics for year 2005: USD 61.5 billion in GDP, ranking fourth among cities in Mainland China; USD 7,483 in per capita GDP, ranking first among cities in Mainland China; USD 119.6 billion for gross industrial output, ranking second among cities in Mainland China; Established trade relationship with more than 200 countries and regions worldwide; USD 182.8 billion for total export, ranking first among cities in Mainland China for 13 years consecutively; Comprehensive competitiveness ranking 2nd in China.
General Survey of SZ’s Social-economic Development
Four Pillar Industries
High-technology Industry
Modern Finance Industry
Modern Logistics Industry
Modern Culture Industry
General Survey of SZ’s Social-economic Development
Pearl River Delta, Shenzhen & Hong Kong
Shenzhen
Hong Kong
General Survey of SZ’s Social-economic Development
Shenzhen – A Beautiful Ecological City
General Survey of SZ’s Social-economic Development
Shenzhen – A Comfortable & Convenient City
General Survey of SZ’s Social-economic Development
Year-average temperature: 22.4ºC; Green coverage: 43%; China’s only mainland city bordering Hong Kong with only a 45-minute drive away from the Hong Kong island; With city roads, expressways and railways extend in all directions from Shenzhen, all airports of Shenzhen, Hong Kong, Guangzhou, Macao and Zhuhai are within the reach of one hour’s trip by car or train; Appraised as the city with the best living quality in mainland China.
General Survey of SZ’s Social-economic Development
An Immigrant City Featuring Openness, Acceptance & Cultural Plurality Average age of the population is below 30;
Soul of the city’s culture: Encouraging Innovation Accepting Failure Pursuing Excellence
Major Efforts in the Development of Service Outsourcing
Shenzhen is robust in developing service outsourcing. In 2005, the software exports and outsourcing amounted USD 1.8 billion, ranking top in China for 7 consecutive years. Shenzhen is in the list of the first state-level service outsourcing bases of the country.
Major Efforts in the Development of Service Outsourcing
Main Content
Strengths of SZ in developing service outsourcing
Platform for development Policies & measures to support the development of service outsourcing industry
Major Efforts in the Development of Service Outsourcing
Strengths of SZ in Developing Service Outsourcing
Solid foundation and perfect support for industries Sufficient human resources reserve and low cost manpower Open and ready-to-accept cultural environment Strong government support
Major Efforts in the Development of Service Outsourcing
Solid Foundation & Superior Support for Industries -- High-tech Industry Hi-tech industry is one of the four pillar industries of the city; Since 1992, the average annual increase of the output value of hi-tech products has been 48.4%; In 2005, the output value of hi-tech products amounted to RMB 490 billion, accounting for 51.1% of the total for the year; Shenzhen has grown into a major base for the R & D, production and export of hi-tech products in China.
Major Efforts in the Development of Service Outsourcing
China Hi-Tech Fair Held in Shenzhen
Major Efforts in the Development of Service Outsourcing
Solid Foundation & Superior Support for Industries – Information Technology Industry
Shenzhen’s IT industry ranks top among mainland cities of China in terms of scale; In 2005, the industrial added value of IT industry amounted to RMB 94.6 billion, more than 10% of such value of the IT industry of whole China; 11 Shenzhen-based IT enterprises are listed in the top 100 electronics enterprises of China. Companies from the industry account for 70% of those in the list of the top 100 industrial enterprises of Shenzhen.
Major Efforts in the Development of Service Outsourcing
Huawei & ZTE Companies such as Huawei and ZTE have succeeded in selling their products and establishing nearly 100 branch offices throughout the world
Major Efforts in the Development of Service Outsourcing
Solid Foundation & Superior Support for Industries – Informatization Level In 2005, the total capacity of fixed phone and mobile phone exchanges reached 5.57 million lines and 16.71 million lines respectively, with a year-on-year increase of 10% and 40% respectively. Internet subscribers increased from 597, 700 households in 2000 to 2,762, 000 in 2005. Shenzhen has established one of the earliest broadband IP MANs in Mainland China. The informatization construction is popular in governmental departments, social public fields, and enterprises as well; In respect of the proportion of family broadband access, the quantity of mobile phones per 100 people, and the ratio of the information industry in GDP, Shenzhen takes a far leading position; In the “2005/2006 Asian Cities of the Future” assessment sponsored by FDI of Financial Times, as the only candidate from Mainland China, Shenzhen was entitled the 2nd position of “Best IT & Telecoms”.
Major Efforts in the Development of Service Outsourcing
Solid Foundation & Superior Support for Industries – Finance, Logistics & Manufacturing Industries The earliest region of financial opening-up in China, boasting the most clustered concentration of domestic and foreign financial institutions; Attracted concentrated investment from transnationals; A city with relatively mature modern logistics system; A major city in the Pearl River Delta, a world class manufacturing base.
Major Efforts in the Development of Service Outsourcing
Solid Foundation & Superior Support for Industries – Communications & Transportation The broadband network has been constructed over a long period, featuring advanced equipment and cheap costs; The city boasts obvious location advantages and enjoys a comprehensive communications system. Regular international flights departing from Shenzhen and Hong Kong can reach every corner of the world. Regular direct flights leaving for Europe and America can greatly facilitate the lives of expatriates, and promote work efficiency.
Major Efforts in the Development of Service Outsourcing
Sufficient Human Resources Reserve and Low-cost Manpower – Graduates & On-campus Students Since 2003, China has become the country with the most graduates of higher education. With a thriving economy, fine living environment and quality, Shenzhen has become the first choice of many graduates; Shenzhen has gathered 791,000 technicians of various fields and over 10,000 overseas graduates, with an annual increase of 20,000 graduates with bachelor’s degree or above from famous universities of China. There are a total of 410,000 on-campus students, among which, the number of students of the management discipline needed in the service outsourcing industry total over 50,000 and that of the English major is over 20,000.
Major Efforts in the Development of Service Outsourcing
Sufficient Human Resources Reserve and Low-cost Manpower – Second Language Education Shenzhen has 20-plus government-sponsored foreign language schools. The English level of the students is higher than the average level of the country; Over 480 foreign teachers work in Shenzhen. Municipal government sponsors local teachers for further education abroad. Currently, 328 backbone teachers have had the experience of studying abroad.
Shenzhen University
Major Efforts in the Development of Service Outsourcing
Sufficient Human Resources Reserve and Low-cost Manpower – Overseas Shenzhen Students
Every year, about 1,000 Shenzhen students go abroad for higher education; As most majored in IT before, more and more have started for their majors in finance, economics and management in recent years. Most of the students choose to go back to Shenzhen for work after graduation.
Major Efforts in the Development of Service Outsourcing
Sufficient Human Resources Reserve and Low-cost Manpower – Manpower Cost
The pay level of a software engineer in Shenzhen is only half of that of its counterparts in many other counties; Software industry sees a increase in the pay by 20% to 30% annually, which is far higher than that in Shenzhen.
Major Efforts in the Development of Service Outsourcing
Open and Ready-to-accept Cultural Environment Immigrants account for more than 95 percent of the total population; Only city in China, except for Beijing, that incorporates people from all 56 nationalities of the country; In Shenzhen, you can hear different dialects and languages, experience different cultures and folk traditions, and express different attitudes and opinions; Shenzhen and Hong Kong are closely related and mutually dependent. Shenzhen is creating its own culture while absorbing those from outside; The open, inclusive and innovative humanistic spirit has not only constituted the plural culture of Shenzhen, but also narrowed the distance between Shenzhen and other parts of the world, and simplified complicated plural thoughts, cultures and backgrounds.
Major Efforts in the Development of Service Outsourcing
Strong Government Support For ITO: Funds for training involving software outsourcing are offered; Regular software outsourcing summits are sponsored; Designated funds to support the development of the software industry; RMB 250 million invested to build the Software Plaza; RMB 50 million appropriated yearly for the construction of the state integrated circuit design and industrialization base. For BPO: Interim provisions involving financial and back office services promulgated to provide all-directional support for companies. A package of policies to encourage the development of service outsourcing in Shenzhen from multiple aspects including startup fund, manpower training subsidy, real estate purchase/lease subsidy, preferential taxation policies, and border entry-exit convenience being formulated.
Major Efforts in the Development of Service Outsourcing
Platform for Development Highly developed software industry In 2005, output value of software industry amounted to RMB 66 billion, with an average yearly increase of 62%. Currently, there are 1,200 plus software enterprises in the city, most of which are situated in Shenzhen Software Park.
Shenzhen Software Park The Park is a software production base of China Torch Program, and gathers a batch of software enterprises dedicated to software outsourcing, exports and consigned IC design and processing.
Cooperation with India The Park cooperated with Indian companies to establish the Shenzhen Software Park Offshore Development Center, initially developing an image and brand to undertake projects uniformly.
Major Efforts in the Development of Service Outsourcing
Policies & Measures to Support the Development of Service Outsourcing Industry Exemption and abatement of corporate income taxes; Exemption of tariffs and import value-added taxes as to imported equipment for self use; Fund support for enterprises applying for international qualification attestation, e.g. ISO9000, CMMI, etc; R&D expenditure subsidy for export software products; Funding support to encourage enterprises to develop products with independent intellectual property and to apply for relevant patents; Loan interest subsidy for technical alternation projects, etc.
Major Efforts in the Development of Service Outsourcing
Policies & Measures to Support the Development of Service Outsourcing Industry “Provisions for Promoting the Development of the Service Outsourcing Industry” has been drafted and is soliciting for opinions of relevant government departments and experts, and is predicted to be promulgated within this year.
The Provisions cover: Planning of service outsourcing bases; Funding support; Manpower trainings; Qualification attestation; Intellectual property protection; Export subsidies; Financing channel expansion; Border entry/exit convenience.
North American Representative Office of Shenzhen, P.R. China (NAROS) Chief Representative: Andrew Pan Add.: Los Angeles World Trade Center 350 South Figueroa Street, Suite 288 Los Angeles, CA 90071 Tel: (213) 628-9888 Fax: (213) 628-8383 Website: http://www.shenzhenoffice.org
Let us join hands to strengthen our friendship and promote US-Shenzhen development. It is our belief that trade and economic cooperation between US and Shenzhen will definitely enjoy brighter prospects in the future.
Welcome to Shenzhen Thank you !
Content
Shenzhen – China’s New Bangalore Ⅰ General Survey of SZ’s Social-economic Development Ⅱ Major Efforts in the Development of Service Outsourcing ⅰ Strengths of SZ in developing service outsourcing ⅱ Platform for development ⅲ Policies & measures to support the development of service outsourcing industry
General Survey of SZ’s Social-economic Development
Shenzhen in 1982
General Survey of SZ’s Social-economic Development
Shenzhen Today
General Survey of SZ’s Social-economic Development
Between 1980 and 2005, the economy of Shenzhen witnessed an extraordinarily rapid and steady growth with an annual growth rate exceeding 30%. Billion RMB 500 400 300 200 100 0
Year 2000
Year 2001
Year 2002
Year 2003
Year 2004
Year 2005
General Survey of SZ’s Social-economic Development
Rapid & Steady Growth of the Economy Key economic statistics for year 2005: USD 61.5 billion in GDP, ranking fourth among cities in Mainland China; USD 7,483 in per capita GDP, ranking first among cities in Mainland China; USD 119.6 billion for gross industrial output, ranking second among cities in Mainland China; Established trade relationship with more than 200 countries and regions worldwide; USD 182.8 billion for total export, ranking first among cities in Mainland China for 13 years consecutively; Comprehensive competitiveness ranking 2nd in China.
General Survey of SZ’s Social-economic Development
Four Pillar Industries
High-technology Industry
Modern Finance Industry
Modern Logistics Industry
Modern Culture Industry
General Survey of SZ’s Social-economic Development
Pearl River Delta, Shenzhen & Hong Kong
Shenzhen
Hong Kong
General Survey of SZ’s Social-economic Development
Shenzhen – A Beautiful Ecological City
General Survey of SZ’s Social-economic Development
Shenzhen – A Comfortable & Convenient City
General Survey of SZ’s Social-economic Development
Year-average temperature: 22.4ºC; Green coverage: 43%; China’s only mainland city bordering Hong Kong with only a 45-minute drive away from the Hong Kong island; With city roads, expressways and railways extend in all directions from Shenzhen, all airports of Shenzhen, Hong Kong, Guangzhou, Macao and Zhuhai are within the reach of one hour’s trip by car or train; Appraised as the city with the best living quality in mainland China.
General Survey of SZ’s Social-economic Development
An Immigrant City Featuring Openness, Acceptance & Cultural Plurality Average age of the population is below 30;
Soul of the city’s culture: Encouraging Innovation Accepting Failure Pursuing Excellence
Major Efforts in the Development of Service Outsourcing
Shenzhen is robust in developing service outsourcing. In 2005, the software exports and outsourcing amounted USD 1.8 billion, ranking top in China for 7 consecutive years. Shenzhen is in the list of the first state-level service outsourcing bases of the country.
Major Efforts in the Development of Service Outsourcing
Main Content
Strengths of SZ in developing service outsourcing
Platform for development Policies & measures to support the development of service outsourcing industry
Major Efforts in the Development of Service Outsourcing
Strengths of SZ in Developing Service Outsourcing
Solid foundation and perfect support for industries Sufficient human resources reserve and low cost manpower Open and ready-to-accept cultural environment Strong government support
Major Efforts in the Development of Service Outsourcing
Solid Foundation & Superior Support for Industries -- High-tech Industry Hi-tech industry is one of the four pillar industries of the city; Since 1992, the average annual increase of the output value of hi-tech products has been 48.4%; In 2005, the output value of hi-tech products amounted to RMB 490 billion, accounting for 51.1% of the total for the year; Shenzhen has grown into a major base for the R & D, production and export of hi-tech products in China.
Major Efforts in the Development of Service Outsourcing
China Hi-Tech Fair Held in Shenzhen
Major Efforts in the Development of Service Outsourcing
Solid Foundation & Superior Support for Industries – Information Technology Industry
Shenzhen’s IT industry ranks top among mainland cities of China in terms of scale; In 2005, the industrial added value of IT industry amounted to RMB 94.6 billion, more than 10% of such value of the IT industry of whole China; 11 Shenzhen-based IT enterprises are listed in the top 100 electronics enterprises of China. Companies from the industry account for 70% of those in the list of the top 100 industrial enterprises of Shenzhen.
Major Efforts in the Development of Service Outsourcing
Huawei & ZTE Companies such as Huawei and ZTE have succeeded in selling their products and establishing nearly 100 branch offices throughout the world
Major Efforts in the Development of Service Outsourcing
Solid Foundation & Superior Support for Industries – Informatization Level In 2005, the total capacity of fixed phone and mobile phone exchanges reached 5.57 million lines and 16.71 million lines respectively, with a year-on-year increase of 10% and 40% respectively. Internet subscribers increased from 597, 700 households in 2000 to 2,762, 000 in 2005. Shenzhen has established one of the earliest broadband IP MANs in Mainland China. The informatization construction is popular in governmental departments, social public fields, and enterprises as well; In respect of the proportion of family broadband access, the quantity of mobile phones per 100 people, and the ratio of the information industry in GDP, Shenzhen takes a far leading position; In the “2005/2006 Asian Cities of the Future” assessment sponsored by FDI of Financial Times, as the only candidate from Mainland China, Shenzhen was entitled the 2nd position of “Best IT & Telecoms”.
Major Efforts in the Development of Service Outsourcing
Solid Foundation & Superior Support for Industries – Finance, Logistics & Manufacturing Industries The earliest region of financial opening-up in China, boasting the most clustered concentration of domestic and foreign financial institutions; Attracted concentrated investment from transnationals; A city with relatively mature modern logistics system; A major city in the Pearl River Delta, a world class manufacturing base.
Major Efforts in the Development of Service Outsourcing
Solid Foundation & Superior Support for Industries – Communications & Transportation The broadband network has been constructed over a long period, featuring advanced equipment and cheap costs; The city boasts obvious location advantages and enjoys a comprehensive communications system. Regular international flights departing from Shenzhen and Hong Kong can reach every corner of the world. Regular direct flights leaving for Europe and America can greatly facilitate the lives of expatriates, and promote work efficiency.
Major Efforts in the Development of Service Outsourcing
Sufficient Human Resources Reserve and Low-cost Manpower – Graduates & On-campus Students Since 2003, China has become the country with the most graduates of higher education. With a thriving economy, fine living environment and quality, Shenzhen has become the first choice of many graduates; Shenzhen has gathered 791,000 technicians of various fields and over 10,000 overseas graduates, with an annual increase of 20,000 graduates with bachelor’s degree or above from famous universities of China. There are a total of 410,000 on-campus students, among which, the number of students of the management discipline needed in the service outsourcing industry total over 50,000 and that of the English major is over 20,000.
Major Efforts in the Development of Service Outsourcing
Sufficient Human Resources Reserve and Low-cost Manpower – Second Language Education Shenzhen has 20-plus government-sponsored foreign language schools. The English level of the students is higher than the average level of the country; Over 480 foreign teachers work in Shenzhen. Municipal government sponsors local teachers for further education abroad. Currently, 328 backbone teachers have had the experience of studying abroad.
Shenzhen University
Major Efforts in the Development of Service Outsourcing
Sufficient Human Resources Reserve and Low-cost Manpower – Overseas Shenzhen Students
Every year, about 1,000 Shenzhen students go abroad for higher education; As most majored in IT before, more and more have started for their majors in finance, economics and management in recent years. Most of the students choose to go back to Shenzhen for work after graduation.
Major Efforts in the Development of Service Outsourcing
Sufficient Human Resources Reserve and Low-cost Manpower – Manpower Cost
The pay level of a software engineer in Shenzhen is only half of that of its counterparts in many other counties; Software industry sees a increase in the pay by 20% to 30% annually, which is far higher than that in Shenzhen.
Major Efforts in the Development of Service Outsourcing
Open and Ready-to-accept Cultural Environment Immigrants account for more than 95 percent of the total population; Only city in China, except for Beijing, that incorporates people from all 56 nationalities of the country; In Shenzhen, you can hear different dialects and languages, experience different cultures and folk traditions, and express different attitudes and opinions; Shenzhen and Hong Kong are closely related and mutually dependent. Shenzhen is creating its own culture while absorbing those from outside; The open, inclusive and innovative humanistic spirit has not only constituted the plural culture of Shenzhen, but also narrowed the distance between Shenzhen and other parts of the world, and simplified complicated plural thoughts, cultures and backgrounds.
Major Efforts in the Development of Service Outsourcing
Strong Government Support For ITO: Funds for training involving software outsourcing are offered; Regular software outsourcing summits are sponsored; Designated funds to support the development of the software industry; RMB 250 million invested to build the Software Plaza; RMB 50 million appropriated yearly for the construction of the state integrated circuit design and industrialization base. For BPO: Interim provisions involving financial and back office services promulgated to provide all-directional support for companies. A package of policies to encourage the development of service outsourcing in Shenzhen from multiple aspects including startup fund, manpower training subsidy, real estate purchase/lease subsidy, preferential taxation policies, and border entry-exit convenience being formulated.
Major Efforts in the Development of Service Outsourcing
Platform for Development Highly developed software industry In 2005, output value of software industry amounted to RMB 66 billion, with an average yearly increase of 62%. Currently, there are 1,200 plus software enterprises in the city, most of which are situated in Shenzhen Software Park.
Shenzhen Software Park The Park is a software production base of China Torch Program, and gathers a batch of software enterprises dedicated to software outsourcing, exports and consigned IC design and processing.
Cooperation with India The Park cooperated with Indian companies to establish the Shenzhen Software Park Offshore Development Center, initially developing an image and brand to undertake projects uniformly.
Major Efforts in the Development of Service Outsourcing
Policies & Measures to Support the Development of Service Outsourcing Industry Exemption and abatement of corporate income taxes; Exemption of tariffs and import value-added taxes as to imported equipment for self use; Fund support for enterprises applying for international qualification attestation, e.g. ISO9000, CMMI, etc; R&D expenditure subsidy for export software products; Funding support to encourage enterprises to develop products with independent intellectual property and to apply for relevant patents; Loan interest subsidy for technical alternation projects, etc.
Major Efforts in the Development of Service Outsourcing
Policies & Measures to Support the Development of Service Outsourcing Industry “Provisions for Promoting the Development of the Service Outsourcing Industry” has been drafted and is soliciting for opinions of relevant government departments and experts, and is predicted to be promulgated within this year.
The Provisions cover: Planning of service outsourcing bases; Funding support; Manpower trainings; Qualification attestation; Intellectual property protection; Export subsidies; Financing channel expansion; Border entry/exit convenience.
North American Representative Office of Shenzhen, P.R. China (NAROS) Chief Representative: Andrew Pan Add.: Los Angeles World Trade Center 350 South Figueroa Street, Suite 288 Los Angeles, CA 90071 Tel: (213) 628-9888 Fax: (213) 628-8383 Website: http://www.shenzhenoffice.org
Let us join hands to strengthen our friendship and promote US-Shenzhen development. It is our belief that trade and economic cooperation between US and Shenzhen will definitely enjoy brighter prospects in the future.
Welcome to Shenzhen Thank you !
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