PLP, Geokon, Itochu, Sukeno, Beijing Sihuan Biopharmaceuticals, China National Petroleum Corp, North China Power Group, China Xinxing Group
Major Industries Encouraged
Mechanical and electronic integration, bio-pharmaceuticals, new building materials
Source of Facts & Figures
Source: Administrative Committee of Beijing Liangxiang Economic Development Zone
Introduction
Beijing Liangxiang Economic Development Zone (Beijing Liangxiang EDZ) was established by the Beijing municipal government in 2000 and covers an area of 2.4 sq km. It is a municipal-level park.
The EDZ is located in Liangxiang Town of Fangshan District. It is 35 km southwest of the city center, 60 km from Beijing Capital Airport and 190 km from Tianjin Port. The Beijing-Shijiazhuang Expressway and the Beijing-Guangzhou Railway pass by the EDZ.
In 2010, the passenger throughput of Beijing Airport reached 73.9 million, ranking first in China, and second in the world. The airport offers flights to 96 domestic cities and 91 overseas cities.
Tianjin Port is the main passageway for cargo from Beijing and North and Northwest China entering the Bohai Sea. In 2010, the port’s cargo throughput reached 400 million tons, ranking third in China after Shanghai and Ningbo.
Beijing is now the largest education center within China. By the end of 2010, there were 89 universities and colleges in Beijing, with a total enrollment of 578,000.
The nation’s most well-known universities are located in Beijing. They include Peking University and Tsinghua University, dubbed China’s Harvard and MIT, respectively.
Investment Climate
Fangshan District, where the EDZ is located, has seen its economic growth average 17.9% in the past few years. It is home to Yanshan Petrochemical Corp, which is the largest subsidiary of Sinopec, the nation’s top petrochemical group, in Beijing. Its annual refining capacity is 10 million tons, and its output of ethylene is 800,000 tons per year.
Fangshan District is also Beijing’s “Hometown of Building Materials.” It has rich reserves of marble, limestone, quartz stone, dolomite and granite. Its proven reserves of China White Marble ranks first in the nation, and its marble is of the highest quality. China White Marble was widely used in ancient times for the building of the Forbidden City and the Temple of Heaven.
The zone’s total developed area covers 1.1 sq km. The zone’s three pillar industries are mechanical and electronic integration, biopharmaceuticals and new building materials.
There are about 60 companies in the EDZ. Their cumulative investment has exceeded RMB 2 billion. In 2008, their total revenue was RMB 17.7 billion.
Major investors include Japan’s Sukeno in the textile industry, Japan’s Itochu, Beijing Sihuan Biopharmaceuticals, China Xinxing Group in the pharmaceutical industry, American firms PLP and Geokon in electronics, and China National Petroleum Corp and North China Power Group in the petrochemical and power generation sectors.
Beijing Sukeno RiSheng Socks Corp is a Sino-Japanese joint venture. Its predecessor, Beijing RiSheng Knitting Corp, was established in 1995 with an investment of US$5 million. Focusing on the business of sock manufacturing, it has reached an annual output of 16 million units.
Beijing Sihuan Biopharmaceuticals was founded in 1988 and was among the first domestic companies to engage in the R&D of genetic engineering and biopharmaceutical technology. In 2004, it built a new factory in the EDZ according to the EU’s GMP Standard, with an investment of RMB 150 million. The factory includes workshops, labs and a research center for cell and bacteria engineering.
Winning Edge and Limitation
Winning Edge
There are abundant talent reserves in Beijing
The zone is adjacent to Beijing’s largest petrochemical company, Yanshan Petrochemical
Limitations
The costs in Beijing are high compared to costs in cities like Baoding, Shijiazhuang and Tangshan