Since its start on January 4, the “Economic Vitality in Guangdong, Supply-side Structural Reform” online promotion activity jointly sponsored by Publicity Department of CPC Guangdong Provincial Committee, Office of the Central Leading Group for Cyberspace Affairs of Guangdong Province, and Development and Reform Commission of Guangdong Province has approached Foshan, Zhongshan, Jiangmen and Guangzhou and received hot discussions. The microblog “Economic Vitality in Guangdong” had readers of 40.222 million yuan, and once ranked the 2^nd in China’s governmental affair list.

On January 7, the report group with a total of 33 media reporters and relevant experts came to Guangzhou, the last lag of the tour, visited Jinyu Inspection Guangzhou Headquarters, Guangzhou Equity Exchange and Guangzhou Guocui Flower Transaction Co.,Ltd. and learned of how Guangzhou deeply carried out “three removals, one reduction and one subsidy” and improved the quality and efficiency of the supply system.

 

Focusing on technology and service

Inside the 25,000sqm-big Jinyu Inspection Guangzhou Headquarters’ Lab Center are various sophisticated medical test and experiment labs. The Clinic Genome Test Center in the 6^th floor is responsible for the tests of molecular pathology, molecular genetics, molecular cell genetics and biological information, and continuously expands its medical big database through whole genome tests.

As a third-party medical test company, Jinyu Inspection mainly relies on building core technical system to comprehensively boost supply-side structural reform through sci-tech innovation, said Liang Yaoming, chairman of the board of the company.

Today, Jinyu Inspection has covered 90% of the nationwide medical test outsourcing service.

Founded in 2012, Guangzhou Equity Exchange(GEE) continuously improves its ability for serving mass entrepreneurship and innovation. GEE created the enterprise listing policy of “listing in steps without restrictions” to list the enterprises failing to meet the IPO requirement on regional equity market for financing, and strove to forge various policy and fund using platforms to facilitate local government’s support to small- and medium-sized enterprises.

By December 28, 2016, GEE had listed 5,646 enterprises of various sectors and achieved total financing transaction turnover of 18.305 billion yuan.

 

Ushering in 16 Fortune 500 projects

In 2016, Guangzhou steadily carried out the campaign for “remedying the short board, reducing cost, and removing production capacity, inventory and leverage”, and obtained outstanding achievements. The estimated annual regional GDP was 1.95 trillion yuan, up 8.1% year on year.

In terms of remedying the short board, Guangzhou strove to strengthen the innovative economy, launched and carried out the Construction Plan of Guangzhou National Independent Innovation Demonstration Zone and other policies and measures to accelerate the development of innovation entities. Statistics indicate that the year of 2016 saw the increase of more than 2,800 high-tech enterprises, amounting to over 4,700 ones. Guangzhou also houses over 120,000 sci-tech innovation enterprises, and nearly 190 sci-tech incubators with a total incubation area of over 8 million square meters and including five excellent state-level incubators.

Guangzhou, centering on clustering of headquarters, sci-tech and financial elements, has ushered in key construction and innovation projects. The city newly introduced 16 Fortune 500 projects with investment of 27.2 billion yuan. A group of hub-type headquarters including COSCO Shipping Bulk Goods, Cisco China Innovation Center, China Railway Tunnel Headquarters, GE Bio-park and IDG South Headquarters have settled down in Guangzhou.

As for cost reduction, Guangzhou has boosted change of governmental functions through reducing institutional transaction cost, and canceled 176 city-level administrative approval issues. Centering on “reducing cost to increasing efficiency”, Guangzhou has intensified burden relief degree, exempted enterprises from 52 administrative fees, reduced eight governmental fee collection funds, fully rolled out Business Tax to VAT pilot operation, helped big electricity consumers directly sign cooperation contracts with electricity sales company, and reduced or canceled the charges for goods loading, relocation and storage at ports. In 2016, Guangzhou released enterprises’ burden of 70 billion yuan.

As for removal of production capacity, inventory and leverage, Guangzhou had moved out 148 projects with planned investment of 43.676 billion yuan from January to November last year. Meanwhile, the Implementation Plan of Reorganizing Municipal Zombie SOEs to Optimize Structure of State-owned Assets was launched to dispose 476 state-owned “zombie enterprises”.

 

Source: Translated from Invest Guangzhou, Jan. 11, 2017