Foundation-laying ceremony of Foxconn’s 10.5-G 8K Display Project took place in Guangzhou yesterday. The project is the biggest one with single investment in the field of advanced manufacturing industry since the policy of Reform and Opening-up was introduced in Guangzhou. Foxconn will invest 61 billion Yuan in Zengcheng District which is one of the municipal districts of Guangzhou to construct ecological industrial park whose annual output value will be nearly 100 billion Yuan. This is also the biggest domestic investment project made by Guo Taiming, the chairman of the board of Foxconn.

 

There is no doubt that Foxconn’s new project will be the milestone of new display industry in Guangzhou. According to the data from the Ministry of Industry and Information Technology of Guangzhou, about a hundred upstream and downstream firms and related enterprises will be attracted by Foxconn’s project and start up their businesses in Guangzhou, which creates a new industrial cluster with 100 billion Yuan output value. What’s more, many new display enterprises such as LG, a Korean company, have set up their branches in Guangzhou. New display industrial cluster in Guangzhou will usher in a new era with double cores as the driving forces. The expectation that Guangzhou becomes the capital of display industry will come true soon.

 

The reason why Foxconn introduced such a good project in Guangzhou is related to its enterprise transformation. Foxconn has been treated as the largest global original equipment manufacturer for a long time. However, Foxconn plans to step into advanced manufacturing industry and improve scientific and technological capacity and then transform in an innovative way. While Guangzhou is a city with solid foundation for the development of photoelectric display industry, what’s more, advanced manufacturing enjoys a bright future in Guangzhou. Foxconn and Guangzhou have the same ambition for development, that’s why Foxconn chose Guangzhou.

 

It can be found that lots of high-end industries such as those central enterprises and enterprises of Fortune Global 500 set up their subsidiaries in Guangzhou in recent years. For example, China Communications Construction Co., Ltd. is the largest enterprise for port design and construction and the largest manufacturing enterprise for container crane in the world, and it set up its headquarter for Southern China in Guangzhou in March 2016. Wisdom City of CISCO was set up in Panyu District, a municipal district of Guangzhou in April 2016. In June 2016, the headquarter of COSCO Shipping Bulk Co,. Ltd. was established in Guangzhou. It is one of the subsidiaries of China COSCO Shipping Corporation Limited which is founded by the integration of two central enterprises, China Ocean Shipping (Group) Company and China Shipping (Group) Company. GE constructed its biological industrial park in Guangzhou in 2016 which acts as the pioneering enterprise of bio-pharmaceutical industry.

 

As Foxconn chose Guangzhou for its new project, the companies mentioned above prefer to do business in Guangzhou due to the superiority and strengths of Guangzhou. As the capital city of Guangdong Province, Guangzhou is a famous historic and cultural city. Also it is a major city of China, acting as the pivot of international business and the hub of comprehensive transportation. All of these make Guangzhou an attractive city for enterprises. Apart from this, there are so many universities and research institutes in Guangzhou, which lays a solid foundation for scientific research and makes it attractive for talents. As for industries, Guangzhou provides supportive and comprehensive service for all kinds of industries, and services such as medical care and education are also available. Convenient transportation system is another advantage of Guangzhou. Guangzhou is the hub of high-speed railway, shipping, air transportation and expressway. In the era of innovation-oriented economy, enterprises and firms attach great importance to such kinds of factors.

 

In recent years, Guangzhou has made innovations in mechanism and system to create a market-oriented, international and legal business environment. Guangzhou also tries every effort to facilitate investment and provide high-quality service and formulate supportive policy. By doing so, Guangzhou has transformed into a modern commercial city. During the past six years, it was rewarded as the Top One of the Best Commercial Cities in Chinese Mainland of Forbes for five times. For such a large-scale project of Foxconn, it only took 50 days from negotiation to contract signing, which illustrates the excellent business environment of Guangzhou. Administrative innovations in Government Affair Service Centers of Nansha District and Pazhou, such as One Policy-One Strategy, dedicated servant for certain issue and the integration of Internet and administrative service improve the efficiency of enterprises.

 

Guangzhou has created three strategic pivots of international shipping, air transportation and scientific innovation and tried every effort to construct a hub-type network city. Following the excellent examples in global city system, Guangzhou is actively motivated by national strategy and regional development and it properly seizes the opportunity of global development factor configuration and international industrial distribution to absorb high-end business resources globally. Guangzhou is making itself a significant international exchange center. The 2017 Fortune Global Forum and 2018 World Route Development Forum will be held in Guangzhou, which will attract more attention from the whole world.

 

Settlement of Foxconn’s display project will motivate Guangzhou to be a specialized manufacturing city; also it will speed up the opening-up progress and innovative development of Guangzhou. We all believe that there will be more and more global investment in Guangzhou as its progress in economic development and city construction.

 

Sources: Translated from Invest Guangzhou, March 2^nd, 2017