Fruitful finale for industrial development

November saw Songjiang enjoying a fruitful finale in the 13th Five-Year Plan (2016-20) in the sector of industrial development as its bonded zone greeted the first batch of imported Porsche vehicles, 40 firms signed contracts with the Dongjing Artificial Intelligence Base and Meiji Co agreed to set up a new ice cream factory in the district’s economic and technology development zone.  

First Porsches arrive

The first batch of imported Porsche vehicles arrived at the Songjiang Comprehensive Bonded Zone on November 24, marking the initiation of the new function of the zone as a storage and exhibition center for imported vehicles. The Songjiang zone is also Shanghai’s first bonded zone to introduce the bonded storage and exhibition of high-end imported cars.

“The new business of bonded storage and exhibition of high-end imported entire vehicles is estimated to bring the bonded zone an annual tariff of 3 billion yuan (US$45.6 million),” said Yang Tinghu, director of the zone’s management center.

A guidance on how to better develop bonded zones in China was released in January 2019 by the State Council, China’s Cabinet.

The 21 recommended measures include “trying out bonded storage of vehicles and allowing comprehensive bonded zones in port of entry of entire vehicles to carry out the new business of imported vehicles’ bonded storage and exhibition.”

“Bonded storage means auto companies can store their vehicles in a bonded warehouse and wait to pay their import tariff, value-added tax and consumption duty until the vehicles enter China’s domestic market,” said Chen Zhi, business manager of Shanghai Yongrui Supply Chain Co.

“Compared with the taxation-on-arrival policy, bonded storage can greatly reduce auto companies’ logistics costs and ease fund pressure, and help them enlarge their business scale and extend industrial chains.”

A 13,800-square-meter parking lot has been set up as space for bonded storage and exhibition, according to zone officials.

40 firms sign contracts

Forty companies signed contracts with the Dongjing Artificial Intelligence Industrial Base in Songjiang on November 18, with their total investment amounting to 20.03 billion yuan.

The AI base in Dongjing Town, an essential “tectonic plate” of Songjiang’s G60 High-tech Corridor that manifests its strength in advanced manufacturing, has attracted a batch of high-tech companies represented by CSG Smart Science and Technology Co to set up headquarters in the park.

Among the 40 companies are those involved in robot manufacturing, smart equipment and smart health.

In addition, several AI-related platforms represented by the Tencent Youtu Innovation Center were also launched during the signing ceremony, marking a change in the development concept of the AI base from its former focus on key companies to a full industrial chain layout.

A guideline on building Dongjing as an AI demonstration town was also released during the ceremony.

The rise of the AI industry in Dongjing somewhat offsets the disadvantages that the COVID-19 pandemic is imposing on the town’s economy. Dongjing Town’s local fiscal revenue from January to October this year rose 3.71 percent year on year, coming out in front among various towns and communities in the suburban district.

US$98m for ice cream

Also in November, Meiji Co signed with the Songjiang Economic and Technology Development Zone in setting up a new ice-cream factory in the district. The project is estimated to have a total investment of US$98.15 million.

In addition to its chocolate production line, Meiji Co is to build a high-end ice-cream production base in the eastern part of the Songjiang Economic and Technology Development Zone. The future base will cover about 45 mu (3 hectares), according to the agreement.

“The good business environment in the zone and the warm service from government officials helped with Meiji’s project launch. Meiji is willing to further development in the zone and make a contribution to Songjiang’s economy,” said Nakao Kiyoshi, general manager of Meiji Co.

An overseas subsidiary of Meiji Group in Japan, Meiji Co was set up in Songjiang in 2005 and is one of the district’s high-quality foreign companies.