Work Report of the International Consultative Conference on the Future Economic Development of Guangdong Province

By Mr. Huang Huahua, Governor of Guangdong
November 17, 2005

Honorable advisors and observers, distinguished guests, Ladies and Gentlemen,
Through the meticulous planning and preparation, we are now witnessing the ceremonious opening of the 2005 International Consultative Conference on the Future Economic Development of Guangdong. We are greatly rejoiced to re-gather together here with our honorable advisors and distinguished guests and will consult together about the economic development of Guangdong Province. I would like to, on behalf of the People's Government of Guangdong Province, extend our warmest welcome and sincerest thanks to all of you.

As a high-level international consultative conference sponsored by the People's Government of Guangdong Province, the International Consultative Conference on the Future Economic Development of Guangdong (ICCFED) was aimed to listen to the opinions and suggestions proposed by Governors' economic advisors concerning the economic development and the modernization construction in Guangdong, to strengthen ties and cooperation between Guangdong and multinational organizations and world-renowned organizations of education and scientific research, and to exhibit Guangdong's image of reform and opening-up and its sound environment for investment. The year 2003 witnessed the first plenary meeting of all advisors of the second ICCFED. And this year's meeting is the second plenary meeting, which is also the last annual meeting of the second ICCFED.

After a review of the work done in these two years, we consider that the second ICCFED has achieved positive results and expected objectives. They are conspicuously manifested in the following three aspects:

Firstly, opinions and proposals from advisors have helped broaden the visions of the Government of Guangdong and improved their policy making level.

The theme for the 2003 plenary meeting was "International Competitiveness and the Development of Guangdong". And the Government of Guangdong has altogether collected 26 advisory consultative reports. Based on a comprehensive understanding of Guangdong's status in the international competition and its existing problems, all advisors have made a clear and profound analysis of how Guangdong can increase its competitiveness in the world from the perspectives of globalized economy, Guangdong's industrial development and its participation in the global competition and have advanced many opinions and proposals of greatest value. Their insightful analysis has well acquainted us with the latest developments and the newest concepts in the frontiers of the world economy and at the same time played a significant role in broadening our horizon towards international affairs and in improving our scientific decision-making capacity.

These proposals have been researched on by the Government and some of them adopted for implementation in certain projects, programs or even policies. For instance, we have adopted the proposal from ABB of Switzerland, BP of Britain, American International Group, Inc., Electricite de France etc., on the promotion of "transferring the enterprise business to the value-adding process that has the most competitive advantage". We have widely distributed publicity materials, organized a large-scale TV forum with the topic "From the Cost Advantage to the Value Orientation" and held a seminar on "Enhancing the Ability to Have Self-Innovation". These activities were intended to arouse enterprises' concern about and consideration of how to build up their advantages in the value-adding process which is of greater value so as to bring along the overall transformation of Guangdong's economy and the upgrading of Guangdong's industries.

We have accepted the proposal on "establishing development organizations of automobiles" from Marubeni Corporation, Japan and urged the Automobile Office of Guangdong Province to play a directive and service role in the development of automobile industry so as to improve coordination between departments in charge of investment, of administration and of management of automobiles.

We have adopted the proposal from GlaxoSmithKline (GSK) on "introducing to the seriously sick people the medical insurance for hospitalization with the purpose of reducing poor employees' financial risks caused by the illness". This proposal has been infused into the scheme "Basic Medical Insurance of Employees in Cities and Towns" drafted by the Guangdong Provincial Labor and Social Security Department. We have adopted the proposal made by Simens Ltd on "establishing competency center for express railways in Guangdong". And October 2004 saw the establishment of the Sino-Germany (Guangdong) Competency Center for Express Railways by Guangdong Pearl River Delta Inter-City Railway Transportation Limited Liability Co. and German High-Speed Initiative Together. Presently, the Center is operating smoothly, and China and Germany continue to keep close ties with each other.

We have adopted the proposal from Ericsson on "the establishment of the research center of 3G service platform". In the first half of this year, together with Ericsson, we set up an internationally advanced Research and Development Center for Software Designing Environment and 3G Data Operation Detecting Environment.

We have adopted the proposal of "promoting intellectual property right strategy" advanced by Siemens, Novartis Company, Marubeni Corporation and other companies.
We have already combined the research and formulation of the strategies of intellectual property rights with the drafting of "the Eleventh Five-Year Plan" for intellectual property rights.

We have adopted the proposal by Fraunhofer Gesellschaft, Germany, on "the innovation of the internet". The Department of Science and Technology of Guangdong Province has formulated the plan for the innovation of the internet in Guangdong with some pre-stage projects started already. These pre-stage projects include "Innovative Internet Service Platform", "Innovative Internet with Guangdong's Advanced Manufacturing Technology" and "Innovative Internet with Guangdong's Software Compatible Technology". Meanwhile, we have kept long-term cooperation between Guangdong Province and Fraunhofer Gesellschaft, Germany.

Secondly, the conference has promoted exchange and cooperation between Guangdong and organizations represented by advisors.

This conference, on one hand, has enabled all the enterprises in Guangdong, through participating in certain activities of the ICCFED, to have exchanges with multinational organizations on the same platform, to have widened their vision, to have aroused their awareness of internationalization, and to have promoted cooperation. On the other hand, it enabled advisors' organizations to have further deepened the understanding of Guangdong so that most of these organizations have enlarged their investment in Guangdong Province and strengthened their cooperation with Guangdong.

For example, while Japan Honda Ltd. continues to expand its productive capacity of Honda automobiles in Guangzhou, it attaches great importance to upgrade its local research and development capability in Guangdong. This year, its investment covers the construction of Honda Production Technologies (China) Ltd and Honda Automobile (China) Ltd. So far, Honda Ltd. already has 8 investment projects in Guangdong with a total investment of nearly US$ 300 million. In recent years, BP has an increase of an annual investment of US$150 million in Guangdong and its total investment has now reached US$1 billion. DuPont has established production bases in Guangdong and many research and development centers and technology centers with an investment of nearly 100 million US dollars. Emerson Co. has already established subsidiaries in Guangdong, set up research and development centers, and are at the same time cooperating with institutions of higher learning like South China University of Technology with the aim to promote technological exchange. By the first half of the year, they have already succeeded in applying for more than 300 patents in China. Ericsson has attached great importance to improving their ability to conduct local research and development in Guangdong and they invested US$15 million to set up a research and development center for application of mobile data in the first half of this year. While GlaxoSmithKline (GSK) introduces its pharmaceutical technology and products to Guangdong, it increases the academic exchange with its counterparts in Guangdong by participating in, sponsoring and organizing symposiums on digestology, epidemiology, endocrinology, respiratory system, liver disease and so on. Shell has invested US$4.3 billion in the petrochemical projects in Guangdong and it will commence its production by the end of this year. Wal-Mart Stores Inc. has opened 13 stores in Guangdong with a total investment of RMB1.2 billion yuan. In 2004, the Incorporation purchased commodities of up to US$ 8.03 billion from South China with Guangdong as the main source and supplied them to their chain stores worldwide. Marubeni Corporation, Japan, has vigorous business activities in Guangdong and its cooperation has covered various fields.

Fraunhofer Gesellschaft, Germany, has been working closely with the Departments of Science and Technology of Guangdong Province in recent years over "the innovation of the internet in Guangdong" so as to push forward the scientific and technical exchange between Guangdong and Hong Kong. By adopting the proposal made by Professor Patrizio Bianchi, the Policy Research Institute of Industrial Development of Italy, South China University of Technology established the Research and Consulting Centre for Small- and Medium-Sized Enterprises. The Center, working together with the Small- and Medium-Sized Enterprise Bureau of Guangdong Province, played an important role in promoting the development of the small- and medium-sized enterprises.

Thirdly, the conference has enhanced the influence of Guangdong Province and the organizations represented by the advisors both at home and abroad.

The International Consultative Conference on the Future Economic Development of Guangdong has received wide public concern from the mainstream news media both at home and abroad. It has become an important platform for the outside world to better know Guangdong and for Guangdong to go farther to the outside world. Through this platform, Guangdong can well exhibit to the outside world the great achievements made in the process of its social and economic development since China's reform and opening-up and its sound environment for investment. This in turn has magnified Guangdong's reputation and influence and strengthened overseas enterprises' confidence in making investment in Guangdong. At the same time, the organizations represented by the advisors have also, through this platform, elevated their reputation in China and enhanced the mutual exchange and cooperation between these organizations and Guangdong.

We are here today holding the last plenary meeting of all the advisors of the second ICCFEDG. The present conference has "Today and Tomorrow - Sustainable Development of Guangdong Province" as its theme. Apart from the closed-door meeting of today, some of our advisors will participate tomorrow morning in the Enterprise Forum on the entrepreneurs' personal development and social responsibilities. In addition, some advisory companies and advisors will hold business meetings or press conferences, or deliver public speeches. I do believe that this conference will surely bring about more fruitful results and play a more facilitating role in speeding up Guangdong's development and strengthening the bilateral exchange and cooperation between Guangdong, all the advisors and the organizations represented by the advisors.

I wish this conference a great success!
Thank you for your attention!

Editor: Donald