culmination of years of research, surveys, interviews and site visits, the
China Knowledge Rating System assigns ratings to industrial parks based on five
broad factors subdivided into 21 attributes with a view to guiding foreign
investors looking to set up in China.
Rating System not only indicates the best industrial parks in China, but also
serves as a guide to understanding China’s economy and future directions for
development and to finding the hottest investment spots in a vast land of
approximately 9.6 million sq km.
rationale behind this large-scale research project, and the resulting Rating
System, lies in the significance of industrial parks to China’s economic
development and to the country’s ability to attract foreign investment.
the Rating System also offers more to investors; it allows existing and
potential investors to gauge investment locations to find the one that will best
suit their business needs. The Rating System is based on factors that include
location, infrastructural development, contracted and utilized foreign direct
investment (FDI), availability of human resources and administrative
efficiency, giving investors a good sense for which industrial park is most
suitable for their particular industry, product or service.
importance of industrial parks to China’s economy cannot be underestimated. In 2008, the GDP of 54 state-level Economic
Technological Development Zones (ETDZs) reached RMB 1.53 trillion (US$220.3
billion), accounting for 5.1% of the nation’s total. Meanwhile, the 54
state-level High-tech Industrial Development Zones (HIDZs) contributed 9.7% of
China’s total value-added industrial output.
in terms of attracting FDI, these industrial parks have played a pivotal role.
In 2008 the utilized FDI secured by state-level ETDZs reached US$19.5 billion.
This translates to 21.1% of the national total. While data is not yet available
for HIDZs and Free Trade Zones (FTZs), estimates based on past data indicate
that state-level ETDZs, HIDZs and FTZs attracted an amount equivalent to nearly
one-third of China’s total utilized FDI each year.
ability of industrial parks to attract FDI is an important consideration for
many foreign investors. Certainly, areas that attract the most foreign
investment are the hottest destinations for subsequent capital inflows; they
are also the areas that are developing faster and promising and delivering returns.
With hundreds of industrial parks to choose from, finding the ideal
industrial park can be problematic for foreign investors unacquainted with the
local context. An evaluation of industrial parks is thus particularly critical
to aid such investment decisions. Additionally, as many major industrial
players are based in industrial parks, in-depth, detailed descriptions of
important industrial parks will guide investors in mapping out the industries
they are most interested in.