Establishing Silicon Valley in Paradise and Building Sci-tech New Town

Hangzhou Hi-Tech Industrial Development Zone (hereinafter referred to as HHIDZ) was founded in March 1990, and was ratified as the state-level hi-tech zone by the State Council in March 1991. At present, it is the only state-level hi-tech industrial development zone in Zhejiang Province. Approved by the State Council, Binjiang District was established in December 1996. In June 2002, Hangzhou Municipal Party Committee and Hangzhou Municipal Government decided to adjust the administrative system of HHIDZ and Binjiang District and to start a practice of two organs led by one group of officials to hold relevant posts and to manage in accordance with the mode of development zone. After the adjustment of administrative system, HHIDZ (Binjiang) has a total planned area of 85.64 square kilometers. With an area of 11.4 square kilometers, the section on the north bank of Qiantang River borders many higher education institutions and scientific research units, and is the innovation source of high and new technology and the incubator of small and medium sized science and technology enterprises. The section on the south bank of Qiantang River occupies 73 square kilometers and is built along Qiantang River. Facing the West Lake across the river, the southern section is to become Hangzhou¡¯s city sub-center and technology town in the future. Now HHIDZ (Binjiang) has a population of 190 thousand.

HHIDZ (Binjiang) has five characteristics: First, an innovative system. As a state-level hi-tech industrial development zone, HHIDZ enjoys the state¡¯s special preferential policies. Being an administrative district, Binjiang district performs all the functions of a government and is endowed by Hangzhou Municipal Party Committee and Hangzhou Municipal Government with a specific policy of ¡°administrative affairs handled within the district, revenue used by the district¡±. After the merger of the administrative systems of HHIDZ and Binjiang District, HHIDZ (Binjiang) has set up its party and government organizations in accordance with the principle of ¡°small departments and complete service¡± and the principle of ¡°simplified administration, unified action and higher efficiency¡±, and reduced the number of departments from 37 to 25. The preferential policies were incorporated at the same time. Second, an excellent location. Along the river and near the bridge, HHIDZ (Binjiang) is only 15 kilometers from Hangzhou Xiaoshan International Airport, and borders Shanghai-Hangzhou-Ningbo Expressway. After the adjustment of administrative divisions of Hangzhou Municipality, HHIDZ (Binjiang) has become the center of Hangzhou¡¯s new map. Especially with the eastward movement of the municipal administration center and the implementation of the strategy of ¡°development along the river and development across the river¡±, HHIDZ (Binjiang) has become an important strategic area for common prosperity along Qiantang River in Hangzhou. Third, a galaxy of talents. HHIDZ (Binjiang) has established a long-term and friendly cooperative relationship with higher educational institutions such as Zhejiang University and scientific research institutes such as Chinese Academy of Sciences. They help to promote the development of high and new technology industry with technical support and high quality talents. In 2005, 15,000 talents of all types were introduced into the zone. Among them 1,046 were high-quality talents, 9,845 with bachelor¡¯s degrees or above, an increase of 48% compared with the previous year. HHIDZ (Binjiang) has become a hotbed of innovations and business start-ups for talents of all types. Not only do a batch of listed enterprises established by domestic scientific and technical personnel such as Hangzhou Silan Microelectronics, Handsome Electronics and Sunyard, come to the fore, but also a group of high and new technology enterprises established by returned Chinese students and scholars studying abroad have emerged, with Utstarcom, the largest enterprise established by returned talents countrywide, in the lead. Fourth, a get-together of industries. HHIDZ (Binjiang) has become the most influential scientific and technological innovation base, high and new technology industry base and the most vigorous area of economic growth in Zhejiang Province. Software Industry Base, Integrated Circuit Design Industrialization Base, Returned Scholars Innovation Park, Cartoon Industry Base and Electronic Information Industry Base have become the state-level industry base in succession. At present, HHIDZ (Binjiang) accommodates nearly 5,000 enterprises, among which 445 are foreign-funded enterprises from 32 countries with a total investment of US$ 2.7 billion, such as the United States, Britain, Japan and Korea. Fifth, optimization of environment. In recent years, in accordance with the overall requirements of ¡°Establishing Silicon Valley in Paradise and Building Sci-tech New Town¡±, HHIDZ (Binjiang) has reinforced the construction of infrastructure, and has advanced the pace of building ¡°Peaceful Binjiang¡± and ¡°Clean Binjiang¡±. With the continuous improvement of ecology, living environment, administration, human and culture, as well as security, HHIDZ (Binjiang) provides good business start-up environment for the construction of the ¡°Silicon Valley in Paradise¡± in an all-round way. The ISO14000 National Demonstration Zone has been inspected and approved by the State Environmental Protection Administration and Ministry of Science and Technology, and HHIDZ (Binjiang) has become the sixth state-level high and new industry zone to get this ¡°international green card¡±. In 2005, HHIDZ (Binjiang) achieved the gross product of £¤15.06 billion, an increase of 18.6% over the previous year; the gross revenue on technology, industry and trade reached £¤91.2 billion, an increase of 29%; the gross fiscal revenue amounted to £¤3.7 billion, an increase of 15.5% over the previous year, and in it, the regional fiscal revenue reached £¤1.8 billion, an increase of 21%. 82 foreign-funded enterprises were newly approved. The contracted foreign investment reached US$537 million, an increase of 66.5% over the previous year, the actually utilized foreign investment was US$256 million, an increase of 28.1%. The contracted domestic investment was £¤5.31 billion, and the actually introduced domestic capital was £¤3.06 billion; the total export volume stood at US$2 billion, an increase of 49%; the social investment in fixed assets reached US$ 8.95 billion, an increase of 24.6%.