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Meyor of Weihai

An Updated Interview and Open Letter

From the Mayor of Wehai, Shandong, China

Business-in-Asia.com:

In June, 2005 I returned to Weihai with a U.S. company looking at investment there.  We were to meet with you but unfortunately this had to be postponed because you were quite busy in the wake of hosting the Chinese President.  Despite this, I was wondering if you could update our readers on progress in Weihai since your interview with us at www.business-in-asia.com over two years earlier?
 
Open Letter from Mayor of Wehai:

Respected Mr. Chris Runckel and www.business-in-asia.com,
 
First of all, I’d like to express our sincere thanks for your support to Weihai over the years and for your assistance in helping to bring information of our fair city to U.S. and other businesses and travellers.  It’s my pleasure to further introduce Weihai in July 2005 to you.

 

Harmoniously developing economic society

In recent years, facing the new situation and more heated competition, we have been focusing our attention on three strategies, that we call the “three cards”: the first one is environmental protection, the second one is opening up to the outside world and the third one is science/technology and talent, so as to achieve a sustainable development model. That is to say, the environment drives opening; opening drives development; development attracts talents; talent strengthens science and technology; science and technology upgrades our development level.

Focusing first on economic development, the growth rate has been climbing. Over the past 18 years since the establishment of the city, the GDP of the whole city has surged 18 per cent year-on-year. In 2004 the GDP total value reached 12.2 billion US Dollars, surpassing 4,900 US Dollars per capita and ranking our city 27th in China in terms of the city’s comprehensive competitive power. Weihai is now one of the most dynamic and fastest growing cities in North China.

As to the people’s living standard, the income level has continuously increased. In 2004, per capita net income of all peasants went up to 651 US Dollars, up 13.1 per cent and ranking Wehai first in Shandong Province. Per capita disposable incomes of urban residents was 1,345 US Dollars, up 9 per cent and ranking Wehai third in Shandong Province.  Per capita household savings of urban and rural residents is 1,925 USD, double that of the whole province.

Reflecting on social undertakings, we have achieved a lot. Weihai was awarded China’s first National Hygienic City, China’s first National Model City Group for Environmental Protection, China’s first group of the best tourist cities, China’s National Garden City. Above all, Weihai was awarded twice the Dubai International Award for Best Practices for improving living environment by the U.N. In 2003, Weihai was awarded UN Habitat Scroll of Honor.  Weihai is striving to become one of the most livable cities and best cities for business in the world. 

  

Improving urban environment

In recent years, adhering to the principles of not big, not quick but best, Weihai has been striving to build a world model city and restructure the urban infrastructure at a higher level. In 2004, the urban area reached 62 square kilometers and the rate of urbanization was 50 per cent. The urban green covering rate went up to 43.5 per cent and per capita public green land was 17.5 square kilometers. The urban area has basically achieved all needed infrastructure – roads, electricity, gas, hot water and heat supply. The treatment degree of waste gas, waste water, and industrial residue, the popularization degree of water-wash public toilets and garbage treatment are now in accordance with or exceed national standards. We mainly concentrate our efforts now on the following three aspects:

 1.  Planning from a high starting point.

Holding planning as the first key of urban and rural construction, we have invited top-ranking experts and organizations to plan from high starting points and high levels. In terms of long-term planning, we insist on the concept of Big Weihai, including taking Weihai city proper and three sub central urban districts of Rongcheng, Wendeng and Rushan as the frame of our planning, taking coastlines and interlinking expanded highways and roads as the link, taking industrial parks, scenic spots and central towns as the joining elements, accelerating the connection between sub central cities and central cities, small towns and sub central cities, villages and small towns, building an integrative city framework and city group, which is closely connected and shares common facilities. Presently, we are focusing our attention on industrial relocation, economic development and environmental protection, accelerating the connection between Wendeng city proper and Weihai urban district, small towns and sub central cities so as to realize the integrative growth of industrial layout, infrastructures, eco-environment and management.

2. Building Weihai based on high standards.

Insisting on the concept of being a model city, we have built a series of important engineering projects, with the goal of improving the urban comprehensive environment. Weihai has three national first grade ports. Sea lanes open up from Wehai to Korea, Japan and Hongkong. There are two international airports within one-hour driving time; international airline service between Weihai Airport and Korea was also recently opened. Railway transportation of passengers and cargo reaches from Wehai to all locations in the country. In order to further improve the city’s environment, we have newly built many parks and introduced the project of airbus to Liugong Island, and started some reconstruction projects such as the development and reconstruction for the west of Weihai Park and the relocation of Weihai Shipyard. In order to upgrade the city’s coordination ability, we have newly built stadiums, sports training bases, one isolation hospital and Golden Bay Hospital in the Hi-tech Zone. Additionally, we have also relocated Weihai Vocational and Technical College and have extended some senior middle schools and common support facilities. Urban infrastructure such as power supply, water supply and sewage disposal facilities have been optimized.

3. Managing with high efficiency

Sticking to the concept of “ development and management should be paid equal attention”, and the principles of administering the city according to law and citizens interests, we have been actively advancing the reform of our urban management system. We have worked out lots of standard documents and guidelines such as Regulations on Weihai Urban Appearance & Environment, and The Management Methods of Weihai Urban Environmental Construction, to advance the whole society to commonly participate in urban management and realize the standardization and benefits of proper urban management. According to the findings report issued by Shandong Statistics Bureau, Weihai citizens showed high satisfaction to our city on the issue of management and the rate of satisfaction ranks the first in Shandong Province.

Further enlarged opening up

Wehai has unique comparable advantages in terms of opening up economically to  outside investment and business.

Regional advantages. From a domestic viewpoint, Weihai is located as a key node of domestic traffic and communications. But from an international viewpoint, Weihai is situated in the forefront of connections with Northeast Asia and is located beside the City Corridor of Asia Pacific, enjoying a special geographical location. Therefore, it is destined to become an important port city for China to link with the Asia Pacific area and the world.  Wehai is the closest place geographically to Korea and Japan and this proximity has led to much investment here by both countries.

Environmental advantages. Weihai is endowed with a beautiful environment and abundant tourism resources. We have excellent environments for investment and living. In 2003 Weihai was awarded the UN Habitat Scroll of Honor. The effect of unique city branding under the slogan of “Living in Weihai, Investing in Weihai and Succeeding in Weihai” has been further emphasized.  More and more people, goods, capitals and information resources will be gathered in Weihai.

Industrial advantages. Being a new industrial city, Weihai has already established a comprehensive manufacturing range of companies and services. Weihai is an important domestic manufacturing base of woodworking machinery, mini type printing machines, building tower cranes, aerial surface equipments, tires, seafood and pharmaceuticals, computer peripheral equipments, communication cables, carpets, fishing tackles and shoes. All of these fields act as both supporting industries and as attractions for international manufacturing relocation.

Talent advantages. There are many investment platforms in Weihai. We have branches of two famous universities – Shandong University and Harbin Institute of Technology as well as a large scale vocational and technical college. More than 20,000 high quality laborers are trained every year, the labor productivity has ranked first in Shandong Province for more than ten years.

Thanks to these advantages, we always give priority to opening up to outside business and investment and firmly grasping the opportunities created by China’s entry into the WTO and recent shifts in world industrial relocation that have brought many new factories to China. We have followed the opening strategy of focusing on South Korea and Japan, expanding contacts and investment with Hong Kong and Taiwan and exploring with Europe and American companies potential for investment and manufacturing.  Our open economy has been growing rapidly and steadily. Currently, Weihai has established economic and trade cooperation relationships with over 160 countries and regions. There are more than 4700 foreign enterprises that have invested in Weihai which includes eight top 500 world enterprises such as Samsung, Mitsubishi, Merrill Lynch and Invensys.

Total actual foreign investment totals over 5 billion USD of which Korean investment accounts for 60%.  Last year total import and export value reached 5.6 billion USD. Korea has become the biggest cooperative partner of Weihai. Up to now, there are more than 10,000 Korean nationals living and doing business in Weihai perennially and over 2500 Korean invested enterprises located in Weihai. Total investment for these Korean companies adds up to 2.8 billion USD.  Weihai has become an important “bridgehead” for cooperation between China and Korea.

In terms of opening up to other areas of China and inter-linkage domestically, Weihai extensively introduces capital, technologies and talent and provides wide development platforms for all investors. Last year the actual domestic investment amounted to 15.46 billion Yuan and increased by 60.2%. Weihai has become one of the hottest spots for investment in China.

Opening up has created an inexhaustible engine for Weihai’s continued development. It has achieved Weihai’s past, is controlling Weihai’s today and will determine Weihai’s future. In the future, we will further improve the extent of opening up of all sectors.

Rapid growth of county-level economies 

Weihai has jurisdiction over three county-level cities of Rongcheng, Wendeng and Rushan. All of them are on the list of China’s National Model Cities for environmental protection and also known as China’s outstanding tourist cities. The contribution rate of county-level economies in many indexes to the whole city reached approximately 80 per cent. In 2004, GDP and local revenue of the three cities accounted for 72 per cent and 61 per cent of that of Weihai City respectively, total volume of retail sales of social consumer goods and fixed investments accounted for 64 per cent and 68 per cent of that of Weihai City respectively. The three cities are key to Weihai City and help to determine the whole level of economic development in Weihai City.

Rongcheng City ranks first in Shandong Province in terms of comprehensive economic strength. It’s a big agricultural county and the No. 1 fishery county in China. Its fishery economy ranks first among counties and county- level cities in China and has done so for 20 years. Rongcheng City is a national demonstration area for marine resources comprehensive development and a national demonstration location for government approved scientific ocean farming. Being a coastal open city, Rongcheng is endowed with the right by the state to sign contracts with other countries and regions for economic and technological cooperation. There are five national first and second grade open ports and operating sections in Rongcheng. Service and management organizations involving foreign elements such as the customs, entry-exit inspection and quarantine, border inspection and foreign investment service center have been set up.  Rongcheng has become a hot area for foreign investment.

Wendeng has prominent advantages in its industries. It is powerful in five industries including home textile & leather, auto & parts, machinery processing, electronics & communication and bio-resources processing. Ten highly successful enterprises such as Crank & Shaft, Hongan and Weida are at the top of the list in their respective industrial groups in China. Wendeng is the export base for drawn works in China, its annual production has reaches 300 million pieces/sets and the export volume accounts for 1/7 th of the total in all of China in this particular sector. Wendeng was named “China famous city for arts and crafts and home textiles”. Centering on forging the brand of “Living in Weihai, Shopping in Wendeng”, Wendeng has set up a series of projects such as Yiwu wholesale market for small commodities and “Window on Korea”. Wendeng has become a key regional trade and logistic center.

Rushan is the famous home of fruit and gold in China. Its gold output annually ranks fifth in China and annual output of fresh and dry fruit totals over 200,000 tons. Rushan is the export oriented agricultural demonstration area in Shandong Province. Rushan is abundant with tourist resources and enjoys a lot of scenic spots such as Silver Beach Tourism & Vacation Zone, Juyushan National Forest Park and Darushan Beauty Spot. It is an ideal place for tourism, recuperation and vacation.

Three manufacturing bases with huge potential.

In order to grasp the opportunities of relocating international industries, Shandong Province has decided to build Shandong Peninsula Manufacturing Base, with Weihai as one of the key cities. Therefore, we are trying to build Weihai into a global manufacturing base, holiday and tourism resort zone and agriculture and by-products export and processing center.

Manufacturing Base. Weihai has already established a comprehensive manufacturing infrastructure. There are more than 14,800 factories, plants and 2000 kinds of main products produced in Weihai. Weihai is the largest manufacturing base of fishing tackle, tires, macromolecular products, woodworking machinery and carpets, as well as an important production base of auto parts & components and glass. There are over 50 well-known brands in Weihai such as Gold Monkey, Huayu, Shanhua, Haima, Gongyou, Chengshan and Tri-angles. In order to take full advantages of these industries and establish a more competitive industrial system, we have a plan to encourage building five industrial groups including transportation equipments, electronics & information, mechanical & electronic tools, textile & light industries, and food and pharmaceuticals. We have drawn up and issued extensive preferential policies in terms of land use, taxation, auxiliary infrastructure and relevant services, to encourage and support the cooperation between enterprises from home and abroad.

Holiday & tourism resort base. Weihai is abundant in tourism resources and has almost all 74 kinds of tourism activities found in China. Last year 8.55 million tourists from home and abroad visited Weihai. In order to quicken the development of our holiday economy, we have drawn up “The Overall Plan for Development of Weihai Tourism Industry” and have put forward a concept of “one line with six big sections”. One line is a one thousand kilometer “happy coastline” and six sections include central city, seashore ecology, fisher folk-custom, thermal spring recuperation, holiday and traditional cultures. Meanwhile, we are actively developing some new types of tourism and quickening the construction of some key projects such as Liugong Island Airbus, yacht club and the big world of thermal spring. We are working hard to forge some unique tourism brands and to create new advantages for tourism development.

Agriculture and by-products & seafood export and processing base. The coastline of Weihai is about 1000 kilometers and accounts for 1/3 of that in Shandong Province. Weihai is the largest fishery production center in China. Its aquatic products output has ranked first for many years among China’s prefecture-level cities. Last year the output of aquatic products was 2.44 million tons and per capita possession approached one ton. In order to accelerate the construction of export & processing facilities, we are actively adjusting the marine industrial structure, and devoting major efforts to develop ocean fishing, sea farming and aquatic products processing. At present, there are 190 ocean fishing boats in Weihai. Some agricultural processing enterprises such as Homey, Zhonglu Fruit Juice and Hualong Foods companies have been successfully listed on the stock exchange. The export volume of aquatic products was 400 million USD. The export and processing of agricultural products has become the “new breakthrough point” of Weihai’s economic growth.

China has a saying “seeing is believing” which is also a saying shared by many other cultures.  Come see Wehai – Wehai will convince you.



Copyright, 2005 © Runckel & Associates
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