China’s State Council has given a mandate to a Sino-German industrial park in Shenyang to spearhead the transformation of northeastern China and drive the region’s industrial sector to become more international, greener and smarter.
If the country’s economy is slowing down, northeastern China is experiencing a hard landing. The approval from Beijing will certainly help the region steer its industry toward high-end manufacturing and arrest the current decline.
Shenyang, the capital of Liaoning Province, is the largest city in northeastern China by population. Germany is Shenyang’s number one trade partner. More than 130 Germany-funded companies have set up offices in the city.
In Shenyang’s Tiexi district, the 100-square-kilometer industrial facility aims to unleash the full potential of mating Germany’s advanced technology with China’s manufacturing prowess with a focus on high-end equipment, auto and rail transportation.
The showcase factory of the industrial park belongs to a joint venture between Brilliance and BMW. It employs extensively smart manufacturing technology and a high level of automation.
A cluster of German suppliers formed around the joint venture with a combined investment of 3 billion euros (US$3.26 billion), according to a China Commercial Daily report. They are also attracting a group of non-auto German firms spanning various sectors like machineries, electronics, chemicals and medicine.
In May, China unveiled the “Made in China 2025” blueprint, which aims to transform its manufacturing sector from a giant in terms of output to a powerhouse of quality high-end products.
This Sino-German project is a good example of how China is trying to shift away from its previously low-margin and high-pollution growth model.
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