
- Journal of Geographical Sciences
- Vol. 30, Issue 8, 1266 (2020)
Abstract
1 Introduction
The industrial park has always been the hot topic of social sciences (
Since the reform and opening-up, industrial parks in China have become an important tool or means to promote economic development and urbanization (
With the launch of BRI in 2013, the development of COCZs has entered a new era (
China's overseas industrial parks have achieved great achievements, but their development is later than that of domestic ones. Moreover, only 20 of the COCZs have got approved by MCPRC. There are both connections and big differences between domestic and overseas industrial parks. However, most of the existing research focuses on overseas industrial parks in other countries and lacks comparative studies on China's domestic and overseas industrial parks along the B&R. This paper focuses on the spatiotemporal characteristics and development modes of industrial parks, and compares the developmental status of national-level overseas industrial parks along the B&R and domestic ones of China.
2 Comparison of domestic and overseas industrial parks of China
Scholars have studied industrial parks of China from different angles (
Establishing Special Economic Zones (SEZs) is an important strategic choice for China's development. China's SEZs including EPZs, bonded logistics parks, state-level high-tech zones, state-level bonded port zones and FTZs, are constantly changing (
To promote foreign investment and strengthen international exchanges, China has begun to go global by establishing SEZs in neighboring countries and Africa (
China's industrial parks are in a new era of rapid development (
The different national conditions and social context have led to differences in the types of domestic and overseas industrial parks. Since the types of industrial parks are too wide, this article divides the types of domestic industrial parks and national-level COCZs according to the parks' functions. Specifically, China's domestic industrial parks mainly include SEZ, ETDZ, HTIDZ, Investment Zone (IZ), Trade Zone (TZ), Special Customs Supervision Zone (SCSZ), Tourism Vacation Zone (TVZ), NA, Border/Cross-Border Economic Cooperation Zone (B/CBECZ), Science and Technology Industrial Park (STIP), Economic Development Zone (EDZ), Industrial Park (IP), etc. The national-level COCZs along the B&R mainly include SEZ, Economic Zone (EZ), Industrial Zone (I-Z), Economic and Trade Cooperation Zone (ETCZ), Industrial and Trade Zone (ITZ), Trade and Logistics Park (TLP), Industrial Cooperation Park (ICP) and Comprehensive Development Area (CDA) (
Figure 1.
On the methodology, in view of the particularity of China's industrial parks and their complex relations, this article mainly compares domestic industrial parks and national COCZs in terms of time scale, space scale, mode, industry type, and industrial park type. And compare the national-level industrial parks and their domestic counterparts. In time, the research mainly uses statistical analysis method to make comparative analysis on the development stages and paths of China's domestic industrial parks and the national-level COCZs along the B&R through the statistical data collected by relevant national departments. In space, this paper mainly uses space technologies such as ArcGIS to analyze the geographical origins and layout of industrial parks. By collecting and sorting data from the official websites of various industrial parks, this study compares the industry types and operation modes of parks. Based on the interviews and the data collected from official websites, we choose Thai-Chinese Rayong Industrial Zone (TCRIZ) and Tianjin Economic-Technological Development Area (TEDA) as typical cases for comparison.
3 Comparison of the spatiotemporal characteristics between domestic and overseas industrial parks
3.1 Time-scale: The development process and stage division of industrial parks
Since the reform and opening-up in the late 1970s, China has started to learn from some developed countries for promoting rapid economic development. The establishment of Shekou Industrial Zone became the beginning of China's industrial park. After then, Chinese central government made a series of policies and measures to promote the rapid establishment and expansion of industrial parks. This paper roughly divides the developmental process of China's industrial parks into four stages (
Figure 2.
3.1.1 Start-up growth stage (1984-1995)
In the early stage of reform and opening up, domestic industrial parks have developed rapidly. China set up national-level ETDZs in open coastal and inland cities, providing a complete infrastructure and investment environment for the foreign economy and trade. The first batch of Special Customs Supervision Zones (SCSZs) was established for international trade transfer, procurement, distribution, export processing, etc. Especially in 1988, China implemented “National Torch Plan” to boost economic development. Some cities with higher level of knowledge and economy started to establish HTIDZs to absorb domestic and foreign scientific and technological achievements to develop high-tech industries.
3.1.2 Low-speed growth stage (1996-2005)
China's industrial parks were in a low-speed development in this stage, and the total number of approved industrial parks was relatively small. Various problems at this stage, such as unclear industrial positioning of parks, repeated construction and blind investment, have been highlighted. In 1994, the State Council issued the notice on strict examination and approval and the earnest cleaning up of various development zones, and then issued emergency notice on suspension of examination and approval of various development zones in 2003, which effectively slowed down the development speed of industrial parks. However, China approved the first batch of 15 EPZs (one of the types of SCSZs) in April 2000 to speed up import and export trade, and in June 2005 the State Council approved another 18 ones. Therefore, although there are many types of China's industrial parks, the overall development speed is relatively slow in the second stage.
3.1.3 Spurt-type growth stage (2006-2012)
After strict rectification, industrial parks showed a trend of spurt-type growth. To strengthen exchanges with neighboring countries, MCPRC issued the basic building requirements and bidding procedures for COCZs in 2006, and officially started to set up COCZs in some countries and regions. In 2008, the State Council declared to promote the construction of COCZs, indicating that pushing Chinese enterprises to go global became a national strategy, which also accelerated development of China's overseas industrial parks. Meanwhile, the State Council initiated the upgrading of provincial-level development zones, and many of them have been actively upgraded to national-level ETDZs. In 2012, the 18th National Congress of the Communist Party of China put forward the Innovation-driven Development Strategy so that state and local governments were vigorously developing HTIDZs, and the number of SCSZs increased.
3.1.4 Adjustment slowdown stage (2013-)
The BRI has a great effect on COCZs. Chinese enterprises began to develop domestic industrial park construction modes to other countries and extend overseas industrial parks. The 19th National Congress of the Communist Party of China in 2017 stressed that China should adhere to a comprehensive and deepening reform when entering a new stage of development and implement the new development concept to transform the economic development mode, which pointed out the direction for the development of China's industrial parks. The number of industrial parks in China increased because of continuous upgrading development zones.
On the whole, the development of industrial park in every stage is closely related to national policies. COCZs along the B&R are developed locally by domestic industrial park modes. China's domestic industrial parks cannot be separated from government's leading role. While for overseas industrial parks along the B&R, government mainly plays a supporting role, indicating that there are significant differences in the development paths of domestic and overseas industrial parks.
3.2 Space scale: The geographical origin and spatial layout of industrial parks
With the continued downturn of the global economy and the rise of emerging economies, more and more countries are beginning to explore the construction model of overseas industrial parks (
The national-level COCZs (
Figure 3.
4 Comparison between domestic and overseas industrial parks
4.1 Types of industries and parks
COCZs provide a platform for China's excess capacity to find new markets in other under-invested countries around the world (
Zone name | Park type | Leading industry | Implement corporate ownership | Size/km2 |
---|---|---|---|---|
PHREZ | PMP | Appliances, automobiles, textiles, building materials, chemicals, etc. | Privately-owned | 2.33 |
CRUETCZ | PMP | Light industry, electrical and mechanical (household appliances, electronics), wood industry, etc. | Privately-owned | 2.28 |
ZCETCZ | CIP | Metal smelting, logistics, business services, processing and manufacturing. | State-owned | 17.28 |
TCRIZ | PMP | Automobile and motorcycle fittings, hardware, machinery, electronics, etc. | Privately-owned | 12 |
CSSEZ | PMP | Textile and clothing, hardware machinery, light industrial appliances, etc. | Privately-owned | 11.13 |
CNETCZ | CIP | Manufacturing, machinery and electronics, trade logistics, service real estate, etc. | State-owned | 30 |
SRTFETZ | CIP | Forest tending and logging, deep processing of wood, trade and logistics, etc. | State-owned | 6.95 |
EEIZ | PMP | Metallurgy, building materials, electrical machinery, etc. | Privately-owned | 5 |
VLJIP | PMP | Electronics, machinery, light industry, building materials, biopharmaceutical industry, agricultural and forestry products processing, rubber, paper industry, new materials, man-made fibers, etc. | privately-owned | 6 |
CESETCZ | PMP | Textile and clothing, petroleum equipment, high and low voltage electrical appliances, new building materials and fine chemicals. | State-owned | 10 |
SIETCZ | PMP | Household appliances, fine chemicals, biopharmaceuticals, intensive processing of agricultural products, machinery manufacturing and new materials related industries | State-owned | 4.55 |
CUPSIA | PMP | Ceramics, leather products, food processing, etc. | Privately-owned | 1.02 |
CHBETCZ | PMP | Chemical, biological and chemical industries. | Privately-owned | 6.15 |
HSETLCZ | TLP | Commerce, logistics, warehousing, etc. | Privately-owned | 0.0987 |
VSDZ | CIP | Agricultural and sideline products processing, textile and apparel, hardware and building materials, machinery manufacturing, clean energy production, logistics and commerce, etc. | State-owned | 11.49 |
SRMAICZ | AIP | Planting, breeding, processing of agricultural products, etc. | Privately-owned | 680 |
RLFETCZ | RUP | Forest cultivation, timber harvesting, intensive processing, exhibition, logistics and transportation, etc. | Privately-owned | 9 |
KASAICZ | AIP | Livestock and poultry slaughtering and processing, food deep processing, international trade logistics, etc. | Privately-owned | 5.67 |
CIIIPQP | PMP | Nickel mining, nickel iron smelting, stainless steel smelting, fine processing, trade logistics, etc. | Privately-owned | 21 |
CIJLAICZ | AIP | Oil palm planting and development, palm oil preliminary processing, refining and fractionation, brand oil packaging production, oil chemical industry and biodiesel refining, etc. | Privately-owned | 4.21 |
Table 1.
COCZs approved by the Ministry of Commerce of the People's Republic of China
The development zones and COCZs have great differences in industrial types (
Figure 4.
4.2 Development modes of industrial parks
Due to the differences in economy, culture, religion, languages and other aspects, there are significant connections and differences in development modes between national-level development zones and COCZs along the B&R (
COCZs | ETDZs | HTIDZs | |
---|---|---|---|
Main geographical distribution | Along the B&R | East coast | Along the coast and river |
Average duration (year) | 8 | 11 | 12 |
Average area (km2) | 8.4 | 11.62 | 11.32 |
Subject of establishment | Ministry of Commerce, Ministry of Finance | Ministry of Commerce, Ministry of Land and Resources, Ministry of Construction | |
Procedure of formation | Reaching the Target-Application- Assessment-Acceptance-Reply | Application -Preliminary Examination-Approval-Reply | |
Enterprise path | Go Global | Bring in | |
Dominant force | Government < Market | Government > Market | |
Mode of cooperation | Sino-foreign joint venture, and Chinese enterprises as the main investment body | Sino-foreign joint venture, sino-foreign cooperation and wholly foreign-owned | |
Capital cycle | Long | Short |
Table 2.
Comparison of major national-level COCZs and domestic development zones of China
The establishment of COCZs must be matched to the standards set by MCPRC, and only after passing the experts' assessment and acceptance can it be approved. The purpose is to realize the combination of domestic industries, capital, technology and other advantages with foreign demands for promoting international production capacity cooperation and domestic enterprises to go out. While the establishment of national-level ETDZs within China shall be submitted by local government, approved by MCPRC, Department of Land and Resources and Department of Construction. Then only after the approval of State Council is requested, can the three departments jointly reply. Domestic industrial parks are mainly carried out by introducing foreign capital and operation through exchange and cooperation.
COCZs' construction is mainly a kind of enterprise behavior, so the construction funds are mainly self-raised by enterprises, and the policy investment intensity is much lower than that of domestic industrial parks. COCZs need a large amount of expected investment in land development and infrastructure with long capital cycle (
It can be seen from the above content that Chinese government plays an auxiliary role in the construction process of COCZs. Chinese and host governments need to establish a good coordination mechanism. Leading enterprises are responsible for overseas industrial parks' management and operation, and enterprises in COCZs are more dominant, which is conducive to finding the most suitable leading industries through trade in combination with local market and cultural environment. However, in the construction process of domestic parks, Chinese government plays a leading role by setting up local agencies and offering land, tax and other related preferential policies. At present, most of China's ETDZs are government-led (
There are big differences between the countries along the B&R and China so that it is difficult for the government-led mode of domestic industrial parks to continue to be implemented in the market-oriented environment abroad. In the process of “going out” by the way of COCZs, both domestic industrial parks and implementation enterprises must be careful to solve the profit patterns of overseas industrial parks. Therefore, it is necessary to make proper overseas transformation of domestic industrial park models according to actual situation of the countries along the B&R to stimulate endogenous development impetus of COCZs and guarantee sustainable development of China's industrial park modes abroad.
4.3 Typical cases analysis
The above research shows that industrial types and operation modes of different industrial parks are different, and industrial types often determine operation modes of the parks. TCRIZ is one of the first batch of national-level COCZs built by China, and it has become an industrial cluster and manufacturing export base for Chinese traditional advantageous industries in Thailand. The establishment of TCRIZ is of great significance to China's efforts to strengthen exchanges with Asian countries and step up the pace of China's “going out”. As one of the first batch of national-level ETDZs in China, TEDA is known as the representative and leader of Chinese development zones. As a typical example of TEDA mode in Africa, the TEDA Suez Economic and Trade Cooperation Zone belongs to China's second batch of national-level COCZs, and is also a substantial platform for bilateral industrial cooperation and economic and trade dialogue between China and Egypt. As a result, this paper selects TCRIZ and TEDA as the typical cases to compare, analyze, and summarizes their construction experience (
TCRIZ | TEDA | |
---|---|---|
Setting up time | 2006 | 1984 |
Leading industries | Automobiles, motorcycles and parts, new energy, new materials, machinery and electronics, high value-added industries such as electronic appliances | Automobiles, equipment manufacturing, electronic communications, food, machinery, biology medicine |
Construction area enterprise | TCRIZ Development Co., Ltd (developed by Holley Group (China) and Amata Group (Thailand)) | TEDA Investment Holding Co., Ltd |
Operating | Market | Market |
Management | Holley Group (China) | TEDA management committee and TEDA Investment Holding Co., Ltd |
Management mechanism | Enterprise | Semi-government management |
Table 3.
Comparison between TCRIZ and TEDA
TCRIZ relies on Amata Rayong Industrial City and to some extent inherits the model and experience of Thailand's industrial development. Today TCRIZ has become a successful practice for small and medium-sized enterprises to “go abroad in group”. TCRIZ pays great attention to introducing new industries and developing traditional advantageous industries, such as auto and motorcycle parts, electronic machinery, food, while it does not introduce enterprises with high pollution and energy consumption, low added value and technical content. Although industrial positioning is very important, business selection is even more important.
Due to the complex landing problems of transnational enterprises, TCRIZ attaches great importance to the legitimacy and convenience of enterprises' landing. The zone has set up a professional team composed of Chinese and Thai employees to provide one-stop services for enterprises entering the zone. It ensures the enterprises' safe landing and is responsible for the zone's land transfer and the provision of convenient services, such as one-stop Chinese service, which solves the initial problems for multinational enterprises.
Cultural differences, such as language, customs and lifestyle habits, are all issues that enterprises entering the zone need to face. The biggest difficulty of establishing an industrial park in Thailand is not from Thailand government or society, but from whether enterprises can integrate themselves into local culture. In order to solve the problems of low enthusiasm of Thailand's labor force and hope that wages are paid on a daily basis, the president of TCRIZ came up with a new overall rationing system in which everyone can get off work after completing the fixed tasks assigned each day. This mechanism greatly improves the enthusiasm of workers, so a good corporate culture will have a huge impetus to enterprise's operations.
TEDA was approved by the State Council for construction and operated by TEDA Investment Holding Co., Ltd, so it is a semi-government model jointly managed by the government and enterprise (
By analyzing the above two cases, it is found that TCRIZ before establishment of COCZs has a corresponding industrial zone and has a certain industrial foundation. China-Egypt Suez Economic and Trade Cooperation Zone is similar. This approach reduces the difficulty of establishing and developing COCZs.
The domestic development zones are generally dominated by the government, such as TEDA is a semi-government model. TCRIZ is an enterprise-led management and operation model. The difference in economic basis between China and Thailand has led to a great difference in the industrial types of the two zones. The industries of TEDA are mainly those with high science and technology content in electronics, automobiles, biomedicine, aerospace and so forth. Thailand is a major exporter of automobiles and accessories so that automobile and parts production were the leading industries of TCRIZ. There are about 20 enterprises related to automobile parts in the zone, and they attach great importance to business selection when introducing enterprises.
Overseas industrial parks are built by Chinese companies drawing on the experience of Chinese domestic industrial parks, so localization of industrial parks is very important. After decades of development, Tianjin TEDA has formed a “TEDA model”. In 2008, it established the China-Egypt Suez Economic and Trade Cooperation Zone, gradually promoted Chinese enterprises to go abroad. The Thai-Chinese Rayong Industrial Park has also formed a relatively mature overseas industrial park model.
5 Conclusions and discussion
Industrial parks are very important to national and regional development. BRI provides new opportunities for the development of overseas industrial parks of China and strengthens economic and trade cooperation between China and other countries along the B&R. It is worth comparing domestic and overseas industrial parks of China. There are different spatio-temporal characteristics and developmental modes in Chinese domestic and overseas industrial parks. From time-scale, the developmental process of China's industrial parks can be divided into four stages, each of which is closely related to national policies and geographical conditions. Domestic industrial parks in China are dominated by government, while government often plays an auxiliary role on overseas industrial parks along the B&R, so there are significant differences in the development paths of domestic and overseas industrial parks. In terms of space scale, most of the national-level COCZs are distributed in neighboring countries along the B&R with the largest number of Chinese overseas investment enterprises.
Due to the differences with host countries in politics, economy, culture, society and other aspects, there are connections and differences between the construction modes of national-level overseas industrial parks along the B&R and domestic development zones of China. COCZs are jointly established by Chinese government and the host government, and the Chinese enterprises going out are mainly responsible for the construction and operation of COCZs. Enterprises in the COCZs have more freedom, but they are also faced with the problem of local integration. The establishment, construction and operation of domestic parks are led and guided by Chinese government with greater policy support. Moreover, domestic industrial parks are mainly established for purpose of economic development and learning from foreign experiences. In addition to promoting economic development and technical cooperation, COCZs are constructed for understanding the international market demand, promoting Chinese enterprises to go abroad and strengthening exchanges with neighboring countries. Besides, COCZs and domestic industrial parks focus on different types of industries. China's domestic industrial parks focus on high and new technologies, while overseas industrial parks are mainly concentrated in the traditional advantageous industries that have been saturated in China's domestic market, such as low-end manufacturing and primary processing of agricultural products. This also produced different developmental patterns of industrial parks.
The patterns of domestic industrial parks could be appropriately transformed overseas. COCZs need to achieve sustainable development of the park through a sound management system, accurate industrial positioning, and various talents. The patterns of China's industrial parks can be helpful to other countries or regions, especially developing countries. The comparative study between domestic and overseas industrial parks of China especially within the B&R is crucial and should be further advanced. It is urgent that multi-disciplinary, multi-perspective and multi-scale studies should be conducted on industrial parks within the B&R particularly under the changing globalization.
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