An interview with Professor Gui Shou Ping

Logistics in Guangdong and Hong Kong triggers the business circle in PRD

　　Make a net that unifies chains of Economy Industry, Sales and Marketing, Manufacturing and Processing, and Logistics Services

　　After the implementation of CEPA, Guangdong and Hong Kong have further cooperation on its business. One of the most noticeable  topics is the accommodation in Pearl River Delta. Few days ago, "Private Economy News" had an interview with Professor Gui, he said again, "Pearl River Delta, on the one hand, Guangdong has to cooperate with Hong Kong; on the other hand, it is necessary to turn to a global view, and so, form a chain structure. As to the gradual development of logistics in Guangdong and Hong Kong, it makes a net that unifies chains of Economy Industry, Sales and Marketing, Manufacturing and Processing, and Logistics Services."

　　 Standpoint 1: Broaden the cooperation between Guangdong and Hong Kong

          Professor Gui thinks that while the cooperation between Guangdong and Hong Kong has broadened, the economy area will, then, be widen; it is no longer done only in Hong Kong, but in Macau, south-west of China, such as Guizhou, Sichuan, Chongqing. Jiangxi, Hunan, etc. This development trend is a regional economic development and also, is a need and orientation for the global economic development. We have to look further, and the power is greater, too. In order to make our power even greater, it is a must to have a regional economic development in larger areas. It is because the larger the areas involved, the greater the business circle is and the richer the energy and raw materials. Through this, the opportunities in the market also become more and more. While there is a larger number of partners, it lays a more solid foundations on the global economy.

          Hong Kong and Pearl River Delta are complementary and obviously, the current tri-city (Hong Kong, Macau and Pearl River Delta) is a very strong base of manufacturing and processing in the world. We have to make use of the dominance of different regions, for example, the dominance of Hong Kong is the good international connection and the perfection in its financial function. Moreover, Hong Kong is coupling with Pearl River Delta, it makes Changjiang Delta impossible to compare with. (Changjiang Delta is advantageous with the industrial skill, professionals and science research.).

　　 Standpoint 2: Make a base in the south-west and make use of it

          Guangdong not only has its own development, but also has the "duty" to bring the south-east part up. The south-east part includes the central-south regions, the economic development of thess regions is comparatively backward. There is no port in Guizhou, Chongqing, Sichuan, Hunan and Jiangxi, but some of these regions are connected with Myanmar, Lao, Vietnam and Cambodia, which enable the trading with the east part more conveniently. 

          The south-west region is initially the base of processing, especially, Chongqing has more developed skill in the processing industry. In order to make a base in the south-west regions and make use of it, we have to make sure that the products are really what the market needs are and also ensure they reach the international needs.

　　 Standpoint 3: Make the manufacturing and processing industry enter the east part

          Entering the east part makes our market larger and brings in more sales. Our products supplement the insufficient demands in the east part and brings up its economy. Meanwhile, this gives us a new way for the sale of our products. 

          Not only the products enter the market of the east part, but also the manufacturing and processing industry also has to. The products of Guangdong have already connected with the international, and these products are comparatively of a higher quality comparing with those in the south-east regions. However, this advantage still cannot satisfy the demands, products with better quality, better labour force are necessary for bringing up the south-east part. 

          The development of Pearl River Delta and Hong Kong, the opportunities in the south-west part and entering the east part are the requirements for making Guangdong become a strong region in Asia. These are better done within five to ten years.

　

Make it become global through other paths

　　Professor Gui said, "The European wants to restrict our ongoing global development, and we have to make it through other paths. This can increase the reserve of the foreign exchange and enables us to become a strong country in the world."

　　Indirect development in the east part
　　Due to the geographical restriction, Guangdong cannot directly enter the east part. We has put the principal authority on the Pearl River Delta, and the south-west part acts as a "bridge" making indirect development in the east part.

　　For the time being, the economic development in Vietnam is still at the level of 80's. Most of the products are from China, and China has already covered widely in the east part. If the products are directly transported to the east part, the logistics charges are very high. Regarding this, we can have a base of delivery in the south-west regions, and then systematically transfer the equipment from Guangdong to there, to the border regions or the east part for the production. As there is a limitation of licence for the export from China, if we transfer the equipment to the less developed regions (for example: Vietnam), it is actually a pressure-relieving and risk-converting measure; it really helps many enterprises find new ways for investment. We have to utilize the enterprises of low efficiency so as to make them become brand-new ones. 

　　  The combination of various industries
　　  After the entry to the east part, the dominance of the south-west regions form a area, which is of strong economic power, manufacturing and processing capability and widespread covering areas for products. Furthermore, it forms a new economic pattern with close labour force, professionals and capital, and implements the combination of various industries.

          We have to carry it out in no time at all, since China is not the only one nation entering the east part. However, there are no other nations that have the geographical location better than China. China is still at an early stage of entering the east part, there are just little investment in the south-east regions for enterprises. The east part has its rich coal, rare metals and rubber, etc. These resources are really those China is lack of, and so, China has to enter the east part as soon as possible to have the exploitation! 

　　Reporter: Tian Ai Li
　　Trainee: Luo Qiu Fang

　

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Logistics pushes the economy up

　　  Professor Gui thinks that modern logistics supports the economy, if there is no logistics acting as a motivator and a guarantee, we will get a failure to function in the economic environment.

          Modern logistics is very important, it provides a platform for the flow of raw materials and delivery, transportation of different distances, and  the cross-application of transport. On the other hand, we have been doing research on logistics for a quite long time, and we have our own operators and professionals of logistics. This gives an assurance to the development of the Pearl River River.

          In view of the current circumstances, the east part is, let's say,  well-equipped, as it has the railway, highways and ports. But it still need to keep on improving these facilities so as to overcome the bottleneck obstacles. Our new direction of investment is to deliver more messages and ideas of manufacturing, business, logistics and management to the east part, and have the exploitation in different aspects.
　　

Keep the current preferential policies for foreign-funded enterprises

　　Take the measures for the foreign-funded development of logistics in China
　　Hu Jing Yan, the general director of Department of Foreign Investment Administration of the Ministry of Commerce of the People's Republic of China, clarified that the Government in China have not done any modification on the preferential policies for the foreign-funded enterprises.

          He said, "the policies for the foreign-funded enterprises are needed to be kept consistent with the domestic policies. It is really a long-term objective and the Government in China will not do any modification on the preferential policies for foreign-funded enterprises. "

　　The Government in China has promoted the preferential policies in some respects in order to encourage more foreign funds. Firstly, the Government in China will take measures to speed up the inflow of foreign funds for the development of logistics in China. Also, it encourages the foreign enterprises to build a logistics company in different ways, for example, a self-owned one. Secondly, it is necessary to have a breakthrough of measures-taking, allowing the asset evaluation of national enterprises based on the international method of asset evaluation.

          Furthermore, the Government in China are adopting the preferential policies so as to encourage the overseas companies to establish research centres and purchasing centres. Hopefully, the problem of tax-refund for importing is going to be resolved soon. Regarding the protection of intellectual property right, China are putting more efforts on the legislation of it.

          Last but not least, Hu Jing Yan claimed that the above preferential policies and measures have been put in the late stage of the planning, it is going to implement within a short period of time.