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SIP Ranks Top in "Soft Environment" for Investment

In the recent "Announcement on General Evaluation on the Investment Environment of National-level Economic and Technological Development Zones in 2005" by Ministry of Commerce, the rankings are listed among the 53 national-level development zones in comprehensive evaluation index and in 8 individual categorized indexes. Ranking in the top ten of the comprehensive index are: Tianjin, Suzhou Industrial Park, Guangzhou, Kunshan, Qingdao, Caohejing, Yantai, Beijing, Dalian, and Shanghai Jinqiao Export & Processing Zone, For the first time, the rating of SIP surpassed that of Guangzhou, and jumped to the second, next only to Tianjin. In the item of management system, SIP was credited with full grade, which is the highest confirmation of the "soft environment" for investment.

The national evaluation of the development zones in China was initiated by Ministry of Commerce in 1999, ever since then, the results have been taken as the main basis for the level of comprehensive development in national-level development zones. The 8 categorized indexes include comprehensive economic strength, infrastructure and backup facilities, operation cost, human resource and supply, social and environmental conditions, environment for technological innovation, management system building, and development and efficiency.

In the comprehensive evaluation in 2005, the Ministry of Commerce put the 5 national-level development zones accorded with special policies into the scope of general evaluation instead of separate ratings, and made amendments and supplementary clauses to the method of evaluation. The revised index system kept the 8 categorized indexes, but the sub-indexes were increased from 66 to 80. The newly added sub-indexes include: integrated use of land, resettling of peasants, scientific and technological R&D, intellectual property rights protection, high-caliber talents in modern service industries, and economizing-type of society, etc.

In 6 of the 8 categories, SIP’s ratings rank among the top ten, and among these, SIP ranks the third in comprehensive economic strength, the second in infrastructure, the sixth in human resource and supply, and second in social and environmental protection, the fourth in technological innovation, the first in system building. In the sub-indexes under the category of comprehensive economic strength, SIP ranks the first in import and export targets, total export volume, paid-up foreign investment capital and domestic investment. SIP’s ratings rise most noticeably in the category of social and environmental protection, in which SIP is given full grades in 6 sub-indexes, such as peasants’ insurance rate. The category of management system building, also referred to as the "soft environment" for investment, is an indication of the efficiency in handling administrative matters and the pro-business approach of the government, and in this regard, SIP has scored full grade.

Aug.4, 2006


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