TEDA: A New Landmark

2019-05-14 13:10

On May 11, the People’s Daily published a column in the front page of entitled The New Era of 70 Years of Struggle –Research of Promoting High-Quality Development. The Tianjin Economic-technological Development Area (abbreviated as TEDA) has been committed to doing business in 35 years and has created high-quality development as a new landmark in Tianjin.

Core reading content

Aiming at building a national advanced manufacturing R&D base, we will focus on deepening supply-side structural reforms. In the first quarter, Tianjin's economy achieved a hard-won massive success: GDP growth jumped from 1.9% in the same period last year to 4.5%, and the added value of high-tech manufacturing and strategic emerging industries increased by 6.4% and 5% respectively.

The Tianjin Economic-technological Development Area, known as TEDA, has been in the business for 35 years and has been ranked among the top in the national development areas for 19 consecutive years. The salt-alkali wasteland has risen to the high-quality development of Tianjin as a landmark.

“Do you still do business?” Once upon a time, this problem has stumped many companies.

"We have calculated an account in 35 years but the most cost-effective is still real economy!" Walking into TEDA, one can hear such a positive answer.

TEDA, the Tianjin Economic-technological Development Area, referred to as the transliteration of TEDA. "TEDA, which was born in 1984, is the earliest development area in China. The development history of TEDA in 35 years has been condensed into one sentence, which means that the company has focused on doing business." Zheng Weiming, secretary of the working committee of Tianjin Economic-technological Development Area and director of the TEDA management committee said.

Really doing real business

We are committed to really doing business, because the real economy is the most cost-effective. In TEDA, this is the consensus of entrepreneurs and managers.

The real economy is the most cost-effective, and it is not an empty slogan, but a practical logic in TEDA.

Let’s calculate the company's small account:

In 2018, TEDA's growth in industrial output accounted for more than three-quarters of the total industrial output value.

"Oh, there are too many orders, and the production capacity has been chasing us." The founder of North Systems (Tianjin) Microsystems suffered from the bitterness of happiness: the company's self-developed RF filter chip has the customers of big mobile phone brands. "Currently our proportion of R&D has reached the level of European and American counterparts, and we hope to achieve output value of more than 10 billion yuan in the next two or three years."

There is also the opposite - "Do not sell!" After mentioning a past event, Hong Shenping, general manager of Tianjin Feixuan Technology Co., Ltd. shook his head again and again.

What happened? High-end magnetic bearings are mostly used in important industrial fields, and foreign companies never sold them to the domestic market. Hong Shenping did not believe it, and led a group of Tsinghua teachers to settle in TEDA. It took 8 years to develop it successfully. International veteran manufacturers are looking for a high-priced acquisition of the company. "Of course I can't agree!" Last year, the spiral-shaped magnetic levitation blower entered the European and American markets for the first time.

Let’s calculate industry and social accounts:

Automobile, electronics, petrochemical, medical healthcare, equipment manufacturing, are the five pillar industries of TEDA. The total output value of the first three industries exceeds 100 billion yuan, and the total output value of the latter two industries exceeds 50 billion yuan.

"After each leading industry, there is a complete chain from the production of raw materials and parts to the R&D and production of complete equipment," said Hou Xiaolu, deputy director of the Economic Development Bureau of TEDA.

YAPP pursued FAW-Volkswagen in 2016 and came to Tianjin. “The automobile industry chain is too long, and there are more spare parts suppliers than airplanes!” Speaking of business ideas, Yang Maochang, deputy general manager of Yapp Auto Parts Tianjin Branch, is quite familiarized with the history. “We have only used car fuel tank filler pipes for 30 years and we follow the national layout of Volkswagen and Toyota to reduce logistics costs."

“A worker in an automaker can drive 20 people to work. More than 10,000 workers in our factory drive nearly 300,000 jobs in the upstream and downstream, and this does not include supporting services. The industrial chain formed by FAW Toyota has driven more than 90 cities in Tianjin. There are more than 30 upstream and downstream enterprises in TEDA.” Li Wei, deputy director of the business planning department of Tianjin FAW Toyota Co., is quite proud of this.

It’s worthwhile to hold it.

The value of the real economy is manifested when time is passing by. The real economy can make money, and the source of living water is sticking to it.

“TEDA has started from the real economy, and the industry has always been the main business. After 1992, the real economy enterprises introduced by TEDA accounted for 80% of the taxpayers who have survived for more than 10 years, and the profits, returns and tax contributions of the enterprises are still rising.” Yang Dehong, deputy director of the TEDA Management Committee, opened a time account.

A form that records the breakdown of the next year's mission for the 35-year TEDA Annual Work Conference –“30 industrial project contracts signed throughout the year” in 1985,“real economy leapfrog projects” in 2013, "building an advanced manufacturing R&D cluster" in 2016 – the top three tasks each year are mostly related to the real economy.

"We have calculated that it takes at least four years for manufacturing companies to negotiate benefits from investment negotiations. It depends on the overall situation and the long-term perspective. The industries driven by the real economy, the employment generated, the taxes generated or our basics are the most cost-effective investment.” Mei Zhihong, director of the TEDA Investment Promotion Bureau, calculated a macro account.

It’s a good deal to hold it. As the first private enterprise to settle in TEDA, Tianjin Jinqiao Welding Materials has been engaged in several shacks and has been fighting for decades. Now it is the only leader in the global welding industry with an annual output of over one million tons. The material has met the design life requirement of 120 years in high temperature, high humidity and high salt environment, and has become the final winner of the welding consumables of Hong Kong-Zhuhai-Macao Bridge. In 2018, the market was in a downturn, and Jinqiao’s output value and sales revenue still achieved two billion yuan – zero inventories of products, and the output value was sales revenue.

“There were 1,000 supporting suppliers, and there were 2,000 sellers, with 5,300 employees. Jinqiao has not dared to rest for decades!” said Li Hongmei, director of Jinqiao Group Office.

The value of industry is based on time, and the value of industry will eventually be reflected in the upstream and downstream.

A set of data can prove that: in 2018, the Ministry of Commerce assessed 219 national-level development areas nationwide, TEDA ranked the first in industrial base and foreign investment, and ranked the second in comprehensive development; regional GDP increased by 8.2%. The three major industries including automobiles equipment and bio-pharmaceuticals have achieved double-digit growth; among the total production value of more than 250 billion yuan, the manufacturing industry accounts for 2/3; the majority of financing leasing and logistics in the service industry is also dependent on the manufacturing industry.

Innovation means high quality.

Sticking to it doesn’t mean stereotype or mindset of once and for all. Only innovation drives can continue to achieve high quality

"Hello, Motorola!" This voice has been remembered by the people of the country.

As the first large multinational company introduced by TEDA, Motorola has a production value of 80 billion yuan in TEDA. As the real economy gradually moves to the high end of the industrial value chain, the industrial pattern of TEDA has changed several times, and it has already bid farewell to the one machine (Motorola pager) and one bowl noodle (Master Kong instant noodles).

"TEDA is really doing business. It has to be one-minded and persistent, and it must be constantly innovated and upgraded." Zheng Weiming said, "The products of TEDA in the past 35 years are a fresh activity map of iterative real economy industry which is constantly moving towards high quality."

Entering the world's largest single instant noodle factory - Master Kong's third-generation flagship factory, a production line carries 19 independent innovations. “Twenty-five years ago, a production line of forty or fifty workers produced 240 noodles per minute. Now, as long as 16 people on a line, 500 noodles per minute are produced, and the manpower is reduced by 1/3 while the production capacity is more than doubled. "The factory manager Ning Gang counted the efficiency account.

It's not just efficiency that improves. Next to the flagship factory is the Master Kong Healthcare Experience Park. The big healthcare industry has started steadily, and the traditional one bowl of noodles is transforming into new flavors.

On the solar term of vernal equinox, everything is new. On March 21, the 37th anniversary of Toyota's entry into the Chinese market, FAW Toyota launched a new flagship model, the Asia Dragon, in TEDA. On the same day, the new FAW Toyota TNGA plant was completed, which also marked the successful introduction of the world's leading automotive manufacturing technology.

“TNGA is a brand-new concept created by Toyota. It breaks the production line manufacturing mode and adopts modular and intelligent technology. It is the development direction of the future manufacturing industry. For example, the automation rate of the welding shop reaches 95%; Solar panels have been laid to reduce carbon dioxide emissions by more than 10,000 tons per year.” Sun Fei, Party Secretary and Deputy Director of FAW Toyota New Factory, introduced. This is also the first TNGA new plant of Toyota Overseas, and FAW Toyota has started the Second Venture.

The real economy continues to innovate, forcing the public service and business environment to upgrade.

In 2018, the Tianjin Economic-technological Development Area revised and issued the Interim Measures for Promoting the Development of Advanced Manufacturing Industry and Subdivided Industrial Policies. At the beginning of this year, Tianjin Binhai New Area launched a new round of institutional reform: the original central business district was merged with TEDA, and the TEDA+ pilot free trade zone developed synergistically to inject new momentum into the real economy.

Not only in TEDA, but also in Tianjin, they promote the “1+10” action plan for the smart technology industry, and launch a special fund for smart manufacturing finance of 10 billion yuan. The new generation of artificial intelligence technology industry fund and project group of 100 billion yuan was established. In May 2018, the Tianjin Municipal Government issued the Policy Measures to Further Promote Supply-side Structural Reforms to Reduce Costs of Real Economy Enterprises, to use real money to help the real economy.

Tianjin's economic data for the first quarter was released:

The added value of industrial enterprises above designated size increased by 4.6%, among which the added value of high-tech manufacturing and strategic emerging industries increased by 6.4% and 5% respectively, and the value added of intelligent manufacturing accounted for nearly 30%. The output of new energy vehicles, balance vehicles, medical equipment, machinery and service robots increased by 22.7%, 84.2%, 70.9%, and 47.2%, respectively. The performance of high-tech new products was outstanding.

The more the rolling stone goes up the mountain, the more it is necessary to strengthen the force. One Base and Three Areas is the dignified positioning given to Tianjin by the Beijing-Tianjin-Hebei coordinated development strategy. The new kinetic energy continues to accumulate, and the high quality continues to increase. The advanced manufacturing R&D base on the shore of the Bohai Sea can be energized.

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