-------- Race between Shanxi and Zhejiang Businessmen in Retreating All the Capital from Industrial Investment

 

Along with continuous boost of national industrial regulation, resource integration as well as the development of emerging industries, Shanxi private capital has retreated from the coal industry in succession whilst Zhejiang and Wenzhou private capital from the real estate and finance industry. They are starting to divert to agriculture, step into high-tech, or develop cultural industry as well as involving in TV& Movie industry etc., which present a state of “All flowers bloom together” and create a new chapter of the transitional development of “Post-Integration Epoch”.

　

Xiaoyi City, Shanxi Province is a well-known coke producing area in China. The coal-related economy accounts for more than 50% of its GDP and the entire financial revenue. Nowadays, the number of coal bosses in Xiaoyi has sharply declined because most of them have been retreating from the coal industry gradually to seek transition. Some of them turn to agriculture while others divert to small amount financial loans; however, some people are still “burning the money” but by investing the money in projects of cultural industry and high technology instead of coal industry.

 

Collaborate with Overseas PH.D Returnees to Create the “Silicon Valley” of Photoelectricity

 

In the exhibition hall for Lebelight LED energy saving lamps, all sorts of lamps which demonstrate the advanced level in the world could be found: such as the high-performance space light source accompanying Chang’e II to the space, the LED energy saving lamps illuminating the Great Hall of the People, lamps for miners with positioning system as well as lamps exclusively used in Shanxi Pavilion of Shanghai Expo…

 

As one of the typical projects for the transition of Xiaoyi City, the project of Lebelight LED energy saving lamps were jointly invested and constructed by Wu Yong’an, an overseas PH.D returnee along with Xiaoyi Golden Rock Group.
　　　　

Create New “Rome” by Taking Advantage of Innovative and High Technology

 

Innovative and high technology industry was once the focus point of the “coal bosses” in the past. The Deputy Manager of LED Photoelectron Industrial Park of Changzhi City, Li Jianming, who used to invest in the coal industry for quite a long time, has been seeking a new field to invest after the reshuffle, merger and reform of the coal mine enterprises. In 2009, he found the investment orientation when Changzhi City launched the programming for the development of photoelectron industry.

 

“On the feasibility and market potential of the industry, the government made a great many research in the earlier stage , which saved a great deal of fund and time for the enterprises. Since the government encourages us to divert into high technology industry, it is just good for me to make use of the opportunity to choose a new path.”

 

Splendid Transition from “Black Coal” to “White Wine”

         

In Lvliang City, another main coke producing area in Shanxi, several coal bosses who possess idle funds as much as 40 billion Yuan, has been looking for new field for investment as well. From this year on, by relying on the traditional advantage of Fenjiu Group- the largest producing area of faint scent white wine in China, the local area intended to prepare for three years to build a 50-thousand-square meter concentrated development zone for wine industry.

 

Amidst the 5 billion Yuan invested into the Phase I of the project, half of it came from the idle fund of the coal bosses from adjacent counties like Liulin and Zhongyang. The transition from “black coal” to “white wine” could be measured up to a “great action” in capital transition.

 

Beautiful Scenery of Shanxi shall be More Charming after Transition

 

That the coal enterprises in Jincheng City diverted their focus to tourism was an ideally significant transition, thereby bringing the transformation of development mode. In recent years, the capital alone, which was directly switched from other fields and invested by coal mine enterprises to tourism development, amounted to 2.2 billion Yuan. 

 

Manghe scenic spot is one of the typical projects. This scenic zone with Xiyeshui Hydropower Station and hotel industry, constitute jointly the transition project of “Underground to Over ground and Black to Green” of the enterprises.

Have another look at Wenzhou. Since the industrial investment weakens and the situation of industrial hollowing out became so widely reported, even CCTV program Today has made exclusive report, paying close attention to the transition of Wenzhou economy. Is it real that Wenzhou industry encounters the bottleneck in development and the private enterprises are unwilling to stick to industry?

 

Though part of Wenzhou merchants retreated from the real estate, coal and financial investment sector, a lot of Wenzhou entrepreneurs still hold their ground in industry; in the meantime, they have also been exploring numerous new fields as well.  

 

Innovative and High Technology Industry Enjoys Unique Perspective

 

Amidst the innovative and hi-tech innovation park of Wenzhou, Zhongguang Technology has striking characteristics-its boss, Liu Shunfeng used to be a young boss selling electronic components in Wenzhou. When he took fancy to a brand new ferrule, he showed no hesitation to borrow loans of 10 million Yuan and invested into the research and development of ferrule named “zirconia ceramic ferrule”. It is the core junction block in the emerging industry- optical communication.

 

Before he engaged in the products, only a few Japanese enterprises had monopolized the technology. Having started his business with the products in Zhangjiagang, Jiangsu Province, Liu Shunfeng went back to Wenzhou under the support of superior departments such as National Development and Reform Commission as well as Ministry of Industry and Information Technology to sign contract with Wenzhou Economic and Technological Development Zone, which planned to invest 1.2 billion Yuan to build research, development production base for opticalcommunication

series.

 

After the project go into operation, it is expected to reach annual production value of 10 billion Yuan within five years. The advent of Zhongguang Technology makes many Wenzhou entrepreneurs understand the optical communication, which is a brand new industry for telecommunication network, broadcast television and internet service.
 

Photovoltaic Industry -“The Wing of the Sun”

 

Being the low-voltage apparatus manufacturing enterprises with largest production and sales in China in the past, Wenzhou Zhengtai Group Corporation Co., Ltd organized a research team named “Dream Team for Solar Energy ” in order to realize industrial transition, which managed to master the second generation hull cell technology successfully and filled in the gaps of domestic solar energy industry.
 
As the newly emerging industry related to “optics”, LED industry has developed so rapidly in Wenzhou in recent years that it has been called “explosive growth”. Their manufacturers are mostly from the traditional industry of Wenzhou but frequently make their appearance in the leading edges such as Shanghai Expo and Project 863 etc. In 2010, the cultivation plan for LED industry in Wenzhou has been unveiled, aiming to realize the objective of reaching sales revenue of 15 billion Yuan in four years. 

 

Film and TV Investment became the trend

            

The movies releasing period during National Day Holiday in 2010 turned to be the golden time for Wenzhou movie investors: The Legend of Chenzhen invested and filmed by Wenzhou businessmen was selected as the movie for opening ceremony in Venice Film Festival; and the children’s drama A Secret Order Crossing the Time was selected as the representative works on behalf of China dramas to attend the 26th French Cannes TV Cultural Festival from October 4th-8th and recommended to the globe by Cannes.

 

Virtual Recall invested by Wenzhou businessman Li Jianping was on show in last October. He remarked, “China movie market is getting popular with each passing day; in addition, the movie is a kind of entertainment products with both business opportunities of sunrise industry and social influence. To march into the cultural industry demonstrates the upgrading of Wenzhou businessmen’s vision and height.”

 

Go to Xinjiang, Yunnan and Guizhou One after Another to Invest in Mineral Products

 

Since the second half of 2010, the number of delegations to Xinjiang form Wenzhou has rapidly increased and surveyors were quite interested in the abundant reserve of local metal mines, coal mines and jade mines, thus establishing large scale mining group in succession in the local area.   

 

For the ideally transition of businessmen, there is a vivid statement, saying that the bosses in the past “competed to buy luxurious cars and large houses” while the ones “are organizing groups to seek projects for changing the line of production” nowadays. Since Chinese government departments made the best use of the circumstances to lead the capital advantage of businessmen and passion of re-innovation to the step of optimization and upgrading of local industry, a win-win situation has been achieved currently.
 
More and more private enterprises in China has boosted the industrial upgrade positively, diverted the development mode with great effort and turned to non-resource based industries, such as equipment manufacturing, energy conservation, environmental protection, electronic information, biologic pharmacy, modern agriculture as well as cultural travel, thereby springing up a multitude of typical examples of transitional development.