By YI FAN

Located in southwestern Shanghai, the Shanghai Minhang Economic & Technological Development Zone has emerged as a superior development zone with a favorable environment for foreign investors to work and establish businesses. Among the first 14 national development zones in China designated by the State Council in 1986, Minhang Development Zone covers 3.5 square kilometers in Puxi old city. One of the benefits of being near Shanghai's flourishing banking industry is its proximity to Pudong New Area, across the Huangpu River.

Ni Hong, director of the general office of the Minhang United Development Co. in charge of the development zone's construction and management, said, "Top priority has always been given to investment environment improvement in recent years. With the construction of ecological park and Xinmin light rail, the establishment of the Foreign Investment Service Center, and the obtaining of ISO14000 environmental attestation, it is sure to attract more foreign investment."

Two major factors may be attributed to the zone's success: the Xinmin light rail and the Minhang Foreign Investment Service Center. The Xinmin light rail operation has greatly improved the development zone's communications, and it is currently planning to transform 650 mu (43.3 hectares) of undeveloped land into an ecological park.

In August 2002, the Minhang Foreign Investment Service Center was established with the goal of satisfying investors' demands. This environmental optimization has attracted more and more investors, including American Johnson & Johnson Co., which moved its Asia-Pacific headquarters to Minhang, and built a "Johnson & Johnson city" in the area.

The Minhang Development Zone has taken several measures towards industrial restructuring. It attaches equal importance to foreign investment introduction and top 500 transnational company development, combining the zone's development with Shanghai's industrial restructuring. Three characteristic industries have been formed during the restructuring: mechanical and electrical equipment emphasizing track communication, light industry products focusing on beverages and food, and modern bio-pharmaceutical technology.

By June 2003, the Minhang Development Zone had attracted 158 projects, making the total investment value more than US $2.226 billion. Forty famous transnational companies, 29 of which are among the top 500 transnational companies, have settled in the development zone, including Johnson & Johnson, Coca-Cola, Pepsi-Cola, Bristol-Myers Squibb, Actuant China Ltd., Alstom, Saint-Gobain, Michelin, Unilever, Siemens, Mitsubishi, and Fuji-Xerox.

A good investment environment has brought satisfactory economic returns. By the end of 2002, the Minhang Development Zone had realized sales income of 19.8 billion yuan, profits of 2.23 billion yuan, and per square kilometer sales income topping every other development zone in China.