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The central development zone.
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The Lanyuan Hotel in the development zone.
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The green industry park in Shangrila Economic and Technological
Development Zone.
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The novel Lost Horizon, by British author James Hilton,
is set in Shangrila -- a mystical, peaceful land hidden in the
lofty mountains of southwest China. Hilton describes Shangrila
as a valley in Tibet, beautifully arrayed in snow-capped mountain
peaks, blue lakes and vast grasslands. Its inhabitants maintain
their spiritual serenity with the help of Shangrila’s lama
monasteries and nunneries, Taoist temple and Catholic church.
It is a place whose peoples of different ethnicities and religions
live in complete harmony with one another and nature.
After due geological and scientific investigation, in September
1997 Yunnan Province formally announced that Shangrila comes under
the jurisdiction of the Deqeng Tibet Autonomous Prefecture of
Yunnan Province. As the new millennium approached, Shangrila,
also known as the Chinese Garden of Eden, and haven of peace and
happiness, gradually began to make itself known to the outside
world. After several years’ tourism development, Shangrila
has now become the dream travel destination of thousands of domestic
and overseas tourists, and the objective of swams of investors.
Shangrila is the southern gateway of Deqeng Prefecture that leads
to the Tibetan inhabited regions of Yunnan. The Shangrila Economic
and Technological Development Zone, established in July 1994,
is 110 kilometers from the Shangrila county seat, between the
world-famous Hutiao (Tiger Jumping) Gorge and the First Bay of
the Yangtze River. National Highway 214 runs through it. The zone
is at an average altitude of 1,821 meters and has an average temperature
of 13.2 ºC.
“Establishing the Shangrila Economic and Technological Development
Zone was the decision of the Deqeng prefectural government. Its
purpose is to concentrate a number of advantageous enterprises
that will bring about new economic growth points and stimulate
the economic development of the prefecture as a whole,” explained
Xiao Jianming, director of the Shangrila Economic and Technological
Development Zone Administrative Committee and party secretary
of the development zone.
The zone has the advantage of a provincial-level development
zone preferential policy, as well as favorable policies applying
to the western regions and ethnic minority autonomous prefectures,
yet its development path has not always been smooth. The ban on
cutting down natural forests in 1998, the uncertainties of the
Hutiao Gorge Power Station project and the shortage of natural
resources in the area have all hampered outside investment.
The Deqeng prefectural government held three on-the-spot work
meetings in the development zone in August 2001, April 2003 and
February 2004 that further clarified the development path and
policy of the zone -- to make it lead industrial development in
the prefecture and act as a window on reform and opening achievements
in Yunnan Province. After these three meetings, construction of
the central district, agricultural park and green industry park
entered a new stage, and more investment came in.
The current, first phase of the development zone covers 4.37
sq km and is divided into three functional areas: the Sanjiacun
Comprehensive Function Central District, the Shangrila Green Industry
Park, and the Mubiwan Ecological Agriculture Demonstration Park.
Infrastructure construction in the central district and the green
industry park that guarantees sound public utilities is now complete.
It comprises advanced telecommunication services, a secure social
environment and a unified administrative system. The more than
50 industrial and business companies that have registered to operate
in the zone generate 90 percent of the total industrial value
of the prefecture. Organic green products such as dry barley wine
and walnut oil have been researched and developed in the zone,
and industrial development is proceeding at a satisfactory rate.
The Shangrila Economic and Technological Zone is fast becoming
the most attractive investment spot in the Tibetan inhabited region
and a notable local economic growth point. It constitutes the
second wing of Deqeng Prefecture’s economic development,
next to its tourism boom.
In recent years, Deqeng has been keeping to the development policy
of “relying on ecological conservation, promoting cultural
consciousness and strengthening industrial power.” The development
zone has taken various opportunities to create a good industrial
and economic environment that will attract more investment. Its
new methods of drawing well-known, successful enterprises to the
zone include the holding of regular domestic and international
exhibitions and fairs. The zone has also gone all out, on the
Internet and via other advanced technologies, to introduce itself
to the outside world. It has published various guides to tendering
and bidding for projects, and invited enterprise heads to come
and see for themselves the zone’s advantages. By the end
of 2005, there were 58 registered enterprises in the Shangrila
Economic and Technological Development Zone, five with a large
development scale. In 2005, the zone realized a total output value
of RMB 485.47 million -- an increase of 42 percent over 2004.
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