Zhangzhou, Port of Agriculture and Industry

By YU JIE & SUN CUIPING

Huayang Power Plant in Houshi District.

Zhangzhou Harbor.

A workshop operated by Tsann Kuen Co.

Zhangzhou in China’s southeastern Fujian Province has till now been known for its daffodils, but it is getting ready for a more profitable form of fame. Its almost completed port industrial zone at Xiamen Bay is expected to become one of the busiest in China. Just 12 years ago the area was scrub-covered wasteland, but now it boasts 240 companies from home and abroad, Xiamen University’s new campus, a golf course and star-rated hotels.

“Our goal is to build Zhangzhou into a strong city with a healthy environment, and elevate its status and influence on the western side of the Taiwan Straits,” says Zhangzhou’s party secretary Liu Keqing. Zhangzhou, with a population of 4.7 million, has long lagged behind other cities in East China’s booming coastal areas, but it has been catching up quickly in recent years. It has started to exploit its tremendous natural and geographical resources.

Modernized Agriculture

Zhangzhou is blessed with a mild climate and fertile soils. As an old saying goes, “Flowers in Zhangzhou blossom all year round, and trees bear fruit in all four seasons. Even a pole will grow into a tree when planted in Zhangzhou’s soil.” It is one of China’s key floriculture bases and Fujian’s largest high-yield quality strain green food base. It is a state-level Exemplary Zone for Export-oriented Agriculture and a Cross-Strait Agricultural Cooperation Experimental Zone. Many Taiwan farmers have established businesses in Zhangzhou. And in a recent evaluation of agricultural development, Zhangzhou scored above the national average in 12 of the 13 indices.

Zhangzhou boasts more than 500 enterprises and organizations that are engaged in the processing and trade of agricultural products, including aquatic products, flowers and tea. These organizations help advance agricultural industrialization, boost exports and increase local incomes. Zhangzhou has perfected its quality control procedures, and it supervises every step of the production process to guarantee only excellent-quality products go to market. Its locally produced products therefore sell well in foreign markets, and its oranges, waxberries and litchis are shipped around the world.

Its proximity to Taiwan has proved a blessing for the city’s efforts to modernize its agricultural industry. It has borrowed capital, crop strains, technology, equipment and personnel from the island so as to improve the quality and competitiveness of its produce. According to Mayor He Jinlong, Zhangzhou and Taiwan have similar natural conditions and agricultural structures. He says, “It has been shown that mutual cooperation in building an agricultural base improves our performance in both domestic and overseas markets.” To date, 118 locally produced products in 11 different categories have been approved to wear the “green food” tag. Exports too are surging – in 2005 alone Zhangzhou exported US $479 million worth of food products, a 22.39 percent increase over the previous year.

A Port City with Booming Industry

In 2002, Zhangzhou started to implement its strategy to “invigorate the city by building up port and industrial business. It enjoys great land and energy resources, including hydroelectric power that is harnessed from the Jiulong River and thermal power generated by Huayang, the country’s largest thermo-power plant with an installed capacity of 3.6 million kW.

Two national highways and three expressways run across Zhangzhou. What’s more, work is ongoing to complete the Zhangzhou sections of the Xiamen-Shenzhen Railway and the Longyan-Xiamen Railway and the Xiamen-Zhangzhou Bridge. In addition to these infrastructure advantages, low land, energy and labor costs in the city are also appealing to investors. There are currently 110-odd enterprises in Zhangzhou with investment topping US $10 million, including the Taiwan-funded Tsann Kuen Group (manufacturing) and Wanlida (high-tech).

Zhangzhou has now forged four pillar industries, namely food, machinery, materials and energy. Its three key industries are electronics, pharmaceuticals and furniture. Meanwhile, it is making rapid progress in the automobile and petrochemical sectors. Naturally, ports are pivotal to the economy of a coastal city, and Zhangzhou has 680 kilometers of coastline and a 120-berth harbor. The Zhangzhou harbors never silt up, are well sheltered from the wind, and have extensive lands behind them. The scheduled Houshi Port District in the eastern part of the city will include a deep-water harbor and 40 square kilometers of land, while the Gulei Port has 130 square kilometers of flat land.

Investment is starting to surge into Zhangzhou. Last year alone, it signed investment deals worth US $697 million, and actually received US $310 million, up 23.7 and 23.9 percent respectively over the previous year. These funds have turned the city into a massive construction site. The Huisman-Itrec Iron and Steel Project, with an investment of US $20 million from the Netherlands, has just broken ground. Two 100,000-ton docks will go into operation this September and seven more docks with a total investment of RMB 600 million will be completed in seven years. The city also plans to channel another RMB 15 billion into harbor construction over the next six years. The number of docks is increasing at a stunning speed – a new one appears every 21 months.

From Regional to Global Market

Zhangzhou is located between the Pearl River Delta and the Xiamen Special Economic Zone. It lies a mere 70 nautical miles from Taiwan. Some of Taiwan Island’s most famous party leaders have their roots in Zhangzhou, including Lian Zhan, Liu Xiulian, Jiang Bingkun and You Xikun. Earlier this year, Lian and Jiang visited Zhangzhou to worship their ancestors, making big news on both sides of the Taiwan Straits. Mayor He Jinlong says, “These days, the trend is that developed regions transfer some industries to less developed regions, and the improved Cross-Strait relations have made this easier between Taiwan and Zhangzhou. We will ardently participate in regional work division and collaboration, and build ourselves into a base of economic and trade cooperation across the Straits, a manufacturing base and a supplier of high-quality food.”

Economic ties between Zhangzhou and Taiwan have been promoted through the Zhangzhou-Taiwan Economic and Trade Conference, the China (Xiamen) Investment and Trade Fair and the Cross-Straits (Zhangzhou) Flower Expo. Many of Taiwan’s top 100 companies, such as Taiwan Plastics Group, Ton Yi Industrial Corp., Taisun Group and Tenfu Group, have set up factories in Zhangzhou, and there are 811 Taiwan-funded agricultural projects in the city. “When we plan Zhangzhou’s growth, we must view it from the prospect of the whole region, and, moreover, we should target the global market,” mayor He proclaims.

Zhangzhou Port.

The thousand-year-old Sanping Temple.

Zhangzhou Flower Expo.

High Quality, High Speed and High Efficiency

In 2002 Taiwan white goods producer Tsaan Kuen expressed its intention to boost its investment in the mainland. In March that year, company president Wu Tsaan Kuen came to visit his ancestral home in Zhangpu County. When the then Zhangzhou mayor heard of his arrival, he decided to track him down. The mayor rushed to Wu’s hotel, only to find that he had set off for a machine plant. By the time the mayor reached the plant, Wu had already left for Zhangpu. The mayor then hurried to the road for Zhangpu, where he waited almost three hours in the sweltering heat for Wu’s return. The mayor eventually met Mr. Wu, and impressed him with a sincere welcome.

Once the investment agreement was reached, the city took just 248 days to construct a modern factory with 28 workshops and 180 assembly lines. The factory reported an output value of more than RMB 4 billion in its first year of operation, and has since grown at an amazing rate. Wu Tsaan Kuen credited this to the outstanding teamwork of local government: “I have been investing in the mainland for 16 years, and have investment projects around the world. But I have never seen such efficiency before. Without the hard working local officials, the group could not have set up its booming branch so quickly.”

Mayor He’s response to the commendation was logical enough. He said, “We started later than neighboring cities, so we have to work harder and faster to make up for lost time.” The city puts similar efforts into each and every project in its territory. Says He, “We are hospitable and supportive to investors, and we help them to make more money.” And Zhangzhou ranked third in a poll by Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) rating investment environments of mainland cities.

When he took his post, the city’s party secretary Liu Keqing demanded that his staff guide and supervise locally based enterprises to eliminate problems before they occur. “In this way, investors can fully concentrate on their business and its expansion,” explained Mr. Liu.

Splendid History, Culture and Landscape

The city is drenched in historical and cultural heritage. In its old quarter the streets are bestrewn with porched buildings and stone archways, and each tells an ancient story. In the nearby Hua’an County is the Eryi Compound, one of China’s ancient residential gems. A wealthy local merchant named Jiang Renxiong built the earthen amphitheatric residence in 1740. His descendants still live there. It was given the name Eryi (meaning “good for both”) because it is situated beside pleasant mountains and rivers, it has great sights both inside and outside, and it makes a cozy home for the entire family clan as well as each household.

The compound has a complete sewage system and ingenious defense posts, demonstrating the wit and skills of its architect. Meanwhile, the square Hegui Compound in Nanjing County is the highest mud castle in China, and the cluster of amphitheatric mud compounds in Tianluokeng Village resembles plum blossoms in the lush green mountains when viewed from above. Zhangzhou has asked UNESCO to consider these ancient mud buildings for world heritage site status.

In Zhangpu County is China’s best-preserved example of a royal family mansion – the Zhao’s castle. The descendants of the Song Dynasty built it during the Ming Dynasty. Hidden as it is behind a chain of steep mountains, it remained unknown to the outside world until the 1980s. In 2002, the Zhangzhou Expressway was built through the mountains, allowing thousands of tourists access to this ancient castle. Though it is 2,000 years old, and somewhat dilapidated, it is still permeated with a palpable air of nobility. Then there is the thousand-year-old Xianzitan cliff carving in Huaan County, and the Sanping Temple in Pinghe County. The latter is the most-visited religious sanctum in Fujian Province – it receives thousands of pilgrims each year.

The Zhangzhou Volcano Geological Park is the site of a rare submarine volcano. At the estuary of the Zhangjiang River in Yunxiao County is a state-level reserve of sharpleaf mangrove forest wetland. The groves are partially submerged during the flood season. Hailed as the Hawaii of the Orient, the Dongshan Island is a famous summer resort. Visitors will realize it is worthy of the title the moment they set foot on its silver soft beach, with the ageless emerald ocean in front of them. While the ocean remains unchanging, Zhangzhou City certainly doesn’t.


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