Huizhou's Economic Surge a Sign of Recovery

Huizhou, a city with a geographic region more than 13 times the size of New York City, is emerging as a new economic engine in the Pearl River Delta. Over the past three decades, it has contributed to China's astounding growth.

Although Huizhou has definitely felt part of the brunt of the global financial crisis, the city's economic figure in the first half of this year is among the most visible manifestations of an upbeat trend that is putting Huizhou on course to step out of the economic downturn. From January to June, the city experienced a 10.4 percent growth in GDP and saw a rise of 4.2 percent in revenues.

In order to lure international investment, the government is providing incentives such as tax exemptions and real estate discounts. At the same time, it is encouraging local companies to pursue a larger presence in the global market.

TCL, an electronics manufacturing company based in Huizhou, is a pioneer for Chinese companies who want to go global. It acquired French electronics company Thomson in 2003, the company that also sells appliances under the brand RCA in the United States, to form what would become the world's leading maker of TV sets that year. TCL said its net profit rose about 10 percent in the first half of this year after deducting proceeds from an asset sale.

"Although TCL encountered many difficulties in going global, the government will still encourage it and other companies to dabble in the overseas market," Li Ruqiu, mayor of Huizhou said Tuesday.

Having noticed that companies and factories classified as OEM (Original Equipment Manufacturer) have been hit the hardest throughout the financial crisis, the government has been working hard to give a boost to companies with their own brand.

While many other cities in China have failed to create a single major international brand, Huizhou has been following in the footsteps of Japan and South Korea with brand electronics exporters of its own – TCL in televisions, Mingyang in wind energy, Desay in electronic devices.

(Source: China.org.cn)