Shanghai Daily news

Shanghai Pudong Kangqiao Industrial Zone in Nanhui District plans to set up an information technology park within two years, an official from the zone said recently.
Output of the zone's IT industry is expected to account for 50 percent of its total output in 2007 with the launch of several research and development centers, production bases and information service institutes.
Three IT companies, which, according to the industria zone, are unwilling to reveal their names, have agreed to invest US$4 billion in total in the project.
Among them, a hardware manufacturer with US$1.5 billion is preparing to move its headquarters and a repair center into the zone.
"Neighboring the Pudong New Area, the Shanghai Pudong Kangqiao Industrial Zone, a city-level industrial zone, is able to compete with other zones by exploiting the edge it has in preferential tax policies and strong human resource support," said Shen Jiliang, the zone's administrative office director.
The Kangqiao Industrial Zone enjoys some of the same preferential tax policies as the Shanghai Waigaoqiao Free Trade Zone and its neighbor Zhangjiang High-tech Park also provides Kangqiao with plenty of well-trained technicians.
The auto parts industry, electronic and electrical industry as well as the new building material industry have dominated the zone in recent years.
The zone wants to move away from manufacturing, however, and become a technological leader by developing its IT industry. Its geographic location, near Pudong International Airport, should help to achieve that goal.
"The zone is attractive to IT investors, which mainly depend on transportation by air," said Shen.
China Telecom Co Ltd has invested 9 billion yuan (US$1.08 billion) in the zone to set up several facilities, including a data backup center, Website managing center and IT human resource training base, in 2002.
Industrial output is expected to hit 20 billion yuan this year, up from 17 billion yuan last year.
In 2004, contracted investment soared to US$427 million, up 86.2 percent year on year. Registered investment hit US$287 million, rising 60.8 percent year on year.
Administrative officials from the zone attributed the increase to companies expanding their investment in the industrial zone in recent years.
With a planned area of 26.88 square kilometers, the zone, which was set up in 1992, has developed 16.45 square kilometers of its land.
The zone will shut some unqualified enterprises while setting up a commercial center for more competitive companies, like Owens Corning Group, a US building material supplier and German-based Schneider Electric to set up their regional headquarters.
"We need to enhance the zone's development by restructuring its industries or we may lose the best opportunity," said Shen.