Shanghai Daily news

Zhabei District has moved a step closer to its aim of creating an international multimedia incubator, with the completion of the first phase of Shanghai Multimedia Valley.
The project incorporates multimedia sectors such as graphic design, software development, advertising media and system integration.
The core area of Multimedia Valley is on 46 hectares of former factory land opposite the Daning Greenland.
The first phase, completed at the beginning of the year and covering 6.67 hectares, is composed of Shanghai Multimedia Industry Mansion and several houses. About 30 multimedia enterprises have established there.
"The valley is in its early stages, but it will ultimately grow into a pioneer in the research and development of multimedia industry, not only in China, but probably in the Asia-Pacific region at large," said Yang Jun, senior engineer from Shanghai Multimedia Valley Lead Group Office.
Taking advantage of its geographic location and solid foundation of machinery industries, Zhabei District has designed its future economic development to make it a modern transport and commercial area.
The Shanghai Multimedia Valley is part of the district's blueprint.
"We hope the number of multimedia enterprises will grow to 150 by the end of 2007, including 30 with registered capital over 10 million yuan (US$1.2 million). Output from the valley is expected to exceed 2 billion yuan by then," Yang said.
 "The leading multimedia companies in the world are our main target and we are in talks with some big names."
To foster the multimedia industry, the valley has announced a series of supporting policies.
Small to medium-sized enterprises, judged by the tax they contribute, can get government subsidies in their start-up period.
Projects using initialized technology certified by the State Ministry of Science and Technology can also get government funds.
Yang emphasized the district's professional "one-stop" service as an important measure to entice investors. The free service includes company registration, tax payment and credit guarantees.
Chen Yiming, professor with Shanghai University's Multimedia Applied Technology Research Center, said the concentration of firms and supporting institutions is beneficial.
"The transfer of resources, knowledge and information among them enables firms readily to adopt techniques and procedures for increasing productivity - the key to competitiveness in the global market," he said.
Zhang Shouxuan, general manager of Shanghai Daning Net Co Ltd, said multimedia firms often cluster in traditional industrial spaces around the central business district.
"The middle part of Zhabei is the right location with a modern traffic network and a large greenland," he said.
Yang said the city's biggest commercial and cultural center - Shanghai Daning Commercial and Cultural Center - is under construction next to the Daning Greenland, which will lure more investors.