Mercedes-Benz, Nokia, GE, Mitsubishi, Schneider and Coca Cola have all invested in the Beijing Economic and Technological Development Area (BDA).
The 50 square kilometre business park now boasts more than 1,500 businesses, according to the director of the BDA's administrative committee Lu Yong.
In an exclusive interview with China Daily, Yong said: "So far, BDA is home to 59 of the World's Top 500 companies and by the end of last year the combined investment of all 1,596 enterprises in the area amounted to US$8.81 billion."
Lu pointed out that BDA's overall orientation is very clear. "Our advantages in green environment, co-existing structure of firms in the area and workshop facilities, means we will focus on constructing a telecommunications industry chain and turn the area into a world leading telecommunication industry hub," he said.
To achieve the goal, the administrative committee issued a series of favorable policies to telecom related companies, involving streamlined administrative procedures, preferential tax and land fees, as well as instigating infrastructure upgrades catering to the specific requirements of the telecom sector.
By the end of last year, over 100 telecom enterprises, around 90 per cent being overseas-funded, entered BDA. Around 45 per cent of overseas funding invested in the BDA comes from telecommunication firms.
Lu said that the BDA had established an integration development model.
The pioneering Nokia Xingwang Industrial Park was set up in 2000 to cater to the telecommunication giant's upstream and downstream manufacturers and service providers.
"Its integration development model facilitates the participants to reduce costs and enhance efficiency," said Lu, adding that in 2003 over 30 of the park's companies reached an industrial production value of 21 billion yuan (US$2.53 billion), accounting for 47 per cent of the BDA's production value that year.
Last December, Mercedes-Benz laid foundations for a new plant in the BDA, covering 19.8 million square metres. Following Mercedes' establishment a group of auto parts manufacturers and related companies contacted BDA about setting up plants there.
"The Shanghai Automobile Industry Corporation has signed a land-reserving agreement with us," said Yong. Though he declined to reveal details, Yong told China Daily the investment will be over US$50 million.
"BDA is on a sound development track," Lu added.
And the figures back up his claims:the BDA notched up a gross domestic product (GDP) of 12.7 billion yuan (US$1.53 billion) last year, up 33.25 per cent on 2003. Industrial added value reached 10.7 billion yuan (US$1.29 billion), a year-on-year increase of 40.63 per cent.
Export volume climbed 38.26 per cent from 2003 to US$2.2 billion last year, while the combined revenue of industrial enterprises rose 23.99 per cent from 2003 to 5.2 billion yuan (US$626 million).
