Industrial Characteristics of GuangDong

During the ??11th Five-Year Plan?? period, Guangdong will follow the guideline of strategic adjustment of industrial structure, and concentrate on improving industrial competitive capacity in an attempt to establish an industrial pattern led by high and new technological industries, supported by pillar industries, and coordinated by prosperous service industries. Every industry is brewing business opportunities and will bring to investors better development and rich rewards.

I.Manufacturing

Guangdong is one of the leading manufacture provinces in China. In recent years, Guangdong Provincial Committee and Provincial Government have unveiled in succession fresh policies on how to restructure industries, enhance industrial competitiveness, and make a plan for developing nine pillar industries, with a purpose to give more support to pillar industries, and rationalize the whole structure of industries.

Now, the nine pillar industries, including electronics and information, electric appliances and machinery, petrochemical, textiles & garments, food & beverage, construction material, paper making, pharmaceutical and automobile, are playing an increasingly predominant role in economic growth. The 3 growing industries, namely, electronics and information technology, electric appliances and machinery, and petrochemical witness a strong momentum of growth. The 3 traditional industries, namely, textiles and garments, foodstuff and beverages, and construction materials, maintain a stable development. The remaining 3 potential industries enter a stage of fast development and better structure. In 2006, the 9 pillar industries achieved a total increased value of RMB 772,721,000,000 yuan, up 21.2% over the previous year; the increased value of the above-scale industries was enhanced, taking up 72.1%.

1. Electronics and Information Industry

With electronics and information industry having the largest scale in Mainland China, Guangdong has become one of the most important bases of IT products in China, even in the world. In 2006, electronics and information continues to take the leading place among all pillar industries, as an important force to fuel economic growth. More than 20 enterprises in the province have ranked among the top 100 electronic enterprises in China.

A series of electronics and information products with competitive abilities have come into being: as for the manufacturing of communication equipment, stored-program control exchanger and optical communication product are preponderant in terms of cost performance; in the field of manufacturing electronic parts, color tube and discrete part chip are among the most competitive in the country; in manufacturing electronic components, PCB and SMT take a crucial position in China; in software industry, embedded software products account for over 50% of the Mainland China.

Concentrated on the Pearl River Delta Region, particularly on Shenzhen, Guangzhou, Dongguan, Huizhou, Foshan and Zhongshan, a famous ??corridor of electronic and information industry?? has taken shape.

Goals of Development: By 2010, the industrial output value of the whole province reaches RMB 2,250 billion yuan, up by 21% annually on average. Micro-electronics, software and new-type parts & components will become the dominant products in the industry, as the result of that industrial structure will be further optimized. In 2006, electronics and information will turn into the first industry with the output value over 1,000 billion yuan in Guangdong Province.

Emphasis of Development: Emphasis is laid on the construction of 7 major manufacturing bases.

2. Electric Appliance and Machinery Industry

A cluster of electric appliance and machinery industry has already come into being. With a series of competitive products of favorable market share, it centers on Guangzhou, Shenzhen and Foshan, cities with relatively good grounding in equipment manufacturing, radiates to the Pearl River Delta, and drives forward the development of east and west wings of the province.

The benefit growth of Guangdong??s machinery industry keeps climbing; market abroad further expands; the pace of new-product-development is quickened; the economic efficiency of a number of key enterprises witness noticeable increase; the export of products ranks the first in Mainland China; the total value of industrial output also comes out top in Mainland China.

Guangdong??s household electric appliance industry proves to be important in the whole country, being a key export base in China, also in the world. Because of great varieties, well-developed supporting system, good quality of products, along with creativity in developing new products, for a long time, Guangdong has remained the leading position in the country in terms of production, export and competitiveness of household electric products. In the field of audio and visual equipment manufacturing, the competitiveness of color TV, laser disc player and hi-fi system, all ranks the first in China.

When the household electric appliance industry develops into a mature stage, it successfully cultivates a number of key enterprises and famous brands with high reputation, for instance, Gree and Midea in air-condition manufacturing, Kelon in refrigerator, Galanz in microwave oven, and TCL and Konka in color TV, are Guangdong??s famous brand. A cluster of household electric appliance industry, along with export-products processing area, has formed in the Pearl River Delta Region.

Goals of Development: By 2010, the industrial output value of the whole province will reach RMB 210 billion yuan, with an annual increase of 10% on average. Guangdong??s home appliances industry will upgrade itself from a global manufacturing base to a global manufacturing center as well as a global marketing center, and head for becoming a global design center. By 2010, the industrial output value of the whole province will reach RMB 700 billion yuan, with an increase of 20% annually on average. The gap between the overall product technical level of Guangdong and that of the industry-developed countries will be shortened to 5 years. An industrial system will be formed with comparatively complete industrial support and featured products of distinct advantages. It is expected to optimize the structure of enterprises and foster a couple of large-scale flagship enterprises of strong competitive capacity.

Emphasis of Development: Emphasis is laid on the construction of 3 big industrial bases-Shunde, Zhongshan and Nanhai will be the main manufacturing base of the high-grade home appliances product. And Shenzhen and Dongguan will be the main manufacturing base of the exported home appliances product, the economical-type home appliances product manufacturing base will located in western Guangdong, where Zhanjiang and Maoming are.As the 3 core regions of machinery, Guangzhou (mainly Nansha), Shenzhen and Foshan will play leading roles in equipment manufacturing in the Pearl River Delta Region, and will boost the development of Eastern Guangdong??s (Shantou and Jieyang) light-industry machinery industry and Northern Guangdong??s (Shaoguan) machinery industry.

3. Petrochemical Industry

The total petrochemical amount of Guangdong province is in the van of Mainland China. Main products, such as crude oil, three finished oil (gasoline & kerosene & diesel oil), ethylene, synthetic resin, architectural coating, rubber shoes, all rank the first three in the country. In 2006, this industry maintained a stable growth.

Petrochemical companies are mainly located in Maoming, Guangzhou, Huizhou and Zhanjiang. Maoming Petrochemical Corp., Guangzhou Petrochemical Corp. and Zhanjiang Dongxing Corp. are the backbones of Guangdong??s oil refining industry. The first two companies are also famous for ethylene production. In 2005, after two petrochemical programs (one processing 12 million tons of oil refining annually, the other producing 0.8 million tons of ethylene annually) been constructed and put into use, Huizhou becomes the third oil refining center of Guangdong Province.

China Petroleum & Chemical Corp., China National Petroleum Corp. and China National Offshore Oil Corp. have already regarded Guangdong as a key place to develop their business. This is a terrific chance for Guangdong to develop its refining oil on the upper reaches of the Pearl River, at the same time drive forward petrochemical industry on the lower reaches.

Goals of Development: By 2010, the industrial output value of the whole province will reach RMB 730 billion yuan, with an annual increase of 20% on average. The output capacity of oil refining, ethylene, aromatic hydrocarbon, five types of all-purpose resins and pure terephthalic acid (PTA) will reach 63 million tons, 4.4 million tons, 3.4 million tons, 5.5 million tons and more than 2 million tons respectively. The percentage of the fine chemicals will reach 45%. It is anticipated that in 2020, when China will have generally realized industrialization, the petrochemical industry will still keep growing at a rapid rate. The output capacity of oil refining is expected to reach 100 million tons, and ethylene production to reach 6 million tons, which will put Guangdong??s petrochemical industry in a leading place in China and turn Guangdong into one of the major petrochemical bases in Asia.

Emphases of Development: Emphasis is laid on the accomplishment of 5 major refinery projects (refinery enlargement of Sinopec (they are: China Petroleum & Chemical Corp.) Guangzhou Company, refinery enlargement of Sinopec Maoming Company, refinery enlargement of Sinopec Zhanjiang-Dongxing, newly-built CNOOC (China Offshore Oil Corp.) Huizhou refinery Project (they are: 12 million tons per year), newly-built refinery equipment (20 million tons per year) ), 5 major ethylene production projects (they are: enlargement of Sinopec Maoming-Ethylene, expansion of new equipments of Sinopec Guangzhou-Ethylene, petrochemical complex of CNOOC & Shell in Huizhou-South China Sea petrochemical ethylene project ( 800 thousand tons per year), newly built Shantou ethylene project, newly-built ethylene equipment (2 million tons per year) ), and 5 major petrochemical bases (they are: Huizhou-Daya Bay petrochemical zone, Maoming-Zhanjiang coastal heavy chemical industrial belt, Guangzhou petrochemical base, Yamenkou coastal heavy chemical industrial belt and Shantou-Jieyang coastal chemical industrial base).

4. Textiles and Garments Industry

Guangdong is an important producing and exporting base for China??s textile industry; it is also the third largest exporting base of garments in the world. Guangdong??s textile takes the leading place in China in following aspects: variety, quality, brand, total value of industrial output and amount of sales. In 2006, Guangdong??s garment & textile industry developed fast with an export volume of USD$ 28.71 billion, increasing by 16.3%.

Developing in cluster is a main feature and a source of competitiveness of Guangdong??s textile industry. The producing process is small-scaled but refined and specialized, each sector coordinates harmoniously. Sportswear in Zhongshan, garments and knitting goods in Dongguan, surface fabric, knitting goods, children??s garment and underwear in Foshan, shirt in Puning, all enjoy high reputation both at home and broad.

Such clusters concentrate on over 40 cities and towns in the Pearl River Delta region, including Guangzhou, Shenzhen, Foshan, Zhongshan, Dongguan, Shantou, Jiangmen, etc.

Goals of Development: By 2010, the industrial output value of the whole province will reach RMB 280 billion yuan, up by 8% annually on average. The adjustment of industrial structure will achieve substantial progress. A system incorporating product development, production management, and market service will take shape, which is with advanced technology and equipments, and of strong international competitive capacity. The textile product quality will be in a leading place within the scope of the whole country. the textile industry will develop in harmony with both the social economy and environment.

Emphasis of Development: stressing on accelerating the development of textile industrial clusters, constructing and improving 4 major bases (they are: Zhongshan City, Dongguan City, Kaiping City and Puning City), as well as 15 featured towns. focusing on strengthening enterprises?? research & development capacity and self-innovation capacity, constructing an industrial innovation platform for sustainable development, and bringing into full play the comprehensive advantages of the industrial clusters.

5. Food & Beverage Industry

Guangdong is a big producing and exporting province among China??s food and beverage industry. It pays much attention to technical improvement, and also to the introduction, digestion and absorption of foreign advanced techniques, thus guarantees good quality and high level for its foodstuff industry. Some products, for example, beverage, baked & roasted food, health product and condiment, are always in the lead in China, possess obvious advantage, and have a number of famous brands.

Guangdong has implemented the strategy of famous brand in the industry of food & beverage. The industry has begun to benefit from its large production scale, and has realized the in-phase growth of both the output value and the profit. Both the Zhujiang Beer and the Kingway Beer are honored the ??Chinese Famous Brand??. By means of integration and adjustment, the industry has formed production of scale in beverage, beer and juice, becoming one of the pillar industries in Guangdong, which is worthy of the name.

Goals of Development: By 2010, the industrial output value of the whole province will reach RMB 260 billion yuan, up by 12% annually on average. Guangdong??s foodstuff industry will take up 10% of the national market; and at the same time it is still seeking for its way to increase the export volume. Guangdong will foster and develop a number of world-known brands and modern foodstuff industrial enterprise groups; it will also boost the development of the medium and small-sized enterprises towards ??high-quality, specialization, refinement, feature, novelty??.

Emphasis of Development: Emphasis is laid on the construction of 4 principal engineering projects (they are: safe foodstuff engineering, green foodstuff engineering, functional foodstuff engineering, feature foodstuff engineering) and 9 large bases (they are: meat processing base, instant food & functional food base, beverage manufacturing base, aquatic product processing base, fruits & vegetables storage, transportation and processing base, condiment producing base, sugar refining base, baking & sugar product base, food additive base ).

6. Construction Materials Industry

Guangdong is a province with strong construction material industry. The economic aggregate of this industry top the highest level in the country. In 2006, the increase rate of the industry of construction materials reached 30.8%. The great varieties of products and strong supporting system make it a pillar industry in Guangdong.

A number of product concentration areas, which have their own features and are influential at home and abroad, have come into being. These products include ceramics of Foshan, architectural coating of Shunde, aluminum profile of Dali, sanitary ware of Chaozhou, stone of Yunfu, and water heating equipment & sanitary ware of Kaiping.

Construction material in Guangdong is rich in variety and quick in new product development. Especially its decorative material tops the other provinces, very beneficial to enhance the competitiveness of the industry.

The industry in Guangdong enjoys a high level of privatization and market maturity. With further development of export-oriented economy and more vigorous export trade, the export value of construction material accounts for 30% of the total amount of Mainland China, tops all the other regions in China. In recent years, the export value of construction ceramics (knock-out product in the province) has kept an annual increase of 70%. Among Chinese famous-brand ceramic companies, there are 8 in Guangdong; which shows strong capacity in expanding the market and enhancing market share.

Goals of Development: By 2010, the industrial output value of the whole province will reach RMB 150 billion yuan, up by 8% annually on average. ??Four Centers?? (ie. world??s pottery & porcelain manufacturing center and brand center, national modern, new-type construction materials manufacturing center, national new-type construction materials development center, national construction materials trading center) will be built up. In 2010, the anticipated output capacity of dry cement of the whole province will reached 70 million tons per year, taking up 60% of the total output capacity of cement.

Emphases of Development: Emphasis is laid on 4 principal sectors, namely, pottery & porcelain, cement & concrete, glass, and new-type construction materials. The industry will concentrate on constructing 2 core regions of pottery & porcelain industry (Foshan and Chaozhou) and 3 major bases of clinker cement (with a total scale of 85 million tons), among which Western Guangdong (mainly Yunfu) accounts for 30 million tons, Northern Guangdong (mainly Yingde) for 30 million tons, eastern Guangdong (mainly Meizhou and Longmen) for 25 million tons.

7. Paper Making Industry

Guangdong??s paper making industry has played an important role in the country. At present, the only state key lab of pulp and paper industry and state research center, which combines the process of production, study, scientific research, and trade together, is established in Guangdong.

With subtropical warm and wet monsoon climate, most areas in Guangdong are abundant in rain, very suitable for artificial fast growing forest. Therefore, not only water resource but also fiber material resource needed by paper making industry, is truly guaranteed. In recent years, foreign investors flock into Guangdong to invest in lumber production and paper mill.

Guangdong has initially formed a papermaking cluster, with the Pearl River Delta as its center. It mainly includes Guangzhou, Dongguan, Foshan, Jiangmen, Zhuhai, Shenzhen and Zhanjiang; 80% companies of the province gather here. Guangdong??s paper making industry is entering a stage of mass production, and has built up a group of famous companies.

Guangdong is stepping forward toward a big province of paper making industry, potent in scope, equipment, efficiency, technique, quality and management. It aims to produce 11 million tons of paper and cardboard, 0.85 million tons of pulp commodity in 2010

Goals of Development: By 2010, the industrial output value of the whole province will reach RMB 110 billion yuan, up by 15% annually on average. The total output will reach 25 million tons, of which pulp accounts for 8 million tons, paper & cardboard for 11 million tons, other paper products for 6 million tons. The environmental protection standard is expected to reach the international advanced level, the energy waste for per ton of paper will be lower to less than 0.85 ton of standard coal, and the water waste for per ton of paper will be lower to less than 30 tons.

Emphasis of Development: Emphasis is laid on constructing three major bases, (they are: Zhanjiang paper pulp manufacturing base, Dongguan paper product base and Jiangmen-Yinzhouhu paper industrial base) and 6 key product sectors (they are: packing cardboard, newsprint , household paper, office paper , pulp and other paper products).

8. Pharmaceutical Industry

Guangdong??s pharmaceutical industry is eminent and ranks at the front of Chinese provinces. Its traditional medicine, chemical-pharmaceutical preparation and bio-pharmaceutical product take the leading place in China. Some medical equipment with advanced technology has advantage of competitiveness. In 2006, the increased value of the Pharmaceutical industry gained a tremendous increase, up 19.7%.

Guangdong??s pharmaceutical industry is more concentrated than average level, prominent in market scale and industrial restructuring. A complete industrial system, including chemical pharmaceutics, Chinese traditional medicine, biological pharmaceutics, medical equipment and medical business, has initially come into being. There are a number of large-scale medical and pharmaceutical enterprises, which play an important role in China??s pharmaceutical economy.

Guangdong has made big progress in chemical-pharmaceutical preparation. With rather strong competitiveness in developing and selling new types of this preparation, it keeps ahead in this field among China. Chemical-pharmaceutical enterprises, such as Shenzhen Kexing Biotech Co., Ltd, Kangtai biological products Co., Ltd, Guangdong Techpool Bio-Pharmaceutical Co., Ltd., and medical equipment enterprises, such as Shenzhen Anke High-tech Co., Ltd, Maidray Co. Ltd., are all competitive in their own trade.

Goals of Development: By 2010, the industrial output value of the whole province will reach RMB 80 billion yuan, up by 18% annually on average. It is expected that there will be 10 products in all with a respective sales value of over RMB 1 billion yuan, and 50 with a respective sales value of RMB 500 million yuan, counted on the basis of a single product in a single enterprise. The industry will develop 5 to 8 modern TCM (Traditional Chinese Medicine) products of our own intellectual property and 2 to 3 TCM products with international certification to enter the international drug market, and particularly support 15 Daodi Chinese medicinal material bases of GAP standard.

Emphasis of Development: Emphasis is laid on constructing 5 major pharmaceutical industrial bases/parks. (they are: Guangzhou national bio-Pharmaceutical industrial base, Shenzhen national bio-technology and pharmaceutical industrial base, Foshan high and new technology industrial development zone-medicine and health industrial park, Zhongshan national health technology industrial base, Zhuhai bio-medicine technology industrial park), and accelerating the advancement of a number of important industrialization projects.

9. Automobile Industry

Viewed from comprehensive economic indicators, for example, the added value of industrial output, industrial profits and sales revenue, Guangdong??s automotive industry is among the top in China. In recent years, Guangdong has made great efforts to create a favorable investment environment to attract more foreign investments, restructure automobile industry, and expand producing scale and improve manufacturing capability. A number of famous carmakers such as Honda, Isuzu, Nissan and Toyota have settled in Guangdong.

Guangdong has become the largest automobile-manufacturing base in South China. Now, with Guangzhou as manufacturing center, focused on cars, based on car-components, assisted by coaches and coach builder cars, a car manufacturing pattern, along with a motorcar manufacturing cluster, competent in product developing and competitive in export, has come into being. The competitiveness of Guangdong??s luxurious cars is very strong already. In 2006, the increased value of Guangdong??s automobile industry soared by 32.6%, the highest rate in the nine pillar industries. The total output reached 555,347 units, up 34.3% over the previous year, among which the output of sedan car increased by 34.8%.

With the development of automotive industry, a good many automobile component suppliers swarm into Guangdong. As Pearl River Delta Region becomes a convergent place for carmakers, Guangzhou economic and technical development zone, Guangzhou Nansha development zone and Huadu, develop into large-scale automobile component bases.

Goals of Development: By 2010, the industrial output value of the whole province will reach RMB 360 billion yuan, up by 25% annually on average. The automobile output capacity will reach 1.6 million units (1.4 million sedan cars, 50 thousand large and medium sized passenger cars/buses). Sedan car production is expected to take up more than 15% of the domestic market, the exported automobiles to take up more than 10% of the total output, and the output capacity of motorcycle to reach 5 million units. Guangdong??s automobile industry will be incorporated into the global automobile manufacturing system.

Emphasis of Development: Depending on the key enterprises, the industry is to set up the auto and motorcycle-manufacturing bases, extend the industrial chain, and build up a supply circle for auto components, in an attempt to shape an industrial pattern with Guangzhou as its center and the Pearl River Delta Region Rim components industrial belt as its support. It will bring into full play the radiating effects from the Pearl River Delta Region industrial clusters and boost the development of new-type auto materials, elementary components and special-purpose automobiles in the wing-areas of Guangdong and mountainous cities.

II. Service Industry

Since the adoption of the policy of reform and opening up, Guangdong has achieved great progress in the service industry. The total revenues of the service industry have continued to increase, with the structure being optimized and the industrial quality increasingly being improved. The contribution of the service industry to the economy keeps increasing. During the 10th Five-year Plan period, the province ranked first among China in terms of total service revenues. The added value of the service industry of Guangdong increased from RMB475.54 billion in the year 2000 to RMB963.14 billion in 2005, making up 12.4% of the total for the whole country. The average of the contribution rate to the economic growth of the service industry reached 40.4%. The internal structure is further optimized and the popularization of IT, E-commerce, modern logistics, chain businesses and other advanced technology and operation modes boosted the development of the modern service industry. The culture industry, information service, finance and insurance, tourism and other sectors with an intensified modern service rapidly developed and played an increasingly strong role in the economic growth.

Guangdong is actively contracting for outsourced services. In order to boost the development of China??s service outsourcing, the Ministry of Commerce of China initiated the ??thousand-hundred-ten?? project in 2006. Guangdong is making great efforts to contract for outsourced foreign services and is taking advantage to widen the opening up of the service industry and speed up and upgrade the service industry, so as to increase the modern level of the economy. Guangdong is taking active steps to accept service outsourcing from other countries. By the end of 2006, the number of foreign invested service outsourcing enterprises had reached 3,559, with a total investment value of USD $ 10.37 billion and a turnover of RMB 16.5 billion yuan. The enterprises invested by multinational corporations have the largest scale and consequently take the majority of service outsourcing. Software and information technology takes up a predominant part of service outsourcing. Besides, there has been steady advancement in business process outsourcing, consisting of various forms of services?? office support services, data input and processing, software coding and testing, IT support, customer??s calling center, financial management, human resource management, and R & D. It is a feature of Guangdong to accept service transference and outsourcing from Hong Kong, and Guangdong has also maintained pleasant cooperation with Hong Kong in accepting foreign service outsourcing. Since the initiation of the ??thousand-hundred-ten?? project in 2006, Guangdong has achieved preliminary success in contracting for foreign outsourced services. Shenzhen has been appointed as one of the first batch base cities for outsourced services. The province is to promulgate some corresponding policies so as to support the outsourcing industry.

1. Financing Industry

Guangdong is to further boost the financial comprehensive reform and speed up the process of building up as a financially strong province to establish a regional financial organization system in which the banking, securities industry, insurance, futures and financial institutions develop comprehensively, supplement and compete against one another. The province is to set up a financial system in which the currency market, capital market, insurance market, futures market and foreign exchange market develop in harmony and operate with a standardized mechanism. Guangdong plans to plan and build up the Guangzhou and Shenzhen financial zone so as to attract more international financial consortium and multinational companies to build up global data processing centers. The province is to strengthen the financial cooperation and exchange between the Pan-Pearl Delta and Hong Kong and Macao, boost regional integration of finance and promote regional economic and financial interactive development. Guangdong aims to achieve the transformation from a financial giant province to a financially strong province during the 11th Five-year Plan period, build up Guangzhou and Shenzhen as a regional financial center with influence upon surrounding areas and develop the province into an area with a perfect financial system, excellent financial environment, strong financial competence and sustainability.

2. Information Service

Guangdong is to step up the development of information industry and boost the harmonized growth of the production service and manufacturing sector. The province is to speed up the development of broadband communication network, digital TV network, the next generation Internet and other information infrastructure and standardize and regulate the communications management. Guangdong is to expand telecommunication service, encourage development of the value-added telecom service and boost the information service and integration of telecommunication business. Guangdong is to establish and perfect the credit, certification, standardization and payment-supporting system; perfect the policy and laws and regulations for e-commerce and popularize the application of e-commerce. The province is to make great efforts to develop computer-related services and software services, put the focus on specialized and high-grade middle ware and software supporting platforms, plan and construct a batch of software industrial parks with features, software bases and software export-oriented bases and make great efforts to develop the digital industries. By 2010, Guangdong is planning to complete the establishment of the relatively perfect and mature IT-application service system and to develop the IT service industry into an advanced leading sector. We plan that the telephone popularization in the province is to reach 48/100 persons, the MP popularization to reach 99/100 persons, the urban Internet application ratio to reach more than 60% and the electronic politic business to extend to all counties.

3. Modern Transport and Logistics Industry

The construction of a comprehensive transportation and logistics system will be strongly promoted in Guangdong by taking and perfecting the networks as the key point, such as enhancing the expressways and highways network of towns and counties, railway transportation network, high-level waterways network, containers transportation system, energy transportation system, and aviation system. By constructing these ??three networks and three systems??, a convenient, clear, efficient and safe comprehensive transportation and logistics system will be established. The modern logistics industry will be greatly developed. A group of regional logistics centers that are able to cover the whole nation and connect with the international market will be established in transportation pivots, central cities and large commodity collecting and distributing centers. The modern logistics and the supply chain management knowledge will be popularized and the development of third party logistics will be promoted. The project of ??prospering trade by technology?? will be implemented by advancing the application of informational technology, automatic technology, modern marketing and management knowledge into the field of logistics. Domestic enterprises in this industry are encouraged to cooperate with multinational enterprises and attract foreign investments. And the government will support some domestic enterprises that have certain qualifications to explore overseas markets. It is planned that by 2010, an advanced, structurally reasonable, harmonious in development and highly organized modern logistics system will be primarily established; and 10 large-scale enterprises in this industry which have their own intellectual property rights, dominant businesses, strong competitiveness and certain international competitiveness will mature.

4. Business Service Industry

Guangdong province will strongly develop the business service industry and raise its status in the modern service industry; promote the fairs and exhibitions business by making use of geographical advantages, enhancing the competitiveness of this industry and raising service levels by holding the China Import and Export Fair, China Hi-tech Fair, China International Small and Medium Enterprises Fair and China (Shenzhen) International Cultural Industries Fair etc. The market-orientation, specialization, standardization, internationalization and industrialization of the fairs and exhibitions business will be advanced and new name bands in this business will be fostered. This province will also develop the services including legal service, accounting service, consultation service, appraisal service and advertising service etc. The government will lower the standards for letting in some famous overseas business service organizations by way of investment, joint venture and cooperation etc. and foster a group of excellent business service organizations which are able to take over international businesses so as to improve the overall service capability. It is planned that by 2010, a sound business service system which suits the development of the economy will be primarily established; a group of name-brand fairs and exhibitions will be reputable all over the world; and a group of large-scale offices and intermedium organizations which are well-known and able to take over international businesses will be fostered.

5. Cultural Industry

Guangdong province will promote the mergence of the culture and economy and advance the development of the cultural industry aiming at the objective of being a culturally developed province. The government will promote the restructuring of the cultural industry and support with priority core industries, including the print media industry, broadcasting, film and TV industry, publication and copyright service industry and acting and entertainment industry etc. It will also develop a cultural creative prospect industry and guide hi-technology to control and influence the traditional cultural industries as well as to prosper the expansion of new cultural industries; advance the establishment of a stage for providing information service and trade service for the cultural creative prospect industry in Guangdong Province, Hong Kong and Macao. The industries including graphic design, cartoons, industrial arts, film and TV program making and internet games will be greatly developed. The government will expand exchanges in sports with other countries and promote the expansion of the comprehensive sports market creating name brands in the sports industry by taking advantage of holding the Asian Games. It is planned that by 2010, a systematic cultural industry that is of great variety, structurally reasonable, advanced in technology, advantageous and internationalized will be established; a new structure for development of the cultural industry that is able to coordinate different regions, benefit from each other with its own features and promote a common development of entities of various cultural industries will be formed.

6. Technological Service Industry

Guangdong province will promote the development of the technological service industry by taking and improving self-innovation capability as the key; support the corporation of various kinds of technological service organizations, establish a systematic technological service network with a requirement of professional services and social-orientation; promote science and technology venture service centers in various science and technology parks; and support the establishment of public technological information service centers by scientific and technological information organizations and technology trade organizations. The government will enhance and regulate the administration of intermedium organizations in intellectual property rights businesses and improve service qualities and levels. The investment service organizations for science and technology ventures and the financing and credit guarantee agencies for small and medium enterprises will be strongly promoted so as to provide financing services for science and technology ventures. It is planned that by 2010, a systematic, scientific and technological service network which is structurally reasonable, of great variety, functionally mature, open and coordinative and efficient, will be primarily established.

7. Tourism Industry

Guangdong province will promote a regional cooperation in the tourism industry in the Pearl River Delta, emphasizing the improvement of the cooperative level in the tourism industry between Guangdong, Hong Kong and Macao by expanding the cooperation scope and enhancing the opening of tourism resources, capitals and services in the three regions and the cooperation among enterprises. It will diversify and optimize the tourism products, speed up the restructuring of the tourism industry, explore business including fair tours, cultural tours and tours of revolution sites of Chinese modern-contemporary history. We will promote the integration of culture and tourism; add more cultural contents to tourism; explore the cultural connotations contained in tourism resources; and develop the cultural tourism with local cultural characteristics, such as Guangfu culture, Hakka culture, Chaoshan culture and Qiaoxiang culture etc. It is planned that by 2010, the total tourism income of the whole province will reach RMB275 billion with the annual average increase rate during the ??eleventh five-year plan?? period of 10%; develop the Pan Pearl River Delta area into a world-renowned tourism resort; develop Guangdong into a tourism resort that may cover the whole nation and be significant in the Asia-pacific area and a transit center for inbound and outbound tourism in China; the total volume, quality and profits and international competitiveness of this province??s tourism industry will be in a leading position throughout the whole nation.

8. Real Estate Industry

Guangdong province will stably and orderly develop the real estate industry and promote the development of related industries. The government will strengthen the control over the real estate market and guide a reasonable construction and consumption of housing. It will also advance the industrialization of the housing industry; improve the overall quality of the housings by advanced technologies; turn the construction of the residential buildings from an extensive mode into an intensive mode; and strongly encourage the construction of energy-saving and land-saving residential buildings while taking energy-saving, land-saving, water-saving, material-saving and environmental protection as key points. The government will regulate the trade of real estates, enhance the supervision and publishing of information on the operation of the real estate market, perfect the management of the real estate market, improve service qualities and regulate this market for a sound development. The intermedium service system for real estate industry will be perfected, the property management will be further improved and the property management market will be expanded. It is planned that by 2010, the level of modernization and industrialization and ecological status of the real estate industry in this province will be in a leading position throughout the whole nation.

9. Community Service Industry

Guangdong province will encourage the social capitals being invested on construction of community service facilities to strengthen the service functions of the community and promote the socialization and industrialization of the community service industry. We will enlarge the scope of community services, establish a community service network, regulate community services and improve service qualities and levels. The government will encourage and support the community service, companies of different kinds to develop household services and professional service businesses for ordinary families and persons, advance the development of various community services including care services for both the old and children, home nursing, medical and health care services, family education, hairdressing, cleaning, maintenance and repair services etc. to improve the quality of life of the residents and the environment of the community. It is planned that by 2010, a socialized community service system of multiple levels and covering a large scope will be primarily established and great strides will be made in the industrialization of the community services.

10. Accommodation and Catering Industry

Guangdong province will implement standard service quality and standard management comprehensively in the accommodation and catering industry; promote a grade-defining system for restaurants and hotels and create green restaurants; and improve the service quality and management level of the accommodation and catering industry. The organizing structure of the accommodation industry will be optimized by promoting the franchising of reputable hotels, enlarging the scale and raising the level of the accommodation industry and advancing the establishment of a service network for this industry while cultivating large groups in this industry. We will foster famous chefs, food and restaurants of Cantonese cuisine, encourage the operation of franchised stores by name-brand restaurants and old-trade-name restaurants and foster a group of powerful enterprises that have great strength and competitiveness to take the lead in this industry so as to promote the development of small and medium catering enterprises. The development of the Chinese fast food industry and the industrialization of Chinese food production will be advanced. Catering services for families will be socialized. It is planned that by 2010, a group of name-brand hotels and restaurants which are standardized in both management and service providing and are intensive in operation, will take the lead in this industry.

11. Public Service Industry

Guangdong province will advance the construction of public service facilities and promote the perfecting and completing of such public service facilities including compulsory education, public healthcare, social welfare, labor and employment, irrigation works, environmental protection, public security, public culture and municipal governmental services etc. The government will take stronger measure to assure that the public healthcare services are able to cover all the people and improve immunization planning, prevention, treatment and supervision of infectious diseases, healthcare of women and children and the health education etc. It will also encourage, support and guide the development of nongovernmental hospitals, promote the diversification of the medial services and strengthen the medical and healthcare services providing ability. A sound social welfare system of multiple levels will be established and perfected. The social pension insurance, employment insurance, basic medial insurance, work injury insurance and birth insurance for workers in cities and towns will be further perfected. The scope that the social insurances are able to cover will be enlarged and the management of the retired personnel from enterprises will be socialized. It is planned that by 2010, the public service system will be further perfected; the disposition of the public service resources will be more reasonable; and the basic social welfare system and social service system which suit the development of the province??s economy and the society and which cover both urban areas and rural areas, will be established.