Northeast China's Manufacturing Capital: Shenyang's Tiexi District attracts foreign firms

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Tiexi District in Shenyang, the capital of northeast China's Liaoning Province, has made its name as a manufacturing base. And to stay true to its manufacturing roots, while becoming more cutting-edge, the district has expanded and now houses the city's economic and technological development zone. Xu Xinchen reports.

Steel sheets turned into bones for your car in just a second. Gestamp is among one of the first foreign auto parts makers to set up a factory in the economic and technological development zone in Shenyang's Tiexi District. The reason is simple to keep its business ties close with automakers.

LI XUEJUAN, GM ASSISTANT GESTAMP AUTO COMPONENTS SHENYANG "Location is a must. We chose Shenyang to be close to car makers so that we can save on logistical costs. We are right across from BMW's factory."

Gestamp is just one of many BMW suppliers who set up shop in Shenyang. And the city has expanded the cluster of businesses surrounding BMW, and established the city's China-Germany Equipment Park.

YANG GUOMEI, DIRECTOR OF ENTERPRISE SERVICE BUREAU CHINA-GERMANY EQUIPMENT MANUFACTURING PARK "We used BMW as an industry leader to invite its first and second tier suppliers to set up bases here."

Yang Guomei is in charge of the park's enterprise services division. She said while it all started with auto-making, the park is now also home to companies that manufacture smart devices and high-end equipment.

XU XINCHEN SHENYANG "This China-Germany equipment park in Shenyang was made possible thanks to some 30 billion US dollars worth of investments. And in 2017, just one year after the park opened for business, its total industrial output reached almost 10 billion US dollars."

Over 400 companies have registered at the equipment park. 40% of them are foreign firms or joint-ventures. And the Tiexi District hopes to use the park to boost local manufacturing upgrades.

LIU CHUN, DEPUTY DIRECTOR OF DEV'T & REFORM BUREAU SHENYANG TIEXI ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE "Based on the national strategy, we are now encouraging companies in the development zone to become more high-end, greener and smarter."

While Tiexi has a long history in manufacturing, the local economy suffered from over-capacity and environmental issues. Now, the hope is that a more open attitude to quality manufacturing companies from home and abroad could help it maintain its competitive edge. Xu Xinchen, CGTN, Shenyang, Liaoning Province.