Twin Industrial Zones: New concept in China's overseas strategy

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Trade cooperation between Malaysia and China was strengthened when the countries jointly established two industrial parks in 2013. One is in Kuantan in Malaysia and the other in Qinzhou in China's Guangxi Zhuang Autonomous Region. Among China's jointly-built industrial zones with other countries, this project was the first of its kind to see exchange move in both directions. Yang Zhao has this report.

For centuries, bird's nest soup has been a delicacy throughout the Chinese world. Foreigners may recoil at the thought of eating bird saliva, but demand is creating a lucrative business in Malaysia, one of the largest habitats of the swiftlet.

In 2013, two countries started to build a China-Malaysia industrial zone in Qinzhou. It offers one-stop services for the industry, with customs, inspection and processing center. Malaysian companies can take advantage of this potential major gateway to the Chinese market.

But one-way trade isn't enough. A near-identical industrial zone is going up in Malaysia's Kuantan, with the name reversed.

GAO PU DEPUTY EXECUTIVE DIRECTOR CHINA-MALAYSIA QINZHOU INDUSTRIAL PARK "In early days, industrial zones were aimed at introducing outside capital and companies into China. But now the outside still needs China's technology and capacity. So when we started this zone in China, why not make a copy on the other side?"

YANG ZHAO "According to the plan of both governments, two industrial zones will introduce industries and sectors based on each country's speciality. For example, palm tree oil production, and bird nest processing will be carried out in China whereas steel production, ceramic and pharmaceutical will focus in Malaysia."

GAO PU DEPUTY EXECUTIVE DIRECTOR CHINA-MALAYSIA QINZHOU INDUSTRIAL PARK "In fact,t we are pursuing unified standards in the two industrial zones to avoid all unnecessary procedures. For example, customs and inspection from both sides are verifying each other's procedures so that all imports and exports just need to be checked once."

There's another reason Kuantan was chosen. Malaysia hopes the project can help its less-developed areas.

LEE CHUN FAI DIRECTOR MALAYSIA-CHINA KUANTAN INDUSTRIAL PARK "We find that this is a very significant project. It's not just for profit, it's for the development and entire corridor on the east coast, which is generally a poorer cousin of the west side of Malaysia."

Building twin industrial parks is a new concept in China's overseas strategy. Similar projects are in talks with Thailand and South Korea. And as any Chinese will tell you, having more bird's nest soup is always a good thing, especially when it's faster and cheaper. YANG ZHAO, CGTN, Kuantan, Malaysia.