Fengxian to lure SMEs for 'Beauty Valley'

Dec 4, 2017

South Shanghai's Fengxian District aims to gather small and medium-size enterprises (SME) to support its development on the "Oriental Beauty Valley" focusing on the cosmetics and health industries.

Shanghai is creating an "active zone" in Fengxian for SMEs on technology and innovation with supportive policies to benefit both the companies and professionals, according to the district government.

Fengxian has attracted over 200,000 private companies, 90 percent of which are in small and medium size, Zhuang Mudi, the Party secretary of Fengxian told the 2017 China Small and medium-size Enterprises Development Conference that started on Wednesday. The district serves as the birthplace for many private companies especially those from neighboring Zhejiang Province.

Actually, the SMEs have accounted for nearly 99 percent of Chinese enterprises. They accomplished over 70 percent of China's patent of invention while creating some 80 percent of the nation's employment, Li Pumin, secretary-general of the National Development and Reform Commission, the nation's economic planner, told the conference.

"Small and medium-size enterprises contribute to over half of the nation's tax revenue and 60 percent of the GDP," Li said.

However, many of enterprises are facing challenges because of the rising costs, changing market demands and difficulty to attract investment, said Li Zibin, president of the China Association of Small and Medium Enterprises.

To help to solve the problems, the "active zone" in Fengxian will offer preferential policies and protections for the SMEs, said Zhuang.

Many of them will be lured to develop the city's "Oriental Beauty Valley" that will develop and promote local cosmetics brands globally. It aims to help turn Shanghai into Asia's largest "beauty and health" industry base.

The core site is mainly based in south Shanghai's Fengxian District. A full industry chain on cosmetic and health products valued at 100 billion yuan (US$15.1 billion) will be created by 2025 in Fengxian's beauty valley.

The valley has drawn 73 cosmetics companies from home and abroad and they generate over 40 percent of the total output value of the city's cosmetics industry.

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