Investment promotion is moving at a rapid pace, making the most of the beautiful spring weather.

Looking back at the first quarter, local governments across the region seized upon the strong signal to “boost the economy,” organizing promotional events, negotiating partnerships, and signing agreements, thereby sparking a comprehensive surge in investment promotion.

In the first quarter, GuChuan United’s Shanghai office steered the course of investment promotion and shouldered the responsibility of bridging the gap between government and business—facilitating the signing of 10 major projects with a total investment of 1.267 billion yuan, which were established in high-quality industrial parks in Gaochun, Jingkou, Gaoyou, Wujiang, and Yan’an.

In the first quarter, as a service provider for regional economic development, we helped local government-run industrial parks fire the “first shot” of the year, attracting “fresh capital” and building momentum for growth.

Note: To protect our partner organizations, certain project details have been withheld

Medical Devices: Replacing Imports

With advances in biotechnology, the economic weight of industries such as healthcare, pharmaceuticals, medical devices, and biogenetics has grown significantly. Amid this industrial trend, medical device-related projects are poised for takeoff.

Among these, the Gaochun Economic Development Zone, with the Nanjing Medical Device Industrial Park as its key platform, is focusing on medical devices as its primary direction, prioritizing the development of high-value consumables, in vitro diagnostics, and rehabilitation equipment.

As a key investment promotion partner of the Gaochun Economic Development Zone, Guchuan United Shanghai added a “new wing” to the park in the first quarter.

A group of enterprises specializing in the R&D of high-value medical consumables and advanced medical equipment signed agreements with the Economic Development Zone. This not only accelerates the extension, supplementation, and strengthening of the industrial chain within the park but also fills technological gaps in related domestic fields, driving the industrial cluster toward greater strength and excellence.

Why does the Gaochun Economic Development Zone act as a “powerful magnet” for investment and business development, attracting a steady stream of high-quality projects?

Amid increasingly fierce competition in industrial development, industrial differentiation and agglomeration have become key trends in the medical device sector. By focusing on specific niche areas, the park has charted a unique path for industrial development.

Judging by the products being developed by project partners, the market for high-value medical consumables is expected to maintain rapid growth.

The high-value medical consumables industry chain comprises upstream raw material supply, midstream R&D and production, and downstream distribution and demand markets. Given the industry’s high gross profit margins, normal fluctuations in upstream raw material prices generally do not significantly impact midstream profits, whereas changes in the downstream distribution and demand markets can exert a certain influence on midstream R&D and production.

As the demand market expands, it is foreseeable that the project’s specific sector will feature high market concentration, strong innovation capabilities, and robust R&D strength. Upon commencement of production, there will be an opportunity to capture a larger market share, thereby accelerating the process of domestic “substitution.”

High-end equipment: more than just scale

Whenever I open the news, I always see reports from various regions about “targeting Fortune 500 companies,” “another Fortune 500 company setting up shop,” and “major projects driving large-scale industries.” Clearly, attracting major and strong enterprises is one of the priorities for local investment promotion.

However, competition between regions is fundamentally a competition among industrial chains. At the core of these chains are small and medium-sized enterprises (SMEs) that specialize in specific niche sectors, dedicating themselves to refining their technologies, processes, and product quality.

Investment promotion must be swift, yet also precise and targeted. During the first quarter, the Shanghai office of Guchuan United assisted multiple high-end equipment enterprises in selecting locations, helping them establish operations in industrial parks such as the Gaochun Economic Development Zone and the Jingkou Economic Development Zone.

Among them, a high-end equipment manufacturing enterprise—originally from Hong Kong and now based in Shanghai—has established operations in the Jingkou Economic Development Zone.

The project’s primary products include marine fire suppression systems, variable frequency control systems, and remote valve control systems, with a long-standing focus on meeting the development needs of the petrochemical, marine, and offshore engineering sectors.

The Jingkou Economic Development Zone is a key component of the “Eastern Wing Industrial Synergy Zone” within Zhenjiang’s “One Core, Two Wings” urban development framework. As Zhenjiang’s specialized industrial base for new materials and aerospace, it has attracted enterprises in fields such as new aluminum alloy materials, high-precision automotive and aerospace components, and high-tech electronic information technology.

Based on an understanding of corporate needs, industry analysis and trends, as well as an accurate assessment of local resource endowments, industrial foundations, and investment promotion requirements, the marine equipment industry aligns with the park’s leading industries and development direction.

With the efficient support of Guchuan Lianxing’s Shanghai office, the park’s investment promotion needs were precisely matched with the enterprises’ own requirements. By providing effective solutions and recommendations, the team rapidly advanced the project’s establishment, demonstrating the strength and commitment cultivated through 14 years of deep expertise in the investment promotion sector.

From a regional perspective, whether a pioneer or a latecomer, investment promotion adheres to the principle of “starting small before scaling up, and beginning with low-value-added sectors before moving to high-value-added ones.”

First, there must be a “flock of small birds” before “a hundred birds can gather around the phoenix.” Initially, low-value-added industries are inevitable; through continuous attraction and cultivation, the industrial tier is gradually elevated and the industrial chain extended, naturally increasing the value added along the chain.

Electronic Information: Clustered Development

Today, the electronic information industry has become the leading force in reshaping the economic development model and the key engine for driving innovation.

In Gaoyou, the electronic information industry serves as a crucial breakthrough for advancing industrial restructuring and transformation, a vital vehicle for the strategy of building a strong industrial city, and the “pioneer” of high-quality development.

Shortly after the Lunar New Year, the Party Secretary and Mayor of Gaoyou led an investment promotion team on a non-stop trip to the Pearl River Delta, visiting enterprises and investors, touring workshops, and inspecting equipment.

As is well known, the Pearl River Delta is China’s largest electronics and information technology industrial cluster, with Shenzhen alone home to more than 500,000 such enterprises.

However, factory rents in Shenzhen range from tens of yuan per square meter, and for larger manufacturing enterprises, monthly rent can “easily” exceed ten thousand yuan. In particular, electronic information enterprises require large land areas, making factory rents and land prices increasingly “unaffordable.”

Previously, a touchscreen manufacturer consulted us. They had operated a factory in Shenzhen for over a decade; although the facility was located in the area formerly known as “Guangdong’s Outskirts,” rent had already reached nearly 50 yuan per square meter. With industrial electricity priced at 1 yuan per kilowatt-hour and extremely high power consumption, it had become difficult for profits to cover costs.

Furthermore, faced with intense competition from peers and limited room for growth, many local electronics and information technology companies are looking to expand into the Yangtze River Delta region, which offers advantages in logistics, labor, and information flow.

Consequently, Gaoyou High-Tech Zone seized the opportunity presented by this industrial relocation. By concentrating projects to foster enterprise clustering, and using enterprise clustering to drive industrial clustering, the zone has established a comprehensive framework for the electronics and information technology industry.

With the precise guidance of Guchuan United, an electronics and information technology enterprise specializing in the R&D and manufacturing of high-end keyboards, mice, and computer peripherals has established operations in Gaoyou High-Tech Zone.

The project team independently researches, develops, and manufactures products such as multimedia keyboards, mechanical keyboards, and crystal keyboards, maintaining long-term partnerships with high-quality domestic and international enterprises.

The decision to establish operations in Gaoyou was driven by the high-tech zone’s concentration of electronic information enterprises. With over 20 similar companies already based in the park, this environment facilitates seamless coordination and mutual support across production lines, enabling the efficient completion of end-products. Today, this “assembly-line style” industrial chain is highly favored by enterprises in the industrial era.

Green Energy: A Promising Future

In light of the new opportunities presented by the “dual carbon” goals and the momentum of the green energy industry, many provinces and regions in northern China have proposed objectives and measures to advance the development of the entire industrial chain.

Meanwhile, this year’s Government Work Report calls for accelerating the construction of a new energy system and increasing the share of renewable energy. While maintaining its traditional energy industries, Zichang City is vigorously developing new forms of clean energy.

In its investment promotion efforts, Zichang City has leveraged its abundant wind resources to attract enterprises, providing effective support for optimizing the energy structure, driving energy transformation and upgrading, and promoting regional economic and social development.

Through the precise recommendation of Gu-Chuan United’s Shanghai office, the major “Biomass Clean Energy and Renewable Resource Recycling” project has been established in Zichang City, Yan’an.

In 2023, Guichuan United marked its fifth year of cooperation with Yan’an City, Shaanxi Province.

Guichuan United Shanghai has closely aligned with local industrial development directions and needs, successively attracting high-quality enterprises such as Dongfang Hope and Meiheng Wangda to establish operations. Currently, these projects have entered production, providing strong support for local industrial transformation and upgrading as well as rural revitalization.

During the partnership, the Shanghai office of Guichuan United conducted on-site inspections to comprehensively assess local industrial resources, supporting infrastructure, and available industrial facilities.

After gaining a thorough understanding of the local conditions, the Shanghai investment promotion team refined its targeting strategy, ultimately identifying industrial projects aligned with local development needs and efficiently facilitating government-enterprise partnerships.

While discussing the specifics of the project, the team drew upon years of extensive experience in corporate site selection to provide feasible solutions for the challenges and bottlenecks in government-enterprise cooperation, ultimately successfully facilitating the project’s establishment.

In response to the company’s site selection needs in the Northwest region, Kuchikawa United’s Shanghai office demonstrated a high degree of collaboration, professionalism, and efficiency, organizing multiple on-site visits with government officials to the company’s production base during the first quarter and fostering harmonious communication.

With 14 years of deep expertise in investment promotion, having accumulated 930,000 project resources and experience from over 7,100 successful projects, we adhere to the principle of strategic planning and foresight. We strengthen “industry + enterprise” research, closely monitor investment trends in local leading industries, and utilize an innovative “Internet + Investment Promotion” model to capture corporate investment dynamics. We continuously advance investment promotion efforts across regions by building new industrial chains where none exist, strengthening existing chains, filling gaps in broken chains, and extending short chains.

As a service provider for regional economic development, Guchuan Lianxing will continue to drive targeted investment promotion through data-driven strategies, build bridges between government and enterprises, and promote the transformation, upgrading, and cluster development of relevant industries, thereby contributing to the high-quality development of the regional economy.