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SINGAPORE : China and Singapore have agreed on new 10-year targets for the Suzhou Industrial Park.
The aim is for it to become a hi-tech, high value-added economy, and eventually become the leading Business Process Outsourcing hub in China.
Both countries have also pledged to adapt Singapore's developmental experience to other parts of Jiangsu Province, and in Western and Central China.
A high-level meeting to discuss a high-profile project.
The 9th Suzhou Industrial Park Joint Steering Council meeting was chaired by Chinese Vice Premier Wu Yi and Singapore Deputy Prime Minister Wong Kan Seng.
Also present were over 50 Ministers and senior officials from both countries.
The last time the Council met was in Beijing in August last year, and since then the Park's GDP grew by 18.8 percent to reach almost US$9 billion.
It also attracted US$1.6 billion in Foreign Direct Investment last year.
All this, despite concerns that the park's competitive advantage was being eroded by other industrial parks sprouting up in China.
In fact, the Suzhou Park has already surpassed the 10-year performance targets set in 2004, thanks to spectacular economic growth averaging 23 percent in the last three years.
And moving forward, leaders have grander ambitions for Suzhou.
By 2014, it is hoped that the contribution of the Park's service sector to the local economy will reach 40 percent.
R&D spending constitute 5 percent of GDP and 75 percent of total industrial value would be created by hi-tech industries.
Companies considering Business Process Outsourcing, such as call centres, accounting, and the development of software and product technology, will be given tax incentives to locate its facilities in Suzhou.
Another incentive - the possible development of an air-land transportation operations in Suzhou, linking it more directly to the global economy.
The meeting endorsed a proposal to allow airlines to issue Air Waybills originating from Suzhou Industrial Park's virtual "SZV" airport code.
An Air Waybill is a receipt issued by an international courier company for goods and an evidence of the contract of carriage.
With an Air Waybill, businesses can usually check the status of delivery, and current position of the item.
This move is expected to encourage more airlines, including foreign ones to set up offices in Suzhou.
And this will certainly benefit the 132 Singapore companies currently located in the Suzhou Industrial Park.
At the meeting, leaders of both countries also discussed the role Singapore can play as an internationalisation base for Suzhou companies which are ready to go global.
With such strong endorsement by the two countries, analysts say it is a clear sign of a comfortable partnership, and the way is paved for Singapore to continue its significant role in China's rapid economic development.
During their meeting, Prime Minister Lee Hsien Loong and Vice Premier Wu Yi also discussed a possible Eco-City project, and the China-Singapore Free Trade Agreement.
Mr Lee hoped the agreement could be concluded soon for it will enhance Singapore-China links, as well as strengthen China-ASEAN ties.
On Wednesday, Singapore and China will be signing at least five memorandums of understanding.
These are in the areas of environmental and water resources, human resource development, as well as border health measures.
These agreements build on existing strong bilateral relations between the two countries.
On Tuesday evening, Deputy Prime Minister Wong Kan Seng hosted a welcome dinner for the visitors at Shangri-la Hotel.
Also at the dinner were other Singapore ministers including Health Minister Khaw Boon Wan and Trade and Industry Minister, Lim Hng Kiang. - CNA/ch
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