How can the Shanghai Free Trade Zone empower these science and technology innovation enterprises?, Developed from a small laboratory to become the world's second largest in the automotive industry

Release time:Apr 16, 2024 21:54 PM

"We have grown from a small laboratory to become the first in the Asia Pacific region and the second in the world in the automotive industry. During the process, Zhongke Chuangda has deeply participated in, witnessed, and benefited from the innovation driven development strategy implemented by the Shanghai Pilot Free Trade Zone." At the Innovation Sub Forum of the 10th Anniversary Theme Forum of the Establishment of the China Pilot Free Trade Zone, Geng Qiangqiang, co-founder and president of Zhongke Chuangda, said with emotion.

Since its establishment, the Shanghai Pilot Free Trade Zone has led high-quality development with a dual drive of technological and institutional innovation, enabling a group of innovative enterprises to achieve leapfrog development. Representatives of participating enterprises and institutions have made suggestions for the future. The Shanghai Free Trade Zone should continue to strengthen its innovation engine, enhance its policy source function, optimize its innovation ecosystem, and promote collaborative innovation in the Yangtze River Delta region. They stated that they will make positive contributions around industrial upgrading and innovation system construction, better serve the new development pattern, and promote high-quality development.

Innovation should actively embrace the world

"From 2011 to 2014, I served as the head of the China region and frequently visited Shanghai. I witnessed the development of the Shanghai Pilot Free Trade Zone and saw many enterprises benefiting from the development opportunities brought by the free trade zone," said Bai Deli, Chairman of Hong Kong Taikoo Group Co., Ltd.

Zhongke Chuangda is one of the representative enterprises. During Geng Qiangqiang's keynote speech at the Zhangjiang Science Hall, at the International Internet of Things Exhibition in Shenzhen, Zhongke Chuangda presented its latest achievements, including intelligent hardware solutions and intelligent industry solutions, and officially launched two new large model products, the Rubik's Cube Brain and Rubik's Cube Kit, which received widespread industry attention.

"Through technological innovation, we have elevated the intelligent experience of car cabins to new heights and won recognition from international car companies such as Volkswagen and BMW." Geng Qiangqiang said, "Now, a total of 40 million cars worldwide have adopted our technology, covering over 40 brands."

He believes that technological innovation is the core competitiveness of Zhongke Chuangda, and "deep technological innovation is not isolated innovation, but collaborative innovation with the upstream and downstream of the industry chain." In order to maintain and expand this competitive advantage, Zhongke Chuangda acquired two European companies in the field of 3D engine technology and visual algorithms in 2016, and also established joint ventures with two globally leading chip companies.

In addition, in order to promote the technology to the market in a timely manner, Zhongke Chuangda has also established joint ventures with three car companies, including Volkswagen and JAC, to collaborate from the design stage and ensure that the technology is applied to new products as soon as possible.

"It can be seen that whether it is scientific and technological innovation research and development or technology transformation, we cannot close our doors, but actively embrace the world, introduce international talents, carry out international cooperation, and explore international customers." Geng Qiangqiang said that the Shanghai Pilot Free Trade Zone and the Lingang New Area have great advantages in this regard, mainly reflected in science and technology innovation policies, industrial synergy and agglomeration, benchmarking international rules, etc. This is precisely in line with the technological advantages of Zhongke Chuangda in operating systems, building a mature chip cooperation ecosystem, and mass production capacity, which can provide a very good environment for enterprises' next high-quality development.

Recently, Zhongke Chuangda has expanded its investment in the Shanghai Pilot Free Trade Zone and established a global R&D headquarters in the Lingang New Area. The initial investment exceeds 1 billion yuan, and the R&D team has exceeded 1000 people. Geng Jianqiang revealed that the company's next generation operating system will be named after the landmark of Dishui Lake in the Lingang New Area.

Institutional innovation supports technological innovation

Tao Heng, Vice President of Zhongwei Semiconductor Co., Ltd., believes that the institutional innovation of the free trade zone provides strong support for enterprise technological innovation. The Shanghai Free Trade Zone has provided support for more than ten projects of China Microelectronics through special policies. The implementation of these projects has helped China Microelectronics enhance its independent innovation and research and development capabilities, and achieved breakthroughs in key technologies.

"Over the past decade, we have maintained an average annual growth rate of over 35%, with revenue reaching RMB 4.74 billion last year. In the first half of this year, despite a global semiconductor equipment market decline of over 20%, Zhongwei Semiconductor still experienced a 28% growth in revenue and a year-on-year increase in net profit of over 100%. The company has also continued to strengthen product research and development, with R&D investment of RMB 460 million in the first half of 2023, accounting for 18% of revenue, an increase of 33% compared to last year." The good development environment built by the Shanghai Free Trade Zone for Zhongwei and semiconductor related enterprises is a key factor for us to achieve high-speed, stable and safe development. With the development of new products and industrialization in the Lingang New Area, "said Tao Heng. The production of the base will continue to maintain the trend of revenue growth for the company

Xu Xinshen, President of GE Gas Power China, shares the same sentiment. Multinational industrial giant GE was one of the earliest foreign-funded enterprises to enter China and develop in Shanghai, and also saw the attractiveness of preferential policies in free trade zones early on. In 2014, less than a year after its establishment, the Shanghai Pilot Free Trade Zone attracted 1245 foreign-funded enterprises, which was 8.6 times higher than the previous period. It was also in this year that GE's Global Operations Asia Pacific Center settled in the Zhangjiang High tech Park in Pudong, Shanghai, reflecting GE's strategic vision of establishing itself in the Shanghai Free Trade Zone and serving the Asia Pacific region.

After settling down, the policies and services of the Shanghai Pilot Free Trade Zone even exceeded GE's expectations. Xu Xin said that GE has fully enjoyed the policy dividends of the Free Trade Zone in terms of funding, talent, land, information, and other aspects. The functional departments of the Free Trade Zone have also actively helped solve specific problems encountered by enterprises in operation, and have worked on-site multiple times to promote problem-solving.

"China is an important market, energy equipment manufacturing base, and procurement base in the field of new energy, as well as a market that GE Energy has long been rooted in and committed to deeply cultivating. Xu Xin said that the innovation process of the free trade zone has strengthened GE's confidence in investing in China." Even in the difficult first half of 2022, we still decided to expand our business scope in Zhangjiang and inject 1.2 billion RMB. The Zhangjiang area management committee, with the 'free trade zone speed', helped us overcome various difficulties and inconveniences, worked overtime to complete all procedures in a timely manner, and ensure the normal operation of new businesses. In the first half of this year, GE upgraded the company to an investment oriented company. "

In the context of "dual carbon", Xu Xin looks forward to making good use of Shanghai's leading position in low-carbon development, and with the convenient environment and policy support of the free trade zone, reaching further close cooperation with local enterprises and parks to contribute to Shanghai's low-carbon development. "We hope that the Shanghai Free Trade Zone can continue to build a platform for technology exchange for enterprises, support continuous innovation, implement more technology demonstration projects, and give more impetus to foreign-funded enterprises rooted in the local area."

Reform the technology system and drive development through innovation

"The current international situation is complex and complex, and the competition between major countries is mainly in the field of technology." Tan Ruicong, Deputy Director of the Yangtze River Delta National Technology Innovation Center and Secretary of the Party Committee of the Shanghai Yangtze River Delta Technology Innovation Research Institute, said, "Especially with the deepening of the new round of technological revolution and industrial transformation, the paradigm of innovation is becoming increasingly complex, and the cost of manufacturing is also constantly increasing. China's development is facing great challenges, and traditional extensive or resource-based driving methods no longer have advantages. We need to deepen the reform of the science and technology system and use innovation to drive development."

Tan Ruicong suggested that the Shanghai Pilot Free Trade Zone should deeply implement national strategies from four dimensions. "At the institutional level, we should continuously deepen the reform of the scientific and technological system, and form institutional mechanisms to support comprehensive innovation. In terms of funding, we should continuously improve the effectiveness of scientific and technological investment to activate innovation vitality. Thirdly, we should make enterprises the main body of innovation, create a good environment for the growth of technology-based small and medium-sized enterprises, and promote the integration of the innovation chain, industrial chain, funding chain, and talent chain. Finally, we should build a world important talent center and innovation highland, forming a comparative advantage."

In these dimensions, the Shanghai Pilot Free Trade Zone has made many in-depth explorations in the past decade, including innovative cross-border research and development supervision models for biopharmaceuticals, pilot reforms to facilitate the entry supervision of special items such as blood products and microorganisms, and the establishment of a joint supervision platform for biopharmaceutical special items; Introduce regulations in Pudong New Area in areas such as green finance, new research and development institutions, and intelligent connected vehicles; Build an international talent port in Pudong, establish a national level immigration policy research and practice base, and promote the facilitation of overseas talent work and transportation.

In the new stage of development, Tan Ruicong believes that Shanghai should focus on building a globally influential science and technology innovation center, driving the strong industrial foundation of Jiangsu, Zhejiang, and Anhui, and deeply integrating science and technology innovation resources and industrial foundation in order to achieve truly high-quality development. To this end, the National Technology Innovation Center of the Yangtze River Delta will assume the role of a testing ground for scientific and technological system reform, efficiently allocating innovation resources, and collaborating on breakthroughs in major technologies.

"To achieve this, we first need to bridge the gap from scientific research to industry, effectively linking the innovative achievements of universities and research institutes with the industry, enabling the rapid transformation and industrialization of high-tech achievements." Tan Ruicong said, "We also need to bring high-end talents, technologies, and projects for innovation and entrepreneurship from around the world to Shanghai and the Yangtze River Delta."

In the future, the National Technology Innovation Center of the Yangtze River Delta will establish a technology innovation ecosystem that integrates innovation resources, technology needs, and research and development carriers, with enterprises as the main body, market orientation, and deep integration of industry, academia, and research. Tan Ruicong revealed that 100 research institutes will be established in the Yangtze River Delta to continuously provide technological supply; Establish deep cooperative relationships with 100 universities worldwide and domestically, explore projects in the form of funding pools, and carry out the cultivation of innovative talents; Establish joint innovation centers with 1000 leading enterprises in various sub industries, sort out enterprise needs, connect with global technological achievements, and enable enterprises to continuously transform and upgrade in innovation, achieving high-quality development.

To drive the upgrading of China's rare and precious metal industry, the Platinum Group Precious Metals Application Technology Research Institute has established a Platinum Group | Precious Metals | Research Institute in Lingang, Shanghai

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