Chengdu Hi-Tech Development Zone looks set to be a major growth engine in the electronics and information industry in the years to come, having developed tremendously in the past decade by focusing on industries and acting as an incubator with universities and research institutes. With a major emphasis on the development of the software industry, the area is divided into a south and, more recently, west park. More than 16,000 companies are registered within the zone, including global brands such as Intel, Microsoft, Siemens, Nokia, Sony, Toyota and Carrefour. The zone is recognised as being of significant national importance with Petro-China investing. Major industries in the zone include software, precision machinery manufacturing and engineering, IT and communications, and biomedical. In 2009, the industrial value of the zone was 98 billion yuan (HK$116.54 billion), and an industrial output of 216 billion yuan. Gross domestic product growth in Chengdu alone reached 16 per cent last year, and has outperformed the national average over the past three years. This year, the zone is aiming for 25 per cent GDP growth rate to 300 billion yuan, which would comprise 30 per cent of Chengdu's target. Incentives, such as tax and human resources subsidies, are offered to attract businesses and enterprises to the zone in industries from IT to pharmaceutical, and manufacturing. Offering start-up enterprises a rent-free and electricity-free period of six months are also incentives for businesses to enter the zone. In addition, preferential tax policies and corporate tax breaks, offered by the State Council, encourage the development of the western province. The zone also provides financial support to encourage industry innovation and entrepreneurship for large, and small and medium-sized technological enterprises outside the software industry. This includes the establishment of a professional public technology platform and enterprises, with significant technological innovations that work towards achieving intellectual property rights. Enterprises that obtain new domestic patents or inventive patents will be able to claim subsidies. A lot of emphasis has been placed on the development of intellectual property rights and strategies to enforce these rights. Companies have enjoyed preferential tax rates since 2008.
