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Fengdu-Building on Its History

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EENGDU County is located inthe center of Chongqing Mu-nicipality, a two hours' drivefrom Chongqing InternationalAirport, on the banks of the YangtzeRiver. It has a long history, with evidenceof human occupation as long as 100,000years ago. During the Zhou Dynasty (C1100-256 B.C.) Fengdu was the capitalof the mysterious Ba Kingdom, and laterevolved into a eultural center for Con-fucianism, Taoism and a number of folkcustoms.

However, in the 1990s when otherplaces in China were developing rapidly,Fengdu was preoccupied with prepara-tions for a mass relocation. The originalcounty seat was to be submerged by ris-ing water levels brought about by theThree Gorges Dam. In 2001 the entirecounty began the move to higher groundand when the relocation was completedin 2005, all sectors of its economy otherthan agriculture lagged far behind. Tomake up for lost time, the people ofFengdn have since toiled away at rebuild-ing a prosperous city almost from scratchand brought new vitality to this age-oldconnty.

Longing for Investment

Transportation is a primary con-cern for businessmen when choosing aplace to invest, and, deep in a mountain-ous area, Fengdu's ability to attract in-vestors is severely limited by its windingand bumpy roads. A motorcycle companyonce considered setting up a factory inFengdu, but the plan was aborted after theinspecting manager saw that local roadscould not accommodate their trucks.

To change this situation an improvedtraffic network is currently under con-struction. High-speed rail betweenFengdu and eastern China will meanthat Shanghai can be reached in justseven hours. By 2012, it will be pos-sible to travel by train from Fengdu toChongqing in 4o minutes, and express-ways will cut the journey by road down toone hour. Fengdu can also take advantageof the Yangtze River for transport. Thecounty now has 20 piers and 30 berths,and several more cargo terminals areexpected to be constructed, handling mil-lions to tens of millions of goods annually.

As these improvements to transportare not yet fully functional, Fengdu hasenhanced other features to make the areatempting to investors. In addition to thestate's incentives for western provincesand supportive policies to the ThreeGorges region, the county governmenthas introduced favorable policies locallyconcerning land supply, tax deduction,and transport subsidies, and its Econom-ic Cooperation Bureau provides compre-hensive, high-quality services to attractinvestors.

Companies that invest in FengduIndustrial Park are helped through allprocedures by the Economic Coopera-fiou Bureau. To ensure investors receive aquality service and their complaints andsuggestions are taken seriously, the lo-cal government has set up an array ofregulations. As part of this, the EconomicCooperation Bureau must sign a writtencommitment to confirm its responsibil- ity to investors and the responsibilities ofrelevaut authorities are well defined. TheBureau organizes conventions and forumsto help companies solve problems in con-struction and production. The bureau'sconsiderate services have earned the trustof investors; businesses operating in theindustrial park all express high satisfac-tion with the bureau's performance.

Fengdu Industrial Park currently cov-ers an area of 20 square kilometers, andin future its size is expected to reach 50square kilometers. The park is equippedwith a complete infrastructure - waste-water treatment, 220 kV substation andcareer training center. It is divided intofive specialized parks including one fortextiles, one for building materials, andanother for small and medium-sizedcompanies. The Industrial Park focuseson machinery manufacturing, electronics,and the chemical industry.

Fengdu Administrative Service Centeralso provides a convenient and efficientservice for investors. Established in No-vember, 2001, the center was one of thefirst administrative centers in ChongqingMunicipality. In 2007, it was moved to adowntown building at a well connectedlocation, which makes its one-stop servicemuch more accessible.

The Administrative Service Centeroffers a full range of services for majorinvestment projects. It has transformedthe process of approval for company reg-istration, social security filing, infrastruc-ture construction and so forth. Before thecenter was established, companies hadto obtain approval from several differentofficial departments in various locations,a time-consuming and complicatedprocedure. The Administrative ServiceCenter has allowed the local governmentto integrate these separate proceduresand make the whole process much moreconvenient for investors. Since 2007, ef-ficiency has more than doubled and theaverage wait time for approvals has beencut from 17.8 to 5.3 days.

Beef:A Symbol of Fengdu'sFuture

"East or west, home is the best." Thisproverb is often heard in Fengdu. LiXinfa, a 30-something native of Fengdu,left his hometown to work as a migrantworker many years ago. Last year hedecided to return to his hometown andrear two dozen beef cattle. "The countygovernment is responsible for supportingbreeding technology and marketing; wedon't have to worry about these problemsand can focus on raising the cattle."

Famous for longan, grapefruit, soycheese, and many more produces, todayFengdu County's main industries are beefcattle, bamboo products, fruits and veg-etables, silkworm and tobacco. Of these,beef cattle have long been a pillar of agri-culture in the county. Abundant corn, riceand forage grass give Fengdu a naturaladvantage for beef rearing. Its beef stocksand sales have always been the highestin Chongqing, but until now Fengdu beefhad not carved a niche in the market forits own brand name.

At the end of 2oo8, the county gov- ernment made the decision to encouragethe development of the beef cattle indus-try and build Fengdu into one of southernChina's major production bases. A seriesof supporting policies in finance andtechnology have been launched and thecounty applied for "Fengdu beef cattle"as a national registered trademark. YangHonglin, deputy director of Fengdu Ani-mal Husbandry Bureau, tells us that ofthe 180,000 farmers in Fengdu, 52,00 areengaged in rearing this form of livestock.The Animal Husbandry Bureau set a goalto increase this figure to 9o,ooo.

In 2010, to increase income for farm-ers the county formed an integrated in-dustrial chain that encompasses pastureplanting, feed processing, cattle raising,trading and slaughtering, the processingand sale of beef products, and excrementrecycling. Beef enterprises have becomethe eminent feature in Fengdu's businessworld. Of the 35 enterprises engaged inbeef industry in Fengdu, 12 report an an-nual production value of over RMB 600million.

Established in February 2009,Chongqing Hondo Beef Co., Ltd. import-ed world-class beef cattle slaughteringand processing facilities from the U.S.,Germany and the Netherlands, buildinga product line with an annual capac-ity of 100,000 cattle. Each cow is worthRMB 30,000 on average after intensiveprocessing. The beef cattle on its farmenjoy the many benefits of progressivecattle-rearing such as massages, listen-ing to music and drinking beer. Whenexperts from Hong Kong inspected fivelarge-scale beef cattle companies on themainland last July, the head of HondoCompany's breeding division was veryconfident:"Surely our unique methods ofraising cattle will make us stand out as thevery best producers." During the butcher-ing process, Hondo Company uses low-temperature acid elimination technologyand international beef cutting standardsfor their meat. It produces more than lookinds of quality beef products.

During the ruth Five-year Plan period(2011-2015), Hondo Company is deter-mined to increase its annual productionvalue to RMB 4 billion and grow into oneof China's leading agribusinesses. A num-ber of other beef production outfits otherthan Hondo Company will be launchedto complete Fengdu's beef cattle indus-try and continue the growth that it hasachieved in recent years.