Identifier
Created
Classification
Origin
06GUANGZHOU14818
2006-05-17 09:17:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Guangzhou
Cable title:  

Long March: Restoring Streets, Harbor, and Pride in

Tags:  ECON PGOV ETRD ELAB CH 
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R 170917Z MAY 06 ZDK CTG RUEACSA 4323 1381110
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 8141
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RHHMUNA/HQ USPACOM HONOLULU HI
UNCLAS SECTION 01 OF 03 GUANGZHOU 014818 

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EB, R, EAP/CM, EAP/PD, DRL
STATE PASS USTR - STRATFORD, CELICO
USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE
USPACOM FOR FPA

E.O. 12958: N/A
TAGS: ECON PGOV ETRD ELAB CH
SUBJECT: Long March: Restoring Streets, Harbor, and Pride in
Zhangzhou

Ref: A) Beijing 2459 (notal) B) 05 Guangzhou 23050 C)

Guangzhou 13362 D) Guangzhou 13384 E) Guangzhou 13385 F)
14707

GUANGZHOU 00014818 001.2 OF 003


UNCLAS SECTION 01 OF 03 GUANGZHOU 014818

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EB, R, EAP/CM, EAP/PD, DRL
STATE PASS USTR - STRATFORD, CELICO
USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE
USPACOM FOR FPA

E.O. 12958: N/A
TAGS: ECON PGOV ETRD ELAB CH
SUBJECT: Long March: Restoring Streets, Harbor, and Pride in
Zhangzhou

Ref: A) Beijing 2459 (notal) B) 05 Guangzhou 23050 C)

Guangzhou 13362 D) Guangzhou 13384 E) Guangzhou 13385 F)
14707

GUANGZHOU 00014818 001.2 OF 003



1. (SBU) SUMMARY: Zhangzhou Prefecture, in southwest
Fujian, was once a major Chinese port. Today leaders are
trying to restore the area to its golden era by developing
the Zhangzhou harbor, attracting business, strengthening
ties with Taiwan, and renovating cultural and historical
sites. Leaders in the prefecture have a clear vision of the
future and pragmatic policies to see it to completion.
END SUMMARY

A Clear Vision
--------------


2. (U) As part of Consulate Guangzhou's "long march,"
following visits to Yongding and Longyan, the Consul General
and Conoffs drove to Zhangzhou Prefecture in southwest
Fujian and met with local leaders. Wu Jianzhu, Secretary-
General of the Zhangzhou Municipal People's Government
provided an overview of the Prefecture's 11th five-year
plan. The leaders articulated a clear vision for future
development of the region focusing on developing the
logistics industry, expanding relations with Taiwan,
improving rural conditions, and increasing tourist revenue.
Zhangzhou leaders were well prepared for the briefings,
answered questions quickly and thoroughly, and even provided
printed copies of the prefecture's 11th five-year plan,
unlike any other city visited during the long march.


3. (U) Located in southeast Fujian Province, Zhangzhou
Prefecture was once a major port city. Today, prefecture
leaders are trying to restore the city's role and establish
the area as a distribution center for commercial cargo.
Zhangzhou's 12.6 thousand square kilometers of land are
divided into one city with two districts, and eight
counties, home to 4,600,000 residents. The prefecture's RMB
62.64 billion (USD 7.8 billion) GDP saw an 11% increase in
2005, mostly as a result of expanding food, manufacturing,
furniture and pharmacy industries.


Harbor - Infrastructure and Access
--------------


4. (U) Zhangzhou leaders are eager to expand business at the
prefecture's large, underdeveloped port. By the leaders'
own admission the port lacks development, but has remarkable
potential. There are currently eight berths available for
cargo and other ships. The port's size, however, is large
enough and sufficiently deep for the creation of up to 120
berths. In 2005, Zhangzhou Port handled a healthy 47.7
million tons of bulk cargo. The key to increasing this
capacity will be investing in the infrastructure necessary
to take full advantage of the port's size, however a central
government announcement in May linking Zhangzhou's port with
Xiamen Port as part of a major port hub program is likely to
encourage investors. Zhangzhou port will handle an
increasing amount of oil and gas imports, according to the
announcement.


5. (U) A major selling point of Zhangzhou's port is it's
proximity to two major railroad lines; one connecting the
city to Jiangxi to the west, another under development will
connect Xiamen to Shenzhen to the south. In addition, a
cross-harbor bridge that will connect Zhangzhou to Xiamen
with its large port, the seventh busiest in the world, is in
the works. Leaders admit that the key to successful
marketing of the port relies on the proximity to railroad
lines and easy access to distribution channels.

Friendly Neighbors to the East?
--------------


6. (U) The people, industry, and culture of Zhangzhou remain
closely linked to Taiwan. The prefecture is located just
120 nautical miles from the central Taiwan city of Taichung.
Leaders estimate that 35% of people in Taiwan can trace
their origins to the prefecture. Notable Zhangzhou
decedents include Taiwan's current leader, Chen Shuibian and

GUANGZHOU 00014818 002.2 OF 003


Lien Chan, former leader of Taiwan's opposition Kuomintang
(KMT). In addition, the Mingnan dialect prevalent in
Zhangzhou is also spoken throughout Taiwan. These social,
cultural, and linguistic ties make Zhangzhou a convenient
destination for Taiwan tourists and business people. As a
result, Zhangzhou enjoys healthy investment from Taiwan
firms, and ranks number three behind Suzhou and Dongguan
among Chinese cities receiving Taiwan investment. The
majority of this investment is in manufacturing.

Wanlida: Passion, Innovation, Commitment
--------------


7. (U) In addition to foreign and Taiwan invested
enterprises, Zhangzhou Prefecture is home to successful
local businesses. Wanlida Company a major electronics
producer, was started in 1984 with just RMB 80,000 (USD
10,000) investment by the company's founder, Wu Huitian, a
native of Zhangzhou. Wu personally showed the group around
his modern electronics manufacturing facility located just
outside the city center. The company now boasts 10,000
employees, factories in several mainland China locations,
and representative offices in Hong Kong and the United
States. The majority of the company's business is original
equipment manufacturing (OEM) for such large companies as
Polaroid, Zenith, and other international brands as well as
a house brand for domestic sales.


8. (U) Wu seemed particularly proud of the benefits he
provides to the company's employees including insurance,
salary, and housing. Wu claims his company's benefits are
better than those of government employees. Working
conditions for company employees seem relatively
comfortable, as well, as the factory is audited by its
customers to assess working and environmental conditions.
Company employees were quick to point out elaborate
ventilation systems for solder fumes, air-conditioning
systems, and safety equipment. During a tour of the company
showroom Wu proudly introduced a flat screen television with
the capability of attaching and removing modularized
accessories such as a DVD player, internet connection, or
home security monitoring system to the back of the
television, a feature he developed.

Green Acres
--------------


9. (U) Like other prefectures visited on the long march,
Zhangzhou continues to struggle with the gap in government
services and infrastructure, income levels, and employment
opportunities between rural and urban residents. Of the
Prefecture's 4.6 million residents, 75% (3.8 million) live
in rural areas. Leaders see transportation, education, and
sanitation as the major challenges facing rural residents
and ones which they hope to address during the next five
years.


10. (U) Zhangzhou has a reputation domestically for
agriculture, particularly for fruits and flowers. The area
has a reasonably well-developed agricultural industry, and a
fair export market. Currently Zhangzhou exports fruit and
tea to Europe, and mushrooms to Japan. Agricultural GDP saw
a 3.7% increase in 2005 to RMB 15.4 billion (USD 1.3
billion). Traditional industries such as fruit, vegetables,
flowers, aquaculture products, livestock, and tea industries
remain constant. The processing of agricultural products
continues to be a focus of development efforts in the
Prefecture. In recent years, Zhangzhou has become a center
of food processing and logistics with large capacity for
storage of frozen seafood, a trend that local leaders hope
to continue.

This Old House - Fujian Style
--------------


11. (U) Located on the coast of Fujian Province and not far
from economic powerhouse Xiamen, Zhangzhou enjoys healthy
tourism from both domestic and Taiwan markets. Temperate
climates, and long stretches of beach attract the majority
of domestic visitors. Many Taiwan visitors come to the

GUANGZHOU 00014818 003.2 OF 003


region to connect with their roots, or pay homage to their
forbearers. Zhangzhou officials have taken steps to
encourage resort tourism along the coast, and cultural
tourism in the city.

12. (U) The centerpiece of Zhangzhou's historic development
efforts is a series of renovated streets. The area, located
near the city center, contains 400-year-old stone archways,
a temple, and several historic storefronts. Streets,
sidewalks, and facades have all been renovated to meticulous
standards. As a result, the renovation project received an
Honorable Mention in the annual UNESCO Asia-Pacific Heritage
Awards program in 2004. Zhangzhou leaders hope the
renovated street will cement the area's cultural and
historical tourism efforts.
Comment: Prepared, but Ready?
--------------


13. (SBU) Zhangzhou is not a city one thinks of when
thinking of economic centers of Fujian Province. Zhangzhou
leaders acknowledged their unknown status but appeared well
prepared to attempt to change the city's reputation from
backwater to rapidly developing economy. Most of
Zhangzhou's plan for growth hinges on investments in
infrastructure funded by investors who recognize its obvious
benefits as a transportation hub, and that infrastructure
being used by manufacturers who recognize its utility and
convenience. With Xiamen Port rapidly expanding in light of
the success of its IPO last year, Zhangzhou, with its newly
announced link with Xiamen Port, should more easily be able
to attract investors to succeed in realizing its plans.


14. (U) Official met in Zhangzhou included:
He Jinlong Mayor
Wang Yaoquan Vice Mayor
Hong Lizhuan Director, Development and Reform Commission
Wu Jianzhu Secretary General, Zhangzhou Government
Li Linsheng Director, Zhangzhou Government, FAO
Lian Sile Deputy Director, FAO
Wu Huitian President, Wanlida Group Co. Ltd (Malata)
Song Xiangguan GM Assistant, Wanlinda Group Co. Ltd

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