昆明官渡自贸数字港项目 Guandu Free Trade Digital Port Project in Kunming

Project Overview

1. Project Name

昆明官渡自贸数字港项目

Guandu Free Trade Digital Port Project in Kunming

2. Project Industry

Digital Economy Industry

3. Project Site

Luosiwan International Trade Mart, Guandu District (Kunming's New Center), Opposite the Kunming South Bus Station

4. Project Overview

 Guandu Free Trade Digital Port, carried by state-owned assets office building in Guandu District, is established under the leadership of Guandu District Committee and Guandu District Government with policy support and state-owned asset operation. Through the introduction of digital economy, headquarters economy and information logistics center to promote the quality, efficiency and power transformation of economic development, a regional international center city and a digital innovation center in Kunming will be built, radiating to South Asia, east and South Asia.

Project Implementation Background

1. Industrial Policies

The Recommendations of the Central Committee of the Communist Party of China for Formulating the 14th Five-Year Plan for Economic and Social Development and Long-Range Objectives through the Year 2035 clearly points out that in the future, a number of forward-looking and strategic national major science and technology projects will be implemented in the frontier fields of AI, quantum information, integrated circuit, life health, brain science, biological breeding, air-space technology, deep underground, deep sea, etc. to strengthen the strategic science and technology strength of China.

The Outline of the 14th Five-Year Plan for National Economic and Social Development and Long-Range Objectives through the Year 2035 of Yunnan Province requires to vigorously cultivate core industries, such as digital industry and information technology application innovation industry, promote the deep integration of digital technologies, including 5G, blockchain, AI and big data, and the real economy, actively develop platform economy and sharing economy, construct digital economy industry clusters, and promote the digital transformation of economy and society. By 2025, the value added in the core industries of digital economy in Yunnan Province will be RMB 230 billion.

According to the Planning for New Infrastructure Construction during the 14th Five-Year Plan Period of Yunnan Province, an AI application supporting platform should be developed. The construction of a multilingual AI application and industrialized basic capability service platform for South Asia and Southeast Asia should be promoted to accelerate the integration of multilingual technology with manufacturing industry and export processing industry. Emphasis should be put on the AI industry platforms building in the fields of tourism, energy, logistics, advanced manufacturing, government affairs, public security, smart cities, medical care, education, transportation, etc. 10 AI applications will be completed by 2022.

2. Upper-Level Plan

The preliminary overview of Guandu Free Trade Digital Port has been completed.

Project Construction Plan

1. Project Site Overview

Project Site: Guandu Free Trade Digital Port (Digital Guandu Space), located in the section of Luosiwan international trade mart, Guandu District (spring city Kunming's new center) and at the core node of Caiyun North Road (Kunming international trade and urban consumption zone). It is connected with the south passenger station and South Bus Station of metro Line 1 by an overpass, and enjoys the dual national demonstration preferential policy of pilot free trade zone and market procurement trade mode pilot.

Land Property Rights: Building I of the project is state-owned in Guandu District, with a total of 26 floors, involving catering, office, service and other business forms.

Project Accessibility: The project is surrounded by three major urban expressways (Hangzhou-Ruili Expressway, Caiyun North Road and Guangfu Road), and there are a total of 4 stations of metro Line 1 and Line 4. So, it is with convenient transportation and good accessibility.

Supporting Industrial Development: The project is adjacent to service business circles such as South Bus Station, Luosiwan international trade mart and New Asian Athletics Park, with convenient living supporting facilities.

2. Construction Duration

2 years

3. Investment Estimate

Operating Expenses of Enterprise Office Space: Operating expenses of small and medium-sized enterprise office space (100-200 m²) are about RMB 7,1000 - RMB 142,900/year; operating expenses of medium-sized and large enterprise office space (500 - 1000 m²) are about RMB 323,600 - RMB 651,800/year.

4. Project Content

1. Development Positioning: Guandu Free Trade Digital Port, established under the leadership of Guandu District Committee and Guandu District Government, is committed to building a new carrier, new space and new scenario for the development and demonstration of digital economy in Yunnan Province. It will be a digital ecosystem of digital technology, digital platform and digital economy, a free trade port of digital + commerce, digital + settlement, digital + exhibition, digital + entertainment and digital + service trade innovation and an interactive expo park featuring new digital products, new applications, new models and new forms of business. Moreover, Guandu Free Trade Digital Port will become a panoramic experience field integrating digital city, digital life and digital services and a famous resort showing digital Guandu, innovative Guandu, international Guandu, commercial Guandu, cultural Guandu and creative Guandu.

2. Strategic Objective: Guandu Free Trade Digital Port, through demonstration of promoting economic development quality change, efficiency change and power change with the digital economy, headquarters economy and information logistics center, will certainly become the strategic core of the international economic, trade and settlement center of regional international central city in Kunming, the digital innovation center of Yunnan radiating to South Asia and Southeast Asia, a free trade testing highland integrating the Yangtze River Economic Belt and "the Belt and Road Initiative", an Electronic World Trade Platform (EWTP) linking global procurement and trade in services, radiating South Asia and Southeast Asia and opening up the international and domestic double cycle, and the directional conversion base of "scene conversion for application, application conversion for industry" in Yunnan Province.

3. Business Layout: Building I of Free Trade Zone Digital Port is centered on digital service and service trade office. It carries a number of business forms such as live-streaming film and television production base, creative production base, digital creative entrepreneurship base, digital marketing entrepreneurship center, e-commerce entrepreneurship center, industry-education integration training and digital alliance base, micro-digital business space, intellectual property service trade, international legal consulting services, international design and maker center, office park and intelligent restaurant.

4. Operation Mode: The project adheres to the investment and operation concept of "government guidance, market leadership, fund support, enterprise operation, integration of assets, linkage of industries, co-constructed platforms, shared services, park aggregation and zone radiation".

Project Advantages

1. Industrial Basis

1. Gradual Improvement of Digital Economy Base

Yunnan Province has built 309,000 mobile base stations, of which the number of 5G base stations is 11,399. 4G and fixed broadband have realized 100% coverage for administrative village, and 5G technology has been applied in tourism towns, smart medical treatment, industrial automated logistics and other scenarios. 13 cross-border land optical cables with an international bandwidth of 1.03T, 18 internet outgoing directions, 27 inter-provincial optical cables with outgoing bandwidth of 20T have been completed. Kunming is the fourth city in China where the three major telecom operators establish their international telecommunication bureaus.

2. Digital Accumulation of Resources

A number of national data centers have settled in Yunnan. The National Drug Control Big Data (Yunnan) Center adheres to the principle of "Yunnan Construction, National Use" and continuously gathers data resources to provide data support for public security, judicial work and cross-sectoral proposals. China Forestry Big Data Center and China Forest Rights Trading (Collection and Storage) Center have collected 160 million forest-related data to support projects such as "one chart of forestry resources" and monitoring and early warning about elephas maximus. National Agricultural and Rural Big Data Yunnan Branch Center provides authoritative data inquiry and analysis for land circulation and industrial layout.

3. Significant Results in Digital Industrialization

In 2020, the main business income of information industry in the province reached RMB 170.3 billion, with a growth rate of more than 20%. The clustering effect of information industries such as Kunming City, Yuxi City and Honghe Autonomous Prefecture has initially emerged.

The first provincial blockchain traceable commodity code "Peacock Code" (Yunnan blockchain commodity code based on Yunnan blockchain platform) was released in China. At present, the blockchain technology has been piloted and trialed in the fields of electronic invoice, Pu'er tea traceability, public resource trading, housing special maintenance fund management, industrial marijuana supervision, etc.

4. Highlights of Industrial Digitization

The "Digital Yunnan" International Forum on Blockchain, the Yunnan International Smart Tourism Conference and the China-Thailand Digital Economy Annual Meeting are successful. In the "Fight COVID-19 Epidemic in Yunnan", 603 million times of code scanning and registration have been realized in public places, and "Yunnan Health Code" has served 37.68 million people entering and in Yunnan to declare their personal health information paperlessly. "One Mobile Phone" series products, including "Travelling in Yunnan with One Mobile Phone", "Services on One Mobile Phone", "Cloud Products on Mobile", "Enterprise Loan on One Mobile Phone", "Tax Handling on One Mobile Phone", have stood on the high ground of the industry, and strongly promoted the digital transformation of public management, social services and industrial development.

2. Resource Advantages

(I) Guandu Digital Port enjoys two national demonstration dividends: pilot free trade zone and market procurement trade mode pilot zone. Located in the core circle of Kunming Area of China (Yunnan) Pilot Free Trade Zone, with the dividend brought by market procurement trade mode pilot, Guandu Digital Port is of great investment value.

(II) Under the new "dual circulation" development pattern, Guandu Free Trade Digital Port is a hotly contested spot for merchants in the field of Chinese digital economy. Yunnan is a radiation center for South Asia and Southeast Asia and an important node that links the Yangtze River Economic Belt and the Belt and Road Initiative. Kunming is a regional international central city that radiates to South Asia and Southeast Asia. Guandu is a new urban center of Kunming, an important comprehensive hub area and an opening-up and development leading area.

(III) With the accelerated development of digital economy, Yunnan has talent advantages in disruptive digital skills. In order to seize the development opportunity of "digital economy", and reserve a large number of talents of high-levels, elites and top leaderships for the development of digital economy industry, Yunnan has issued the Initiative of Yunnan Province for Digital Economy Talent Innovation, Cultivation and Development, and will establish a standardized digital economy talent training system, a high-end digital economy talent training base, a multi-level joint talent training mechanism, a new engineering talent training mode based on industry-education integration, a digital economy talent service platform, and a special fund for digital economy talent training, to gradually standardize the digital economy talent training system, promote the formation of a multi-level talent training system consisting of professional education, government agencies, enterprise and institution training and social training, jointly develop relevant talent training standards and promote the establishment of an occupational grading examination and evaluation system.

3. Supporting Conditions

The project has been completed and has entered the decoration stage. Enterprises can settle in directly. Well-known enterprises in the industry, such as China Electronics Corporation, SenseTime, GTCOM, Shuzhi Technology, and Synthesis Electronic Technology, have officially signed the cooperation agreement for settlement in the park, which is helpful to build an industrial cluster and industrial chain development pattern.

4. Location and Transportation

Yunnan, located in the upper reaches of Yangtze River, is the radiation center in the southwest of China for South Asia and Southeast Asia. Characterized by connecting rivers and reaching seas, it has become an important node that links the Yangtze River Economic Belt and the Belt and Road Initiative. It has the advantageous opportunity of constructing the digital economic center, derivative wisdom, internet and other industries that radiate to South Asia and Southeast Asia.

Kunming is a regional international central city that radiates to South Asia and Southeast Asia. Guandu is a new urban center of Kunming, an important comprehensive hub area and an opening-up and development leading area. Guandu Free Trade Digital Port is located in Luosiwan, Guandu District, a core position where international trade business cluster. Radiated by the modern trade logistics and urban consumption integrated belt and the multi-ethnic culture and leisure tourism experience corridor, it becomes a fertile land for the integration of digital technology and trade settlement under the new "dual circulation" development pattern, and also a fertile land for the application of new digital scenes, new retail and new experience.

5. Development Opportunities

1. By accelerating the development of digital economy, China is stepping into digital modernization

National policies actively promote the rapid development of digital economy. At the national level, the digital economy industry plays a strategic role and is significantly supported by government support. Recommendations of the Central Committee of the Communist Party of China for Formulating the 14th Five-Year Plan for Economic and Social Development and Long-Range Objectives through the Year 2035 requires to develop the digital economy, promote digital industrialization and industrial digitization, promote the deep integration of digital economy and real economy, and create digital industry clusters with international competitiveness. This indicates the digital economy has become an important strategic deployment and development direction for China, and will become an innovative driving force for the transformation and high-quality development of China's economy.

2. Digital economy becomes a key support for the construction of a new development pattern

The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China required to accelerate the construction of a "dual circulation" development pattern in which domestic economic cycle plays a leading role while international economic cycle remains its extension and supplement, organically combine the implementation of the demand expansion strategy with the deepening of the supply-side structural reform, so as to create new innovation-driven and high-quality supply-led demands. Developing digital economy, accelerating the innovation and breakthroughs in 5G technology, Internet of Things (IoT), cloud computing, big data, AI, blockchain and other new generation of information and communication technologies, and promoting the deep integration of digital economy and real economy help to transform and upgrade traditional industries, promote the advancement of industrial basis and the modernization of industrial chain, and are the strategic choice and key support for the construction of a new development pattern.

3. The "14th Five-Year Plan" of Yunnan depicts a blueprint of digital economy, constructs a new engine for the development of digital economy, and empowers the economy with "digital".

Outline of the 14th Five-Year Plan for National Economic and Social Development and Long-Range Objectives through the Year 2035 of Yunnan Province requires to vigorously cultivate core industries, such as digital industry and information technology application innovation industry, promote the deep integration of digital technologies, including 5G, blockchain, AI and big data, and the real economy, actively develop platform economy and sharing economy, construct digital economy industry clusters, and promote the digital transformation of economy and society. By 2025, the value added in the core industries of digital economy in Yunnan Province will be RMB 230 billion.

Element Guarantees

1. Production Operation Cost

Office Rental: The average office rent in Kunming is about RMB 98.9/m²/month;

Property Management Fee: about RMB 4-15/m²/month;

Water and Electricity Cost: RMB 0.41/kWh for general commercial power consumption and power consumption less than 1 kV; sales price for non-residential water consumption terminals: RMB 6.05/m³;

Gas: Sales price for residential gas consumption terminals: RMB 2.95/m³; the maximum sales price for non-residential gas consumption: RMB 2.55/m³;

Labor Cost: The average wage of Internet technology, design, E-commerce and other relevant industries is about RMB 8,000/month, which is far below the wage level of developed coastal cities.

2. Raw Material Supply Cost

N/A

Project Policy Support

1. Business Environment Improvement

Notice of the General Office of the People's Government of Yunnan Province on the Issuance of 28 Measures for Further Optimizing the Business Environment to Better Serve the Market Entities in Yunnan Province (YZBF [2020] No. 60): 28 measures are proposed in 6 aspects to accelerate the development of a market-oriented, law-based and international business environment of "handling affairs without asking for help, online approval, handling affairs by one visit only" and "guaranteed service throughout the whole process".

Action Plan for Continuously Optimizing the Business Environment of Yunnan Market Supervision in 2021 (YSJF [2021] No. 2): Based on the actual demands of enterprises, 20 specific measures are put forward in 8 aspects to strengthen weak links, close the loopholes, strengthen weakness areas, promote improvement, focus on solving the "pain points", "bottlenecks" and "difficulties" faced by enterprises; further stimulate market vitality and social creativity to create a market-oriented, law-based, and international first-class business environment.

2. Fiscal and tax preferential policies at all levels available to enterprises such as provincial/municipal/district/county/park investments

Notice of Kunming Municipal People's Government on Issuing Policies and Measures (Trial) to Support the Development of Digital Economy supports enterprises to demonstratively apply such typical scenes as VR/AR, face-scanning engineering, Internet of Things, autonomous driving, healthcare, smart city, ultra high definition video in the construction of major projects, including smart city, future community, metro and high-speed railway. Digital economy enterprises that implement demonstration projects of new technologies, new products, new business forms and new models with significant driving effect on local industries in the field of digital economy will be given a subsidy equivalent to 20% of their investment but no more than RMB 1 million.

It supports the introduction of leading enterprises in the field of digital economy. This Notice highlights the investment attraction with business and industrial chain, and the introduction and cultivation of such industries as blockchain, 5G, VR/AR, Internet of Things, big data, cloud computing, AI and intelligent terminals by relying on the digital economy park. The projects with a total investment of more than RMB 1 billion of introduced enterprises and local enterprises will be significantly supported. For major projects with good market prospects, strong industrial upgrading and driving forces and great supporting force for the development of local economy, the supporting policies will be determined according to the principle of "one case, one meeting" and "one policy for one enterprise".

Notice of the People's Government of Guandu District of Kunming on Issuing Several Policies and Measures (Trial) to Support the Development of Digital Economy

1. It supports the large-scale development of enterprises. Enterprises in Guandu District that are included in the top 100 national enterprises for the first time in the electronic information industry, software industry and internet industry will be given a lump-sum subsidy of RMB 2 million. Enterprises in Guandu District that contract offshore service and have an annual service revenue of more than RMB 2 million for the first time will be given a lump-sum subsidy of RMB 300,000.

2. It promotes the upgrading of enterprises. Enterprises in Guandu District that have passed the software capability maturity model integration (CMMI) level 5, level 4 and level 3 certifications will be given a lump-sum subsidy of RMB 500,000, 300,000 and 100,000 respectively. Enterprises in Guandu District that have passed the certification of IT service management system ISO20000, information security management system SO27001/BS7799, service provider environment security SAS70, operation and maintenance service capability model ITSS, and blockchain information service filing certification within the Cyberspace Administration of China in the previous year will be given a lump-sum subsidy of RMB 100,000. Projects listed in the pilot demonstration projects for big data industry development of China will be given a lump-sum subsidy of RMB 200,000.

3. It encourages enterprises to formulate digital technical standards. Enterprises in Guandu District that lead the drafting of, formulate and implement relevant national, provincial and municipal digital technical standards will be given a lump-sum subsidy of RMB 2,000,000, 800,000 and 200,000 respectively.

9. It encourages the construction of digital public service platforms. Enterprises that construct public service cloud platforms, industrial big data platforms, industrial Internet platforms, industrial cloud platforms, industrial cloud platforms, industrial IoT, agricultural big data platforms, agricultural Internet platforms, etc. to directly serve industrial or agricultural enterprises will be given a subsidy equivalent to 5% of the actual investment of a single project but no more than RMB 1.5 million, if their actual investment in equipment and software in the current year is more than 3 million. Industrial big data platforms, industrial Internet platforms, industrial cloud platforms, industrial IoT, etc. that have been recognized by China and Yunnan Province will be given a lump-sum subsidy of RMB 1,200,000 and 600,000 respectively.

10. It supports digital transformation of service industry. The management entities or owners of the projects listed as national and provincial E-commerce industrial bases (or E-commerce innovation pilot projects) will be given a lump-sum subsidy of RMB 500,000 and 300,000 respectively. Enterprises providing digital economy service will be given a lump-sum subsidy of RMB 2 million, 1 million, 500,000, 300,000, 150,000 respectively if their main business income reaches RMB 1 billion, 500 million, 100 million, 50 million and 25 million in the previous year.

11. It supports the development of characteristic digital economy parks. Digital economy industry related parks in Guandu District will be significantly supported to strive for digital economy parks at or above the municipal level, and those recognized as provincial and municipal digital economy parks will be given a lump-sum subsidy of RMB 400,000 and 200,000 respectively.

14. It supports the introduction of leading enterprises in the field of digital economy. This Notice highlights the investment attraction with business and industrial chain, and the introduction and cultivation of such industries as blockchain, 5G, big data, cloud computing, AI and intelligent terminals by relying on the digital economy park. Enterprises newly introduced that complete technology development or make industrial investment of more than RMB 50 million will be given a lump-sum subsidy equivalent to 0.5% of their investment but no more than RMB 5 million.

Benefit Analysis

The profit model of industrial development is to obtain benefits through industrial policy support, industrial value-added services, comprehensive park supporting services, etc.

1. Policy Support

Tax sharing and "settle-in and operation" incentives, and special industrial fund subsidies are obtained for investment attraction projects through the industrial policy and financial support of the government.

2. Industrial Value-added Services

The industrial park obtains benefits by providing paid financing, information consultation, training, incubation, human resources and other value-added services for industrial development in the park.

3. Comprehensive Services of the Park

The industrial park obtains benefits by providing comprehensive services, such as life, business, entertainment and property management services.

Investment Promotion Direction

Regional headquarters of well-known digital enterprises, digital sci-tech innovation platform-type institutions, digital-enabled commercial trading institutions, digital and service trade integrated institutions, digital life and intelligent scene-type enterprises, smart city and digital governance-type enterprises.

Cooperation Pattern

Lease and cooperation.

Contact Information

Contact Authority: Commerce and Investment Promotion Bureau of Guandu District

Address: No. 2898, Yunxiu Road, Guandu District, Kunming

Tel.: 0871-67173522