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WORLD OF INDUSTRIES - MOTION, DRIVE & AUTOMATION 3/2017

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WORLD OF INDUSTRIES - MOTION, DRIVE & AUTOMATION 3/2017

Shenzhen: China’s

Shenzhen: China’s original SEZ city From 1980 to 2016 Shenzhen delivered more than 20% annual growth in real GDP, today contributes to more than 2 trillion yuan to the Chinese economy. With China now shifting from low cost to high-tech and automated manufacturing, Shenzhen and South China are set to continue at the forefront of this industrial transformation. Today, Shenzhen is one of China’s wealthiest cities, attracting a mix of businesses, investors and migrant workers to its gates. In the 70s, Shenzhen was just a small fishing village in southern China bordering Hong Kong, with a population of 30,000. At the beginning of 1980s, as part of Deng Xiaoping’s drive to cement China’s place as a major economic player, Shenzhen was deemed as a special economic zone (SEZ). A rocky start to Shenzhen’s success story The target of this SEZ was to encourage foreign investment and invite companies from all over the world to start their operations in China. In an initiative to make conditions more favorable for foreign enterprises, the Chinese government relaxed its controls and regulations and also provided special incentives in the SEZ. Though the scheme seemed promising and exciting, it actually had a damp start with foreign companies unwilling to take the risk. The root cause of this early setbacks was lack of proper regulation and complicated government bureaucracy. Reacting to these setbacks, Chinese leadership approved new regulations and simplified the bureaucracy in SEZs, especially with regards to entry and exit procedures and employee wage guidelines. Another important decision was the tax incentive, only a 15 % income tax applied to foreign owned enterprises as opposed to the 33 % in the rest of China along with exemptions in local taxes export duty. These improvements led to a sharp increase in investor confidence and brought record levels of foreign investment in China’s SEZs. From 1991 to 2001, the annual inflows amounted to $ 50 billion and more than $ 80 billion from 2003 to 2010. After the financial crash, the foreign investments have bounced back up surpassing $ 100 billion annually. Shenzhen Author: Sushen Doshi, International Correspondent for World of Industries NEWS AND MARKETS WORLD OF INDUSTRIESMOTION, DRIVE & AUTOMATION 3/2017

is now one of China’s main import-export hubs as well as a leading manufacturing centre. It is home to some of China’s most successful high-tech companies including BYD, Da-Jiang innovations, Tencent, Royole, OnePlus and Huawei. Many foreign high-tech companies also have their China operations centers located in the city. Over the last few years, global market dynamics have changed a lot, thus making China’s decision makers realize the necessity of technological and industrial transformation for further sustained development. At the forefront of this transformation is South China and the international trade fair, Industrial Automation Shenzhen (IA- Shenzhen) which plays a vital role in serving South China’s need for upgrading the industry as well as meeting the huge market demand. Industrial Automation Shenzhen: home to innovative technologies As the largest and most influential automation show in South China, Industrial Automation Shenzhen 2017 (IA Shenzhen) begins on the 28 th of June 2017. This 3 day event organized at the Shenzhen Convention & Exhibition Center hosts more than 450 international enterprises from 13 countries including Germany, South Korea, Canada, America, Japan, Singapore, Italy and Britain. Within a display area of 30,000 m 2 , the show gathers a large number of exhibitor companies that display the charm of automation in areas like industrial robotics, control systems, machine vision and mechatronics. Established in 1997, IA Shenzhen has laid a solid industrial foundation and broader market reach along with the economic take-off of the Pearl river delta region. In 2016, this international trade event attracted more than 32,000 visitors from all over the world. This records a 30 % increase in total number of visitors compared to 2015, hence proving the influence and powerful appeal of IA Shenzhen in the South China market. Shenzhen spends over 4% of its GDP on R&D, double the mainland average. Companies in Shenzhen file more international patents than those in France or Britain. As of 2016, Shenzhen accounts for more than 35 % of China’s international patent applications, which are mostly high quality, unlike other domestic Chinese ones. The city is home to one third of China’s robot manufacturers. It’s SEZ and ETDZ play an important role in the development of robotics industry. With government policy support and access to state as well as private capital, Shenzhen and the pearl river delta region in general is propelling the growth of robotics across entire South China. This year’s IA Shenzhen has more than 30 international companies from the field of industrial robotics displaying a wide range of advanced technologies including collaborative robots. The increasing presence and participation of such international robot brands is further boosting Shenzhen to become a domestically and globally leading manufacturing hub for robots and smart devices. Apart from advanced technologies in industrial robotics, the trade fair has on display latest products and systems in the following product categories; Production and process automation: Control systems like PLCs and scada, sensors and actuators, communication network and field bus control systems, data acquisition and identification system, assembly and handling systems, linear positioning system and various automation services. Electrical systems: Servo motors, motors and frequency converters, transformers and power supply units, wires and cable accessories, electrical and opto-electronic components, electronic & power test and inspection equipment. Industrial automation IT and software: software for integrated management factories, factory production software, solutions for industrial internet/local area network in factories. Like every year, IA Shenzhen hosts a series of wonderful events that discuss the industry trends in depth and explore into the future direction of issues involving evolution of robotics in the coming years, development of Industry 4.0 applications, scope of development for the machine vision technologies & applications in the Chinese industry context etc. In 2016, more than 135 VIP delegations including world’s largest smartphone manufacturer ‘Foxconn’, BYD Auto Company, the electrical and home appliances giant ‘Midea’ Group etc visited the show, which assures the quality of trade and business. The matchmaking events arranged by the organizers between exhibitors and visitors on the site, helps IA Shenzhen to become a one-stop trading platform for automobile manufacturing, construction materials, chemicals production and processing, computer software, electronics assembly & manufacturing, instruments & industrial equipment, medical equipment, telecommunications equipment, foods & beverages, pharmaceuticals enterprises in South China. Companies in South China and Shenzhen in particular, which account for a huge chunk of China’s innovation, have been moving up the value chain. Local firms that used to rely entirely on imported know-how and parts have started to work on their own inventions and methods. Foreign firms that used to come to the pearl delta to harness its labor are now tapping into its brains as well. Today, IA Shenzhen is attracting many innovators, who are transforming the entire delta into an advanced manufacturing cluster. MDA begins its journey in Shenzhen Acknowledged as one of the most important global trade fair brands for the power transmission engineering and fluid power industry, Motion, Drives & Automation (MDA) will make its debut in Shenzhen this year. Riding on the back of IA-Shenzhen’s success, MDA is set to attract diverse group of companies and professionals from manufacturing and engineering industries all over Asia. At the MDA event, exhibitors display the latest technologies that are designed to meet even the most demanding manufacturing needs. The product category at MDA Shenzhen includes: Drives and mechanical transmission systems likes linear motion systems, gears, electric motors and frequency inverters, chain and belt transmissions, brakes, springs, couplings and bearings. It also includes a wide range of fluid technology products especially in oil and water hydraulics, pneumatics, seals, lubricants and lubrication systems. Visitors to IA and MDA Shenzhen, including top decision makers and corporate managers, sales and marketing personnel, purchasing/production managers, designers and engineers from SMEs and large corporations attend this event to gain valuable insights by interacting with various industry experts and discover new equipments that can improve the overall efficiency of their business and manufacturing processes. As co-located events, IA and MDA Shenzhen provide a much greater access to create new business networks and a broader platform to professionals working in various industry sectors. It opens the door to more targeted and significant networking opportunities for exhibitors as well as for visitors. Photographs: teaser Fotolia www.mda-shenzhen.com

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