Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 08GUANGZHOU419, South China's High-Tech Zones Struggling to Attract New

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08GUANGZHOU419.
Reference ID Created Released Classification Origin
08GUANGZHOU419 2008-07-16 08:11 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Consulate Guangzhou
VZCZCXRO8033
RR RUEHCN RUEHGH RUEHVC
DE RUEHGZ #0419/01 1980811
ZNR UUUUU ZZH
R 160811Z JUL 08
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 7417
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASH DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC
RUEKJCS/DIA WASHDC
RHHMUNA/HQ USPACOM HONOLULU HI
UNCLAS SECTION 01 OF 02 GUANGZHOU 000419 
 
SENSITIVE 
SIPDIS 
 
STATE PASS USTR FOR STRATFORD/WINTER/MCCARTIN/LEE 
STATE PASS FEDERAL RESERVE BOARD FOR JOHNSON/SCHINDLER 
STATE PASS SAN FRANCISCO FRB FOR CURRAN 
TREASURY FOR MOGHTADER 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV CH
SUBJECT: South China's High-Tech Zones Struggling to Attract New 
Companies to the Region 
 
REF: Guangzhou 406 
 
(U) This document is sensitive but unclassified.  Please protect 
accordingly. Not for release outside U.S. government channels. Not 
for internet publication. 
 
1. (U) Summary: If you build it and offer the right package of 
incentives, they might come.  Then again, they might not.  Those 
that do might have been coming anyway.  It's not exactly gambling 
south China style, but the "build it and see what happens" mentality 
that sometimes infuses the creation of these zones certainly has a 
high element of risk.  The high-tech zones in the Pearl River Delta 
(PRD) are clearly part of the government's strategy to reorient the 
PRD's economy away from labor-intensive/energy inefficient 
industries to high-tech, finance-oriented services.  While some of 
these zones are faring well, others are struggling; they are simply 
trying to maximize revenues and turn unused land into high rent 
apartment complexes.  Still, even the apparently successful zones 
appear to be cannibalizing other areas of Guangdong, rather than 
attracting new high-tech industry.  End Summary. 
 
2. (U) Eager to upgrade south China's industrial base, the central 
and local governments have adopted various policies to encourage the 
creation of high-tech enterprises --  principal among these are the 
development zones that dot the landscape in Guangdong province. 
There are ten large national-level economic and high-tech zones and 
dozens of smaller ones sponsored by municipal governments.  These 
zones all offer tax and other incentives to the companies they want 
to attract; the idea is that by bringing different high-tech 
companies to the same area, the zones will develop into centers of 
innovation, on the model of California's Silicon Valley. 
 
3. (SBU) The zones have so far experienced mixed success.  Some, 
like the Guangzhou Development District (GDD), a sprawling area 
located about 20 kilometers east of downtown Guangzhou, have managed 
to attract scores of Fortune 500 companies.  Others, such as 
Dongguan's Songshan Lake, have struggled.  According to Sung-Rak 
Choi, the Korean CEO of Iriver (China), a manufacturer of consumer 
electronics with a factory in Songshan, the Dongguan zone has been a 
great disappointment, with utilization of just 30% of its available 
space.  After a recent visit to the zone, located near the highway 
connecting Guangzhou with Shenzhen, Guangdong Party Secretary Wang 
Yang was quoted as saying that Songshan "has a favorable environment 
but very little content." 
 
4. (SBU) According to Dr. Lu Jun, the chair of Sun Yatsen's 
Department of Finance, zones like Songshan have struggled because 
most of the PRD lacks the resources and infrastructure necessary to 
develop high-tech industries.  Lu believes that in the short-term it 
will be very difficult to attract high-tech enterprises to south 
China if they aren't already based in the area.  The experience of 
Songshan reflects this, according to Iriver's Choi, who told us that 
every single major company in the development zone already had a 
manufacturing plant elsewhere in the PRD. 
 
5. (SBU) Some of our contacts argued that the zones contributed 
little to the development of high-tech industry in south China 
because they were competing primarily with other zones and 
communities in the PRD.  Choi told us that Iriver considered 10 
different development zones in Guangdong.  Choi also told us that 
Songshan and GDD had a "bidding war" when competing to attract the 
LG-Philips LCD manufacturing plant that was ultimately built in the 
GDD.  Choi said that incentives offered by the zones might lead a 
company to choose one over another, but most companies looking at 
the zones had already decided to move to south China and were at 
that point simply shopping for the best deal. 
 
6. (SBU) In some cases, it appears that the development in the zones 
is little more than a mailing address that confers tax benefits. 
According to Lin Qicai, a consultant at Guangzhou Zhengyi Enterprise 
Management Consulting, which advises companies seeking to invest in 
the GDD, many companies register in the GDD to take advantage of 
incentives offered by the zone but never establish much of a 
physical presence there.  Lin told us that as many as 100 companies, 
or more than 80% of the enterprises making up the GDD's Free-Trade 
Zone, registered in the GDD solely for the tax incentives they 
received. (Note: the Free-Trade Zone is one of the four zones that 
make up the GDD. End note.)  Lin said that these companies 
maintained only small offices in the zone and conducted the bulk of 
their operations elsewhere in the PRD.  He further commented that 
 
GUANGZHOU 00000419  002 OF 002 
 
 
GDD's management was well aware of this but didn't care as long as 
the companies continued to provide tax revenue to the zone. 
 
7. (SBU) Perhaps in desperation, Songshan has turned to real estate 
development in recent years -- a move that Iriver's Choi says is due 
as much to a lack of alternatives as to any coherent strategy. 
Dozens of high-rise apartment buildings are springing up in the 
southern side of the zone, although when Congenoff visited in late 
June, few if any of them appeared to have been finished.  According 
to press reports, the apartments were all quickly sold when they 
were put on the market in 2006, and the real estate developments now 
provide the zone with much of its tax revenue.  Choi commented that 
he thinks the apartments were almost all purchased by speculators 
who don't actually intend to move to Songshan. 
 
8. (U) Comment: The success of development zones like GDD and 
Songshan in cultivating high-tech industries in south China is mixed 
at best.  GDD is having some success in attracting large 
multi-national companies (MNCs), but it seems to be doing so 
primarily at the expense of other development zones and even 
downtown Guangzhou.  In addition, the principal goal of zone 
management -- to maximize tax revenue -- does not seem to be 
entirely aligned with the provincial government's goal of attracting 
new high-tech investment to the PRD. 
 
GOLDBERG