Technology leading products devised at Shanxi reform zone

Range of enterprises encouraged to innovate thanks to support services provided by local government

When business visitors arrive in the Shanxi Transformation and Comprehensive Reform Demonstration Zone, their first stop is usually an exhibition hall in the zone's administrative committee building.

As the hall is a showcase of the latest products and technologies in the zone, it is the right place for visitors to identify potential partners.

Many of the visitors said they are amazed with the exhibits, because many represent the highest level of Shanxi's manufacturing industries.

The exhibits include the world's thinnest broadsheet stainless steel foil produced by Taiyuan Iron and Steel Group; silica mono-crystal substrate produced by the Shanxi branch of China Electronics Technology Group; and recombined human collagen developed by Jinbo Biology.

With a history shorter than six years, the Shanxi Transformation and Comprehensive Reform Demonstration Zone has rapidly grown into an important powerhouse for the province's high-tech development.

The establishment is sited between the cities of Taiyuan and Jinzhong. Founded in November 2016, it aims to offer a base for Shanxi's industrial transformation, which is about reducing reliance on coal mining and fostering emerging and high-tech industries as new growth engines.

When asked why this young industrial zone can achieve such a development miracle, local officials say it is the enterprising spirit of entrepreneurs that makes this happen. But entrepreneurs attribute the achievements to the efficient and professional services provided by the officials.

Jinbo Biology, for instance, is often referred to as a role model of enterprising and trailblazing spirits by local officials.

When showing visitors to the exhibition hall, officials would highlight a bottle of recombined human-origin collagen, explaining its significance in the biomedicine industry.

Officials said this exhibit is among the most remarkable because of its globally advanced level.

Yang Xia, founder and board chairwoman of Jinbo Biology, said the company is the only enterprise in the world that mass-produces the medicine. It won sale approval from the National Medical Products Administration in June 2021.

"Unlike other industries, the research and development of new medicines needs more time－at least 10 years," Yang said. "This requires a company to consistently invest in R&D and continuously improve its innovative strength."

However, even with huge amounts of investment, the success rate of new medicine development is only about 10 percent, Yang said.

"In the R&D of our latest recombined human-origin collagen, we made our breakthrough in the lab after numerous failures over more than 1,000 days," Yang said. "It takes a couple of years to commercialize the lab results and another couple of years to realize mass production."

For the commercialization of new medicines, Jinbo Biology invested about 250 million yuan ($38.6 million) in building a technology commercialization center.

"With this center, we can develop medicines that can be applied to different scenarios ranging from surgery, gynecology and dermatology to skin care cosmetics," Yang explained.

Despite the huge investment and uncertainty in the long R&D period, Yang said she is still optimistic about the biomedicine industry in Shanxi. This is because the market environment is friendly thanks to strong support from the government.

She said she is especially grateful for the professional, considerate and highly efficient services provided by the zone's administrative committee.

Yang's opinion is shared by Miao Yunzhan, deputy general manager of Huayang Jolywood.

Huayang Jolywood is a company focusing on the development and production of photovoltaic cells and components.

"It took about two months to complete all the procedures to keep our project running, from negotiation and agreement signing to plant construction," Miao said.

Miao also praised the zone's infrastructure for industrial development. He noted there is a 110-kilovolt power substation near the company's production plant.

"Production of photovoltaic cells is an electricity-consuming industry and the substation can ensure a stable power supply," Miao said.

He added that the company enjoys a preferential power supply price, which is part of the local government's incentives for "strategic emerging industries". "The preferential price can help us save more than 240 million yuan a year," Miao said.

Huayang Jolywood launched its first-phase project for the production of 16-gigawatt, high-performance photovoltaic cells in July 2021. Construction of the project has been completed and production will begin at the end of this month.

"Our second-phase project will also be completed in the second half of this year," Miao said. "Upon full operation, we will have an annual capacity to produce 10 billion yuan worth of high-performance photovoltaic cells."

The executive added that the facility is expected to create more than 2,600 jobs.

Authorities in the demonstration zone are now creating an administrative framework to support project construction and the operations of local businesses. Efforts include shortening the approval time for new projects and offering tailored, whole-process services to support business growth.

The zone's enterprises reported a year-on-year increase of 15.9 percent in combined output value during the first quarter, according to Zhang Xiaopeng, an official at the zone's administrative service bureau.