The Dealmaker of Binhu
Thinking of investing in the attractive Binhu District in Wuxi? In addition to its proximity to scenic Lake Taihu, plus its promising new industrial parks, the investment zone also features another attraction: CEIBS Alumnus Zhu Weiping (EMBA 2007), Binhu District's Secretary of Commission - the region's pre-eminent dealmaker.
PICTURE PERFECT - Binhu District's three new industrial parks, scenic surroundings, and proximity to Shanghai have attracted 500 companies to the region in recent years. Incoming - or visiting - CEIBS alumni will find an active and supportive Wuxi Alumni Chapter at work there.
By Audrey Wu
Back in 2002, Zhu Weiping (CEIBS EMBA 2007) faced an extremely tough challenge. At the time, he had recently been appointed as Chief of the new Binhu District investment zone, a burgeoning development area in Wuxi (located two hours’ drive from Shanghai) that had been home to farms and traditional factories just a few years earlier. As part of new position, Zhu oversaw the development of the city’s three recently launched industrial parks. The land for one of these, the Science & Education Park, was currently partly occupied by a traditional heavy-industry manufacturer. That manufacturer insisted upon remaining in the sleek, modern, high tech park - a serious mismatch. But Zhu decisively ordered that the traditional factory be torn down.
Afterwards, when Zhu explained to the disgruntled manufacturer the importance of the industrial park in the region’s overall economic development strategy, he eventually relocated the factory.
Our country is developing by leaps and bounds; yet we still lag behind the world, comparatively speaking. As leaders in charge of people and enterprises, China must learn to better foster creativity.“
- Zhu Weiping（EMBA 2007）, Secretary of Commission, Binhu District
The story of this bold and dramatic move offers a clear indication of the challenges involved in launching and developing high tech industrial parks, and of the vision and determination of Zhu Weiping. Clearly, the Binhu District owes some of its impressive success to the determination and passion of this man.
For those unfamiliar with the investment zone, Binhu District is a U-shaped area encircling both Taihu Lake (along 88 miles of lakeshore) as well as the smaller Lake Li. Binhu District holds 80 percent of Wuxi’s tourist attractions, making the area the most beautiful part of the Taihu Lake region - which is one of China’s most famous tourist destinations. Founded in 2001，Binhu District was designed to serve as the centre of Wuxi’s administration, commerce, science, education, ecological living and tourism industries.
During The LINK’s visit to Binhu, we found that these goals are not empty slogans. The development of the area is clearly evident along the 36-mile shoreline of Lake Taihu. The Chinese government has invested ¥3 billion into the region’s road construction, landscaping and infrastructure development. Several key industrial development parks have been established including Wuxi Taihu New Town Science & Education Industrial Park, Wuxi Bio-technology and Pharmaceutical R&D Outsourcing Zone, and the Wuxi (National) Industrial Design Park - which has attracted more than 500 enterprises including Pfizer China and Wuxi Pharma Tech.
WELCOME TO BINHU
Visitors to Binhu cannot help but feel refreshed when driving along the wide, flower-lined the boulevard flanking Lake Li in Wuxi. The beauty of the area, which has become one of East China’s most attractive investment destinations, is that despite developing rapidly in recent years, it has retained its natural charm while developing economically.
Many potential investors into this the region soon realize that one of the drivers behind the balanced but impressive growth of the area is the Binhu District’s Zhu Weiping. An early entrant in business education, Zhu graduated from Jilin University with a master’s degree in technological economics in the 1980s - the precursor to today’s MBA. Six years after graduation, while serving as a staffer in the Wuxi Petroleum and Chemical Bureau’s Planning Section, he joined a team tasked with improving productivity at the underperforming Wuxi Chemical Industry Research Institute. It was his work on this team that provided him with a chance to influence the development of the region. Shortly after joining the team, Zhu submitted a performance-enhancement proposal which so impressed the leadership that he was promoted from a mere project team member to vice-president of the research institute. The institute handled not only scientific research but also production, which helped Zhu gain experience in enterprise management. The position also proved to be a springboard into local political positions; Zhu became Vice Mayor of Wuxi’s Yixing County, then Deputy District Chief and District Chief of the newly built Wuxi Binhu District investment zone.
In 2006, as the investment zone began carrying out large-scale construction projects, Wu was promoted to Binhu District Secretary of Commission. In order to carry out industrial restructuring smoothly, Binhu District adopted three challenging measures, as explained to The LINK by Binhai District Deputy District Chief Chen Ximing (CEIBS EMBA 2007): first, relocating traditional enterprises to other places, which meant hundreds of millions of direct losses in taxation to the district government, with the promise of long-term returns. Second, outsourcing manufacturing but retaining core businesses such as sales and R&D. Third, modernising individual firms (such as changing from manufacture of steel tubes to solar energy production).
Today, Zhu says that firmly following these tough-but-necessary directives to promote high tech investment have paid off well for Binhu District, attracting both established businesses and entrepreneurs to the region. One example is Ms. Zhao Zhenghong, president of Wontex-power Corp. (CEIBS EMBA 2001). The first entrepreneur to settle in Taihu New Town Science & Education Industrial Park, Zhao has found success by specializing in electrical power and automation. Her company pulled in ¥250 million in revenue in 2007. Zhao, who is also Secretary General of Wuxi Alumni Regional Chapter, also invested in the beautifully designed Henghua Science & Technology Zone. As Zhu Weiping commented, Binhu’s industrial parks now provide a working environment rarely found elsewhere worldwide.
Still, a talk with Zhu shows that he remains driven to expanding and improve Binhu. “Our country is developing by leaps and bounds; yet we still lag behind the world, comparatively speaking,” he said. “As leaders in charge of people and enterprises, China must learn to better foster creativity.”
During the challenging years that Zhu has lead the development of Binhu District, his journey to the EMBA programme at CEIBS was an unusual but welcomed “side trip” which lead to both personal and professional development. In 2006, Zhu’s deputy, Chen Ximing - who had a similar business background - decided to study at CEIBS. When he asked Zhu Weiping for a recommendation letter, Zhu’s response was unexpected. “Let’s study together,” Zhu had suggested. So both entered the 2007 CEIBS EMBA class.
At CEIBS, Zhu discovered that many CEIBS alumni had invested in Binhu District, including the top executives at Resources Sun Hung Kai Properties and Jiante Biological Investment. Thus his EMBA degree quickly provided a valuable network for him at work. Now that he has graduated, Zhu continues to use the CEIBS connection in his position. As a case in point, on the day of his interview with The LINK, Zhu was preparing to visit a CEIBS alumnus interested in investing in Binhu. Such instances are not unusual for Zhu, who also serves as Chairman of the Wuxi Alumni Chapter (see box). Zhu says this about his connection to alumni, especially those who invest in Binhu: “In one word, it is CEIBS that draws us close.”
