With a range of business agreements valued at nearly 265 billion yuan ($40.36 billion) signed on Tuesday at a government-sponsored conference, Nansha district in Guangzhou has again demonstrated itself as a popular destination for investment.

Of the deals, the technology arm of Zhejiang Geely Holding Group, China's largest private carmaker, has decided to set up its national headquarters for commercial aerospace business in Nansha.

It will put all its aerospace-related subsidiaries in the headquarters, and is expected to generate an annual industrial output of more than 10 billion yuan in total, according to the agreement signed with the administrative committee of Nansha Economic and Technological Development Zone.

The new project will deepen the synergy with companies in Nansha in the aerospace industry to complete the industrial chain from rocket development at the high end, satellite production in the middle and space technology applications at the low end, said Xie Xiaohui, director of the district's commerce bureau.

Just three weeks ago, construction began in Nansha on a solid-fuel rocket production base, funded by Beijing CAS Aerospace Exploration Technology. It is expected to be the first commercial aerospace industrial base that covers the whole production chain, capable of producing more than 30 carrier rockets annually after operations begin in early 2022.

According to the district's plan, Nansha aims to attract more companies engaged in the research and development of spacecraft, assembly, aerospace power services and parts production to become a key player in China's surging aerospace industry.

The investment agreements signed at the Nansha session of the seventh Guangzhou Annual Investment Conference China on Tuesday cover several other important fields.

They include strategic new industries: advanced manufacturing, ports and logistics, headquarters economy, financial services, modern agriculture and urban infrastructure, according to the local government.

"The new projects demonstrate the flourishing development trend in Nansha and our favorable investment environment.

"The new investments will help to gather momentum for faster development in Nansha," said Dong Ke, chief of the district government.

Business representatives sign investment projects at the Nansha session of the seventh Guangzhou Annual Investment Conference China held in Guangzhou, Guangdong province, on Tuesday. LIU WEI/FOR CHINA DAILY

Industrial advantages

Nansha, covering an area of 803 square kilometers in the southern part of Guangzhou, was built on tideland. It is located right at the geometric center of the Guangdong-Hong Kong-Macao Greater Bay Area.

Established in 2005, the district was upgraded as a national new zone in 2012. In 2014, it became part of the pilot free trade zone of Guangdong province.

It was positioned as a demonstration zone for all-around cooperation among Guangdong and the Hong Kong and Macao special administrative regions in 2019.

According to official statistics, gross domestic product of Nansha increased by more than 70 percent from 2015 to 2020. Meanwhile, major economic indices, including fixed-asset investment, foreign trade and actually utilized foreign funds, had double-digit growth over the same period.

The government's figures also indicate that 158,000 companies were registered in Nansha as of the end of 2020, which was 9.4 times the number in 2015. A total of 197 projects have featured investment from the world's top 500 transnational companies.

"We have accelerated the development of strategic emerging industries to improve their core competitiveness over the past few years," the district chief said.

The artificial intelligence and digital economy have emerged as two new engines of the district, while the innovation economy, marine economy and headquarters economy have kept pace to create a modern industrial system, Dong said.

More than 300 AI companies, 200 life-science companies and 85 headquarters have settled in Nansha, official statistics show.

Pony.ai, a self-driving vehicle startup, invested in Nansha in 2017. It has developed as a leader in the self-driving sector with the highest valuation in China, according to Dong.

The auto manufacturing industry in Nansha, led by GAC Toyota, has generated an annual industrial output of more than 100 billion yuan for three years in succession, he said.

The intelligent internet connection and new energy vehicle sectors also have strong growth potential with industrial output approaching 300 billion yuan a year, he noted.

A fund was agreed at the annual investment conference to promote the bilateral cooperation between Guangdong and Russia. The parties involved have chosen Nansha to set up the operating company of the fund, which will strengthen the financial industry of the district, according to a government release.

"Nansha will accumulate momentum for innovation and development with an ambition to become an innovative lighthouse for the Greater Bay Area," Dong said.

Incentive policies

Investment and talent attraction are always a top priority for the local government, said the district chief. Efforts include generous rewards and subsidies, improving the efficiency of government departments and solving housing problems for talents and introducing quality schools.

The district government has issued 16 incentive policies to further encourage technological innovation in mid-March.

For a technological research platform, if it can satisfy the district government's requirements on key industrial development and is significant in bolstering growth, it can access subsidies of up to 200 million yuan, one of the highest financial supports provided by a local government across the country.

Each year the district allocates 100 million yuan to encourage companies to make breakthroughs in new technologies, tackle key technical problems and carry out research on generic technologies in industry. Outstanding projects can gain a subsidy of up to 10 million yuan each year.

The new policy also raises the housing allowance to Nobel Prize winners and academicians from 5 million yuan to 10 million yuan, while an innovative group led by top industrial leaders can be subsidized with up to 20 million yuan.

Besides the government efforts, Nansha also boasts excellent natural environment, fresh air and delicious food, said Dong.

"The economy of Nansha has shown strong growth and the urban function is improving. Our district has been a fertile land for innovation and startups and a great place for study, living and tourism," he noted.

Xu Zhihao, CEO of Geely Technology Group expressed his confidence in setting up its aerospace headquarters in Nansha.

He said the district has a great geographic location and is leading in system innovation, which is on the way to becoming an international innovation center and a hub of world talent. The district has great potential, he added.