China–Belarus Industrial Park

The China–Belarus Great Stone Industrial Park (Belarusian: Кітайска-беларускі індустрыяльны парк «Вялікі камень», Russian: Китайско-Белорусский индустриальный парк, Chinese: 中国-白俄罗斯工业园) is a special economic zone in Belarus, [1] established under the intergovernmental agreement between the People's Republic of China and the Republic of Belarus.[2] The park offers easy access to International Highways M1/E30 and M4, International Airport (included into the Park territory), International Railways and the capital of Belarus (Minsk) with its labour and scientific potential. Great Stone Industrial Park is designated for high-tech industrial and business activities, including research and development, manufacturing and assembly, warehousing and logistic facilities. Park tax benefits, free customs regime within the countries of the Eurasian Economic Union (EAEU), including Russia and Kazakhstan, open market opportunities for 183 million customers.

General view (2019)
Memorial stone
Logistic zone of the park
Trade and exhibition center
China Merchants business center

History

The China–Singapore Suzhou Industrial Park has become the prototype of the Great Stone Industrial Park. [3] In 2010, the Ministry of Economy of the Republic of Belarus and the "Chinese Engineering Corporation CAMC (CAMCE)" agreed to cooperate on the creation of China–Belarus Industrial Park in the territory of Belarus. In November 2011, it was also discussed at the meeting of the China-Belarus intergovernmental commission. For the initial creation of the park the following documents were signed:

  • Cooperation agreement on the establishment of the China–Belarus Industrial Park in the territory of the Republic of Belarus between the Ministry of Economy of the Republic of Belarus and the "China Engineering Corporation CAMC (CAMCE)", dated October 11, 2010.
  • Agreement between the Government of the Republic of Belarus and the Government of the People’s Republic of China on the participatory development of the China–Belarus Industrial Park, dated September 18, 2011 (ratified by both countries and entered into effect on January 30, 2012).
  • Decree of the President of the Republic of Belarus № 253 «On the China–Belarus Great Stone Industrial Park», dated June 5, 2012 .[4]

Documents to establish a joint venture for Park development were signed in Minsk on August 27, 2012.[5] As a result, Industrial Park Development Company, CJSC (IPDC) was established. The company was incorporated with an authorised capital of $10 million. In April 2013, Park presentations were held in such Chinese cities as Harbin and Guangzhou.[6] On June 4, 2013, the Government of Belarus approved the Master plan (Resolution number 447). In July 2013, Harbin governmental delegation visited Minsk to negotiate participation in the capital of the development company.[7] Minister of the Economy Nikolai Snopkov took part in the meeting. A group of businessmen from the southern Chinese province of Guangdong also declared their intention to participate in the project development.

On May 12, 2017 new Decree of the President of the Republic of Belarus "On the improvement of the special legal regime of the China-Belarus Great Stone Industrial Park" was signed. It created unique legal and regulatory environment for Industrial Park residents and investors. [8]

Description

Great Stone Industrial Park is a territorial unit of Belarus with the status of special economic zone and special regime for doing business.

Park is located 25km from Minsk in the Smolevichi district between the Petrovichi reservoir and Minsk National Airport (MSQ) with total area of 112 sq.km.

Park is focused on innovative manufacture with high export potential. Currently, Park development is based on high-tech manufactures in the spheres of mechanical engineering, electronics & telecommunication, fine chemistry, biotechnology, pharmaceuticals, new materials, logistics, e-commerce and big data. The list is not limited. It is possible to say that any eco-friendly and innovative manufacture is welcome to Great Stone Industrial Park. According to Alexander Lukashenko, high-tech enterprises from all over the world with the «production of the future» will be concentrated on this territory. [9][10]

This area has a special legal regime and incentives unique not only for Belarus, but also for EAEU. For instance, company-resident is free from tax on profit for 10 years since first profit is generated. Then 50% discount from the existing rate for up to 2062. The companies are free from land tax and real estate tax. Income tax for Park employees is 9% compared to 13% for the rest of the country. Residents are also exempted from customs duties and VAT when importing equipment for project implementation. Grandfather clause provides companies with investment protection for 10 years. An investor can get land plots on the Park territory for up to 99 years or take it into a private ownership.[11]

At the very beginning, logistics were an important part of the Park.[12] The project on the construction of logistic sub-park is being implemented by the largest owner of ports and vessels in the world - China Merchants Group. Nevertheless, Great Stone is not only industrial and logistic area. It is going to be eco-city with comfortable living conditions for up to 150,000 citizens. Later on, kindergartens, schools, hospitals, shopping malls, sport and recreation centers will be built. [13][11][14]

According to the British newspaper The Financial Times, Belarus plans to attract foreign investors into the project «through tax incentives, liberal laws regarding foreign ownership and a well-educated labour force».[15]

China–Belarus Industrial Park is the largest industrial park in Europe among the parks established by China.

Economy

Belarus plans to invest more than $500 million,[16] and Bank of China - more than $1.5 billion[17] into the Park infrastructure.

The estimated amount of direct investment to the project will be up to $2 billion. As China Embassy forecasted, it may be increased up to $5.5 billion.[16]

In the long run, the project might accumulate up to $30 billion investment.[18] According to Alexander Lukashenko, the park will help to increase export potential for up to $50 billion annually.[15]

The development of the Park is also focused on creating financing opportunities. In July 2019 the "club of investors" estimated for 20 million USD has been created. Innovative start-ups or small business companies may be financed through special project selection program “Iskra”.[19][20]

Governance
The geographical position of the China–Belarus Industrial Park (brown dot in the middle). EU is shown in green, China in red

Great Stone Industrial Park has three level management structure: 1.Intergovernmental coordination council; 2. Great Stone Industrial Park Administration; 3. Great Stone Industrial Park Development Company.

Park Administration is responsible for any administrative procedures in the Park territory and registration of residents. One of the biggest advantages of Great Stone is related to “one-stop service” opportunities. If required, resident may apply to single authority – Park Administration – for any administrative procedure, such as company registration, licensing, construction permits, etc. If requested by the Park Administration, any public authority shall arrive at the park territory in order to support residents.

Industrial Park Development Company is responsible for construction of infrastructure, land plot allotment and attraction of investors. Moreover, it provides investors services on water, gas, electricity, internet supply and other facilities. Thus, created management structure makes it easier for foreign investors to adapt to new area, protect their rights and simplify any administrative procedures. Detailed explanation can be found in the Decree of the President of the Republic of Belarus No 166 of 12.05.2017 [21]

Residents

There are 56 companies that are registered as Great Stone Industrial Park residents. Among them you can find the following companies:

  • Huawei Technologies Co. Ltd. is a Chinese multinational technology company that provides telecommunications equipment and sells electronics, including smartphones.
  • China Merchants Group is a state-owned corporation of China, the largest owner of ports and vessels in the world. It implements the project on the construction of logistic sub-park in the Great Stone territory.
  • Kronospan manufactures wood-based panels created by electronic printing on paper and plastic base.
  • IPG Photonics is a manufacturer of optomechanical components, electronic assemblies and laser equipment based on them.
  • Composite structures are developing project in the field of composite materials based on Dieffenbacher technology.
  • Innoviz Technologies is a leading manufacturer of solid-state LiDAR sensors and perception software.[22][23][24][25]

Criticism

The project was criticised in Belarus. Main conflict referred to possible demolition of property, negative environmental impact and limited access to natural resources in Smolevichi district, Minsk region.[26]

One of the leaders of the protest campaign, Andrey Dmitriev, noted that they succeeded in getting guarantees of property protection. Former Head of investment department in the Ministry of Economy, Kirill Koroteev, said that the land plots will not be confiscated without the consent of the land owner.[27] Koroteev also noted that 498 hectares of the territory will be reserved for green space and the industrial zone will only occupy up to 10% of the whole territory. [16] According to his statement, the suggestions made during the public debate were taken into consideration. In particular, there will not be any polluting industries in Great Stone. [16]

In response to criticism of the project, Alexander Lukashenko said:"There is no need to shout out that there won’t be enough land or something similar. Everyone will get everything. We will not infringe on or offend our people. If someone feels uncomfortable locating nearby the park, we will provide land for that person with better conditions, so as not to offend".[28]

Alexander Lukashenko has called China–Belarus Industrial Park the country’s most important joint project. He also mentioned, the project may eliminate financial instability in Belarus, [9] and will help the country to make a technological leap.[29]

A columnist for the «Belarusian News», Nikita Belyaev, notes that this project may provoke a conflict between Belarus and Russia, because, in his opinion, Moscow is not interested in reducing the dependence of Belarus on the Russian economy.[30]

According to Lenta.ru, the industrial park is «the most ambitious project within the Minsk–Beijing cooperation».[9]

According to Zhang Zhenzun, senior vice president of the Chinese ZTE Corporation, "the project has good potential for the development of high-tech industries".

See also

References
  1. "Great Stone – a pearl of the Silk Road". Raiffeisen bank international.
  2. Соглашение о сотрудничестве по созданию Китайско-Белорусского индустриального парка на территории Республики Беларусь между Министерством экономики Республики Беларусь и «Китайской корпорацией инжиниринга CAMC (CAMCE)» от 11-ого октября 2010 г.
  3. "VIDEO". Great Stone Industrial Park.
  4. Категория: Политика (2013-03-26). "В апреле пройдут презентации Китайско-белорусского индустриального парка". Belnovosti.by. Retrieved 2015-05-19.
  5. "Подписан устав и учредительные документы компании по развитию индустриального парка в Смолевичах". БЕЛТА. Archived from the original on 2012-10-03.
  6. "Презентация Китайско-белорусского индустриального парка состоялась в Гуанчжоу". Archived from the original on 2013-04-29.
  7. "Харбин изучает перспективы участия в капитале управляющей компании китайско-белорусского технопарка | Информационно-справочный портал Беларуси" (in Russian). interfax.by. 2013-07-30. Archived from the original on 2013-12-03. Retrieved 2015-05-19.
  8. "Decree of the President of the Republic of Belarus from 12.05.2017 №166". Great Stone Industrial Park.
  9. Петр Бологов (2013-07-23). "Лукашенко ставит на Китай как на спасителя Белоруссии: Белоруссия: Бывший СССР". Lenta.ru. Retrieved 2015-05-19.
  10. "Крупные ИT-компании обсудили цифровизацию «Великого камня»". SB.by.
  11. Категория: Общество (2013-07-24). "Белорусско-китайский индустриальный парк открыл свой сайт". Belnovosti.by. Retrieved 2015-05-19.
  12. "Chinese-Belarusian Industrial Park lays foundation stone for commercial logistics sector". SB.by. SB.
  13. "Fire station solemnly opened at Great Stone industrial park". TVR.
  14. "Первый жилой геотермальный дом стоимостью 15 млн долл будет открыт в августе в индустриальном парке «Великий камень»". Новости бизнеса.
  15. "Китайским индустриальным парком под Смолевичами заинтересовалась Financial Times — Наша Ніва". Nn.by. Retrieved 2015-05-19.
  16. "В китайско-белорусском индустриальном парке построят несколько школ, детских садов и казино — Наша Ніва". Nn.by. Retrieved 2015-05-19.
  17. "Белорусско-китайский экономический альянс: в чем выгода для Минска | Аналитика, комментарии, репортажи, обзоры СМИ из Германии | DW.DE | 22.03.2013". DW.DE. 2013-07-16. Retrieved 2015-05-19.
  18. Игорь Карней (2013-07-18). "Дорожная карта довела Лукашенко до Китая". Svoboda.org. Retrieved 2015-05-19.
  19. "Инвестиционный фонд "Искра" создан под крылом индустриального парка "Великий камень"". БТ.
  20. "В индустриальном парке "Великий камень" появился свой клуб инвесторов - "Искра"". БТ.
  21. "Regulations". industrialpark.by. IPDC.
  22. "New investors interested in Belarus' Great Stone Industrial Park". Emerging Europe.
  23. "Residents". Great Stone Industrial Park.
  24. "RECOM Company to invest in solar panel production in Belarus". БЕЛТА.
  25. "Робота-пожарного создадут в индустриальном парке «Великий камень»". БТ.
  26. "Смолевичских дачников не удалось успокоить". БЕЛТА. Archived from the original on 2012-09-27.
  27. "Землю у дачников не отберут, но им придется смириться с соседством индустриального парка". tut.by. Archived from the original on 2012-09-27.
  28. "Недовольным китайско-белорусским технопарком найдут другое место". Строительство.ru.
  29. "Александр Лукашенко ответил на вопросы о коррупции в строительстве, африканской чуме, реформе православной церкви, Китайско-белорусском парке и о Сноудене". СТВ.
  30. "Беларусь ищет в Китае политическую опору и финансового донора | БЕЛОРУССКИЕ НОВОСТИ". Naviny.by. 2012-05-20. Retrieved 2015-05-19.

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