Five Shenzhen companies, including Huawei, ZTE, Optima Integration Group, Jiumi Information Technology Co. Ltd. and China Electronics Shenzhen Company, have entered the list of national supply chain innovation and application demonstration cities and enterprises in 2022.
The list was jointly released by seven State agencies including the Ministry of Commerce and the China Federation of Logistics & Purchasing recently, the Shenzhen Municipal Commerce Bureau said Monday.
Supply chain management has been developing rapidly in Shenzhen, largely due to Pearl River Delta’s dense industrial clusters, an active market, a developed system for foreign trade, efficient customs clearance and the city’s proximity to Hong Kong, a global logistics hub.
According to third-party data, Shenzhen currently has about 80,000 logistics enterprises, including over 4,000 supply chain service companies, accounting for more than 80% of the country’s total.
The city is home to industry leaders such as Eternal Asia, East Top, China Brilliant, YH Global and HuaFuYang.
In a report released this year by the Shenzhen Logistics and Supply Chain Management Association, it was found that 93% of the city’s logistics and supply chain firms have actively used intelligent technologies and equipment in their day-to-day operations to speed up logistics informationization, automation and intelligence, to reduce costs, improve transportation efficiency and enhance enterprise competitiveness.
For instance, Huawei Technologies Co. Ltd. has greatly improved efficiency through integrated supply chain revolutions, effectively assisting the quick growth of new businesses.
ZTE Corp. has achieved flexible, digital and intelligent production, and its logistics routes span all seven continents. This has been made possible by the idea of creating supply chains that are safe, accurate, intelligent, reliable and efficient.
Shenzhen has made considerable efforts in recent years to continuously develop supply and industrial chains and optimize its business environment. These efforts have included various strategies such as special policies, project support and product promotion.
According to the city’s commerce bureau, it has issued policies to encourage supply chain enterprises to improve their intelligence level and provide various services for upstream and downstream industrial chain enterprises.
The bureau will provide a subsidy of less than 20% of the project’s investment for the intelligent upgrading and transformation of supply chain firms.
The subsidy is capped at 5 million yuan (US$718,000). Additionally, it will provide a subsidy of no more than 3 million yuan for supply chain companies with business loans.