Shanghai, China's biggest city, is to give priority to the development of electronics manufacturing services, or EMS, an official said Sunday.
Addressing the 14th International Business Leaders' Advisory Council for the Mayor of Shanghai, a foreign trade official with the Shanghai municipal government said the Yangtze Delta region, including Shanghai, was very suitable for EMS development for well-developed industries, infrastructure facilities, and a relatively full-fledged service sector.
EMS refers to the practice of outsourcing manufacturing, procurement, partial design and logistical support to manufacturers by an owner of a certain brand of an electronic product, who generally controls the research and development of the core technology and marketing.
Global EMS output has grown by an average 20 percent annually since 1997, much higher than the 8 percent growth rate for the electronics industry during the same period, said the official.
The EMS sector is characterized by its fast growth in production and exports and the number of jobs it creates with considerable output value and tax revenue.
By 2005, global EMS output value is expected to reach 203 billion US dollars.
The official said Shanghai, the biggest foreign trade port in China, has been upgrading the efficiency of local customs and management of the processing trade sector, which is good for EMS.
Shanghai is striving to become an international shipping, financial and business center.
(Xinhua News Agency November 4, 2002)
