China will set up its first overseas innovation center in Singapore to help its high-tech enterprises enter the international market, said sources with China's Ministry of Science and Technology on Wednesday.
The Torch High Technology Industry Development Center under the ministry last week signed a memorandum of understanding with the Economic Development Board of Singapore to promote the innovation and industrialization of Chinese enterprises using Singapore as a global launch pad.
The establishment of the China Innovation Center for High Technology Enterprises in Singapore will help Chinese companies internationalize by providing them with a conducive and pro-business environment and by easing their start-up process, said Zhao Yuhai, director-general of the Torch center.
"Our Chinese companies will be able to set up operations in Singapore and innovate and commercialize their products and services to the international market." said Zhao. "They can take advantage of Singapore's international links, efficient infrastructure and trade benefits stemming from Singapore's free trade agreements."
Besides linking the Chinese companies to the global market, Singapore has additional draws such as the common use of "putonghua" which greatly eases communication between Chinese and Singapore businesspeople.
In addition, other crucial factors that attract China to Singapore are its strong legal framework, low political risk, stable financial system, pro-business environment and its good relations with China.
The easy access to funds is another key factor to Chinese technology enterprises and start-ups seeking financing, Zhao added.
Principles and management regulations of the innovation centre in Singapore are under discussion and will come into shape later this year, according to Zhao.
China desires to boost its economy by further extending its external wing and internationalizing its companies.
The country also plans to establish innovation centres in other foreign countries, such as Russia and the United States, to "step up international cooperation and to bring domestic high-tech industries on the track of internationalization," said Zhao.
To date, Singapore has five foreign incubators located on the island hub, including ones for Germany, India, Japan, South Korea and New Zealand.
( June 06, 2002)
