Changchun Software Park

Updated : 2019-01-28Source : CCFAO
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Situated in Changchun New and Hi-tech Industry Development Zone, Changchun Software Park was founded in January 1999, and was authorized by Ministry of Science and Technology of China as the “Software Industry Base for National Torch Plan” in September 2000. On May 25, 2006, it was certified as the “Export Base of Software Products of Jilin Province”.

After eight years of development, Changchun Software Park is now able to provide software enterprises at home and abroad with the top-notch development space due to its preferential policies, super strengths in science and technology, sufficient resources of talents, and sound industrial atmosphere. Up to now, a bunch of famous enterprises in China have settled in the park. 

There have been over 300 software enterprises, over 7,000 software workers, and more than 500 copyrights of software products inside the park. In 2006, the total revenue reached RMB 3.2 billion. Ten software enterprises have been listed as the key enterprises under the overall layout of Jilin Province. Many enterprises settling in the park have blossomed into the ones with great development potential in software export and software outsourcing. Of them, 25 have passed ISO9000 quality certification, 6 passed CMM evaluation and 1 has passed CMMI3 evaluation. In 2006, the export volume reached approximately USD 10 million, and the annual growth rate came up to 50%.    


Changchun Software Park----Infrastructures of Software Industry

The incubating area has reached 100,000 square meters. Inside the park there are three software incubating bases including Hi-tech Building, Silicon Valley Building, Entrepreneurship Building as well as related subordinate constructions with the incubating area totaling around 300,000 square meters. Enterprises including Hongda Group, Jilian Commercial Software, Jilin University Information Technologies Co., Ltd, GOEASY, Zeus Information, Changbai Information, Modern Investment Group Co,. Ltd., etc., have built their own buildings totaling 90,000 square meters for software research and development. 


Changchun Software Park----Outsourcing Base with Great Potential for Japan and South Korea


For Japan and South Koran, Changchun is more competitive in geographical location, languages and number of talents. Some enterprises in the park have become fundamentally strong in software export and software outsourcing. Changchun Hongda Company has realized RMB 1 million or more in export of fingerprint products. FAW Qiming Company has been listed by Ministry of Science and Technology of China as a pilot unit to export China-made software products to Europe and America, and has begun working on software business for Toyota. A dozen of emerging enterprises engaged in software outsourcing are becoming increasingly strong. Meanwhile, Changchun Software Park has attracted so many attentions from famous enterprises at home and abroad that many of them have come one after another for inspection trips to the park in hopes of learning more information on software outsourcing. GENPACT (Dalian) Co., Ltd., has settled in the park and opened business. In recent years, the annual growth rate of export volume of Changchun Software Park has reached over 30%. 


I Outsourcing Capacities:

1. BPO----Business Process Outsourcing: At present, GENPACT (Dalian) Co., Ltd., has opened business here in Changchun, which is engaged in BPO, and in the mean time several other companies are under preparation for BPO business as well.

2. Software Outsourcing: Such companies as Donggao Technology Co., Ltd., Changchun Ideal S&T Information Ltd and so on have so far established cooperative relations in software outsourcing with Japanese companies including GE, NRI, Hitach and Toyota and so on.

II Outsourcing Advantages:

1. Labor Cost: The cost of software technicians in Changchun is obviously more competitive compared with that in Beijing, Tianjian, Suzhou, Hangzhou and that in the costal cities like Dalian and so on.

2. High-quality yet Low-cost Habitation: The comfortable living environment, wonderful cultural atmosphere, convenient traffic, inexpensive living cost, improved supporting services and the openness-conscious living mentality, etc., have attracted an increasing number of investors to Changchun New and Hi-tech Development Zone.

3. Communication Advantages: Changchun Software Park is in good relations with other big dealers which can help reduce the cost for communication to the least level. For example, the cost for 10M broadband connection is lower than RMB 10,000 per year. 

4. Location Advantages: Situated in the transition zone from eastern low-mountain and hilly area to the western mesa plain, Changchun is big in plain area. Mesa is slightly rugged but is still flat, so convenient traffic is available. Adjacent with Asian countries including Japan and South Korea, so Changchun has certain favorable factors in carrying out outsourcing business.


Changchun Software Park----Industrial Export Base & Export Federation


Founded through organization of Jilin Provincial Department of Information Industry, the Industrial Export Base & Export Federation of Jilin Province has in total 28 member enterprises and over 3,000 research and development employees at the moment. And the member enterprises’ products covering such fields as security, banking, electric power, manufacturing industry, education and government, etc., are being sold in the countries and regions such as Japan, America, Europe, South Korea and Hong Kong and so on.

As a bridge for communication and cooperation as well as an information plat for software enterprises in Jilin Province and those abroad, the Industrial Export Base & Export Federation provides enterprises much closer cooperation opportunities for software export and outsourcing businesses under the principle “equality, cooperation, mutual help and mutual benefit”.


Changchun Software Park----Human Resource Situation 


Unlike other major cities in China, Changchun is comparatively advantageous in the number of talents. Changchun is also an important center of education and scientific research. Inside Changchun New and Hi-tech Development Zone, there have been 18 institutions of higher learning including Jilin University and Northeast Normal University, etc. There are over 30,000 full-time students majoring in IT and those subjects related to IT. Jilin University is a comprehensive university which is the largest in scale and student number in China. Software College of Jilin University and Software College of Northeast Normal University are the national model software colleges. In addition, there are also two national software colleges, namely, Software College of Changchun University of Technology and Software College of Changchun Institute of Technology. Under the current circumstance that China’s major market of software outsourcing is Japan, Changchun also has 14 out of 16 colleges and universities in Jilin Province which are capable of fostering students with a good command of Japanese. The number of full-time Japanese majors is up to over 4,500 with some 1,000 students to graduate every year. The talents with good command of Japanese in Changchun also include those who previously graduated as well as those who are now working or studying abroad, which totals approximately 10,000 people. In addition, there are over 1,000 overseas students from Japan and 3,000 from South Korea who are studying in Changchun. All these people are expected to be the elites for outsourcing business of Changchun.  


Changchun Software Park----Preferential Policies


Aid Funds

The yearly amount of applying for special funds of all kinds is not less than RMB 10 million, and that of the venture capital investment in the New and Hi-tech Development Zone and entrepreneurship fund is not less than RMB 20 million.


Tax Policies

(1) Added Value Tax: Ordinary value-added tax payers who are selling the self-developed software products shall pay value-added tax in line with the legally stipulated tax rate prior to 2010. The part exceeding 3% of the tax burden in implementation will be rebounded, once it is imposed. The refunded part will be in use by enterprises for development of software and expansion of reproduction. 

 (2) Enterprise Income Tax: Payment and training cost for employees of software enterprises can be itemized in line with the actually happened amount before income tax, and after certificated by National “I-Soft” (software enterprise and software product), software enterprises can enjoy the preferential policy “two-year exemption and three-year reduction at 50%” starting form the first profitable year. After certificated as hi-tech enterprises, they shall be levied at a tax rate of 15%.

(3) Tariff: As for equipment imported by software enterprises for self use purpose as well as such commodities imported with the equipment in line with the agreed contract as the technologies (including softwares) and the supporting parts and spare parts but except for those listed into A Catalogue of the Import Commodities Without Exemption to Foreign Invested Projects, and A Catalogue of the Import Commodities Without Exemption to Domestic Invested Projects, they shall be exempted from the customs duties and value-added tax for import linkages.

Land Use Policies

As for the enterprises to dwell and buy construction land in the park, they shall enjoy preferential land price, and shall be provided with land featured by “seven accesses and one leveling”.

Tenement Policies

As for the software enterprises to dwell in rented houses in Hi-tech Building, they shall enjoy a preferential price of 50% lower than the market price. The rental shall be charged with RMB 20 per month for per square meter.