A Study On Transition Strategies Of TEDA

Tianjin economic technological development area (TEDA) was set up in 1984, TEDA has made a good achievement in economy, city construction and system innovation during the past 23 years. Facing the historical opportunity of Tianjin Binhai New Area (TBNA) rapid development, TEDA is given the important duty. But now, the speed of economic development is slowing down, TEDA economy excessively rely on few big companies, has difficulty to expand land resource, the potential projects that would register in TEDA are not enough. TEDA will lose the policy advantages with the unifying the income tax rate of the domestic-enterprise and foreign-enterprises. At the same time, it is safe to say that TBNA will unify the administration system in the near future. Either merge with other area or transform as a functional economic area, TEDA is in the transition.This paper has 5 parts. The first part recalls the development history of TEDA, analyses the status of TEDA's profits. It tells why the FDI will choose TEDA, the only reason is that they can get satisfied returns. This part also compares TEDA with other national level development area, lists all the advantages and disadvantages of TEDA. The second part analyses the orientations of different development stages. It explains the strong desire of urbanization of TEDA and all the reasons that induced the system, industry and space issues. The third part analyses the successful transition of other area and highlight the lessons that TEDA can learn. The forth part lists all the advantages and disadvantages of TEDA through an investment environment evaluation system for national level development area that used by the National Department of Business Administration. This part also concludes four strategic issues that TEDA need to resolve. Based on all the pioneering reforms policies that allowed to be tested first within TBNA and the trend of TBNA integration of economy, the last part give the suggestions for making system advantages, adjusting investment structure, promoting the industrial to high level.This paper try to analyses the issues and gives solutions that TEDA meet during its transition times, but some of them are beyond TEDA controlling, they need strong supports from TBNA and Tianjin government. Only supported and given more attentions from higher level and higher standards, TEDA will transform successfully.