Shiming US and Chinese Government $400 Million Joint Venture Breaks Ground

Shiming US Inc, a Chinese based consumer electronics manufacturer has started construction on a $400 million technology complex joint venture with the Chinese government. The complex will sit on 200,000 sq. meters of land already owned by the company.

The official groundbreaking featured dignitaries from the city of Baoji and greater Guangdong Province, China, along with company CEO, Shiming Wang.

According to the company, the Chinese government is currently bringing 3G nationwide and Shiming US’s new technology campus under construction will serve to satisfy China’s imminent massive demand for new 3G phone technologies. During 2009-2010, China expects to switch the current 600,000,000 cell phone users to 3G.

China is building its own 3G networks and supply chain from the bottom up in order to domestically retain the economic benefits of 3G, and thus has a policy favoring selected domestic manufacturers. Shiming believes it has significant and lasting advantage over established international 3G suppliers and domestic Chinese 3G start-ups due to this government policy.

Shiming’s new state of the art technology campus also will have manufacturing space dedicated to other emerging technologies, including solar energy cells, silicon chips, and products for the rapidly expanding fields of oil field services and oil exploration.

Shiming currently operates another large technology complex in Shenzhen, China. Shenzhen is said to be China’s most successful special economic zone. Taiwan's largest company, the Hon Hai Group, has a manufacturing plant in Shenzhen making most of the iPods, iPhones and notebooks for Apple Inc.

According to Reuters, "China will increase spending in areas such as infrastructure and manufacturing on top of the $586 billion (US) stimulus package it announced in November,” a senior Chinese economic planning official said. Any enhanced stimulus spending will likely benefit Shiming as an already established Government partner.

Besides the advantage of government financing, Shiming US benefits directly from other significant barriers to entry existing in China’s 3G markets, including the increased complexity of 3G requiring higher standards for stability and technological expertise. Shiming US expects to be a leader in Chinese 3G manufacturing.

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