Fujian pilot free trade zone-based companies look to go global

The worlds' third-largest point-of-sale terminal supplier, Fujian Newland Payment Technology, announced in August it will enter the Brazilian market.

The company has chosen countries where cashless payments are not yet common, but it predicts strong potential for the technology, said Shen Sizhong, Fujian Newland Payment Technology's deputy general manager.

In Brazil, for example, with 200 million people and rapid economic development, traditional payment methods are reaching their limits, Shen said.

"We expect to provide better payment solutions for companies and consumers," he said.

The company is a major subsidiary of Fujian-based, publicly listed giant Newland Science and Technology Group, an expert on internet of things and wireless telecommunication technologies.

The company's sales of POS terminals surpassed 5.8 million units in 2016, up 6 percent year-on-year, according to a report released by United States market research company Nilson last month.

Fujian Newland Payment Technology ranked No 3 on the global list by POS terminal shipments, after France-based Ingenico and US-based Verifone, the report said.

"The innovative products and rather low prices are two of the company's strengths," Shen said.

To better serve the diverse demands of its various international clients, the company specializes in tailored functions. Wal-Mart Stores members, for example, can pay with their membership cards, Shen said.

In cooperation with Apple, the intelligent POS devices can be used to clear payments with Apple Pay, without the need to enter a password.

"The design aims to bring shop owners and the customers closer together," Shen said.

The company aims to increase the contribution of overseas business in its overall activities from 20 percent currently to 50 percent over the next few years, amid a fiercely competitive domestic market, he added.

As one of numerous companies located at the China (Fujian) Pilot Free Trade Zone in Fuzhou, capital of Fujian province, Newland is among many local companies eager to go global.

Other overseas explorers based in the zone include Scud Group, which opened a branch in Japan to develop lithium-ion battery packs, and Fuzhou Hongdong Pelagic Fishery, which has invested $200 million in the biggest fishery base of its type in Mauritania.

Approved in 2015, the free trade zone comprises three areas, in the cities of Fuzhou and Xiamen, and Pingtan county. It has attracted 46 foreign investment projects totaling $2.91 billion, according to the zone's management committee.

To encourage local companies to go global, the zone has optimized its administrative procedures.

In the past, companies needed to gain approval before investing in other countries.

Now, they can undertake international business activities after handing the necessary materials to the government, which will monitor their behavior afterward.

Pingtan, another section of the Fujian free trade zone, has launched similar initiatives to promote outbound investment.

Shi Qiaoling, an employee at Pingtan Jinjingwan Development and Construction, said it used to take more than one year to complete all the processes after visiting several official departments to submit piles of materials.

"Sometimes the identity card alone had to be handed over more than 10 times," she said.

In comparison, applicants now need only visit one office, submit all the information by filling in one form and wait for the final result from the same office.

The previously required 250 materials have simplified to 19 and the time taken to complete the process has reduced from more than one year to about 90 days.

(China Daily 08/30/2017 page5)