What is the business model of the industrial park? How does it work?

Almost all industrial parks in China are owned by the government. Industrial parks usually have two institutions, one is the industrial park management Committee; 2. Industrial Park Co., Ltd. The former is a government agency in the region where the industrial park is located, and performs government functions in this region. Industrial Park Co., Ltd. is an economic entity engaged in land development, infrastructure construction, investment attraction and enterprise service. Both are completely controlled by local governments. The business model of the industrial park needs to simply explain the costs and benefits of the industrial park from the perspective of its operation, so as to judge its profit model and sustainability as an enterprise. Cost composition of industrial park: land development cost: this cost includes farmers' relocation compensation, farmers' pension compensation and young crops compensation. Fees collected by governments at all levels: this part is collected by governments at all levels during land transfer. This part accounts for about 70% of the transfer price of industrial land. Infrastructure costs: including roads and various underground pipelines. Daily management costs: financial costs: Industrial parks usually get loans from banks at the early stage of development and need to pay high interest. Income of industrial park: retained part of land transfer fee. That is, the retained part of the land transfer fee paid by customers after deducting the fees charged by governments at all levels. Tax retention of enterprises in industrial parks. That is, the tax paid by enterprises in the industrial park, after deducting the retention of governments at all levels.