TEDA EDB

1
Welcome to TEDA

• Presented by
• TEDA EDB
• Otc., 2006

2
Contents

1. A thriving economic zone
2. TEDA Snapshot
3. Support Service
4. Enjoy your life here
5. Tomorrow is happening today
3
Three Steps For Chinas Economy
4
Circum-Bohai Area

5
Tianjin
Third largest city in China 600 years
history 11,900 km2 in total 10 million population
120km
6
Industrial Foundation

• 14,000 Industrial Enterprises
• In 150 categories
• Electronics Automobile
• Metallurgy Chemical
• Machinery Textile
• Food Beverage Pharmacy

7
Tianjin New Coastal District
8
Hanggu
Tanggu
TEDA
TPFTZ
Tianjin Port
Parts of Dongli and Jinnan
Tianjin Binhai New District
Dagang

• Area 2,270 km2
• Coastal line 153 km
• Permanent Residents1.40 million

9
Tianjin New Coastal District

• Positioningrooted in Beijing,Tianjin and
  Hebei province, aims to serve the circum-Bohai
  region, facing Northeast Asia,Binhai New Coastal
  Area is to be built as the modern manufacturing,
  RD center, transportation and international
  logistics center, which is also suitable for
  living.

In June, 2005, Premier Wen Jiabao inspected
Binhai New Coastal Area, which comes to be a part
of the overall strategy of national development.
10
Tianjin New Coastal District

• Center of the Bohai Rim Economic Circle
• Listed in the 11th Five Years Development
  Strategy
• Factory and RD Center for China and the world
• Industry Shifting to East of Tianjin by Tianjin
  Municipal Government

11
High-tech Corridor

• 1 axis -- High-tech Industry axis
• 1 belt -- Marine Economic Belt
• Three districts Hanggu, Tanggu and Dagang
• 8 industrial zones

12
Binhai New Coastal Area

• Comparison with Pudong(Jan-Jul 2006)

unitBillion USD
Real estate investment Increase rate () Financial Revenue Increase rate () Total Industrial Output Increase rate ()
Binhai New Area 5.53 35.5 1.74 14.7 37.04 37.8
Pudong 4.63 -4.4 4.91 15.9 33.53 15.4
Resource http//www.bh.gov.cn
13
Contents

1. A thriving economic zone
2. TEDA Snapshot
3. Support Service
4. Enjoy your life here
5. Tomorrow is happening today
14
Who We Are
Tianjin
Economic-technological
TEDA
Development
Area
15
TEDA Snapshot

• Approved by Central Government in1984
• one of the first 14 economic zones
• National level zone
• Core of Binhai New Coastal Area

16
Sparkling Success Story
Industrial Output, Jan- Jul, 2006
In USD billion
21.18
14.21
13.77
13.50
7.46
Source MOFCOM
17
Sparkling Success Story
Actual Foreign Investment, Jan.- Jul., 2006
In USD Million
2672
1992
1112
651
326
Source MOFCOM
18
Sparkling Success Story
Within Tianjin Jan.-Aug. 2006
Local Production Value
19.3
35.0
Total Industrial Output
Export Value
48.6
Contractual Foreign Capital
41.7
0 10 20 30 40 50
19
Outside Comments on TEDA

• By United Nations Industry Development
  Organization (UNIDO) In 2002, valuated as one of
  the most dynamic areas of China
• By China Knowledge of Singapore In March, 2002,
  ranked as AAA-rated industrial park
• By Ministry of Commerce of China General
  Evaluation on National Level Development Zones in
  2004,TEDA ranked the top of it with the total
  score of 708.7. It is the 6th times for TEDA to
  gain the laurel in the last successive 6 years.
• By Jones Long LaSalle in Oct. 2004, Tianjin, one
  of the top 8 Asian cities with the most
  competitive cost in overseas businesses
  relocation.

20
Outside Comments on TEDA
-Why TEDA?

• Strong support from all government levels
• Stable public utility land, water, power, gas
  etc.
• Unique geographical advantage
• rich human resources
• Perfect legislation system

21
Site information
To Beijing
TEDA North
TEDA YSP
Tianjin
TEDA West
TEDA
TEDA MIP
Tianjin Port
22
TEDA Original

• 40 km2
• 120km to Beijing
• 45km to Tianjin downtown
• 5km to Tianjin Port
• 38km to Tianjin airport

BEIJING
TIANJIN
TEDA
23
TEDA Original

• Approved by central government in 1984
• National level economic zone
• Manufacturing oriented base

24
TEDA West

• 100 km to Beijing
• 125 km to Beijing Airport
• 20 km to Tianjin downtown
• 15 km to Tianjin Airport
• 18 km to Tianjin Port
• 18 km to TEDA main zone

TEDA North
TEDA YSP
TEDA YSP
Tianjin
Tianjin
TEDA West
TEDA
TEDA MIP
Tianjin Port
25
TEDA West
General Layout of TEDA West
26
TEDA West

• Transportation

27
TEDA North

• 72 km2 land
• 200km to Beijing
• 61 km to Tianjin downtown
• 35km to
• Tianjin airport
• 15 km to TEDA
• For chemical industry

28
TEDA North

• Pillar industries
• Petro-Chemical
• Fine chemical
• Marine chemical
• Raw materials
• Cruiser recreation industry

29
TEDA MIP

• 4.6 km2 land
• 120 km to Beijing
• 15 km to Tianjin downtown
• 50 km to the port
• 16 km to Tianjin airport

30
TEDA MIP

• For electronic components mobile phone
  manufacturing
• Largest electronics manufacturing base in China
• 92 enterprises from 12 countries
• 780 million USD of total investment

31
TEDA YSP

• 10 km2 land
• 70 km to each Beijing and TEDA original
• 30 km to Tianjin
• 80 km to the port
• 40 km to Tianjin airport

32
TEDA YSP

• Auto-related Industrial Park
• Ideal to back up Beijing Tianjin
• Over 48 enterprises with 471 million USD

33
Take you anywhere
BEIJING

• Airports
• Sea transportation
• Railways
• Expressways

TIANJIN
TEDA
34
Take you anywhere
On Wheel

• 9 express ways
• 6 inter-province highways
• 2 more expressways between Beijing-Tianjin

TJ-Shanxi
35
Take you anywhere
On Rail

• 6 major railways to all directions
• Inter-province metro

36
Take you anywhere

• 5 km to TJ port
• Connected to 300 ports in 160 countries
• Able to handle bulk cargo, container, liquid
  material.
• Roll-roll terminal available.

By Sea
Tianjin
37
Take you anywhere

• 180 km (2hours) from Beijing Airport
• 38 km (40mins) from Tianjin Airport
• Terminal for passenger lines inside China
• The largest cargo airport in China

By Air
Beijing
Tianjin
38
Market Coverage
500km
1000km
1500km
39
TEDA Clients

• Almost 4236 foreign clients (by Aug.2006)

• 57 of Fortune 500 have invested 123 enterprises

• We value medium/small enterprises

40
Meet your neighbors

• America

Bio-Pharmacy
Electronics
Light Industry
Machinery

Other Industries
41
Meet your neighbors

• Europe

Electronics
Bio-pharmacy
Machinery
Light Industry
Other Industries
42
Meet your neighbors

• Asia

Electronics
Light Industry
Bio-pharmacy
43
Meet your neighbors

• Asia

Machinery
Other Industries
44
Fortune 500 in TEDA
57 of Fortune 500 have invested 123 enterprises

45
Fortune 500 in TEDA
57 of Fortune 500 have invested 123 enterprises

46
SME
47
SME
48
For pullulation

• TEDA Medium/Small Enterprise Credit Guarantee
  Center
• Guarantee for their short-term operation fund
  loans
• Trade Promotion Center
• Help for promoting company products through trade
  fairs in both domestic and overseas.
• TEDA Manufacture Promotion Center
• Credit guarantee
• Venture Capital
• Workshop rent

49
For pullulation

• TEDA International Incubator
• National Nanometer Technological Research Center
• TEDA Watson Biotech Park
• KAITAI Incubator

Tianjin University Hi-tech Park
50
Pillar Industries
IT Telecom
Machinery Autos
Bio-pharm
Backed up by strong RD capability and service
industry
51
IT Industry
High economic return
Million USD
Jan-Feb, 2006
Source Ministry of Information Industry
52
IT Industry

• Tianjin one of the 9 national electronic
  information industrial base
• 4 of the 31 first electronic information
  industrial park located in Tianjin 3 of the 4 in
  TEDA
• Communication industrial park
• Slice component industrial park
• Integrated Circuit (IC) industrial park
• Chemical physical power supply industrial park
  (Tianjin)

Approved by Ministry of Information Industry in
2005
53
IT Giants
TAIWAN (China)
54
Auto Plants Distribution
55
Autos in Tianjin

• One of the pointed manufacturing base for cars
  and mini-cars
• - Top 1 of mini-cars output -
  Top 1 of 1.0L?1.3L engines output
• One of the largest auto consumption areas in
  China.
• More than 260 Automobile Parts enterprises

56
Distribution of Auto Parts
80 Automobile Parts enterprises locate in TEDA,50
of them are direct supplier of Toyota.
57
TEDA, Auto Base

• Tianjin FAW TOYOTA Co. manufactures Vios,
  Corolla, Crown and other types of cars here with
  total investment amounting to 400 million USD.

58
TEDA, Export Base

• July 2006, by the Ministry of Commerce and
  National Development and Reform Commission
• TEDA, listed as The First Batch of National-level
  Auto and Auto Parts Export Base
• Tianjin FAW Xiali , Sparktronic, Tianhai
  Investment and Motorola (China), listed as
  National-level Auto and Auto Parts Export
  Enterprise

59
Biological Industry

• Around 70 bio-pharm enterprises in TEDA
• Total investment over 700 million
• Output in 2005 reached over 505 million

60
Biological Forums

• TEDAWATSON Bio-technology and pharmaceutical
  forum has been held twice and now is one of the
  in national bio-technology circle

In Oct 2004, the forum was upgraded as China TEDA
biology forum, a permanent forum in Asian and
worldwide biological circle.
61
Long-term strategy of Bio-industry

• As planned at the end of 2003, 2 sq km land will
  be planned for biological industry in the first
  phase of bio-technological development.
• Every year, 100 million RMB (USD 12.19 million)
  will be devoted as the investment fund and
  bio-tech RD fund.
• 5-8 national-level bio-tech RD center will be
  built up.

62
Food Beverage Industry

• Around 90 food and beverage enterprises in TEDA
• Total investment over 1.70 billion
• Output in 2005 reached over 1.22 billion

63
RD Service

• 2 Professional Incubator
• National Nanometer Technological Research
  Center
• TEDA Watson Biotech Park

• 9 national/provincial Technology Engineering
  Center
• TEDA Research Center for Life Science of
  hematology institution of China Medical Science
  Academy
• Underwater Acoustic Engineering Center of
  Chinese Academy of Science
• National Computer Virus Emergency. Response
  Center
• The State Research Center of Industrialization
  for Crystallization Technology
• Tianjin Membrane Technology Engineering Center
• Tianjin Salina Eco-afforesting Engineering
  Center
• Enterprise Technology Center of Tianjin
  Zhonghuan Sanjing Co.,Ltd
• Tianjin Electric Vehicle HEV Research Center
• Applied Biology Center

64
RD Service
Panasonic Auto electronics
John Deere Machinery
Fu Ji Tsu Ten Auto electronics
SEW Speed reducer
Honeywell Automation control equipment
Hyundai Display
Stanley Automobile semiconductor
Novo Nordisk Insulin
Rohm IC design and discrete
Freescale IC design
SMIC IC design
TOYOTA Automobile
KUMHO Tire
65
Services Industry

• Worlds leading inspection, verification,
  testing and certification company
• Provide a pass of quality and standard to access
  to the world.

• Affiliated Computer Services,Inc.(ACS)
• a premier provider of diversified business
  process and information technology outsourcing
  solutions

• Worldwide leading provider of distribution
  facilities and services
• Build up the first and largest global network
  of distribution facilities

66
Services Industry

• IBMs first joint venture partner in China
• IT information, integration, and outsourcing
  services

• one of the oldest and the largest U.S. rental
  firms
• test and measurement rent/lease

• an integrated financial services group
• leasing, corporate finance, real
  estate-related finance and development, life
  insurance, investment and retail banking

67
Contents

1. A thriving economic zone
2. TEDA Snapshot
3. Support Service
4. Enjoy your life here
5. Tomorrow is happening today
68
Public facilities
In TEDA Original
In TEDA West
69
Water
Standard Adequate Reliable

• Current supply capacity 180,000 tons/day.
• Designed capacity 300,000 tons/day
• Price for industrial user
• RMB 4.1 1.1/ton (USD 0.51/ton)

Electricity

• Supply capacity 320,000 KW.
• Supply available at 35KV, 10KV, 380V
• Meter charge RMB 0.550.676 (USD 0.060.08)per
  KWH
• Two charging models

70
Standard Adequate Reliable
Gas

• Natural gas and LPG
• 390,000m3/day
• Pipe or tank supply
• RMB 2.1/m3 (USD 0.25/m3) for natural gas

Heat

• Hot water and steam
• Five heating plants
• 700 tons per hour
• Charges
• RMB 130/ton (USD 15.8/ton) for steam
• RMB 6.92/M2 (USD 0.84/ M2) for hot water

71
Standard Adequate Reliable
Wastewater

• Capacity 100,000 tons/day
• Environment-friendly tech.
• Electroplating wastewater treatment
  available1000 tons/day

72
Supply in TEDA West

• Water
• Estimated daily capacity of 500,000 tons before
  2007
• Designed daily capacity 2.15mil tons
• Current daily capacity 50,000 tons

• Electricity
• 35 kv temporary sub-station, 110 kv sub-station
• Long-term plan Binhai and Dongli sub-station
  each of 500 kv , additional 3 substations of
  220kv in TEDA.
• Meter charge RMB 0.4890.876 (USD
  0.060.09)per KWH
• Two charging models

73
Supply in TEDA West

• GAS
• Max supply capacity of 45,000 tons/h
• Gas from Northern Shaanxi and Dagang

• Heating
• Temporary boiler room(24.6T/H)
• Coordination boiler room under construction
  (steam boiler (24.6T/H) hot water boiler of
  29MW/H )
• Steam 50 T/H
• Hot water 40 T/H

74
Waste Water Treatment
In TEDA West

• Waste water treatment
• Daily treatment capacity of 12,500 ton
• Put in use in August 2006
• Designed daily capacity of 150,000 ton

75
Connecting the world

• You may choose ISDN, IP, DDN, broadband
  services, etc.
• Three major suppliers China Telecom,
  China Unicom, China Netcom.
• 247 maintenance

• Communication

76
Location Options
Various workshops for selection
Land with nine availabilities and one level up
77
Workshops

• Several developers to choose
• Light-steel structure
• 6 meters high
• 1.5 -2 ton/m2 load

78
Talents Pool
Availability
Lower labor cost
Complete securities system
79
Where are they?
Find Your People

• Population

• 10mil. in Tianjin
• 500,000 in Tanggu
• 250,000 in TEDA

• 59 universities/colleges
• 183 professional schools
• Over 2 mil. industrial workers in Tianjin

80
Find Your People

• How to get them?

• Recruitment service
• 15 labor bases
• Employee training
• HR subcontract

81
HR Service Center
Find the people you need

• Talent fair
• Campus recruitment
• Website recruitment
• Headhunting service

Training programs after recruitment

• Basic training for new entrants
• Management training program
• Language training program

82
Find Your People

• How is the cost?

In 2005, social average salary of Tianjin is RMB
1,683 yuan/month
In 2006, the min. and max. insurance assessment
base is RMB 980 yuan and RMB 5050 yuan
83
Comparison of salary
84
Securities
2006
Employers Pay Employees Pay In Total
Endowment 20 8 28
Medical Treatment 10 1 11
Unemployment 2 1 3
Work-related Injury 0.05-0.9 None 0.05-0.9
Medical on Childbirth and Children 3 None 3
Total 35.05-35.9 10 45.05-45.9
Housing 13 9 22
85
Incentives

• Manufacturing company
• Tax holiday
• Preferential tax
• Export oriented company
• Technical advanced company

Corporate income tax

• Imported capital equipments of national
  encouraged categories shall be exempted
• Custom duty
• Import VAT

Import duties
86
Secured by National Law
Corporate Income Tax

• Manufacturing companies 23

0
7.5
15

• Technical advanced companies 233

0
7.5
10
15

• Export oriented companies 23

0
7.5
10
(if only the export is at least 70 of the
industrial output)

• Local Income tax 0

87
Secured by National Law
Import Duties

• Imported capital equipments of national
  encouraged categories shall be exempted ( import
  duties import VAT)

88
TEDA Service
Like a Consulting Firm
Like a HR agency
One-stop service Investment survey Solution Approv
al
www.tedahr.com Job Fair Labor Base
Like a Service Contractor
Operation Service Team E-custom Green
passage Bonded logistic center Intellectual
Right Protection
89
EDB-Your window in TEDA
Research stage
Environment
Land
EDB
Investor
Q
Utility
HR
Total solution
Customs
TAX
90
Worldwide service
London
Chicago
Cologne
Beijing
Tokyo
New York
Shanghai
San Francisco
Hong Kong
91
Paperwork
Set up business here
Investor
EDB

• Setup docs

• 5 days for approval
• To issue
• Certificate
• Business license

92
Operation Service Teams

• Project Construction Service Team to help
  coordinate the construction work.

• Project Operation Service Team to help initiate
  the operation, trade, and market exploration.

93
IPR Concern

• TEDA approved as a municipal level patent
  exemplary area
• TEDA IPR Bureau, the only local-level IPR
  authority in Tianjin.
• 40 companies owns 175 patents, additional 8
  companies in application process in TEDA

• Performance of industrialization of patent by
  companies
• Industrial output increased by USD 21.09
  million,
• tax increased by USD 930 thousand
• foreign exchange of USD 1.41 million.

94
Intellectual Property Right

• Series of policies published to encourage IPR
  protection and industrialization of patents.
• TEDA has set it an important standard for
  high-tech company certification that a company
  should have its own Independent Patent Right
  (IPR).
• TEDA Science Technology Development Fund
  provides financial aid to the patent application
  and 12 applicant companies for their 81 patents.

95
Investment Insurance

• Inbound investment insurance
• -to protect against the investors from losses
  caused by political risks in China
  (Expropriation, Transfer Restriction, War and
  Breach of Government Undertakings) , consisting
  of equity investment insurance and debt
  investment insurances
• -covering 90-95 of the total loss
• China Export Credit Insurance
  Corporation
• (SINOSURE) www.sinosure.com.cn
• -capital coming from the Export Credit Insurance
  Risk Fund as arranged by the state fiscal budget
• -to provide investment insurance service to the
  investors, to help reduce loss, facilitate
  financing, explore emerging market and
  professional risk management.

96
Easy Logistics
Your Co. in TEDA
TEDA Public Bonded Warehouse
TEDA Customs
0.5h
2h
Inside China
Outside China

• e-customs service
• A public bonded warehouse
• Zero distance from Tianjin customs

Your supplier or customer
97
Tianjin Export Processing Zone

• A special tariff area
• 1.2 km2
• 24 hours clearance

TEPZ
Enterprises allowed
TEDA

• 100 Export Processing Co.
• Warehousing Co.
• Transportation Co.

TEDA Investment Service Center
98
Bonded logistic center

• An integration space for various logistics
  enterprises
• Logistics zone of a certain scale, offering
  comprehensive services to link the domestic and
  overseas markets
• Close area of Customs with function of port
• Custom set up agency inside BLC and carry out 24
  hour supervision to the relevant site.

TEDA Investment Service Center
99
Contents

1. A thriving economic zone
2. TEDA Snapshot
3. Support Service
4. Enjoy your life here
5. Tomorrow is happening today
100
Enjoy your life here
101
Make your home here

• 4 blue-collar communities
• Total area around 400,000 sq m
• 45,000 residents could be held
• Affiliated canteens
• Business apartment
• for medium and senior managerial staff

Blue collar apartment in TEDA WEST is designed
for 25,000 in 1st phase
102
Enjoy your life here
????
103
Make Hour Home Here

• Education

• From infant school to university
• 20,600 students
• 1202 teachers
• 112 foreign teachers
• 2 international schools

104
Make your home here

• Two hospitals in TEDA
• First class in Asia
• 486 hospitals and clinics in Tianjin

• Health

105
Enjoy your life here
106
Contents

1. A thriving economic zone
2. TEDA Snapshot
3. Support Service
4. Enjoy your life here
5. Tomorrow is happening today
107
Look into the future
Tianjin Port Expansion

• Handling capacity will reach
• In 2007, 250 mil.tons and 6.5 mil. TEU/year
• In 2010, 300 mil.tons and 10 mil. TEU/year

108
Look into the future

• Airport expansion
• USD 243 million of investment
• 9 million of annual passenger throughput
• 250 thousand tons of annual cargo throughput

109
Look into the future

• Widen existing expressway
• Another two expressways
• Northern passage
• under construction
• Total distance of 134.8 km
• 8-lined
• complete before 2008
• Southern passage
• under programming
• 8-lined

110
Look into the future

• New rail between BJ and TJ with Total distance of
  115 km
• 30 minutes
• Completed before June, 2008

• Ring route in TEDA, with total distance of 30 km
  (8km for 1st phase)

111
Tomorrow Is Happening Today
112
Look into the future

• A more sound perfect Manufacturing Base of
  North China
• With a more harmonious Business Climate

113

• Contact us
• TEL[phone]
• FAX[phone]
• Emailinvestteda_at_teda.net
• Website www.investteda.org