A Brief Introduction to Hangzhou

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Hangzhou

• The capital of Zhejiang province,
• Located in the coastal area of eastern China
• Borders on Shanghai city
• One of the main cities of Yangtze River Delta
  Economic Area
• Long been famed as a fertile land of fish and
  rice

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Hangzhou
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Hangzhou

• Over 8000 years of cultural accumulations, and a
  town history of over 2200 years.
• Has been famed as a heaven on earth because of
  West Lakes beauty.
• Hangzhou Municipality, with its natural scenery
  of one lake, two towers, three islands and four
  dams and long-standing cultural legacy, is one
  of the most significant tourist attractions
  nationwide.
• Hangzhou Municipality has established
  relationships of friendship cities with various
  overseas towns, namely, Gifu and Fukui of Japan,
  Boston of USA, Niles of France, Canberra of
  Australia, Leeds of UK, and so on.

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International Evaluations

• The first place among Chinese Cities of Best
  Overall Investment Environments in 2003 and 2004
  by the World Bank.
• The first place among Best Commercial Cities of
  Chinese Mainland by the Forbs Magazine in 2004,
  2005, 2006 and 2007.
• The first place among 24 important cities
  nationwide by JETRO in 2003.
• The best place for investments by Taiwan
  Electromechanical Association in 2004.
• The International Garden City" by International
  Park and Amusement Association in 2002.
• "United Nations Best Inhabitant City" by the UN
  in September 2001.

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Geographic Location

• Aviation
• Hangzhou city is only 175 km away from the south
  of Shanghai city, and by air, one is capable of
  arriving at Beijing, Guangzhou and Hong Kong
  within two hours. The Xiaoshan International
  Airports passenger, cargo and mail handling
  capacities are listed among top ten airports
  nationwide. By the end of 2007, 181 airlines have
  been opened, among which there are 32
  international airlines.

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Geographic Location

• Highway
• The Huhangyong, Hangning, Hangjincheng,Hangqian,
  Hanghui, Hangxinjing, Hangpu and other
  expressways join right here, and one can reach
  main cities of Yangtze River Delta Economic Area
  within around 3 hours.
• The planned Hangzhou Bay Bridge, the would-be
  longest transoceanic bridge worldwide, is to be
  connected to Shanghai City and to be put into
  operation from 2008.

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Geographic Location

• Railway
• There are 8 regular train services between
  Hangzhou and Shanghai everyday, and a single trip
  lasts for around 78 minutes.
• The Huning Speed Railway, the Huhangyongwenxiashe
  n Speed railway, etc, will have been built up in
  several years. By then, Railway service will
  directly join Yangtze River Delta to Zhujiang
  River Delta, and further radiates to areas around
  Bohai Sea.

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Geographic Location

• Waterway
• The Jinghang Grand Canal has been linked up to
  Qiantang River, which constitutes a water
  transport network joining up the nationwide
  rivers and seas.

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Geographic Location

• Subway
• In June 2005, the State Development and Reform
  Commission approved of the subway construction
  plan of Hangzhou Municipality, and 8 subway lines
  are planned to be built up with a total length of
  278 kms. By 2011 No.1 subway will be built up and
  all the 8 lines will be built up by 2050.

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HEDA

• HEDA was ratified by the State Council as a
  national-grade development zone, and exercises
  jurisdiction over an area of 104.7 k?.
• The best one among 75 Chinese municipal
  development zones by Japan External Trade
  Organization (JETRO)
• The best development zone for transnational
  investments jointly by United Nations Environment
  Program (UNEP) and other organizations.

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HEDA
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HEDA

• A sub-center of Hangzhou Municipality (Xiasha New
  Town)
• An ecological garden-like modern new town
• Center of administrative business, educational
  technologies
• Center of high-and-new technological industries
• Place of advanced manufacturing plants

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Location

• HEDA is located in eastern Hangzhou Municipality,
  on the lower reach of Qiantang River, and in
  south wing of Hangzhou Wing. It is one of the
  three sub-centers in one main city, three sub
  cities, at a same distance from Shanghai,
  Suzhou, Shaoxing and Ningbo. The would-be
  CBD-Qianjiang New Town is only 20 minutes ride
  away from here.

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Natural Environment

• HEDA is situated in a riverside alluvial plain,
  most of which is reclamation land and
  saline-alkali land. It is even, and the elevation
  is 4.5 to 5.5 meters and altitude 5.1 to 5.9
  meters.

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Transportation and Communications

• In recent years, the city is diligently
  practicing the strategy" Riverside Development
  ,Across-River Growth, Eastward expansion", and
  further accelerating the construction of a range
  of significant transportation facilities, through
  which a multi dimensional communication network
  is finished, and Xiasha New city and the main
  city join up perfectly.

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NO.1 Subway

• The NO.1 Subway, under construction, will set up
  7 stops in Xiasha, namely, Western Xiasha,
  Central Xiasha, Eastern Xiasha, Wenze Road, etc,
  which jointly cover the central areas of Xiasha
  New Town, Higher Educational Zone, Southeast
  Riverside Residence Area. By 2011 the NO.1 Subway
  will have been put into operation, when one can
  reach municipal downtown areas within 20 minutes.

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Infrastructure

• HEDA has fostered an eight links, one level
  investment and development environment, namely,
  to supply electricity, water, heat, good traffic,
  communication, broadband, waste drainage,
  rainfall drainage, and, the leveled land in the
  development area.

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Infrastructure

• Electricity
• Huadong Power Grip, now there stands one 220KV
  substation,
• 4 110KV substations and one heat and power
  plant.
• 220 KV Yueya Substation, 110KV Xingang
  Substation, and 110KV Songhe Substation jointly
  supply enterprises with dual return circuit
  electricity.

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Infrastructure

• Drainage
• Within HEDA there has been constructed a grand
  sewage treatment plant with a daily capacity of
  1,500,000 tons, and until now, phases one and two
  have been finished and put into practice with a
  daily capacity of 600,000 tons. Phase three, with
  a daily capacity of 600,000 tons, is supposed to
  be put into operation by the end of 2009.

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Infrastructure

• Water
• Currently, HEADs capacity of water supply is
  205,000 tons.
• Heating
• The heating and power plant in the area is
  capable of supplying 460 tons of heating per
  hour.
• Communications
• Total capacity of program-controlled telephone
  within HEAD is 76,753 and 61,065 of them has been
  occupied.

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Commercial Finance and Supporting Facilities for
Residence

• Japanese School
• Japanese School in Hangzhou is located on south
  side of Desheng Expressway in Xiasha, with a
  total construction area of 5846 ? of
  schoolhouses, and covers an area of 23468 ?. It
  boasts 6 grades, one class for one grade, whose
  construction was finished in April 2008, and has
  been put into operation ever since.

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Cont

• Finance
• Zhejiang Province is one of the most
  economically vigorous provinces nationwide, and
  has accommodated the branches of HSBC,
  StandardChartered, Sumitomo Mitsui Banking
  Corporation, and other foreign banks, and the
  four state-owned banks, Hangzhou Commercial Bank,
  Hangzhou United Bank, Bank of Communications all
  have established their first-grade branches in
  HEDA.

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Cont

• Entertainments
• The Fred Culture Square, Huayuan No.16 Street
  Area, Xizi Yangguang New Town, Days Hotel
  Suites, Hotel ibis, and the Culture and Sports
  Center jointly provide business, shopping,
  dinning, culture, entertainments and other
  services.

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Cont

• Residences for employees
• HEDA has developed low-rental apartments for
  blue-collar employees and apartments for
  white-collar employees.

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Cont

• Education and medical care
• 4 public primary schools,
• 2 public high schools and
• 4 private schools, with a
• total student population of 20,000
• over 20 medical institutions in Xiasha
• Zhejiang Oriental Hospital in Xiasha is a AAA
  hospitals
• On March 28, 2008,the construction project of
  Hangzhou Xiasha Hospital covering 130,000? and
  with a construction area of 166,800? and 1,200
  beds was initiated and it will be constructed
  into a modern demonstrative AAA polyclinic.

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Supply of Talented Personnel

• The Higher Educational Park in HEDA is of
  greatest scale all over the province, where we
  have 14 universities, over 150,000 university
  students, over 80 key disciplines of national and
  department significance, 187 gifts to confer
  Masters and doctors degrees, over 20 key
  laboratories of national and provincial
  significance and over 100 scientific research
  institutes.

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The Largest Xiasha Higher Education Park in
Zhejiang Province
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Supply of Talented Personnel

• By the end of 2007, Hangzhou Municipality has
  managed to locate 4 higher educational parks,
  namely, Xiasha, Bin-jiang, Xiaoheshan and
  Zijingang, where stand over 30 universities, over
  80 professional institutes, and work over 300,000
  professionals. Besides, there exist over 30
  higher and middle vocational and technical
  schools, with a student population of 200,000.

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Regional Layout

• HEDA exercises jurisdiction over an area of 104.7
  k?, and a population of over 300,000. The
  development zone brings into full play the
  regional, intellectual, industrial and
  environmental advantages, implements the strategy
  of one garden, diverse zones, and is committed
  to the construction of an internationally-advanced
  manufacturing base, a university town of new
  era, and a garden-style ecological sub-centre of
  the city.

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Regional Layout
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Administration and Business Zone

• With a planned area of 7.8 k?, it is the would-be
  downtown area of Xiasha Town for administration
  and business, culture and technology, and living
  and residence. Currently, it is under overall
  development and construction, and, by 2010, it
  will have been armed with various municipal
  infrastructure.

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Costal Residence Park

• Taking advantage of the Qiantang River landscape
  and ecological wetland and other resources, it
  devotes itself to the construction of a
  high-quality residence zone for a population of
  150,000. In 2008, the Northern Higher Education
  Unit will undertake an overall development and
  construction. With a planned area of 4.46 k?, it
  will be constructed into a multifunctional
  riverside ecological city of convenient
  transport, pretty environment, complete
  supporting facilities etc.

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Export Processing Zone

• With a planned area of 2.92 k?, among which 2.007
  k? has been put into operation, it has
  accommodated 27 enterprises. In April, 2000,
  Zhejiang Export Processing Zone, as one of the
  first pilot projects by the country, was set up
  right here, where a series of favorable policies,
  for instance, customs within borders, are
  brought into practice. It is a specific zone
  where our customs exercises closed management in
  the form of electronic clearance and non-stop
  port.

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Comprehensive Industrial Park

• With a total area of 18 k?, it has offered
  accommodations to over 700 industrial enterprises
  of domestic and foreign investments, which
  features some leading industries, for instance,
  electronic information, biological
  pharmaceuticals, mechanical manufacture, and food
  and beverages.

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Northern Industrial Zone

• With a planned area of 8 k?, it has accommodated
  altogether 30 enterprises, home and abroad, for
  instance, Panasonics Industrial Garden, COFCO
  Pack, Air Liquide, Prologis Logistics, LONG CHEN
  PAPER CO., LTD.

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Jiangdong Industrial Park

• The Jiangdong Industrial Park of HEDA boasts an
  planned area of 40 k?, lying to the east of
  Qianjiang Tunnel Freeway, north of Qianjiang NO.9
  Bridge Connection Highway, south of south side of
  Qiantang River, and west of the east boundary. It
  is in the hope of becoming the most significant
  industrial development base of the city, with its
  focus on the development of auto components and
  parts and entire automobile industries

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Modern Logistics Park

• It boasts a planned area of 330,350?. Among it,
  bonded Logistics Center (Phase One) covers an
  area of 170,350 ?, which is devoted to bonded
  storage, circulation processing and increment
  services, global purchase and distribution,
  information service and otherwise Prologis
  Logistics covers an area of 240 160,000 ?, and by
  building up high-standard platform, it brings in
  logistics businesses of international brands.

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Singapore-Hangzhou Science Technology Park

• With a planned area of 430 k?, it is devoted to
  the software development, R D and high-and-new
  technological industries. The first body of
  building was completed by the end of 2008.

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The High-Tech Incubator

• The Incubator covers an area of 52 mu, and will
  be developed and constructed by three phases. It
  will be geared to the needs of medium-and-small-si
  zed enterprises, and provide a platform for the
  promotion of the industrialization of scientific
  research achievements. Phase One of it covers a
  construction area of 20,000?,and has been put
  into operation Phase Two, with a construction
  area 80,000?,will be initiated in the latter half
  of 2009, and concentrate on IT, biological
  pharmaceutical RD etc.

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Xiasha Higher Education Area

• HEDA actively supports and guides the development
  of innovation industries, by paying attention to
  construct the idea of two golden business cards--
  "Made in Xiasha and Cultural Xiasha". The
  Management Committee of HEDA elaborately builds
  Xiasha Higher Education Area, by upholding the
  principles of building together, enjoying
  together and developing together and relying on
  the international entrepreneurial platform
  supported by the university town including 14
  colleges and Singapore-Hangzhou Science
  Technology Park (SHSTP).

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Industrial Structure

• By the end of 2007, there had been 474
  foreign-funded enterprises from 39 countries and
  regions, and the total contracted investment had
  amounted to USD5.808 billion, actual input of
  USD2.730 billion, the total local output of
  RMB?25 billion, sales value of industry of
  RMB?128.825 billion, with each main development
  index ranks in the first group among 54
  state-level development areas. And 23 from the
  Top 500 enterprises have invested on 49 projects
  in HEDA.

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Industrial Structure

• At present, the area has formed 4 pillar
  industries, they are, electronic information
  industry, biological pharmaceutics industry,
  machinery manufacturing industry and food and
  beverage industry. The gross value of industrial
  amounted to RMB?94.803 billion, accounting for
  85.15 of the gross value of industrial of the
  whole area in 2006.

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Famous food processing companies such as Wahaha,
Masterkong and Coca-cola have made the food
industry a leading industry.
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Enterprises in HEDA

• By the end of 2007, HEDA had managed to bring in
  474 foreign-investment enterprises from 39
  countries and areas, entered into contracts of
  5,808,000,000 and actually employed
  2,730,000,000. 23 of top 500 enterprises
  worldwide listed by Fortune magazine had invested
  in 49 projects in HEDA. It had achieved RMB?120
  billion of gross value of industrial output, 25
  billion RMB of regional total output value and
  122.85 billion RMB of industrial sales value.

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Key Enterprises Within HEDA
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Preferential Policies

• Tax policy
• Since Jan.1st, 2008, the enterprises enjoying
  preferential policies of low tax rates, switch
  gradually to legal tax rates in 5 years since new
  tax law was imposed on. Among them, the
  enterprises enjoying 15 income tax, shall pay
  18 of income tax in 2008, and 20 in 2009, 22
  in 2010, 24 in 2011, 25 in 2012 the
  enterprises paying 24 income tax, shall pay 25
  of income tax from 2008.

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Preferential Policies

• Customs Policies
• Enterprises in conformity with certain
  conditions shall enjoy relevant reduction and
  remission policies in fields of export tariff,
  import tariff and processing trade, stipulated by
  the state.

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Industrial Promotion Policies

• Policies to speed up industrial and economic
  development
• HEDA accordingly made On Awarding policies to
  Promote Industrial and Economic Development
  (2008), and established the prizes of Annual
  Double Ten Best-Excellent Entrepreneur,
  Enterprises scale Contribution, Enterprises Tax
  Contribution, Industrial Investment, Enterprises
  Energy Saving and Drainage Reduction,
  Encouragement of listing, Safe Production,
  Enterprises Brand and Standard Construction,
  etc, and for those according with the
  stipulations, HEDA will supply capital to award
  and help them sustain.

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Industrial Promotion Policies

• Awarding policies for technological development
• HEDA accordingly made On Several Policies to
  Inspire Scientific and Technological Advancement
  (2008), and planned to subsidy and help to
  sustain those engaged in high technologies, R D
  of high-and-new technologies, technological
  advancements, new products, R D investments,
  invention and patent, etc.

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Industrial Promotion Policies

• Policies to speed up the development of
  cooperation centers of production, study and
  research
• HEDA accordingly made On Several Policies to
  Inspire the development of cooperation centers of
  production, study and research (2008), and
  specially set aside RMB?10 million as special
  fund for the co operations of production, study
  and research in HEDA , to subsidy and help
  sustain the memberships of the cooperation center
  to perform project cooperation of production,
  study and research, mutual construction
  cooperation, talented peoples cooperation,
  sharing of instrument and equipment,
  constructions of technological innovation
  platforms, etc.

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Industrial Promotion Policies

• Policies to develop modern service industry
• HEDA accordingly made On Awarding Policies to
  Inspire the Development of modern service
  industry, and focuses on the development of
  commercial trade (retail), service outsourcing,
  creation industry, tourism, culture and
  entertainments, intermediary services, community
  services and other modern service projects.

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Operation Cost

• Land
• Enterprises invested by foreign tradesmen are not
  capable of owning land directly, but capable of
  making use of land by purchasing certain years of
  right of land use from local governments, and the
  maximum year of right of land use is 50.
• Land rights of use shall be obtained only in the
  forms of tender, auction and quotation.

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Operation Cost

• Factory Building
• In HEDA one can construct specialized factory
  buildings of lightweight steel structure.
• Guiding price for the construction of 3-to-6
  leveled steel and concrete factory buildings is
  75 to 100 US dollars per?
• It usually takes 120 to 200 days to construct a
  standard lightweight steel factory building,
  while 150 to 300 days to construct a steel and
  concrete factory building.
• HEDA provides available standard factory
  buildings for rent.
• Monthly rental for standard factory is around 15
  RMB per? (Different units of property rights may
  offer floating prices based on this)
• Standard factory buildings refer to factory
  buildings of superior steel and concrete, 1000 ?s
  per floor, and with the height of 4 to 5 meters
  and of open style.

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Operation Cost

• Cost of HR
• According to incomplete statistics, average
  workers of foreign-investment enterprises receive
  900 to 1300 RMB per month, technicians and
  operators 1300 to 3000 RMB, engineers 2500 to
  8000 RMB, and superior administrative personnels
  income varies with different services, company
  scales and positions. Lowest wage 850 RMB in
  urban area, 750 RMB in Xiaoshan and Yuhang.

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Setting up a company

• HEDA Management Commission is an agency of
  Hangzhou Municipal Government, which practices
  standard management and single-stop services,
  project establishment, company establishment,
  approval and registration, land application and
  construction procedure can all take place in the
  handling hall of the management commission.

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Process for Foreign-Investment Enterprises to Get
Approved and Registration
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A Vision of the Future

• Higher development targets in new era HEDA must
  be transformed from a single industrial zone into
  one of the three sub-city centers of Hangzhou.
  Setting up a zone to building a city, is the new
  challenge for the people in HEDA.
• Three major targets
• Advanced international manufacturing base
• New century university town
• Ecological garden-like city

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• Thank you!