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 Eco

nomic Area Long been famed as a fertile “land of fish and ric

e”

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 Lake’s 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.

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.

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 Airport’s 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.

Geographic Location

HighwayThe 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.

Geographic Location

RailwayThere are 8 regular train services between Hangzhou and Shanghai everyday, and a single trip lasts for around 78 minutes.

The Huning Speed Railway, the Huhangyongwenxiashen 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.

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.

Geographic Location

SubwayIn 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.

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.

A sub-center of Hangzhou Municipality (Xiasha New Town)

An ecological garden-like modern new town Center of administrative business, educational t

echnologies Center of high-and-new technological industries Place of advanced manufacturing plants

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.

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.

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.

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.

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.

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 electrici

ty.

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.

Infrastructure

WaterCurrently, HEAD’s capacity of water supply is 205,000 tons.

HeatingThe heating and power plant in the area is capable of supplying 460 tons of heating per hour.

CommunicationsTotal capacity of program-controlled telephone within HEAD is 76,753 and 61,065 of them has been occupied.

Commercial Finance and Supporting Facilities for Residence

Japanese SchoolJapanese 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.

Cont…

FinanceZhejiang 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.

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.

Cont…

Residences for employees

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

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.

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 Master’s and doctor’s degrees, over 20 key laboratories of national and provincial significance and over 100 scientific research institutes.

The Largest Xiasha Higher Education Park in Zhejiang Province

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.

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.

Regional Layout

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.

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.

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.

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.

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.

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

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.

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.

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-sized 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 R&D etc.

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).

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.

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.

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

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.

Key Enterprises Within HEDA

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.

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.

Industrial Promotion Policies

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

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.

Industrial Promotion Policies Policies to speed up the development of cooperation center

s 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 people’s cooperation, sharing of instrument and equipment, constructions of technological innovation platforms, etc.

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.

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.

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.

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 personnel’s income varies with different services, company scales and positions. Lowest wage: 850 RMB in urban area, 750 RMB in Xiaoshan and Yuhang.

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.

Process for Foreign-Investment Enterprises to Get Approved and Registration

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：1. Advanced international manufacturing base

2. New century university town

3. Ecological garden-like city

A Vision of the Future

Thank you!