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Tianjin Economic Development Zone The partner for American enterprises entering China. Mr. Li Yong Chairman TEDA Administrative Commission Oct. 20 2004. Outline. Current Economic Hot Trend and Investment Opportunity in China About TEDA TEDA: your business partner for China entry.
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Tianjin Economic Development Zone The partner for American enterprises entering China Mr. Li Yong Chairman TEDA Administrative Commission Oct. 20 2004 www.investteda.org
Outline • Current Economic Hot Trend and Investment Opportunity in China • About TEDA • TEDA: your business partner for China entry www.investteda.org
Current Economic Hot Trend and Investment Opportunity in China (1) Focusing on China’s current macro-investment environment • Rapidly growing economy in China keeping inflation and labor cost under control • Stability of finance system a discussion on interest rate raise and RMB appreciation • Fulfillment of WTO obligation Gradually remove restrictions or requirements on share percentage of foreign investment in JV, localization percentage,foreignexchange balance, exportation percentage, etc. • Policy trend unification of Corporate Income Tax on foreign and domestic enterprises (2006) • Intellectual Property Right Protection www.investteda.org
Current Economic Hot Trend and Investment Opportunity in China (2) • Manufacturing Base • Supplier Base • Outsourcing Base • Training Base • Purchasing Centre • R&D Center • Regional Headquarter New trend and New Forms of Foreign Companies Entering China In 2003, China, for the first time, has exceeded the US and has become the biggest FDI utilizing country in the world. The amount of FDI reached 53.5 billion USD. -- -- world Investment Report of 2004 www.investteda.org
Current Economic Hot Trend and Investment Opportunity in China (3) Characteristics of China transforming international industries • Mainstream industries are Microelectronics, Automobile Manufacturing, Fundamental Equipment Manufacturing • Recent trend is the integration of Manufacturing, product R&D and Service • Adaptation of multinational enterprises in Outsourcing internal service functions as part of the globalization strategy • Relocation of supply chain for the whole industry as a group www.investteda.org
Current Economic Hot Trend and Investment Opportunity in China (4) China’sNational Level Development Zones Primary sites for international industry relocation • Automobile output: 50% of China • Mobile phone output: 37.3% of China • Actual FDI : 11.57% of China 58 billion USD, • FDI enterprises: 70% of China, 116,000 • Annual average 41.36% GDP increase: 32% higher than whole China www.investteda.org
Top Three Economic Circles in China Bohai bay Region – China’s Third Economic Region of Economy Growth Beijing Tianjin Bohai Bay Region Shanghai Chongqing Suzhou Yangtse Rive Delta Zhujiang River Delta Guangzhou Shenzhen www.investteda.org
Tianjin Third largest city in China 600 years history 11,900 km2 in total 10 million population www.investteda.org
About TEDA • Center of Bohai bay Economic Region • First batch of national level development zones (approved in 1984) • Southeast of Tianjin Downtown, quite close to Beijing • Manufacturing-processing centre in the north of China • Destination for FDI enterprises -- over 3000 • Contracted FDI -- over 20 billion USD www.investteda.org
天津开发区概览 TEDA West www.investteda.org
Fortune 500 42 of Fortune 500 have invested 87 enterprises www.investteda.org
Fortune 500 42 of Fortune 500 have invested 87 enterprises www.investteda.org
America Our Clients www.investteda.org
Pillar Industries of TEDA Industrial Value Jan. – Aug. 2004 www.investteda.org
TEDA:Partner for American Enterprises Entering China TEDA’s Convenient Services • Entering China’s market Entry approval,market intelligence consultation and support before and after investment decision • Major part of the global supply chain Availability of Complete supply-chain of major industries:IT, bio-pharmaceutical, machinery and automobile, Light industry • Major source of global revenue low but reliable costs (hardware environment), efficient and trustable government support (software environment) • Preferential policies Graded favorable policies system: including lower land-transfer price, factory-rental subsidy, R&D Fund www.investteda.org
TEDA:Companions for American Enterprises Entering China • Service before investment policy and law, market information, land purchasing, public utility supply, environment evaluation, feasibility report, employment, transportation, enterprise matching (for joint venture and strategic alliance), finance (credit and loan) • Service after investment business license, law assistant, local custom, employment、 telecommunication, power and water • Powerful governmental Support ISO 9000 certified www.investteda.org
Electronics/Telecom Completed Industry-Chain TAIWAN (China) www.investteda.org
Bio-pharmaceutical Completed Industry-Chain www.investteda.org
Machinery Completed Industry-Chain CHINA TAIWAN www.investteda.org
Light industry Completed Industry-Chain CHINA TAIWAN www.investteda.org
Case Study: MOTOROLA (automotive- electronics) • 3 billion USD, • the Biggest wholly foreign owned enterprise in China • The Largest market share in mobile phone 2 years successively • Cooperation Agreement with TEDA in April 2004 MOTOROLA (Tianjin) on Integrated Electronic System • It will put into production in 2005, and enter automobile electronic field of China. Manufacture Center of Telecommunication In Asia (Tianjin) www.investteda.org
External view of 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 2003,TEDA ranked the top of it with the total score of 6508. It is the 5th times for TEDA to gain the laurel in the last successive 5 years. www.investteda.org
Take You Everywhere • On Wheel9 Express Ways,6 inter-province highways • On Rail6 major railways to all directions 1 Inter-province metro • By Sea5 km to TJ port Connected to300ports in160countries Able to handle bulk cargo, container, liquid material. Roll-roll terminal available • By Air180km (2hours) from Beijing Airport 38km (40mins) from Tianjin Airport Terminal for passenger lines inside China The largest cargo airport in China www.investteda.org
Easy Logistics Your Co. in TEDA • e-customs service • A public bonded warehouse • Zero distance from Tianjin customs TEDA Public Bonded Warehouse TEDA Customs 0.5h 2h Inside China Outside China Your supplier or customer www.investteda.org
1 2 3 4 5 6 7 8 Profit making year 10% ( over 70% for export) 0% 7.5% Secured by National Law Corporate Income Tax • Export oriented companies: 2+3+…… • Manufacturing companies: 2+3 …… 0% 7.5% 15% • Technical advanced companies: 2+3+3 0% 7.5% 10% 15% • Local Income tax: 0% www.investteda.org
Secured by National Law Import Duties • Imported capital equipments of national encouraged categories shall be exempted ( import duties & import VAT) www.investteda.org
We ValueMedium/Small Enterprises • 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 www.investteda.org
We ValueMedium/Small Enterprises • TEDA International Incubator • National Nanometer Technological Research Center • TEDA Watson Biotech Park • KAITAI Incubator Tianjin University Hi-tech Park www.investteda.org
Multinational R&D Centers • SEW R&D Center • Panasonic R&D Center forAutomobile-Electronics • Honeywell R&D Center • Stanley R&D Center • Fujitsu Ten R&D Center www.investteda.org
Worldwide service Cologne Chicago Beijing New York Tokyo San Francisco Shanghai Hong Kong www.investteda.org
Contact US www.investteda.org TEDA Tianjin China Headquarter Tel: (86 22)2520 2676 Fax: (86 22)2520 1836 E-mail: invest@investteda.org TEDA Offices in the US New York San Francisco Chicago www.investteda.org
Thank You www.investteda.org