Invest in China

1
Invest in China

• A presentation for Chorum Technologies

2
Invest in China

• Basic facts about china
• Economic situation
• Investment environment
• Industry introduction information industry
• Area comparison

3
Basic Facts 1

• Land area 9.6 million square kilometers.
• Population 1.25 billion,70 live in the
  underdeveloped countryside.
• Language Chinese or mandarin is the official
  language.
• Ethnic Groups Consists of 56 ethnic groups among
  which Han people is the majority of 92.

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Basic Facts 2

• Topography High in the west, plateau in the
  middle and low-lying in the east.
• Demographic East 45 area, 95 population
  Middle and West 30 area, 4 population High
  Plateau 25 area, 0.8 population.
• Administrative Region 4 Municipalities, 23
  Provinces, 5 Autonomous Regions, 2 Special
  Administration Regions.

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Economic Situation

• Rapid Economic Growth
• Economic Development
• Stable Financial Situation

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Rapid Economic Growth

• Chinas GDP has been growing at an unprecedented
  rate for the past 20 years.

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Comparison of Economic Growth

• China has been the fastest growing economy in the
  world for nearly 20 years.

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Economic Development

• Development of Productivity
• Buyers Market
• Intensive economic growth
• Upgrading of industrial composition
• Market Economy
• Favorable International Environment
• Advantage of Economic Development
• Huge domestic market
• Sufficient labor force
• Material and technological foundation
• Intensified reform and open policy

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Stable Financial Market

• Exchange rate to US Dollars 8.2791
• Healthy Central Bank System Peoples Bank of
  China and 9 regional branch
• Currency convertible under the current account
• Substantial Foreign Exchange Reserve US154.7
  billion
• Emerging stock market

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Stock Market in China

• 2 Stock Market Shanghai and Shenzhen
• Public Companies 976
• Market Capitalization RMB 4.4 trillion (US 530
  billion)
• Second largest stock market in Asia after Japan
• Reform in the stock Market

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Investment Environment

• Second Only to US in Attracting Foreign
  Investment
• Investment Policy
• Low Cost but Quality Labor Force
• New Trend of Foreign Investment

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FDI in China

• 180 countries or territories have invested in
  China
• Number of FFEs amounted to 349,537
• Real investment of US 320.6 bn
• 400 of the global 500 companies have invested in
  China

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Investment Policy

• Industrial Catalog Guiding Foreign Investment
• 3 categoriesEncouraging, Restricting,
  Prohibiting
• Tax incentives Sales tax, Income tax, duty, and
  etc
• Land use Assigning land-use right, Leasing,
  Investing
• New policies encourage technology innovation
  encourage investment in western region open
  service trade list in the stock market upgrade
  environment
• Type of investment Joint Venture vs. Sole
  Subsidiary

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Investment Procedure
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Investment Procedure
16
Investment Procedure
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Labor Force

• Talented labor force 1022 Regular Institutions
  of Higher Education, 830 thousand graduates
  annually
• Attracting Foreign Talents Overseas Students
• Low Labor Cost Per capital annual income of
  US659.3, nearly 3000 in Shanghai
• Average annual salary US903

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Successful Stories

• AsiaInfo Founded in Dallas by Chinese
  students, Built the internet backbone for China,
  the first Chinese tech company listed in NASDAQ
• GM Invest amount 1.52 billion, first year
  revenue of 725 million and profit of 72 million
• Motorola The biggest FFE in China, total invest
  amount 34.41, 13,000 employees

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Industry Introduction Information Industry

• Governing Agency Ministry of Information
  Industry
• www.mii.gov.cn
• Policy for the 10th 5-year Plan construction of
  basic national informational facilities improve
  the optical transmission network with the DWDM
  technology as the foundationspeed up broadband
  internet system
• Optical Fiber Network total length 1 million km,
  Long distance 180,000 km33,000 km5,000 km
• Major player China Telecom, China Unicom, China
  Netcom, China Jitong Telecom

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Area Comparison

• Wuhan
• Changchun
• Hangzhou
• Suzhou
• Wuxi
• Shenzhen
• Xian
• Hefei