An Introduction to the Investment Environment of Zhuhai, China

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????????An Introduction to the Investment
Environment of Zhuhai, China
March 31, 2009
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Location of Zhuhai (??????)
ZHUHAI A vibrant Pearl River Delta hub
city. ?? ?????????????????
130 km
160 Km
Shenzhen??
China
ZHUHAI ??
1.5hrs drive to Guangzhou
70 minutes ferry to HongKong 30minutes when Hong
Kong-Zhuhai-Macao Bridge is in use ??????1.5?? ??
???70?? ????????????30??



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Agenda

• Zhuhai The core city on the west bank of the
  Pearl River
• Zhuhai attractiveness and strengths
• Zhuhai an investment destination in South China
• Zhuhai sample industry clusters
• Relevant ITO/BPO incentives in Zhuhai

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Outline of the Planning for the Reform and
Development in the Pearl River Delta 2008-2020
ratified by the State Council in January 2009,
the PRD was given new positioning.

• The concept of PRD was officially introduced in
  1994, referring to the area made up of nine
  cities, namely, Guangzhou, Shenzhen, Zhuhai,
  Foshan, Jiangmen, Dongguan, Zhongshan, Huizhou
  and Zhaoqing, which covers 24,437 sq.km., 14 of
  Guangdongs total area. The GDP in PRD for 2008
  was RMB 2974.558 billion, accounting for 83.32
  of the GDP of Guangdong province.
• The GDP in PRD exceeded those of Singapore in
  1998, Hong Kong in 2003 and Taiwan in 2007,
  getting close to the final goal of surpassing all
  Four Asian Tigers.
• New strategic positioning An important
  international gateway for expanding the
  opening-up policy, A world-class base for
  advanced manufacturing and modern services, An
  important national economic center.
• Goals By 2020, the region will have basically
  formed an industrial structure featuring modern
  services and advanced manufacturing industries,
  cultivated globally advanced capabilities of
  scientific innovation and brought forth one of
  the world's mega metropolitan areas with the most
  abundant core competitive strengths through labor
  division, cooperation, and mutual complementation
  among Guangdong, Hong Kong, and Macao. The per
  capita GDP of the region will have reached
  RMB135,000, with the service industries
  accounting for 60.

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The Pearl River Delta Reform Development
Planning Outline clearly establishes Zhuhai as
the core of the west bank of the Pearl River,
Foshan, Jiangmen, Zhongshan, Zhaoqin as the nodes.
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According to the requirement of the Development
Outline, Zhuhai is expected to speed up the
construction of three major aspects of city,
including transportation, industries and urban
areas.

• Transportation Put transportation construction
  in the first place. Vigorously promote the
  construction of transportation projects.
  Endeavour to overcome the bottleneck of
  transportation within two years, and basically
  build Zhuhai into the transportation hub in the
  west bank of the Pearl River within five years.
• Modern Industrial SystemZhuhai is expected to
  carry out the strategy of Transforming of the
  eastern part and developing the western part,
  make efforts to develop the high-end service
  industries, high-end manufacturing industries and
  hi-tech industries to promote the upgrading of
  the industrial structure. And Zhuhai will develop
  the branded hi-tech and highly profitable
  projects which are with less labor and land,
  research and development-oriented with emphasis.
•  Layout of the CityCoordinated development of
  urbanization and industrialization. Endeavor to
  build the central part of west Zhuhai into a city
  of ecological model, expand the carrier of urban
  development and create new lightspot of urban
  development. Further optimize and upgrade the
  function of the eastern urban areas, give
  prominence to the organic unity of mountains, sea
  and the city.

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Beijing-Zhuhai Expw
Transportation Prospect One bridge, Two ports,
Three railways and Four expressways
Taiyuan-Macau Expw
Jiangmen-Zhuhai Expw
West Guangdong Railway
Guangzhou-Zhuhai light rail
West Guangdong Expw
Guangzhou-Zhuhai Railway
????
Hong Kong-Zhuhai-Macau Bridge
Jingang Road
Airport
Gaolan Port
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Industrial Layout

• Transferring of eastern part and developing the
  western part
• Integration of industrial parks4 4 1 1
• Four Industrial Parks which include Gaolan Port
  Economic Zone, Hi-tech Zone, Aviation Industrial
  Zone and Fushan Industrial Zone
• Four Featured Industrial Parks which include
  Nanping Industrial Park, Sanzao Industrial Zone,
  Xinqing Industrial Zone and Pingsha Yacht
  Recreational Zone
• OneSpecial Functioning Zone which include
  Zhuhai Tariff Free Zone and Cross Border
  Industrial Zone
• One Ecological Functioning Zone Lianzhou
  Ecological Conservation Zone

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The Urban Development Layout Two Major Parts,
develop in clusters
The Parts in the East One Main Urban Area,
One Zone and Two Clusters Xiangzhou Main Urban
Area Wanshan Marine Development Zone
Tangjiawan Cluster and Hengqin Cluster The Parts
in the West One Main Urban Area, One Zone and
Four Clusters The Main Urban Area in the West
Lianzhou Ecological Conservation Zone Gaolan
Port, Hot Spring, Fushan an, Longshan and Sanzao
Cluster
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Planning at a high starting point Construction
in a high standard Intensive and tight
development
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Outline The Industrial Positioning of the West
Bank of the Pearl River

• Speed up the construction of Zhuhai Gaolan Port
  Industrial Zone, marine engineering equipment
  manufacturing base, aviation industrial park and
  international business recreational and tourism
  zone.
• Develop mechanical equipment, new panel display
  concentration area, financial services area in
  Foshan with emphasis, lingang equipment
  manufacturing, fine chemicals, health product
  industrial base in Zhongshan, the key development
  zone for advanced manufacturing industry in
  Jiangmen, traditional advantageous industrial
  transformation concentration area in Zhaoqing.
• The region on the west bank of the Pearl River
  should develop advanced manufacturing industry,
  vigorously develop services for manufacturers,
  strengthen and expand the leading industries and
  create several industrial clusters which are of
  international competitiveness, and form the new
  pole of growth.

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Agenda

• Zhuhai The core city on the west bank of the
  Pearl River
• Zhuhai attractiveness and strengths
• Zhuhai an investment destination in South China
• Zhuhai sample industry clusters
• Relevant ITO/BPO incentives in Zhuhai

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Image Zhuhai
Daytime
Sunrise
Night
Tour
Intl Circuit
???
Five Star Hotel
Air Show
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Over 29 years of development todays Zhuhai has
unique attractiveness and strengths among cities
in China
Overview of Zhuhai

• A coastal city and a special economic zone in
  southern China
• Promoted to be a county in 1953, and to be a city
  in 1979. In 1980, it has been established as a
  special economic zone
• A total acreage of 7653 square kilometers, 1687.8
  of which is land

City of Attractiveness
City of Strength

• Powerful economic growth
• Rapidly developing export-oriented economy
• Competitive industry structure

• Superior natural environment
• High-living quality environment
• Convenient living entertainment facilities

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Zhuhai has a beautiful natural and high-living
quality environment, making it a renowned
garden-like coastal city
Attractiveness Zhuhai
Natural environment

• Zhuhai has the biggest ocean acreage, the most
  isles and the longest coastline within the Pearl
  River Delta. Zhuhai has 146 big or small isles,
  making it renowned as City of Hundred Isles
• A beautiful ecological environment, combining
  mountains, the sea and lakes with an amiable
  climate. Among the Best 40 Tourism Destinations
  in China, Zhuhai is the only destination that is
  evaluated as an overall city scenery

A City Of Hundred Isles A Metropolitan Of Romance
Honors
Living environment

• The National Tourist City
• The National Hygiene City
• The National Garden City
• The National Ecological Demonstration Area
• The National Environment Protection Model City
• The Dubai International Award for Best Practices
  to Improve the Living Environment (1998) by UN
  Habitat
• One of the Top 10 Attractive Cities in China
  (2004)
• One of the Top 10 Inhabitable Cities in China
  (2004)
• One of the Top 10 Favorite Chinese Cities by
  European Tourists (2005)
• One of the Top 10 China Financial Ecological
  Cities (2006)
• One of the Top 10 Happiest Cities in China (2007)

• First-class living environment
• Per capita public green land of 21.4 square
  meters
• Rate of good air quality across the entire city
  is 100
• Target achievement rate of water quality reaches
  98
• Rate of harmless disposal of urban living garbage
  reaches 100
• Rate of centralized treatment of urban living
  sewage hits 64
• Per capita forest resort acreage of over 70
  square meters

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Zhuhai has convenient living and entertainment
facilities, attracting talents at home and from
abroad
Attractiveness Zhuhai
Shopping
Hotel

• A wealth of shopping malls and supermarkets
• Shopping centers include Carrefour , JUSCO , CR
  Vanguard , Moi Department Store, Minrun New Seven
  Star

• Zhuhai offers full-fledged entertainment
  facilities and world-class services for tourists
• 7 five-star hotels including Dehan Hotel, Zhuhai
  Holiday Resort Hotel

Health Care

• Rated as "National Hygiene City
• Major hospitals include Sun Yat-sen University
  Fifth Affiliated Hospital, Jinan University
  Affiliated Hospital

Entertainment

• Various islands, hot springs and golf courses
• 4 golf courses of international quality and 2 hot
  spring resorts including Ocean Spring Resort and
  Imperial Hot Spring

Finance

• Established financial services industry
• 8 domestic banks including Peoples Bank of
  China, ICBC and 5 foreign-invested banks
  including Morgan Stanley and Standard Chartered

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Zhuhai is experiencing good and steady economic
growth, especially industrial output develops
fast, exhibiting strong development strength
Strength Zhuhai
GDP GDP per capita
Total industrial output industrial added value
GDP (USD 100 Mn)
GDP per capita (USD)

• Local GDP for 2008 added up to 14.48 billion, up
  9, a record growth rate since 2004
• GDP per capita reached 9800 in 2008

• The industrial output amounted to 38 billion in
  2008, up 11
• Industrial added value totaled 7.92 billion in
  2008 up 8.4

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Zhuhais foreign-oriented economies develop well
with rapid growing trade and FDI
Strength Zhuhai
Volume of Exports (USD 100 Mn.)
In 2008, Export value by foreign-invested
enterprises (FIEs) accounted for 83.09
Others 16.91
FIE Export Value 83.09
Total industrial output value (USD 100 Mn.)
In 2008, Industrial output contributed by FIEs
accounting for 73.15
Others 26.85
Industrial output of FIEs 73.15
Over half of Zhuhais industrial added value is
contributed by 30 of Fortune 500-invested
companies
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Zhuhai has gained a competitive edge in the
secondary industry represented by the
manufacturing industry
Strength Zhuhai
Example
Main Manufacturing Industries
Bio- medicine
Petro-chemical
Electric Machinery
Electronic Information
Home ElectricAppliance
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and tertiary industry represented by software/
IT outsourcing
Strength Zhuhai
Example
Introduction of main industries

• Zhuhai is one of the national software bases,
  boasting 180 software providers certified by the
  state, 902 kinds of registered products, and over
  10000 people working for the industry. The gross
  output value of 2008 is about RMB 13 Billion.
• Zhuhai received the International Award for Best
  Practices in 1998 awarded by United Nations
  Human Settlements Programme for its beautiful
  scenery, being the only Chinese city with such
  honor. Its also among Top 40 Tourist
  Destinations in China with the whole city as a
  scenic spot
• The Creative industry is a very promising
  industry with great potential. A beautiful
  natural environment and a unique geographic
  location guarantee the external conditions for
  the city to develop the industry. The government
  is striving for opportunities in the next round
  of industry upgrade

Software/IT outsourcing
Tourism Exhibition
Service Industry
Real Estate
Logistics Warehousing
Creative Industry
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Agenda

• Zhuhai The core city on the west bank of the
  Pearl River
• Zhuhai attractiveness and strengths
• Zhuhai an investment destination in South China
• Zhuhai sample industry clusters
• Relevant ITO/BPO incentives in Zhuhai

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Zhuhais long-term pleasant environment is the
key condition for sustainable development of
high-end industries
Zhuhai Investment Environment
Transportation Strength
Comprehensive Environment
Hong Kong-Zhuhai -Macau Bridge Effect
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2
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Enhance the attraction for Business investment
Direct land access to HK
Robust Infrastructure
Human Resources
Geographical Location
Convenient Transportation
Link with HK Macau
Industrial Orientation
Preferential Policies
Framework
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Zhuhai is strategically well positioned, giving
it a unique geographical advantage
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Zhuhai has convenient traffic connections with
surrounding areas, naturally making it the
regional hub

• Zhuhai Port is one of the key coastal hubs in
  China,including 8 port districts, e.g. Gaolan
  Port District, Guishan Port District and Jiuzhou
  Port District
• 2007 saw Zhuhai Port with a freight throughout of
  31.1 billion tones, and a passenger throughout of
  8.7 billion

Waterway
Traffic infrastructure constructed and planned
Road

• The citys highway traffic mileage totaled1360km
  in 2008, and the highway density is 82 km/hundred
  k?
• Highway network of Five vertical, three
  horizontal, three across-sea , dominated by
  high-level highways

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• Guangzhou-Zhuhai section of Pearl River Delta
  Inter-city Passenger Line is estimated to start
  operating in early 2010
• Guangzhou-Zhuhai Railway (freight transportation)
  is estimated to start operating in 2011

Railway

• 34 flight destinations linking Zhuhai to other
  major domestic cities
• 2008 witnessed a passenger throughout of 900
  thousand, and a freight-postage throughout of
  1141.9 billion tones
• The driving distance between Zhuhai and
  International Airports in Hong Kong, Macau,
  Guangzhou and Shenzhen are all within 2 hours

Air

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Easily accessible via sea, air and land
Tourism lines
Intl airport
Distance
Hong Kong
Line
Macau
Zhuhai is land-connected with Macao
Direct custom clearance via Gongbei Port
Zhuhai
Zhuhai is around 130 km away from Guangzhou
Guangzhou
Around 2 hours via Jing-Zhu Expressway
The Guangzhou-Zhuhai section of the intercity
passenger railway will start to operate in 2009,
shortening the time to 48 minutes
Shenzhen
Zhuhai is around 160 km away from Shenzhen
Around 2 hours driving via Jing-Zhu Expressway
to Humen Bridge and then to Guang-Shen Expressway
Region with the highest airport density in Asia
making it convenient to reach various major
cities across the world
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Zhuhai is one of Chinas important port cities,
making it convenient for freights to reach China
and the world
Freight transport lines
Zhuhai Port is one of the hub ports along the
coastal China regions
Origin
Deep-water port district
Freight deep-water port district
Transfer Ports
Line

Destination
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Infrastructure advantage Zhuhais perfect
infrastructure will help support the citys
further development
Water

Electricity

• The total water supply for 2008 was 290 million
  metric
• Water work with a daily supply capacity of 1.5
  million tons is under construction
• Zhuhai is abundant in water resources and
  guarantees the supply to industrial and
  residential users

• Zhuhai had seven 220 KV substations
  and thirty-four 110KV substations
• Zhuhai Power Plant with a planned installed
  capacity of 10.4 million KW is under
  construction
• Zhuhai has enough power resources and can
  satisfy the needs of industrial and residential
  users

• Zhuhai has set up a city-wide optical fiber and
  wireless telecommunication network
• Zhuhai has popularized the service in public
  phone, fax, wireless phone, IP phone, internet
  access (including broadband) and other services

• Zhuhai s LNG Project is a key project under the
  11th 5-Year Planning of Guangdong province
• The LNG project Phase 1 will see a construction
  size of 3.37mn ton/year, which is planned to
  commercially operate in 2011

Tele- communication
Natural Gas
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Software advantage Zhuhai enjoys a significant
talent advantage within the Pearl River Delta
Within the province Zhuhais number of enrolled
students at university is only second to Guangzhou
Qualified Human Resources
Comparative Low Cost

• The municipal government has been making
  consistent effort to develop higher education and
  offered sweeteners to attract reputable
  universities
• Zhuhais higher education system2 international
  Schools and 8 universities colleges
• By the end of 2008, Zhuhai had a talent pool of
  360 thousand

Minimum salary (RMB)
Average salary (RMB)
Talents Structure
Talents in the countryside 1
Technicians
Managerial Employees
Both Minimum and Average wage in Zhuhai is lower
than many major cities
Professionals
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Distinct industrial orientations are major
attractions for investors
Doumen District
Xiangzhou District
Jingwan District
East Advanced Services, Hi-tech Industries
West Advanced Manufacturing Xiangzhou
Modern Services and Hi-tech Industries
Jinwan Port Logistics, Heavy Chemical, Advanced
Manufacturing, Tourism and MICE Doumen
Advanced Manufacturing, Modern Agriculture and
Eco-tourism
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High-quality governmental services and
preferential policies for target industries
Key Incentives
TAX
Subsidy
Government Service
Tax
Corporate  Income Tax
Financial Subsidies
Government aim
For approved high-tech enterprises, the incomes
acquired in the SEZ shall be relieved from the
CIT for the first 2 years as of the tax year to
which the first revenue coming from production or
operation contributes, and be levied at 50 of
the tax rate of 25 for the 3rd to the 5th years.
Incentives for Industrial Clusters From 2008,
the industrial development fund will be RMB 40
million to support the technological innovation
of industrial cluster enterprises and the
construction of technological centers The
municipal financial department will also allocate
science and technology subsidies to high-tech
projects
Handling affairs with high efficiency and
offering services with high quality so as to meet
people's satisfaction
One Stop Service
Tariff and Import VAT
Approvals directly authorized by the municipal
government are centralized in the Civil Service
Overall Handling Center
Projects that meet certain requirements are
exempted from customs duty and value added tax
for import
FIE Service
Preferential Loans, Funds and Interest Subsidies
Consumption Tax VAT
During the preparation, construction operation
stages, the government provides free offices up
to 3-6 months efficient services to support
foreign investors
The policy of tax exemption, reduction refund
or pay first and refund later applies to export
products of FIEs
Newly introduced leading enterprises or projects
will be allocated to guide and incentives
financial institutions' loan support
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The construction of Hong Kong-Zhuhai-Macau bridge
is now undergoing financing arrangements
Introduction to Hong Kong-Zhuhai-Macau Bridge

• Link It will start from Lantau Island in Hong
  Kong, run through Tai O, span across the mouth of
  Pearl River, and eventually get divided into
  Y-shape with one end linking Zhuhai and another
  end linking Macau. Once built, Zhuhai will become
  the only mainland city in China having bridge
  connection with Hong Kong and Macao
• Distance The planned 29-km bridge is estimated
  to cost US2bn, the would-be longest bridge in
  the world
• Flow The entire bridge will be constructed
  according to the criteria of six-lane expressway,
  and the designed MPH is 100kmh
• TimeAfter completion, the driving hour from
  Zhuhai to Hong Kong will shrink from the current
  3 hours to less than half an hour

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Zhuhai, which benefits most from the operation
of the Hong Kong-Zhuhai-Macau bridge, will have
more potential investment value in the future
1
2
3
The Impacts of Hong Kong-Zhuhai-Macau Bridge to
Zhuhai
Well-developed traffic network
More Convenient Transpor- tation

• A traffic network has been effectively
  constructed, formulating ?shape structure that
  joins Hong Kong, Zhuhai and Macau

Connection to five major airports

• The Bridge will directly link together Zhuhai
  Airport, Macau Airport and Hong Kong Airport. Via
  such expressways as Guang-Shen and Guang-Zhu,
  Shenzhen Airport and Guangzhou Airport can also
  be connected to the other three airports
• Through the aviation network one will have access
  to 48 countries

Improvement of transportation power

• The operation of the bridge will eliminate the
  overdependence upon waterways among the three
  locations and
• Significantly boost up the transportation power
  among Macau, Hong Kong and Zhuhai, and
  additionally enhance the guarantee rates of
  transportation channels

International Metropolis Circle

• The bridge will facilitate synergies and promote
  regional economy consolidation and coordination,
  and that will improve the international economic
  competences of the Pan Pearl River Delta
• Guangdong-Hong Kong-Macau will emerge to be an
  international metropolis circle

Integrate with Hong Kong Macau

• The Pan-Pearl River Delta, which includes Hong
  Kong and Macau, is one of the most promising
  regions in the world. It radiates externally to
  ASEAN Free Trade Area while internally to China
  main land and shall be one of the most active
  economic regions in the world

Most Active Economics Region

• To utilize Hong Kongs financial, trading,
  information and management, and technique
  advantages to provide funding channels for
  economic development to introduce information
  management technique to explore international
  markets

More Attractive Investment Destination
Utilizing HKs Strength
Utilizing Macaus Strength

• To utilize Macaus advantages, to strengthen the
  development of tourism in the three places, and
  to increase relationship with European and
  American countries

• Zhuhai has a relatively cheaper labor and lands,
  as well as an industrial structure that can
  complement that of Hong Kong. To utilize Zhuhais
  advantages in both resources and markets, it can
  attract more investments, facilitate adjustment
  in the new wave of industrial structure, and
  create conditions for the regions continuous
  booming and stable growth

Display Zhuhais Strength
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Agenda

• Zhuhai The core city on the west bank of the
  Pearl River
• Zhuhai attractiveness and strengths
• Zhuhai an investment destination in South China
• Zhuhai sample industry clusters
• Relevant ITO/BPO incentives in Zhuhai

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Lots of investors are successful in Zhuhai
Examples
1997
ChinaZhuhai
2006
2007

• By December 2008, 12000 FDI projects had been
  approved. Out of the Fortune 500 companies, more
  than 30 invest in Zhuhai

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Overview of Investment By the end of 2008,
investors from almost 60 countries or regions
have invested in Zhuhai, with actual investment
of USD 10 billion. The main foreign investment
in Zhuhai is from Hong Kong, Japan, Singapore,
U.S.A., Germany, Australia, Cayman Islands,
Virgin Islands and Macao, Taiwan, etc.
Sixty-eight projects have been invested in Zhuhai
by 30 of Fortune 500 Companies in the world.
Belgium
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SIEMENS
PHILIPS
TOSHIBA
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Foreign-invested enterprises in Zhuhai have made
remarkable development, and became the leaders in
major local industry clusters

• Flextronics Industrial (Zhuhai) Co., Ltd
• Leader of the local cluster
• Largest Foreign-Invested Enterprise in Zhuhai
• Flextronics biggest park of China in Zhuhai

Electronic Information Electric and Home
Appliances Industry Cluster

• Philips DAP Zhuhai
• The representative enterprise of local cluster
• Philips international production and supply
  center of the world
• The products have successfully entered the US
  market

• BP Zhuhai Chemical Co., Ltd
• The leader of local cluster
• BP has set up Chinas first sino-foreign joint
  venture that produces and sells PTA products
• It has become a leading PTA manufacturer in China

Petrochemical Manufacturing Industry Cluster
Software Industry cluster

• Kingsoft Co., Ltd.
• Representative of software industry cluster in
  Zhuhai
• One of the best known software company in China,
  and a leading local application and Internet
  service provider
• Kingsoft has its RD center in Zhuhai

Please refer to following presentations for
further discussion on cases
38
Foreign-invested enterprises in Zhuhai have made
remarkable development, and became the leaders in
major local industry clusters (contd)

• Zhuhai United Laboratories Ltd.
• A large modern pharmaceutical company set up by
  Hong Kong United Laboratories International
  Holdings Ltd. in Zhuhai
• At present, there are 32 kinds of products in 14
  series sold to the domestic market. Sales
  totaled 1.2 Bn. in 2002

Bio-Pharmaceutical Industry Cluster

• MTU Maintenance Zhuhai Co., Ltd
• Representative enterprise of local cluster
• One of the most competitive maintenance bases
  for aero-engines in China and the Asia-Pacific
  Region
• Powerful cooperation of Chinas biggest airplane
  operator China Southern Airline, and
  internationally well-known aero engine producers

Fine Machinery Manufacturing Industry Cluster

• Zhuhai Polymarine Engineering Co., Ltd.
• The leading company in the yacht building
  industry cluster in Zhuhai
• Invested by U.S. Polymarine Engineering Co.,
  Ltd., (top 10 in global yacht industry sales)
• A modern yacht building and sales company,
  specialized in RD, design and manufacturing

Yacht-making Industry Cluster
Please refer to following presentations for
further discussion on cases
39
Agenda

• Zhuhai The core city on the west bank of the
  Pearl River
• Zhuhai attractiveness and strengths
• Zhuhai an investment destination in South China
• Zhuhai sample industry clusters
• Relevant ITO/BPO incentives in Zhuhai

40
1. Support for ITO/BPO companies

• We encourage and support the entry of the
  domestic and international ITO/BPO enterprises to
  settle down in the areas designated by the
  municipal government. We subsidize the ITO/BPO
  enterprises which rent offices in the designated
  areas at the standard of 15 sqm/person. Subsidy
  should be provided at a rate of RMB 15/sqm/month
  for the part of rented areas below 1,000 sqm.
  Subsidy should be provided at a rate of RMB
  8/sqm/month for the part of the rented areas
  above 1,000 sqm. The subsidy wont be provided to
  the part of rented areas which exceed 5,000 sqm.
• Subsidies will be offered to cover 30 of DDN
  expenses incurred for ITO/BPO enterprises, with
  up to RMB 200,000 for each enterprise.
• Based on the customs export statistics,
  outsourcing contract, recorded export contract
  certificate and collected order in the banking
  service, ITO/BPO enterprises whose export value
  exceed USD 500,000 in the previous year will be
  rewarded RMB 10,000 for every additional USD
  50,000 export value it contribute during the
  current year.

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2. Support for Market Expansion

• We encourage the application for the relevant
  international certification by ITO/BPO
  enterprises. RMB 500,000 will be granted to newly
  approved CMMI or CMM certified enterprises.
• For an ITO/BPO company which has successfully
  conducted overseas merger or acquisition, a
  one-off subsidy of up to RMB 500,000 will be
  offered to cover 30 of the pre-acquisition
  research, consultation and business expenses.
• We encourage the expansion in the international
  market by ITO/BPO enterprises. In case a CMMI/CMM
  certified enterprise whose service revenue in the
  previous year exceed RMB 1 million travels abroad
  to research overseas market or participates in
  international exhibition, up to 50 of the
  international travel expenses (economy class, 2
  persons for each enterprise each time) and booth
  fee will be subsidized. The maximum is RMB
  100,000 for each enterprise each year.

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3. Support for ITO/BPO Talent Training

• Personal financial reward of up to 2 of their
  salary in Zhuhai will be given by the governments
  at the relevant level to top managerial and
  technical employees working in ITO/BPO
  enterprises whose annual salary exceeds RMB
  120,000.
• We encourage ITO/BPO enterprises to entrust
  internationally famous software enterprises to do
  overseas training to their skilled workers for
  more than 45 days. Financial support for 50 of
  the training fee (up to RMB 10,000/person) will
  be given to the enterprises.
• As for the employees who have been recruited by
  the enterprises and signed labor contract valid
  for more than 2 years, we compensate the
  employers for 50 of the training fee half a year
  after tryout, with subsidy up to RMB
  1,000/person.year and up to RMB 100 million for
  each enterprise.

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4. Introduction of ITO/BPO companies

• For introducer (excl. organizations or
  individuals salaried by public finance) of
  ITO/BPO project with over RMB 10 million
  registered investment will be rewarded up to RMB
  300,000 based on actual registered total
  investment (3 for the part below RMB 10 million
  and 5 for the portion above). The reward will be
  reviewed and assessed annually, and is subject to
  application by introducers to relevant review
  panels.

44
Thanks for your attention! Zhuhai Foreign
Trade Economic Cooperation Bureau Add 19
Renmin Donglu, Xiangzhou, Zhuhai, Guangdong, P.
R. China E-mail tony.zhang_at_investzhuhai.gov.cn
Investment Promotion Section
Tel [phone] 2159832
Fax [phone] Project Section
Tel [phone]
Fax [phone] http//www.investzhuhai.gov.
cn