Chinas Economic Engine

1
Chinas Economic Engine

• --Shanghai

2
Picture of China,Yangtze delta Shanghai
3
10 Years Change of Pudong New Area in Shanghai
1990
2000
4
Overview of Shanghai

• Area - 6,340.5 sq.km
• 3,924 sq.km - urban
• 2,416 sq.km - rural area
• Population 13.52 million
• non-registered - 3 million
• Foreigners -72,895
• Chinese (HK,TW, Macao)400K
• Geography-
• East - East China Sea
• South - Hangzhou Bay
• North - Yangtze River
• The center of China's coastal line.
• Shanghai is the most important shipping center
  in China

5
Shanghai Economic Growth in GDPTotal GDP in
2004US89.76 Billion, Growth 13.6
6
National Statistic Information

• In 2004 (US billion) and of National total

7
Composition of Shanghai Economy

• Shanghai Foreign Direct Investment Contract by
  Industry in 2003/04
• 04 Total US11,691 Million for 4334 projects
• 03 Total US11,063 Million for 4321 projects
• The First Industry
• US4 Million for 14 projects
• The Secondary Industry
• US7,316 Million for 1941 projects
• The Tertiary Industry
• US3,702 Million for 2366 projects
• http//www.smert.gov.cn/english/tjsj/invt_indt.asp

8
Foreign Companies in Shanghai

• Until 2004, the investment foreign country and
  area is 116.
• 392 investment projects above USD10 million
• In 2004,
• 30 Multinational Enterprises set up Asia head
  office in SH, total is 86.
• 15 Foreign Investment Companies in SH, total is
  105
• 34 Foreign RD center in SH, total is 140

9
Norwegian companies in the region

• In 2004,
• There are 57 Norwegian business entities
  established in the region
• of these 42 are in Shanghai,
• 10 in Jiangsu province,3 in Zhejiang province, 1
  in Anhui province,1 in Fujian province
• 26 entities are maritime related
• 13 entities are engaged in production and/or
  assembly, the remainder are Representative
  offices, or providing consulting or trading
  services.

10
Shanghai Focused Industry Fields

• Marine
• Electronics and Information
• Automobile Manufactory
• Petroleum Chemical and Fine Chemical Industry
• Fine Steel Products
• Equipment Manufactory
• Biology and Medical Technologies

11
Industry Zones (139) Parks in Shanghai

• 1 is Pudong New Area
• 3 National Economic Development Zones
• Caohejing
• Minghang
• Songjiang Export
• 9 City Industry Zones
• SongJiang
• XinZhuang
• BaoShan Urban
• KangQiao
• SH Industry
• QingPu
• JiaDing
• JinShanZui
• ChongMing

• Main Industry Parks
• Lujiazui finance and trade zone
• Jingqiao export processing zone
• Waigaoqiao bonded area
• Zhangjiang high-tech park

12
Business opportunities in Shanghai/China

• Maritime equipment and services
• (Shanghai is planning to be the world largest
  ship producing centre)
• Localized production component production
• Environmental technology
• ICT
• Seafood
• Construction
• (Expo 2010, new deep sea harbour)
• Biotechnology, Pharmaceutical, Genetics, etc.
• Furniture and construction materials
• (Booming real estate)
• Automotive industry
• Tourism
• Service industry
• (Financial services, Public services,
  technology know-how, Consultancy)

13
Business Opportunities in Shanghai-

• Better City, Better Life!
• May 1stOctober 31st, 2010
• Big Numbers
• -Total investment US15 Billion
• -Number of visitors70 Million
• -Forecast revenues US12.9 Billion
• -Forecast contribution to GDP growth0.6

14
Expo 2010 Shanghai

• Infrastructure
• -Direct investment for Expo Garden
• US3 Billion
• -Indirect investmentUS1530 Billion
• -Building Areas300k square meters
• Tourism
• -Estimated visitors70 Million
• -Forecast revenueUS12.9 Billion

• Environmental Protection
• -Expenditure 3 of annual GDP
• (2003 US2.31 Billion, 2004 US2.71 Billion)
• -Areas include
• Waste water, noise, gas, solid waste
  protection of natural scenery

15
China - Shipbuilding

• The major forces of Chinas shipbuilding
  industry are
• - China State Shipbuilding Corporation (CSSC)
  (Southern Group)
• - China Shipbuilding Industry Corporation (CSIC)
  (Northern Group)
• The CSSC and CSIC count for more than 70 of
  Chinas new-building capacity today.
• Most of the other shipyards belong to the local
  provincial governments, the Ministry of
  Communications and private or JV owners.
• The majority of ships below 20,000dwt are built
  at the shipyards in this category. They normally
  offer more competitive prices than CSSC and CSIC
  shipyards.
• - Some of these shipyards are expanding quickly
  and several of them are aiming to build vessels
  up to Aframax size.

16
Jiangsu Province NACKS New Century (NCS) Jinling
Shipyard Jiangyang Shipyard Yangzijiang
Shipyard Jiangdu Shipyard KouAn Shipyard Xinhua
Shipyard Chengxi Shipyard
Dalian Dalian Shipyard Dalian New Shipyard
Bohai
Beijing
Dalian
Xingang
Shanghai Jiangnan Shipyard Hudong-Zhanghua
Shipyard Shanghai Waigaoqiao Shanghai
Shipyard Shanghai Edward
Yantai
Shanghai
Wuhu
Wuhan
Fuzhou (Mawei)
Guangzhou Guangzhou Shipyard Itl. Huangpu
Shipyard Wenchong Shipyard
Xiamen
Guangzhou
17
Market Opportunities in Marine

• Ship building
• Equipment suppliers, manufacturing/assembling in
  Shipyard
• Openness to foreign equipment
• Competitive edge quality and service
• Price challenge local production
• Design
• New designs LNG, VLCC, special designs for
  special type vessel, new materials (design
  software), design cooperation
• Investment in yards
• Offshore sector/products
• Design and equipment

18
Market Opportunities in Marine (contd)

• Shipping
• Increased freight volumes for both import
  (especially energy and ore) and export
• New possibilities in the logistics field, from
  sole transportation to supply chain.
• New buildings
• Increased capacity for ship repairs
• Chinese seafarers

19
Chinese business establishment

• Five basic company structures defined by Chinese
  law
• Sino-foreign equity joint ventures
• Co-operative (or contractual) joint ventures
• Wholly foreign owned enterprises (WFOE)
• Joint-stock companies
• Holding companies
• Foreign investors are opting more and more for
  the WFOE structure
• Representation office
• Agent

20
Chinese Business Culture

• 20 of the worlds population
• Large regional differences
• Language
• Culture
• Standard of development

21
Entertainment (Over the Food)

• Use these occasions to build contacts and
  relationships
• Problems are often easier solved over dinner (and
  wine) than at the negotiating table
• The best occasion to get inside information
• Best way to find out what is on their minds and
  get honest feedback

22
Do Preparation for Your China Business

• Know the industry background in China
• Identify the right place to start your business
• Understand local business culture
• Finding right cooperated partners in your
  business value chain
• Always keep contact with local partner
• Used to negotiate
• Learn from other players in your business

23
Innovation Norway-Shanghai Shanghai.trade_at_invano
r.no We Give Local Ideas Global Potential!