www.investteda.org Tianjin Economic Development Tianjin Economic Development Zone Zone The partner for American enterprises The partner for American enterprises entering China entering China Mr. Li Yong Chairman TEDA Administrative Commission Oct. 20 2004
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Tianjin Economic Development Zone The partner for American enterprises entering China
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. - PowerPoint PPT Presentation
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Tianjin Economic Development ZoneTianjin Economic Development Zone
The partner for American enterprises The partner for American enterprises
entering Chinaentering China
Mr. Li Yong Chairman
TEDA Administrative CommissionOct. 20 2004
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Outline
• Current Economic Hot Trend and Current Economic Hot Trend and Investment Opportunity in ChinaInvestment Opportunity in China
• About TEDAAbout TEDA • TEDA: your business partner for China
entry
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Current Economic Hot Trend and Current Economic Hot Trend and
Investment Opportunity in China (1)Investment Opportunity in China (1)
Focusing on China’s current macro-investment environmentFocusing on China’s current macro-investment environment
• Rapidly growing economy in ChinaRapidly growing economy in Chinakeeping inflation and labor cost under control keeping inflation and labor cost under control
• Stability of finance systemStability of finance system a discussion on interest rate raise and RMB appreciationa discussion on interest rate raise and RMB appreciation • Fulfillment of WTO obligationFulfillment of WTO obligation Gradually remove restrictions or requirements on share percentage of foreign Gradually remove restrictions or requirements on share percentage of foreign investment investment
in JV, localization percentage,foreignin JV, localization percentage,foreign exchange balance, exportation exchange balance, exportation percentage, etc.percentage, etc. • Policy trendPolicy trend unification of Corporate Income Tax on foreign and domestic enterprises (2006) unification of Corporate Income Tax on foreign and domestic enterprises (2006)
• Intellectual Property Right ProtectionIntellectual Property Right Protection
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Current Economic Hot Trend and Current Economic Hot Trend and Investment Opportunity in China (2)Investment Opportunity in China (2)
• Manufacturing Base Manufacturing Base • Supplier Base Supplier Base • Outsourcing Base Outsourcing Base • Training Base Training Base • Purchasing CentrePurchasing Centre• R&D CenterR&D Center• Regional HeadquarterRegional Headquarter
New trend and New Forms of Foreign Companies Entering ChinaNew 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
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Current Economic Hot Trend and Current Economic Hot Trend and Investment Opportunity in China (3)Investment Opportunity in China (3)
Characteristics of China transforming internatioCharacteristics of China transforming international industriesnal industries
• Mainstream industries are Microelectronics, Automobile MMainstream industries are Microelectronics, Automobile M
anufacturing, Fundamental Equipment Manufacturinganufacturing, Fundamental Equipment Manufacturing
• Recent trend is the integration of Manufacturing, product Recent trend is the integration of Manufacturing, product R&D and ServiceR&D and Service
• Adaptation of multinational enterprises in Outsourcing inteAdaptation of multinational enterprises in Outsourcing inte
rnal service functions as part of the globalization strategyrnal service functions as part of the globalization strategy
• Relocation of supply chain for the whole industry as a grouRelocation of supply chain for the whole industry as a groupp
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Current Economic Hot Trend and Current Economic Hot Trend and Investment Opportunity in China (4)Investment Opportunity in China (4)
China’sChina’s National Level Development ZonesNational Level Development Zones Primary sites for international industry relocationPrimary sites for international industry relocation • Automobile output: 50% of ChinaAutomobile output: 50% of China• Mobile phone output: 37.3% of ChinaMobile phone output: 37.3% of China• Actual FDI : 11.57% of ChinaActual FDI : 11.57% of China 58 billion USD,58 billion USD,• FDI enterprises: 70FDI enterprises: 70 % % of China, 116,000of China, 116,000• Annual average 41.36Annual average 41.36 %% GDP increase: 32% higher than whole ChinaGDP increase: 32% higher than whole China
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Top Three Economic Circles in China
Beijing
Tianjin
ShanghaiChongqing
GuangzhouShenzhen
Suzhou
Bohai Bay Region
Yangtse Rive Delta
Zhujiang River Delta
Bohai bay Region Bohai bay Region – – China’s Third Economic Region of Economy GrowthChina’s Third Economic Region of Economy Growth
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TianjinTianjin
Third largest city in China
600 years history
11,900 km2 in total
10 million population
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About TEDAAbout TEDA
• Center of Bohai bay Economic Region• First batch of national level development zones (appr
oved 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
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天津开发区概览天津开发区概览
TEDA West
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42 of Fortune 500 have invested 87 enterprises
Fortune 500
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42 of Fortune 500 have invested 87 enterprises
Fortune 500
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America
Our Clients
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Pillar Industries of TEDA
Industrial Value Jan. – Aug. 2004
Others8%
Electro.63%
Food6%
Pharm.5%
Mach.18%
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TEDATEDA :: Partner for American Partner for American Enterprises Entering ChinaEnterprises Entering China
TEDA’s Convenient ServicesTEDA’s Convenient Services• Entering China’s marketEntering China’s market Entry approvalEntry approval ,, market intelligence consultation and support before and market intelligence consultation and support before and
after investment decisionafter investment decision
• Major part of the global supply chainMajor part of the global supply chain Availability of Complete supply-chain of major industriesAvailability of Complete supply-chain of major industries :: IT, bio-IT, bio-
pharmaceutical, machinery and automobile, Light industrypharmaceutical, machinery and automobile, Light industry
• Major source of global revenueMajor source of global revenue low but reliable costs (hardware environment), efficient and trustable low but reliable costs (hardware environment), efficient and trustable
government support (software environment)government support (software environment)
• Preferential policiesPreferential policies Graded favorable policies system: including lower land-transfer price, Graded favorable policies system: including lower land-transfer price,
factory-rental subsidy, R&D Fundfactory-rental subsidy, R&D Fund
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TEDATEDA :: Companions for Companions for American American Enterprises Entering ChinaEnterprises Entering China
• Service before investmentService before investment policy and law, market information, land purchasing, public policy and law, market information, land purchasing, public utility supply, environment evaluation, feasibility report, utility supply, environment evaluation, feasibility report, employment, transportation, enterprise matching (for joint employment, transportation, enterprise matching (for joint venture and strategic alliance), finance (venture and strategic alliance), finance (creditcredit and loan) and loan) • Service after investmentService after investment business license, law assistant, local custom, employmentbusiness license, law assistant, local custom, employment 、、 telecommunication, power and watertelecommunication, power and water
• Powerful governmental SupportPowerful governmental Support
• 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.
Case Study: MOTOROLA (automotive- electronics ))
Manufacture Center of Telecommunication Manufacture Center of Telecommunication In Asia (Tianjin)In Asia (Tianjin)
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External view of TEDAExternal 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.
Imported capital equipments of national encouraged Imported capital equipments of national encouraged categories shall be exempted ( import duties & import categories shall be exempted ( import duties & import VAT)VAT)
Import Duties
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We ValueWe Value Medium/SMedium/Small Enterprisesmall Enterprises
• TEDA TEDA Medium/Small Medium/Small Enterprise Credit Enterprise Credit GuaranteeGuarantee Center Center
- Guarantee for their short-term operation fund loansGuarantee for their short-term operation fund loans
• Trade Promotion CenterTrade Promotion Center
- Help for promoting company products through trade fairs in Help for promoting company products through trade fairs in both domestic and overseas. both domestic and overseas.
• TEDA Manufacture Promotion CenterTEDA Manufacture Promotion Center