Brief Investment environment  Preferential conditions Achievements  Expenditures for major infrastructural facilities
CHINESE VERSION

Brief

Xiaoshan Economic and Technological Development Zone is established on May 12, 1993 with the approval of the State Council. Premier Li Peng once made an inspection of the Zone. Qiao Shi, Chairman of the Standing Committee wrote inscriptions for the Zone.



Investment environment:

  1. Xiaoshan Economic and Technological Development Zone is located south to Hangzhou, a famous picturesque tourism city. Open to national highways and Shanghai-Hangzhou-Ningbo Expressway, it is only 150 kilometers away from Shanghai and Ningbo. It is also the rendezvous of the Zhejiang-Jiangxi Railway and Xiaoshan-Ningbo Railway.
  2. In the Zone, pipe laying for No.1 Water Works and No.2 Water Works with a daily water supply of 260,000 tons has been completed and No.3 Water Works with a daily water supply of 600,000 tons is under construction.
  3. Xiaoshan Power Plant with a total installed capacity of 85 Kw (the first phase of the project is 25 Kw) has been put into operation.
  4. As part of the automatic telephone network in the city of Xiaoshan, 150,000 lines of programmed telephone in the Zone have been opened for use.
  5. There is a sewage treatment plant with a daily capacity of 60,000 tons in the Zone. Another sewage treatment plant with a daily capacity of 60,000 tons is under construction.
  6. Hangzhou Xiaoshan International Airport covering an area of 1.5 mu is under construction.
  7. Around the area, customs, commodity inspection, bonded warehouse, international business center, financial center, hospitals, post and telecommunications, traffic and entertainment facilities have been built and are being perfected. It boasts solid industrial foundation. There are 680,000 labors at the age of 18 to 45 with high cultural and educational level. The Zone enjoys an elegant environment with a moist and mild climate. It is free from earthquake, flood and severe frost with an annual mean temperature of 16.1 C and a relative humidity of 68%.

Preferential conditions:


The Administrative Committee of the Zone has been entitled the administrative right for State-level development zones, providing quality and efficient service in project examination, commercial and industrial registration, land requisition, project construction, etc. The Regulations of the Zone has been carried out upon the approval of the Standing Committee of Zhejiang Provincial People's Congress.

  1. Tax. It enjoys the preferential policies for State-level development zones. Income tax for enterprises is 15%. Income tax will be exempted for the first two profit-making years. From the third to the fifth year, income tax will be levied at 7.5%. For the enterprises that have 70% of its products exported, income tax will be levied at 10%. For high-tech enterprises, the preferential period will be prolonged for another 3 years, during which period the income tax will still be levied at 10%. The local income tax will be levied at 1.5%. For the enterprises that have their products exported and high-tech enterprises, tax will be exempted for ten years.
  2. Land. Land will be sold for a period of 50 years, the longest possible time limit that is permitted by the State. Land price for industrial projects is USD25-30 per square meter.
  3. Public facilities. The Administrative Committee is responsible for power, water, telecommunication, drainage and road round the land sold.

Achievements:


The Zone has accumulated experiences in the construction of foreign-funded enterprises and industrial parks. It has successfully constructed Taiwan Machinery Industrial Park and has started the construction of Shizuoka Industrial park. There have been a great number of high-rank enterprises, such as Japan Enxiai Chemical Co., Ltd. ( with an investment of USD74.6 million), Taiwan Prince Ceramics Co., Ltd., Taiwan Huaxin Synthetic Fibers Co., Ltd. By the end of December 1996, 110 foreign-funded enterprises have been approved to establish in the Zone ( among them, solely-funded enterprises account for 40%), 17 of which have been established with an investment of over USD10 million and 59 have gone into operation. Among the total investment of USD640 million, foreign capital accounts for USD440 million.

Expenditures for major infrastructural facilities:


ItemsAmount (RMB yuan)
PowerPower rate: 0.75 yuan/KVA
Bulking rate: 800 yuan/KVA
WaterBulking rate: 1,000 yuan/KVA (lump sum payment)
Industrial water rate: 0.90 yuan/ton
non-industrial water rate:0.60 yuan/ton
Sewage treatmentSewage pipeline network: 400 yuan/ton (lump sum payment)
sewage treatment rate:0.15 yuan/ton
GasSteam:90 yuan/ton
Gas will be supplied by the end of 1997.
TelecommunicationTelephone installation fee: 3100 Yuan/line
Telephone charge:11 yuan/minute (to Hong Kong), 17.5 yuan/minute (to the US)
January 30, 1997
USD1 is exchanged for 8.238 RMB


Friends at home and abroad are warmly welcome to Xiaoshan Economic and Technological Development Zone!

Address: 88 Chenghe Road, Xiaoshan, Zhejiang Province, P. R. China

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