Wednesday, March 14, 2012

Coastal zone hungry for foreign capital

The Nantong Economic and Technological Development Zone in the eastern coastal province of Jiangsu is one of the 10 development zones in China with the largest investment potential for multinational corporations, local officials say.

Authorized by the Chinese government in December 1984, the zone is located on the southeastern side of Nantong. It covers 147 square kilometers and houses 140,000 permanent residents.

The zone's efforts to attract foreign investment have paid off, with investments flowing in from businesses based in more than 30 countries and regions.

The zone now hosts a high concentration of foreign enterprises in the Yangtze River Delta. More than 700 foreign-owned enterprises have been set up in the zone, about 60 of which are owned by Fortune 500 companies.

Many companies in the zone have achieved the highest international standards in terms of production capacity and technology.

There are six industrial clusters in the zone: modern equipment manufacturing, new materials, new medicine, new energy, modern textiles and service outsourcing.

The zone is strategically positioned along the Yangtze River Delta and it has easy access to nearby transportation infrastructure, such as waterways, highways and airports.

Three bridges pass through it: the Suzhou-Nantong Yangtze River Bridge, the Chongming-Qidong Yangtze River Bridge and the Shanghai-Nantong Railway Bridge, which will be under construction soon.

Thanks to the Suzhou-Nantong Yangtze River Bridge, the world's largest cable-stayed bridge, the zone is one hour's ride away from Shanghai Hongqiao Airport and three hours away from 10 major cities in the Yangtze River Delta.

The zone is reachable by three highways: the Shenyang-Haikou Highway, the Nanjing-Qidong Highway and the Jiangsu Waterfront Highway. It is also reachable by three railways: the Xinyi-Changxing Railway, the Nanjing-Qidong Railway and the Shanghai-Nantong Railway, which will soon be completed.

The zone has three airports in its vicinity: Hongqiao Airport, Pudong Airport and Nantong Airport, which will soon be built.

It also has the Port of Nantong, one of China's top 10 ports, which handles 200 million tons of cargo annually.

The Nantong Economic and Technological Development Zone has facilities and a natural environment that make it attractive to investors. For one, the terrain of the zone is flat, making it suitable for large construction projects.

Streets form a dense network linked with highways to nearby cities. Rainwater is collected in a system separate from sewage water. The main streets are 50 meters in width, and other streets are 25 meters in width. There are rainwater and sewage tunnels at the roadsides.

The supply of electricity is ample and stable. Nantong is one of China's major electricity-generating bases. Electricity is generated by thermal power, wind energy and bioenergy. The zone has three power transmission stations capable of generating 220 kilovolts and nine power transmission stations with a 110-kilovolt capacity.

It also has ample water supply. Two water plants, the Honggang and Langshan water plants, each produce 600,000 tons daily. Water prices in Nantong are the lowest out of all major Jiangsu cities.

There are two sewage-treatment plants, which are capable of processing 260,000 tons daily. Polluted water is released only after being processed and reaching a certain standard.

The zone is equipped with advanced telecommunication technology. Services such as international and domestic calls, broadband access to the Internet, satellite TV services and facsimile are available.

Nantong is rich in human resources as well, housing six colleges and 27 vocational schools. The city has a large supply of skilled workers and professionals. Labor prices are lower than surrounding areas, particularly the southern Yangtze River Delta.

To support the development of industry and business, Nantong has promulgated many favorable policies: administrative fees are reduced or waived; relevant government organs have improved their efficiency; tax policies have been skewed in favor of investors.

Foreign enterprises that have operated in China for 10 years or more are entitled to reward in proportion to their income tax to local authorities. Major science and technology projects are entitled to science advancement awards. The city government is also providing incentives in an attempt to encourage enterprises to expand their R&D investments.

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