Facts & Figures (2007)

Source: Administration Committee of Beijing Linhe Industrial Development Zone

Introduction

Beijing Linhe Industrial Development Zone (Beijing Linhe IDZ) was established by the Beijing Municipal Government in 2000, and covers an area of 4.2 km². It is a city-level park.

The IDZ is located in Shunyi District, only 6 km to the east of the airport. It is 30 km northeast of the city center and 160 km from Tianjin Port. The Beijing-Chengde Railway and Beijing Sixth Ring Road pass by the IDZ.

In 2007, the passenger and cargo throughputs of Beijing Airport reached 53.6 million and 1.4 million tons, ranking first and second in China respectively. The airport has flights to ninety-six domestic cities and ninety-one overseas destinations.

Tianjin Port is the main passageway for cargo from Beijing, North and Northwest China entering the Bohai Sea. In 2007, the port's cargo throughput reached 309 million tons, ranking fourth in China (after Shanghai, Ningbo and Guangzhou) and sixth in the world.

Beijing is now the largest education center in China. By the end of 2007, there were eighty-three universities and colleges in Beijing, with a total enrolment of 568,000. The nation's most famous universities are located in Beijing. They include Peking University and Tsinghua University, dubbed China's Harvard and MIT respectively.

Investment Climate

In 2007, the GDP of Shunyi District reached RMB 35.5 billion, up 21.6% over 2006, and accounting for 3.9% of the city's total. Foreign companies are the main driving force for the manufacturing sector, which had an industrial output that accounted for 77.3% of the district's total.

The IDZ's pillar industries include automobiles and auto parts, microelectronics, optical, mechanical and electronic integration, and biopharmaceuticals.

As the nation's capital, Beijing is China's educational center. It enjoys strong technological research capabilities in the electronics and information technology industry due to the existence of top-level universities and institutes in the city. In 2000, the IDZ received approval from the Beijing Municipal Government to build a microelectronic industrial base in North China – the only one of its kind in Beijing. Grinm Semiconductor Materials is the largest company in the microelectronics field. Founded in 1999, it was among the nation's first aggregation of listed high-tech companies, and is home to China's first production line for 8-inch monocrystalline silicon manufacturing with proprietary intellectual property rights. Presently, its annual revenue totals RMB 2.0 billion.

In the optical, mechanical and electronic integration industry, Beijing No.1 Machine Tool Plant is the largest investor. Its factory in the IDZ, with an investment of RMB 1.0 billion, was set up in 2002. It is Beijing's largest R&D and production base for computer numerical control (CNC) machine tools, and can realize annual revenues of RMB 1.1 billion.

In 2002, the Beijing Municipal Government established the IDZ as the city's manufacturing base for automobiles and auto parts. Beijing Hyundai, the first joint venture in China's auto industry after China entered the WTO, is the largest company in this field. It was set up in 2002, with an investment of US$886.8 million. Its main businesses are the R&D and production of cars and trucks, as well as motors and parts. In 2007, its sales of cars reached 231,000 units.

Investment Costs

Utility Costs

Source: Beijing Municipal Government

Labor Costs

Source: Beijing Statistic Bureau

Winning Edge and Limitations

Winning Edge

1. Abundant talent reserves in Beijing
2. Near the airport
3. It is the microelectronic industrial base in North China.
4. Beijing's manufacturing base for autos and auto parts

Limitations

1. High costs compared to other cities like Baoding, Shijiazhuang and Tangshan
2. City-level park
3. Its environment is affected by sand storms.
4. Shortage of water

The Administration Committee

1. Address:  East of Beijing Capital International Airport, Shunyi District, Beijing, P.R.China 101300
2. Tel:  86-10- 89493248/89492548
3. Fax:  86-10- 89495550
4. Email: lhkfq@vip.sina.com
5. Website: http://www.bjindustrialzone.com.cn/