Facts & Figures (2007)

Source: Administration Committee of Beijing Liangxiang Economic Development Zone

Introduction

Beijing Liangxiang Economic Development Zone (Beijing Liangxiang EDZ) was established by the Beijing Municipal Government in 2000, and covers an area of 2.4 km². It is a city-level park.

The EDZ is located in Liangxiang Town of Fangshan District. It is 35 km southwest of the city center, 60 km from Beijing Capital Airport and 190 km from Tianjin Port. The Beijing-Shijiazhuang Expressway and Beijing-Guangzhou Railway pass by the EDZ.

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

Fangshan District, where the EDZ is located, has seen its economic growth average 17.9% in the past three years. It is home to Yanshan Petrochemical Corp, which is the largest subsidiary of Sinopec (the nation's top petrochemical group) in Beijing. Its annual refining capability totals 10 million tons, with outputs of ethylene reaching 800,000 tons per year.

Fangshan District is also Beijing's "Hometown of Building Materials". It has rich reserves of marble, limestone, quartz stone, dolomite and granite. Its proven reserves of China White Marble ranks first in the nation, and its marble is of the highest quality. China White Marble was widely used in ancient times for the building of the Forbidden City and Temple of Heaven's handrails.

Presently, the first and second phases of construction have been completed, with a total developed area of 1.1 km². Three pillar industries have been formed, including mechanical and electronic integration, biopharmaceuticals, and new building materials.

There are fifty-three companies in the EDZ, with an accumulative investment of RMB 2.1 billion. In 2007, the total revenue of companies in the EDZ reached RMB 16.5 billion, 158% higher than that in 2004.

Major investors include Japan's Sukeno (in the textile industry), Japan's Itochu, Beijing Sihuan Biopharmaceuticals, China Xinxing Group (in the pharmaceutical industry), US' PLP and Geokon (in electronics), and China National Petroleum Corp and North China Power Group (in the petrochemical and power generation sectors).

Beijing Sukeno RiSheng Socks Corp is a Sino-Japanese joint venture. Its predecessor, Beijing RiSheng Knitting Corp, was established in 1995 with an investment of US$5 million. Focusing on the business of sock manufacturing, it has reached an annual output of 16 million units.

Beijing Sihuan Biopharmaceuticals was founded in 1988, and is among the first aggregation of domestic companies that are engaged in the R&D of genetic engineering and biopharmaceutical technology. In 2004, it built a new factory in the EDZ according to the EU's GMP Standard, with an investment of RMB 150 million. The factory includes workshops, labs and a research center for cell and bacteria engineering.

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. Adjacent to Beijing's largest petrochemical company, Yanshan Petrochemical.

Limitations

1. High costs compared to other cities like Baoding, Shijiazhuang and Tangshan
2. Far from Beijing's downtown area
3. City-level park
4. Its environment is affected by sand storms
5. Shortage of water
6. Traffic jams downtown

The Administration Committee

1. Address:  2 Jinguang Road, Fangshan District, Beijing, P.R.China  102488
2. Tel:  86-10-69351878/69372427
3. Fax:  86-10-69351867
4. Email: N.A.
5. Website: http://www.lxgyq.com.cn/