Facts & Figures (2007)

Source: Xiaoshan Economic and Technological Development Zone

Introduction

Xiaoshan Economic and Technological Development Zone (Xiaoshan ETDZ), approved by the State Council in 1993, has a planned area of 9.2 km². It is located in Xiaoshan District, Hangzhou city, which is an equal distance of 1.5 hours away from Shanghai, Suzhou, Shaoxing and Ningbo.

Xiaoshan ETDZ is 10 km from Hangzhou Xiaoshan International Airport, which operates 149 domestic airlines and 32 overseas airlines per week. It is also 170 km away from Shanghai Port and 130 km from Ningbo-zhoushan Port, two of the busiest ports in China. The zone can be reached by land, as Shanghai-Hangzhou-Ningbo highway, Hangzhou-Jinhua-Quzhou highway and the railway run through the zone.

Investment Climate

Hangzhou Jiangdong Industrial Park, Zhejiang CNC Equipment Manufacturing, Xiaoshan Hi-tech Park and an extended area of the state-level Hangzhou Software Industrial Base are located in Xiaoshan ETDZ. The park primarily encourages the development of the electronic information, machinery, refined chemicals and building materials industries.

Japan's Shizuoka Industrial Base and Taiwan Industrial Park of Machinery were also established in Xiaoshan ETDZ in 1995. It is one of the densest areas of Japanese and Taiwanese enterprises in Zhejiang Province.

By the end of 2007, Xiaoshan ETDZ had approved the establishment of 750 enterprises, including 447 foreign-invested firms. Within the same year, the zone realized GDP of RMB 13.1 billion, with a growth rate of 30.91% from the previous year. The total industrial output value has amounted to RMB 11.4 billion, up 29.1% year-on-year. The industrial output from high-tech industries hit RMB 10.1 billion, accounting for more than 88.6% of the zone's total.

In 2007 alone, the park attracted FDI of US$356 million and utilized FDI of US$211 million. U.S.-based Albany International Corp invested US$99 million in a textile manufacturing project and Sinotruk injected RMB 2 billion into the zone for an engine producing base within the same period.

Currently, nine Fortune 500 enterprises have set foot in this development zone, including GE and Caterpillar from the U.S., ZF from Germany, and Mitsubishi from Japan.

Investment Costs

Land Costs

Source: Administrative Committee of Xiaoshan Economic and Technological Development Zone

Utility Costs

Source: Administrative Committee of Xiaoshan Economic and Technological Development Zone, China Water, Hangzhou Gas

Logistic Costs

Air Freight Costs (RMB/Kg)

Source: Hangzhou Xiaoshan International Airport (based on the prices of Air China)

Labor Costs

Reference Salary at Labor Market

Source: Administrative Commission of Xiaoshan Economic and Technological Development Zone

Winning Edge

1. Advantageous geographic location. As a coastal city, its land, air and waterway traffic system is quite advanced.
2. Rich human resources. There are over thirty-six universities in Hangzhou, along with a large number of vocational and technical schools.

Limitations

1. The zone faces strong competition from the other two state-level parks in Hangzhou, which are Hangzhou Economic and Technological Development Zone and Hangzhou High-tech Industry Development Zone.
2. Relatively high operating and labor costs
3. Scarcity of mineral resources and shortage of gas and electricity

The Administration Committee

1. Address: 99, North Shixin Rd, Xiaoshan District, Hangzhou, Zhejiang Province, P. R. China
2. Tel: 86-571-82835906 82835531 82835910 82835879
3. Fax: 86-571-82836558 82835866
4. Website: www.xetz.gov.cn