Hangzhou High-tech Industrial Development Zone
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Facts & Figures (2010)
| Rating |
AA |
| Year of Establishment |
1991 |
| Land Area |
12.12 km2 |
| Location |
Hangzhou, Zhejiang |
| GDP |
RMB 34.17 billion, 13.1% up |
| FDI |
US$5.8 billion (cumulative) (2009)
US$222.49 million (Jan - Mar 2010) |
| Utilized FDI |
US$183.01 million (Jan- Mar 2010) |
| Major Investors |
Nokia, Alcatel, BOS, Panasonic, Mitsubishi, Daewoo, TCS, CA, INTECH, Alibaba, SISTEMA, ZTE, IBM, NTT, Microsoft, AISIN, UTStarcom |
| Major Industries Encouraged |
information technology, biochemicals, pharmaceuticals, optical-mechanical-electronic integration |
| Source of Facts & Figures |
Source: Administrative Committee of Hangzhou High-tech Industrial Development Zone |
| Introduction |
Hangzhou High-tech Industrial Development Zone (Hangzhou HTIDZ) won the State Council’s approval to become a state-level development zone in 1991. It covers an area of 12.12 sq km and is located in Binjiang District in Hangzhou approximately 180 km from two of China’s busiest ports, Ningbo-Zhoushan Port and Shanghai Port.
The Shanghai-Hangzhou Railway, the Zhejiang-Jiangxi Railway, the Xuancheng-Hangzhou Railway and the Hangzhou-Ningbo Railway intersect in Hangzhou, and the Shanghai-Hang-Ningbo Expressway and the Hangzhou-Jinhua-Quzhou Expressway also cut across the city. The zone is located only 15 km from Hangzhou Xiaoshan International Airport, which offers 181 flights to major domestic and international cities per week.
The zone is an educational base in Hangzhou. There are over 30 universities, including Zhejiang University and China Academy of Art, 19 research institutions and nine state-level labs. |
| Investment Climate |
Hangzhou HTIDZ consists of three areas, of which Xiasha Sci-tech Industrial Park, located close to the state-level Hangzhou Economic and Technological Development Zone, and Zhijiang Sci-tech Industrial Park are the most important. Hangzhou HTIDZ mainly encourages investment in information technology, biochemicals, pharmaceuticals and optical-mechanical-electronic integration.
After years of development, Hangzhou HTIDZ has become one of China’s 11 national industry bases for software, IC design, BPO and animation. It is home to over 1,100 software developers and BPO enterprises. Nokia, Motorola and Siemens have established research centers in this zone. In 2008, the export value of software hit US$379 million, accounting for over one half of Zhejiang’s total. In addition, around 8% of China’s IC design firms are located in the zone. Hangzhou HTIDZ has become renowned as the “Paradise Silicon Valley” of China. In 2010, the total export and import value hit US$5.4 billion.
In 2010, the GDP of the zone rose 13.1% to RMB 34.17 billion, contributing 5.7% to Hangzhou’s total GDP. The zone is home to over 61% of Hangzhou’s high-tech companies. In 2008, the zone’s high-tech firms generated value-added industrial output of RMB 25.1 billion, accounting for 56.3% of the zone’s total.
By the end of 2008, the cumulative FDI in Hangzhou HTIDZ had reached US$5.8 billion. Big foreign enterprises, including Nokia, Panasonic, Mitsubishi, IBM, NTT, Microsoft and AISIN, have invested there. It is also home to Alibaba.com, the world’s largest online B2B portal. In the first three months of 2010, the contracted FDI reached US$222.49.
Alibaba Group, founded in 1999, is the parent of Alibaba.com Ltd, which runs an online marketplace for over 32 million registered traders throughout the world. Alibaba Group’s other units include Alipay, Taobao and Alisoft. In 2007, Alibaba.com was listed on the Hong Kong Stock Exchange. It is the largest Chinese website in terms of market value. Despite the global financial crisis, Alibaba.com’s net profit attributable to shareholders rose 25% year on year to RMB 1.2 billion in 2008. |
| Winning Edge and Limitation |
Winning Edge
- The zone is strong in high-tech industries, especially in telecom equipment manufacturing, IC design, software, BPO and animation
- The government is very efficient. The local commission provides “one-stop” services
- There is a large talent pool with strong R&D capabilities
Limitations
- Labor and land costs are high
- The zone faces competition from Ningbo, where the economy is boosted by a world-class port
- Manufacturing in the zone is weak
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| The Administration Committee |
Address: Administration Center, Binjiang District, Hangzhou, Zhejiang, P.R. China 310051
Tel: 86-571 87702207,87702210
Fax: 86-571 87702384
Website: www.hhtz.gov.cn www.hhtz.com |
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