This publication presents an overview of matters to be considered by those thinking of investing in Hangzhou, the capital of Zhejiang Province in eastern China.

The Yangtze River Delta (YRD) has developed at an unprecedented pace in the past 20 years and is one of China’s major economic growth engines. Thanks in part to its unique geographical advantages, it continues to have a higher than average GDP growth rate.

Hangzhou has grown rapidly since China’s opening-up in the late 1970s, and has consistently experienced double-digit growth for the past 16 years. The gross economic output has ranked second among all provincial capitals in China for many years, and its overall competitiveness ranks fifth among Chinese cities.

In 2006, Hangzhou’s total import and export value was approximately USD 38.9 billion, including USD 26.2 billion in exports, an increase of 32.4% from 2005.

By the end of 2006, 8,425 Foreign Invested Enterprises had been approved by the Hangzhou government. Fifty-three Fortune 500 companies have established a presence in the area with 87 projects. These include such as Motorola, GE, Merck, Siemens, Bosch, Air Liquide, Saint-Gobain, Toshiba and Panasonic.

The city has also attained worldwide recognition:
• Hangzhou was rated by Forbes as the Top City in China for Business in 2004, 2005 and 2006
• The World Bank listed Hangzhou as having the best investment environment in China in 2003 and 2004, and awarded it the rank of Gold Medal City in its 2006 city competitiveness ranking
• Hangzhou was named an International Garden City by the International Park and Amusement Association in 2002
• Hangzhou was awarded the residential award of the United Nations in 2001 Despite the rapid changes in China over the past few years, one aspect of investment in China has not changed: the importance of careful planning.

We recognise the importance of reliable information, such as cost data, to the investment process. This publication is designed to address the needs of investors for accessible, independent research on the business environment and costs in Hangzhou.

The Chinese business environment is evolving rapidly. Cost and operational issues vary from company to company and from industry to industry. Companies doing business in China, or that are planning to do so, are advised to obtain current information and company-specific advice from experienced professional advisors and to conduct proper due diligence; this report should not be considered a substitute for detailed due diligence prior to investment.

We have drawn on various Hangzhou government sources in our research, and on the actual cost and operating data from foreign-invested enterprises based in Hangzhou in April 2007.

Download Hangzhou Investment Environment Study 2007

ENGLISH, PDF format, 1.8MB, 28Pages.

Contents:
Preface 4
1 Hangzhou in context 5
2 Foreign investment in Hangzhou 10
3 Operating costs 14
4 Living in Hangzhou 20
5 Taxation 23
6 Useful contacts in Hangzhou 26

Download Hangzhou Investment Environment Study 2007

CHINESE, PDF format, 1.7MB, 28Pages.

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