Business Environment of Guangzhou. China - Guangzhou

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Clifford Thornton
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1 Business Environment of Guangzhou 1

2 Perspectives for Economic Cooperation in Guangzhou By Dr. Xiao Zhenyu Director-general Bureau of Foreign Trade and Economic Cooperation of Guangzhou Muni cipality 2

3 Functions of GZBOFTEC An administrative authority of Guangzhou Government Responsible for: foreign trade and economic cooperation implement the states relevant policies, rules, regulations and laws for foreign trade and economy work out specific policies, local decrees and regulations and implementing foreign trade and economy of GZ Municipality guide, coordinate and manage the planning, examination and approval of foreign invested projects in GZ and organize various promotion activities for foreign investments import and export Going global, guide GZs outbound investments 3

4 Geographical Location Guangzhou Guangdong Province Being the central city in South China and the capital of Guangdong Province, Guangzhou is the Southern gateway to the outside world of China with a resident population of about 11 million. 4

5 Data Guangzhou Guangzhou Land Area Population GDP Tax Revenue FDI Trade Volume Accounts for the nations 1/1000 th 1/200 th 1/30 th 1/20 th 1/25 th 1/30 th 5

6 FDI in Guangzhou FDI in Guangzhou in bn US$ accumulated since 1979 in the year Guangzhous FDI in 2008: US$ bn (occupying 1/25 of the country) an accumulative US$ bn US$ since1979 currently approx foreign companies in Guangzhou - approx. 64.5% manufac turers - approx. 35.5% services or rep. offices 6

7 FDI in Guangzhou 169 Fortune 500 companies have built their presence here In 2008, foreign enterprises in Guangzhou achieved good return: - sales revenue +23.4% - gross profit +46% 7

8 GuangzhouItaly Trade Totally trade volume in 2008: 1.05 bn US$, up 16.49% --Guangzhous export to Italy: 626 mn US$ --Guangzhous import from Italy: 426 mn US$ Major commodities: --Electric products --Automobile --Metal products --Textile --Leather products --Chemical products --Instruments and equipment 8

9 Italy FDI in Guangzhou 76 Italy FDI projects altogether since Contractual fund: 138 mn US$ --8 projects with each total investment exceeding 10 million USD Italy companies investments in: --Automobile spare parts --Machinery manufacturing --Textile and garment --Leather goods --Insurance service 9

10 Investment potential of manufacturing industries : automobile chemical industry precision instruments machinery & equipment manuf acturing financial services industry 10

11 Why Choose Guangzhou as your investment destination? Chinas important manufacturing base sound industrial basis complete industries strong development ability 11

12 Why Choose Guangzhou as your investment destination? Chinas important manufacturing base 3 pillar industries in 2008 (automobile, petrochemical, electronics & IT) gross output % Trade volume in billion USD export USD billion, +13.4% Import USD billion, +9.5% 12

13 Why Choose Guangzhou as your investment destination? Economic Restructuring: Efforts will be made in the following aspects: key industries (automobile, petrochemcal industry, IT, bio-pharmac eutical industy, etc.) establishment of R&D centres high-technology services (finance, logistics, exhibitions) 13

14 Why Choose Guangzhou as your investment destination? Regional platform biggest center for trade, logistics, conference and exhibition, tourism and finance in South China modern service industry 60% GDP of Guangzhou 14

15 Why Choose Guangzhou as your investment destination? Regional platform----the regional financial center of South Chi na Items Volume (2008) Compare with the year before balance of deposits of banking financial institutions balance of loans 5.5 bn +6.2% bn premium income of insurance industry 4.4 bn +33% 152 financial institution representative offices 15

16 Why Choose Guangzhou as your investment destination? Open culture Guangzhou is among the first batch of cities to reform and open up to the outside world 16

17 Why Choose Guangzhou as your investment destination? Mature infrastructure perfect airport, seaports and information ports one of the 3 telecommunication pivots and international commercial portals in China Infrastructure projects: Harbors and airport Highways Electricity Public transport 17

18 Air & Sea Transportati on Infrastructure Air transportation Baiyun International Airport: 33 mn passengers in 2008 ranks 2nd in China 57 international direct flights Sea transportation In 2008:cargo handing capability reaches 347 mn tons, 7th largest turnover world-wide, ranking 3rd in China In 2008: the container volume 11 mn TEU, until 2010: >14 mn TEU 18

19 Why Choose Guangzhou as your investment destination? Outpost for the Chinese market, with direct impact on PRD area with more than 40 million relatively rich people Guangzhou 19

20 Why Choose Guangzhou as your investment destination? relatively low-cost advantages with abundant human resources totally 1.02 million varied qualified talent Universities and colleges in GZ: 63 Universities Mega Center: nearly 20 universities 20

21 Guangzhou ----an ideal place for Italian enterprises to set up funds-intensive and technology -intensive enterprises in the following sectors : 21

22 Automobile Industry --one of the pillar industries of GZ Sedan manufacture passenger cars Trucks specialty vehicles car components 391 projects of the automobi les and auto parts, 107 projects have investment of over USD 10 million. Honda, Toyota, Nissan and Guangzhou Automobile Group have established automobile industry bases. Encourage enterprises of automobi le and parts in GZ to cooperate with foreign businesses with focus on complete vehicle manufac tures. 22

23 The high and new technology industries -- precision instruments, machinery & equipment manufacturing flat panel display integrated circuit (chip) electrons of vehicle information appliances application software correlation techniques for next generation internet third & fourth generation mobile communication creative and digital content industries 23

24 Financial services industry Financial CBD in the Zhujiang New Town. 5 million yuan will be allocated to those who set up the financial institutions in the area. Financial innovation service zone is being planned to attract relevant talents, materials, funds and information of financial institutions. Guangzhou International Finance Centre will be put into use in

25 Headquarters, R&D, operational centers & export procurement centers Reinforce the development of headquarter economics of various characteristics. For those multinationals who set their China headquarters and regional headquarters in Guangzhou will be rewarded 5 million Yuan by Guangzhou Government; R&D Center, operational center and export procurement centre are all encouraged to be established in Guangzhou. 25

26 Facing the Financial Crisis Measures to help foreign-funded enterprises to deal with difficulties: actively implement those positive policies issued by the country and province set up a special fund of 178 million yuan to support export-oriented enterprises organize foreign enterprises to participate in exhibitions overseas help enterprises seize export orders explore domestic market, organize exhibitions in mainland stable the scale of production reduce burdens, 38 administrative service fees will be reduced in the near future 26

27 For more information Bureau of Foreign Trade and Economic Cooperation of Guangzhou Municipalit y Tel: Fax: xujun@gzboftec.gov.cn 27

28 28

29 Bureau of Foreign Trade and Economic Cooperation of Guangz hou Municipality 29

Machinery and equipment manufacturing in China

Machinery and equipment manufacturing in China Focal point: NBSO Dalian The layout of the global equipment manufacturing industry is changing fast. Production capacity relocates from developed countries