Profile

Approve by the State Council in November 1992,Ningbo free trade Zone (NFTZ) operates in the mode of ¡°free trade zone ¡± pursuant to the provisions of Kyoto Treaty. With the operation mode characterized by ¡°inside the territory, outside the customs.¡±  NFTZ is vested with a diversity of functionalities of import & export processing, international trade, bonded distribution and bonded merchandise exhibition. There are three distinctive strengths that we can¡¯t afford to miss, license-free, tax-free, and bonded tax.

   The past 10years have witnessed the tremendous development of NFTZ. Its complete infrastructure system and well-developed economy have combined to make NFTZ an investment haven for international investors and promoters. By the end of 2002, investors from about 40 countries and territories have registered over 4000 companies in NFTZ, of which 658 companies are foreign owned with the total investment of US$3,000,000,000 and 121 hi-tech projects with their total investment reaching US$1,540,000,000 have been introduced. Up to now, a batch of value chains including computer industry, semiconductor & photoelectric industry, software industry, precision mechanism industry and international trade, warehousing and logistic sectors has gradually taken shape. NFTZ will establish itself as a key region for hi-tech industry relocation and important logistic base in GSP (Greater Shanghai Region).

To further utilize and expand the regional economic function, the State has approved Ningbo export processing zone in June of m2002. The integrated management of NFTZ and NEPZ will realize the complementarity of functionality and policy, optimal allocation of resource, and interaction and development of value chains. As a governmental agency of Ningbo municipal government, Administrative committee of NFTZ (NEPZ) is solely responsible for the development of local economy.

Investment Environment

Geographic Location

Yangtze Delta, with Shanghai as the locomotive, boasts the most dynamic and healthiest economy in Mainland China. The world¡¯s burgeoning No.6 metropolitan cluster has taken up respectively 25% of China¡¯s GDP and 40% of the total FDI. Its position as the economic, financial, trading and shipping center hub of Main China can rarely be challenged.

Transportation

Sea route: NFTZ and NEPZ are within a stone¡¯s throw of China¡¯s No.1 deepwater port---Ningbo Beilun Port. With its main channel averaging 20 meters. Beilun port can allow vessels of 300,000 tonnages to navigate all the year round. Beilun Port has integrated forwarding port functionality of iron ore, oil and chemical industry, coal industry, container transportation. The year 2002 saw its overall handling capacity reaching 153,000,000tonnages, which has listed Beilun Port China¡¯s No.2 and the world¡¯s No.8seaport. The following figures shall fully demonstrate the rapid development of Beliun Port: 85 container liner routes, annual container handling volume of 1,858,000 TEU, fastest growth rate in Mainland China for the past 4 consecutive years and the first time the World¡¯s Top 30 Port culb membership. Its major liner routes covers the regions of East America, West America, Europe Mediterranean, Middle East, southeast Asia, HK and Singapore along with 17 minor domestic routes. The highly interactive and integrative customs clearance operation mode between NFTZ, NEPZ and Beilum Port has greatly facilitated the efficiency of regional logistics system.

 Airway: There are four international airports within a half to 3-hours¡¯ ride, namely NGB, HGH, SHA and PVG. And international logistic tycoons of EMS, UPS, TNT, DHL and FedEx provide mailing services. NFTZ and NEPZ conduct airport direct customs clearance operation with above-mentioned airport and all the formalities can be finalized through the NFTZ customs EDI platform.

 Land transportation: NFTZ is traversed by peripheral free way linking Shanghai-Hangzhou-Ningbo Expressway. Coastal Expressway and NingBo-jinghua Expressway. Hangzhou, Shanghai and Suzhou are respectively 1.5 hours, 3.5 hours and 3.5 hours¡¯ ride away from NFTZ. The distance between NFTZ and Shanghai and Suzhou will be respectively reduced to 1.5 and 2 hours¡¯ ride when the proposed Hangzhou Bay Bridge Project is completed. Xiaoshan-Ningbo double railway extends to NFTZ and converges with Beijing-Shanghai Route and Beijing-Kowloon Route.

Facilitates

Electricity supply: NFTZ is supplied by Zhenhai Power Station, with total capacity of 1.05 million kw, and Belium Power Station, with total capacity of 3 million kw. And NFTZ-based enterprises are the users of the uninterruptible double-loop power supply.

Water supply: Daily supplying capacity of 350,000 tons.

Steam supply: Two steam plants can ensure sufficient steam supply.

Telecommunication: Complete telecommunication services including program-controlled phone, IDD, ISDN, ADSL, DDN.

Drainage and sewerage system: Availability of separate processing channels for rainfall and wastes with daily processing capacity of 180,000 tons.

Standard workshop: Different types of standard workshops of 200,000 square meters are there for investors to purchase or lease: customer-tailored purpose-made workshops to be built and to the requirements of investors.

Warehousing: Modern standard warehouse of 300,000 square meters especially designed for bonded logistics available.

Greening: Greening rate upward of 43.4%.

Industrial Park

Foreign Investment Area

Ningbo has been famous for its highly developed textile, light-industry, and processing industry. With the dual impact of port industry characteristic of petrol-chemical, steel, electricity, paper-making, and automobile and hi-tech industry featured by electronics information, biological medicine and new materials, a relatively complete industrial chain has gradually taken shape, which will lay the foundation for Ningbo¡¯s economic development and ensure the sustainable development of Ningbo. 40 fortune 500 multinationals have chosen Ningbo to establish their subsidiaries.

International electronics and information industrial park

The park focuses on the development of computer, networking, telecommunication, and consumable electronics. Industry leaders include motherboard manufactures of Gigabyte, Joint Fame and 50 down-stream companies. The value chain of electronic components, motherboards, computer and IA is taking shape and NFTZ is on its way to establish itself as the important IT manufacturing base in GSR.

International semiconductor Industrial Park

The benchmarking enterprise of the park is the Shenzhen-listed company. ZhedaHaina, the largest monocrystal wafer manufacturer in Mainland China. Its annual production capacity reaches 4 million polished wafers of 6-8 inch and 2 million epi. Sinomos, the 6 inch wafer manufacturer with the total investment of 0.2 billion, Prodisc, which annually produces 0.3 billion CD-r, Liyuan Tech, Best winning, and Yuqiang Semiconductor are the star enterprises of the park. The industrial chain of ingot growth, grinding, polishing, edging, packing and testing is taking shape. Our goal is the semiconductor and photoelectric R&D center, IC packaging and testing center in GSR, the largest monocrystal wafer, polycrystal solar battery production base.

International software park

The park is China¡¯s first software export processing pioneering park and the first overseas Chinese scholar-pioneering base with R&D team of 500. The goal is to make it the base for independent software TRIP development, software professional training, software exhibition center and State key software export base.

Precision mechanical industrial park

The park is to foster the industries of auto parts, plastic injection mechanics, sweing, mechanics and new material R&D and manufacturing. Guoya Auto, Shengrong Mechanical, Leyton Tech Weiyu Tech are the major NFTZ-base enterprises in this sector. The park is becoming the major auto parts supplying base for international automakers.

Ningbo overseas Chinese pioneering park

As the first of its kind, the park has introduced 50 enterprises since Sep 1999. Some have become the leader in their industries and some listed in the State Torch Project. The park has become the important base to encourage overseas Chinese to conduct hi-tech project incubation and industrialization.

Regional modern logistics exhibition & distribution center

With Beilun Port, the center is a major logistic hub for large-volume commodity and industrial raw materials. To attract multinationals, famous forwarding companies, it has developed intensive logistic distribution and bonded warehousing functions. It has 20 professional warehousing enterprises with the total area of 300,000 square meters. The center is aiming for the provincial textile raw materials, chemical material and metal materials logistic distribution center and logistic base for factors of production.

Export processing industrial park

The park aims to develop export-oriented hi-tech industries of electronic information, precision mechanics, biomedicine, and mew materials together with traditional export industries. Park-based enterprises are entitled to tax exemption in procurement, processing, and export. The park is targeting the important export-processing vase in GSR.