As a special economic area, Tangshan New&Hi-tech Development Zone (TSDZ) was selected by the State Government after thorough studies and scientific researches, in order to provide special encouragement to investors from home and abroad to gain quick economic benefits and achieve solid growth, which gives investors a good platform from which to maintain and extend business in the market of China.

Representing the People¡¯s Municipal Government of Tangshan City, the Administrative Committee of TSDZ is responsible for the development and management of the Zone. It is granted with the economic management authority of municipal level, and at the same time enjoys the provincial level of examining and approving authority of foreign-funded projects whose investment value below USD$30 million.

The goal of the Zone is: develop TSDZ into the basis of technological innovation, the carrier of industrialization demonstration area of new system, and the modernized new city with beautiful environment. Tangshan New&High-tech Development Zone is a promising place, which is full of vitality and opportunity; we warmly welcome domestic and international people participating in the TSDZ's construction together

In the central section of Circum-Bohai Bay region lies the City of Tangshan with Bohai Sea to the south, Yanshan Mountain to the north, Qinhuangdao City to the east, Beijing and Tianjin to the west, and it watches North Korea and South Korea over the Bohai Sea. Known as The Treasured Land to the East of Beijing, Tangshan is a famous coastal city of heavy industry with a history of one hundred years.

Tangshan, named after Hill Tangshan (now called Hill Dacheng) in the city proper, was officially established in 1928. It has jurisdiction over 2 county cities, 6 counties, 6 districts, and 2 farms. As one of the relatively large cities in China, Tangshan covers an area of 13,472 sq. kms, including an urban area of 1,090 sq. kms, and has a total population of 7 million, including an urban population of 1.68 million.

Tangshan enjoys a favorable geographic location, abundant natural resources and exceptional advantages in development. The low mountainous and hilly area in the north abounds in such fresh and dry fruits as chestnuts, walnuts, apples, hawthorns, pears, peaches, grapes, etc. The Jingdong Chestnuts is well known both at home and abroad. The central plain area abounds with such agricultural and sideline products as maize, wheat, rice, cotton, peanuts, vegetables and so on. So it is called The Granary in the East of Hebei Province. The coastal area in the south is the important fishing ground at Bohai Bay and the producing base of Changlu Salt.

Tangshan is rich in mineral resources. Up to now, 47 kinds of mineral deposits have been discovered and verified. Tangshan has workable coal reserves of 6.25 billion tons and that of iron ore 5.75 billion tons, making it the main base of coking coal production and one of the 3 biggest producers of iron ore in China. Besides, there are also rich reserves of limestone, petroleum, natural gas, gold, silver, manganese, lead, zinc, quartz, mica phosphorus and so on.

Tangshan enjoys many tourist landscapes with unique styles and features. The East Mausoleum of Qing Dynasty is the existing largest one in China with the most complete architectural system. There are also many other famous natural and manmade landscapes such as Mount Jingzhong, Panlong Lake, the underwater section of the Great Wall, Puti Island, the Jinyintan Beach, LI Dazhao Park, etc., which attract a great number of tourists from home and abroad every year.

Tangshan has a solid economic foundation and strong capabilities in terms of development and opening up to the outside world. Since 1989, it has ranked among the cities in China whose GDP exceed 10 billion RMB. In 2000, Tangshan's GDP hit RMB91.5 billion yuan and Tangshan has become one of the 50 strongest large and medium-sized cities in China in terms of comprehensive economic strength. The agricultural economy of Tangshan has been developing in an all-round way. Its per capita possessed output of cereals, edible oil, meat, eggs, aquatic products and vegetables is more than the average level in Hebei Province, as well as in China. The industrial economy of Tangshan is undergoing sustained and rapid development. Tangshan is called The Cradle of Chinese Modern Industry because China's first modernized coal mine, the first section of standard gauged railway lines, the first steam locomotive, the first pack of cement and the first piece of sanitary ware ceramic were all originally built or made in Tangshan. Through over 100 years of development, Tangshan has become the industrial base of China for the production of energy and raw materials, with coal, iron & steel, power, building materials, machinery, chemical industry, ceramics, textile, paper-making and food stuff as its ten pillar industries. A lot of large-sized and medium-sized enterprises of Tangshan hold important positions among the same trades in the country, such as Kailuan Coal Mine, Tangshan Iron & Steel Company, Tangshan General Power Plant, Bohai Cement Group, Napu Salt Works, Tangshan Ceramic Group, Tangshan Sanyou Group, Tangshan Gears Plant, Tangshan Rolling Stock Plant, and so on.

Tangshan is speeding up its pace of implementing the strategy of export-oriented economy bringing along the others and the city has become the hot spot for foreign investors coming from 40 countries and regions to make investment in. The investors include a number of well-known and influential top companies in the world, such as Cheung Kong China Infrastructure Limited HongKong, China Travel Service, Bank of China (HongKong), China Merchants Holdings Co. Ltd., Taiwan Top Valve Co.Ltd., Sithe Energies Group (U.S.A.), Panda Energy Inc. (U.S.A.), Long-Airdox Inc. (U.S.A.), Deutsche Babcock, French Danone, Tang Freres S.A.(France), Japanese Panasonic, Itochu, Toyota, Asin, NGK, etc. Tangshan has more than 500 enterprises whose products have entered foreign markets involving more than 130 countries and regions, with its export products consisting of 39 categories and more than 270 kinds. Tangshan City has established sister city relationship with Malmo City in Sweden, Sakata City in Japan, Lincoln City in England and Cedar Rapids in America.

Over 20 year's of construction and development since the catastrophic earthquake in 1976, great changes have taken place in Tangshan in terms of infrastructure, urban appearance and environment. The completely constructed urban area has reached 16.1 sq. meters, and the per capita living space is 9.8 sq.metres. Such coverage rate as tap water supply, central heating supply and gas supply stands at the forefront among the large and medium-sized cities in the country. In 1990, Tangshan was awarded by the United Nations, for its remarkable achievements in improving the living conditions of the people. Within the region of Tangshan, there are three arterial railways running through from the west to the east and five feeder railways and local railways crossing from the north to the south. A highway network has formed with the three State Highways as its arterial. The three expressways respectively named Beijing-Shenyang, Tangshan-Tianjin and Tangshan-Jingtang Port are connected in Tangshan. A modern land telecommunication and transportation system has come into being. As for seaway transportation, three ports are within its easy reach, with Qinhuangdao Port to the east, Tianjing Xingang Port to the west, and Jingtang Port in the middle. Tangshan's post and telecommunications system offer excellent services, which make it possible to dial directly to every city in China and 182 countries and regions in the world.

Superior Geographical Position

In the central section of Circum-Bohai Bay region lies the City of Tangshan with Bohai Sea to the south, Yanshan Mountain to the north, Qinhuangdao City to the east, Beijing and Tianjin to the west, it watches North Korea and South Korea over the Bohai Sea. It is one of largest industrial cities in China. Beijing, Tangjin and Tangshan have shaped the Gold Triangle of economic development in China. It is a coastal opening city.

TSDZ, in the north of the city center, is a part of overall planning of the city. Its total planning area is 13 sq. km. Relying on the existing facility of the city and its investment environment, overseas investor can enjoy benefits within short time.

Perfect Industrial System

Known as The Treasured Land to the East of Beijing, Tangshan is a famous heavy industry city with a history of one hundred years and it is praised as China Modern Industry Cradle, it has already formed a system of heavy industry as majority with light industry as subsidiary. TSDZ can take advantage of conditions above as background.

Convenient Traffic Network

Tangshan city has 4 pairs of national-level trunk railway and 113 industrial railways. 3 expressways form" X" type network of highways within the borders. Within the scope of 100 kilometers, there are 3 large ports. It is 180 kilometers, 120 kilometers and 130 kilometers respectively from the Beijing International Airport, Tianjin Airport, and Qinhuangdao Airport to Tangshan.

TSDZ is close to the entrance of Beijing to Harbin expressway; you can reach Beijing, Tianjin and Qinhuangdao within one and a half hour.

Lower Cost of Investment

Tangshan has a power plant generating capacity now 15 billion KVA/year. TSDZ has 10 KV substation and 110 KV transformer substation, which can offer 0.38/0.22 - 10 KV for enterprises. The Zone can supply 400,000 cubic meters of gas, 508,000 cubic meters of daily water, also 60-95 Celsius degree of heating water. The terrain of developing zone is smooth, which offers good condition for projects. It is an ideal industrial investment place.

As showed in the picture, Tangshan is the important gateway of Beijing and Tianjin; it's the geographical backbone linking North China and the Northeast. It is one of the areas that enjoy the highest density of railway and expressway. Three main highways run through the city, shaping an " O+ X" highway network. The road in Tangshan area reaches 7366 kilometers in total. As a coastal city, Tangshan has its own international port: Jingtang Port connecting with 60 oversea and domestic ports. In addition, Post and telecommunications is quite convenient and shortcut in Tangshan, superior post and telecommunications condition, has established a powerful external environment to open to the outside world.

Preferential policies on land:

The land price for the industrial items of advanced and up-to-date technology is 150,000yuan per mu (including deed tax and immigration additional tax). When the land once used by the productive enterprise is more than ten mu, five percent datum land price can be exempted. The land selling contract being made, if more than fifteen percent earnest money of the selling price is paid within ten days, and all the selling price is paid off within sixty days, ten percent selling price can be exempted. To those industrial items of advanced and up-to-date technology,whose lump-sum investment are over 1,000,000,000yuan and are over 5,000,000yuan, the datum land price is 130,000yuan permu (including deed tax and immigration additional tax). To those productive high-tech enterprises, whose operating periods are above ten years, whose total sum of investments are over us$10,000,000,and who have great influence on the high speed of Tangshan's industrial structure, the land selling price can be the basic one, and the fees for necessary accessories can be exempted.

Preferential policies on tax:

If their operating periods are over ten years, the newly founded productive enterprises invested by the foreign businessman in the development area can enjoy an income tax preference of exemption for five years and reducdtion for five years from the year when they gain profits. Those whose operating periods are over fifteen years can enjoy an income tax preference of exemption for seven years and reduction for eight years. Those kinds of ensaterprises pay their yearly income tax at the rate of 24 percent, when the preferential policies they enjoy in the development area expire.

If their operating periods are over 20 years, the newly founded high-tech enterprises, advance technologicasl enterprises, product exporting enterprises and enterprises engaged in items of energy, infrastructure and public welfare can enjoy an income tax preference of exemption for ten years and reduction for ten years from the year when they gain profits. These kinds of enterprises will be reinstated after the preferential policies they enjoy in the development area expire, 15 percent sum exceeding tax should be returned by the finacial department . As to the product export proportion is more than 70 percent , 10 percent sum exceeding tax should be returned by the financial department .

Furthmore, if their operating periods are over 10 years , the various newly founded enterprises invested by the foreign businessman can enjoy reduction and exemption preferences by a wide margin on local income tax, house property tax and licence tax on transportation.

The newly founded productive native enterprises in the development area can enjoy an income tax preference of exemption for three years and reduction for three years from the year when they gain profits.

The newly founded native enterprises engaged in the items of high technology, energy, infrastructure and public welfare can enjoy can income tax preference of exemption for years and reduction for five years. These kinds enterprises will be taxed according to the fixed tax rate after the preferential policies they enjoy in the development area expire. 24 percent sum exceeding tax should be returned by the financial department.

The newly founded non-productive native enterprises in the development area can enjoy an income tax preference of exemption for three years from the year when they gain profits.

Besides, the native enterprises mentioned above can all enjoy, to a certain extent, a return preference to regulating taxes on investment orientation. The Hi-Tech Zone would stress the six industries:mechanical&electronic integration,electronic information,energy-saving & environment-protecting industry,medical biology,new material and constructing material,refined chemical industry.

NEW MATERIAL & CONSTRUCTING MATERIAL

To develop special ceramic,new fire-resistent material, inorganic nonmetal material,new decorating material,metal multiplex material.

MECHANICAL ELECTRONIC PRODUCTS

To develop the manufacturing industry of motor& car parts,high-effeciency energy-saving environment-protecting equipments;To develop the products of the related large-scale machinery,develop instruments -processing and packaging equipments;develop small-demanding agricultural machinery.The mechanical&electronic integration and the micro-electronics would be used in the design of new products ,with the aim of automation.

BIOLOGICAL ENGINEERING PRODUCTS

To develop the household biological engineering products,encourage the development of products,health-caring medicine and chinese traditional medicine related to the medicine.

LIGHT CHEMICAL PRODUCTS

To develop refined chemical products such as food additive and biofertilizer;encourage the production of light industrial products which are most needed in the market and of intelligent and energy-saving.

DEVELOP THIRD INDUSTRY PROPORTIONATELY

To try to open up countryside and surrounding market,encourage the refinery of agricultural side products.

At the same time pay attention to the development of other hi-tech fields to make a solid foundation for the coming 21th century

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