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Consulaat Generaal
Guangzhou > Guangdong Province |
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Introduction
An introduction to Guangdong Province, including economic indications,
geographic and demographic information, key sectors, market opportunities,
import and export figures etc. is described in the report: Guangdong Brief. This
and other reports can be downloaded from our website. Please click here
for an overview of reports
Major cities
Guangzhou
Guangzhou has a strong light manufacturing base and a fast-growing consumer market. For foreign investors, Guangzhou offers one of the country's best-run zones: the Guangzhou Economic and Technological Development Zone (GETDZ), as well as several smaller zones. Western companies mostly congregate in the GETDZ, though a fair number locate in other zones or outside official zones. Many of the multinationals are major consumer products manufacturers. The city itself is increasingly a viable market, with advertising spillover from Hong Kong boosting demand for international products.
In addition, the surrounding Pearl River Delta area boasts one of the most sophisticated wholesale systems in China, with a highly competitive local transport industry and a growing host of foreign-invested logistics companies. As in the rest of Guangdong, Hong Kong investors are dominant.
In an effort to attract more foreign investment the Guangzhou government implemented a new investment incentive scheme from January 1st, 1999. Under the scheme, all foreign-invested enterprises in the city are entitled to a 50% reduction in municipal administrative fees for three years. In addition, foreign-invested high-tech companies gained a five-year 50% reduction in land-use fees. Other foreign-invested enterprises can obtain a 30% reduction in land-use fees if they are designated as "export orientated" of "technically advanced".
Guangzhou infrastructure
- Roads: The Guangzhou's Inner Ring Road has improved traffic conditions in the center of the city, and once out of the city, transport links are generally good. It takes two hours from the city center to Shenzhen on the Guangshen expressway.
- Rail: Guangzhou is an important rail hub in southern China. There are two rail stations: the old station downtown in the terminus of the original trunk line to Beijing, going through Wuhan. The new station in Tianhe lies on the new Beijing- Hong Kong line (going via Jiujiang) and handles trains to Hong Kong and Shantou. Hong Kong is two hours by train.
- Ports: Between the three ports of Guangzhou, Huangpu and Shihang there are a total of 137 berths, 27 of which can handle 10,000 dwt vessels. The port to Guangzhou is the largest and busiest in south China, with most of the traffic being domestic break-bulk. Hydrofoil services go to Hong Kong (travelling time 2.5 hours), Shenzhen (two hours) and Zhuhai (2.5 hours).
- Airports: The third busiest airport in China, Baiyun International Airport has already reached its capacity of 17m passengers per year. A new RMB 15bn (US$ 1.8bn) airport, with a capacity of 27m passengers, is now under construction. It is expected to open its doors in 2003.
Investment zones
Guangzhou has four investment zones:
- Guangzhou Economic and Technological Development Zone
- Guangzhou Bonded Zone
- Tianhe High-Tech Development Zone
- Nansha Economic and Technological Development Zone
Investment and related information
Travel,
hotel and general information on Guangzhou
Property
Shenzen
Economic situation
Shenzhen SEZ is by far the most successful development zone in China. Industrial output continues to grow by more than 20% per year, making it the richest city in China. Shenzhen's GDP is bigger than that of the other four SEZs combined, its average disposable income (around RMB 20,000) is the highest in any city in China. Shenzhen lies at the mouth of the Pearl River, immediately across the border from Hong Kong. It has a great deal of autonomy in approving investment projects: ventures in non-restricted industries with capital of up to US$30m can be approved without outside consultation. Shenzhen is home to over 730 foreign-invested enterprises; over a hundred are worth more than US$30m and 18 more than US$100m.
Because of the zone's focus on export processing, Shenzhen has become the country's leading center. Total trade stood at US$50.4bn in 1999; the city's exports at US$28.2bn, comprised 14,5% of the national total. Foreign-invested enterprises are important in this trade picture but domestic enterprises also make a substantial contribution: foreign-invested enterprises accounted for more than half of the zone's exports and imports. Having some of the best infrastructure of the country, Shenzhen's investment environment is increasingly favorable.
Shenzhen SEZ reports directly to the central authorities in Beijing for economic and administrative matters. For all other matters it is still necessary to report to the provincial government. Xiamen SEZ in Fujian Province has the same privilege.
Infrastructure
- Roads: Intra-zone movement is facilitated by multi-lane highways linking separate areas of the SEZ. Most cargo between Shenzhen and Hong Kong is handled by truck. Hong Kong and Shenzhen officials are planning a new highway and bridge that would link New Territories North with Shekou.
- Rail: Double tracking and electrification of the Guangzhou- Shenzhen rail line are complete and have eased travel times. Faster express trains now run the route (as they do from Hong Kong) but under capacity remains critical.
- Ports: Shenzhen is China's second busiest container port (behind Shanghai). 4m TUEs were handled in 2000, up from 2.9m TEUs in 1999. There are eight port areas- including the three deep-sea ports of Yantian, Shekou and Chiwan. Yantian, Shenzhen's largest port, recently completed deepening its main channel to 14 meters from 8 meters, which has raised its annual capacity to an annual 2m TEUs processed at six berths. Per container costs at Yantian and Shekou are about 30% and 40% respectively, cheaper than shipping through Hong Kong.
- Airports: Shenzhen's Huangtian International Airport has become China's fourth busiest airport, handling 200 flights and 15,000 passengers per day. Hovercraft service to Hong Kong from Fuyong port (5 minutes from the airport) make Shenzhen a cheaper alternative to direct flights from Hong Kong to mainland destinations.
Sub zones
Shenzhen has four sub zones:
- Chegongmiao Industrial Area
- Shekou Industrial Area
- Shenzhen Science and Industrial Park
- Futian Free-trade Zone
List
of useful websites about Shenzhen
Investment
and related information
Travel, hotel and general information
on Shenzhen
Property Development
Zhuhai
Economic situation
Zhuhai SEZ is across the mouth of the Pearl River from Shenzhen, 140 km south-west of Guangzhou. One of the four original SEZs, Zhuhai offers the same privileges as Shenzhen. Extra concessions on offer include a five-year regional income-tax holiday and a three-year exemption from land-use fees.
Yet Zhuhai has long played poor relation to Shenzhen. While Shenzhen feeds off neighboring Hong Kong, Zhuhai is located next to less dynamic Macao. More importantly, Zhuhai lies on the west of the Pearl River, has no access to a rail line, no direct road access to the port of Hong Kong, and has only a mediocre deep-water port. However, Zhuhai is not without its attractions. The city is one of the most pleasant in Guangdong, boasting a peaceful environment and well-developed infrastructure. Investment legislative is attractive and land prices are also slightly lower in Zhuhai. Of the multinationals present in Zhuhai is also Philips of the Netherlands.
The original zone area is to concentrate on light manufacturing, commerce, finance and tourism. Ultimately officials see this outer zone becoming a focus of industry and manufacturing for the entire western Pearl River Delta area.
- Roads: A network of first class provincial toll roads and modern bridges links Zhuhai with Hong Kong and Guangzhou. The newly constructed six-lane Lotus Brigde linking Macao's Coloane Island to Zhuhai, opened in early 2000.
- Rail: A 177 km rail link to Guangzhou is under construction at the cost of US$464m.
- Ports: Zhuhai has two ports: Gaolan and Jiuzhou. The deep-water port Gaolan mainly handles transshipments to Hong Kong. Ferries go to Hong Kong and Shekou, taking 45 minutes to one hour.
- Airports: Zhuhai's lavish and under-used Sanzao Airport opened in 1995. It has some of the most up-to-date air traffic control equipment on the mainland- yet the airport handles less than 30 flights per day. Zhuhai has applied for international connection rights to the US and the rest of Asia but so far the central government has not granted them.
- Power: Zhuhai's new power plant, the largest in China, was approved in 1996. The 2x 700 mw is expected to supply 68% of Guangdong's power.
List of useful websites about Zhuhai
Investment
and related information
Port information
Travel, hotel and general information on Zhuhai
Shantou
General information
Shantou is located in the far north-east of Guangdong, adjacent to Fujian on the South China coast. Traditionally an affluent port, Shantou gained its status as one of the original four SEZ mainly because it is the home base of the influential Chaozhou Diaspora in Hong Kong and South- east Asia, estimated at 10m people. Consequently, the majority of foreign investment comes from overseas Chaozhou families. There are several huge investors in Shantou, but most representative are perhaps the 3,000-plus smaller overseas Chinese enterprises engaged in light export-oriented manufacturing, such as clothes, shoes and electronics. About 90% of Shantou's exports are destined for South-east Asia. Investment by non-Chinese companies is limited.
The city's strength remains trade rather than industry, so sourcing raw materials and components can be problematic. Human resources are also limited. Shantou enjoys the same privileges as other SEZs to offer tax concessions and publish its own regulations. Local authorities offer foreign investors discounts on electricity, water and land, as well as greater access to the domestic market.
Sub zones
Shantou has four sub zones:
- The Shantou Free-trade Zone
- Nan'ao Island Development and Experimental Zone
- Chaoyang City and Chenghai City Economic Development Experimental Zones
- The New and High-technology Development Zone
List of useful websites about Shantou
Investment and related information
Travel, hotel
and general information on Shantou
Dongguan
Dongguan, located between Guangzhou and Shenzhen on the east side of the Pearl River, is a major export-processing center. It is not an official zone, but rather grew out of local entrepreneurial activities. It ranks third as an exporter among Chinese cities, trailing only Shanghai and Shenzhen.
It has nothing remarkable to offer except from location in the middle of the Pearl River Delta area, proximity to Hong Kong, and a clustering phenomenon which has made it a second home for Taiwan electronics companies. Dongguan is home to around 13,000 foreign-financed companies. Of these, 4,000 are from Taiwan.
Travel, hotel and general
information on Dongguan
Projects
The
Consulate General can provide
you with information of projects in Guangdong
Province. Please
feel free to contact us for
more information. You can visit the following
websites:
For
tenders in Guangdong you can visit the following sites:
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