Te Practical Application of China Business

Ningbo
Ningbo
JIANGXI
SHANXI
NINGXIA
HUI A. R.
SHAANXI
JIANG-
SU HENAN
HUBEI
SICHUAN
YUNNAN
HAINAN
GUIZHOU
HUNAN
ANHUI
ZHE-
JIANG
FUJIAN
GUANGDONG GUANGXI
ZHUANG A. R.
QINGHAI
GANSU
XINJIANG UYGHUR A. R.
TIBET A.R.
IN
N
E
R
M
O
N
G
O
L
IA
A
. R
.
C
H
O
N
G
Q
IN
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SHANGHAI
Hohhot
Taiyuan
Xi'an
Lanzhou
Xining
Urumqi
Nan-
jing
Zhengzhou
Wuhan
Nanchang
Fuzhou
Taiwan
Guangzhou
Haikou
HONG KONG
MACAU
Changsha
Guiyang
Chengdu
Lhasa
Kunming
Nanning
Hefei
Hangzhou
TIANJIN HEBEI
Jinan
HEILONGJIANG
Harbin
JILIN
LIAONING
Shenyang
BEIJING
SHAN-
DONG
Changchun
Yinchuan

Produced in association with Dezan Shira & Associates

Welcome to Ningbo
Ningbo is a key investment city in Zhejiang Province, one of the richest and most heavily invested regions of China.
Already a major deepwater port city and industrial base, the recent completion of a bridge link with Shanghai will
no doubt give Ningbo a boost toward its goal of becoming East Chinas principal foreign trading port.

Dezan Shira & Associates has been advising international clients in Ningbo since 1992. Our frm has been
instrumental in helping foreign investors set up businesses in the city and its development zones and handle the
local economic and legal conditions. Tis guide is our overview of the city, including demographic and economic
details that our practice has compiled from our own local resources and experience. We hope that you fnd it useful.

An on-the-ground presence and years of business experience in a given city are essential to giving sound advice
on foreign investment. At Dezan Shira & Associates, we can provide you and your organization with an in-depth
understanding of local policies, regulations, costs and incentives. If you need assistance with corporate establishment,
tax, accounting and payroll, or general business advisory work in the city or nearby, contact us. We look forward
to hearing from you.
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Fast facts
Beilun Port in Ningbo is the largest general
cargo port by tonnage and third largest by
througput in China (2010)
The 36-kilometer-long Hangzhou Bay
Bridge is the longest sea crossing in the world
During the 12th Five-Year Plan Period,
Ningbo will promote import of important
energy materials, raw materials, advanced
technologies and middle and high-grade
commodities
Ningbo, in East Chinas Zhejiang Province, has the same authority as
provincial governments for economic administration and was one of the
rst major east coast cities to open to foreign trade.
NINGBO
Ningbo by numbers
Item Unit 2002 2003 2004 2005 2006 2007 2008 2009 2010
Population m people 5.462 5.49 5.53 5.57 5.6 5.67 5.68 5.7 5.741
GDP RMBbn 150.03 176.99 215.8 244.64 286.45 343.31 396.4 421.46 512.58
Proportion: primary industry % 7 6.3 0.057 5.3 4.9 N/A 4.2 4.4 4.2
: secondary industry % 55.2 56.9 0.57 55.3 55 N/A 55.4 53.3 55.6
: tertiary industry % 37.8 36.8 0.373 39.4 40.1 40.5 40.4 42.3 40.2
GDP growth year on year % 13.2 18 21.9 13.4 17.1 19.8 15.5 6.3 12.4
Per capita GDP (all residents) RMB 27,468 32,239 39,024 43,921 51,152 60,549 69,789 73,940 68,162
Fixed asset investment RMBbn 60.13 83.76 109.57 137.04 154.3 159.79 172.8 200.42 220.65
Growth year on year % 27.9 39.3 30.8 25.1 12.6 3.6 8.1 16 10.1
Industrial production value RMBbn 74.95 91.01 108.68 137.04 142.14 176.68 201.23 103 131.712
Growth year on year % 15 21.4 19.4 26.1 3.7 24.3 13.9 -1.6 32.5
Per capita disposable
income of urban residents
RMB 12,970 14,277 15,882 17,408 19,674 22,307 25,304 27,368 30,166
Growth year on year % 18.8 10.1 11.2 9.6 13 13.4 13.4 8.2 10.2
Retail sales RMBbn 46.29 52.15 59.56 75.98 88.25 103.55 123.8 143.44 146.04
Growth year on year % 11.8 12.7 14.2 27.6 16.1 17.3 19.6 15.9 19.9
Exports US$bn 8.16 12.07 16.69 22.23 28.77 38.3 46.33 38.65 51.97
Growth year on year % 30.7 47.9 38.3 33.2 29.4 33.0 21.1 -16.6 34.5
Imports US$bn 4.11 6.74 9.42 11.26 13.44 18.2 21.51 22.16 30.93
Growth year on year % 55.4 64 39.8 19.5 19.4 35.7 17.9 3.0 39.6
Contracted FDI US$bn 3.2 3.44 4.14 4.21 4.43 4.5 4.12 3.42 4.05
Growth year on year % 64 7.5 20.3 1.7 5.2 1.6 -8.4 -17 18.2
Used FDI US$bn 1.25 1.73 2.1 2.31 2.43 2.51 2.54 2.62 2.32
Growth year on year % 43 38.4 21.4 10 5.2 3.3 1.2 3.1 5.3
New FIEs No 1,017 1,209 1,081 N/A N/A N/A 332 177 175
Growth year on year % 26 18.9 -10.6 N/A N/A N/A N/A -46.7 -1.3
Sources: National Bureau of Statistics China Statistical Yearbooks, city government publications, media sourc-
es deemed reliable. N/A is data not announced in the city governments annual economic and social report and
growth data is calculated based on in house data for the previous year. May be available from other sources.
Ningbo
4 | DEZAN SHIRA & ASSOCIATES
T
he 12th Five-Year Plan (2011-2016) of
Zhejiang province defnes Ningbo as
the economic center of South Yangtze
River Delta. Government goals in this plan for
the city include transforming it into a major
base for advanced manufacturing, modern
logistics, energy and raw material and a center
for shipping fnance. Te latter goal is based
on Ningbos excellent natural deepwater port,
unique among nearby cities.
Infrastructure
Ningbo is only 150 kilometers south of Shanghai,
separated by Hangzhou Bay. The city is still
taking advantage of the newly opened Hangzhou
Bay Bridge, which was completed in 2007 and
provides a convenient route directly to Shanghai.
Road
The Hangzhou Bay Bridge stretches across
Hangzhou Bay to Shanghai, with a driving time
to two hours. Xihoumen Bridge, the second
longest suspension bridge in the world (after
the Pearl Bridge in Japan), links Jintang and
Cezi islands, allowing the passage of 30,000 ton
ships. Mingzhou Bridge, a component of Ningbo
Eastern Outer Ring Road, began operation in
May 2011 completing Ningbos Five Roads
and Four Bridges project included in its 11th
Five Year Plan.
Te government of Ningbo aims to complete
the construction of the airport expressway by the
end of 2011, connecting Ningbos city center to
the airport in 15 minutes.
Railways
Ningbo is three to four hours from Shanghai
by rail, with close connections to major cities
in China. Tere are two stations: South Railway
Station and East Railway Station.
Air
Lishe Airport operates more than 40 domestic
routes as well as international fights to foreign
capitals like Singapore, Bangkok and Seoul.
Ports and waterways
Te Port of Ningbo is conveniently located in
the Yangtze River Delta, well-connected with
Hangzhou Bay Bridge and Zhousan-Ningbo
Bridge. Tere are 315 berths scattered along its
50 kilometers. Te Port of Ningbo has the largest
number of deepwater berths in China, which can
accommodate 300,000 DWT vessels. It receives
the most 100,000 DWT vessels annually of
any port in China. Te Port is comprised of six
areas: Yongjiang, Zhenhai, Beilun, Daxie and
Chuanshan and Meishan. In 2010, Ningbo port
saw its cargo throughput jump more than 30
percent from 2006 to reach over 13 million TEUs.
Te Port of Ningbo is the major transfer and
storage base for containers, iron ore, crude oil
and liquid chemicals of China and transfer base
of coal, grains and bulk cargo in eastern China. It
is the largest general cargo port in China (2010).
Te fve pillar industries in the port industrial
region located in the hinterland of Beilun Port
are petro-chemical, energy, iron and steel, paper
making and ship building. Its total production
accounts for more than 25 percent of Ningbos
total industrial output.
City infrastructure
Te urban rail transit project, which received an
investment of RMB 5.34 billion as of May 2011,
is currently undergoing construction. Te frst
and second phase of line 1 will begin operation
by 2015.
Ningbo aims to implement smart information
technologies in city management over the next
ten years, investing RMB500 million towards
intelligent application systems, industrial bases
and infrastructure.
Economy and investment climate
In 2010, Ningbos GDP reached RMB512.58
billion, up 12.4 percent year-on-year with per
capita GDP reaching RMB68,162. Te fxed
asset investment recorded RMB220.65 billion,
up 10.1 percent from the previous year. In 2010,
the number of foreign funded enterprises rose
39.8 percent to a total of 13,336. Of these, 383
enterprises had an investment amount of US$4
DEZAN SHIRA & ASSOCIATES | 5
billion, a 221.4 percent increase year-on-year.
Ningbo is an important industrial base for a
wide variety of industries, both light and heavy.
In terms of heavy industry, Ningbo is a major
player in petroleum and energy generation/
transmission. Ningbo has 12 million tons of crude
oil refning capacity and is the largest injection
molding machine production base in China (with
around 50 enterprises accounting for 50 percent
of the countrys annual production).
In the light industry sector, Ningbo is a leading
garment manufacturing city, making 12 percent
of the countrys total production, and 1.4 billion
suits annually. Te electronics industry is also
booming, with more than 2,000 such companies
registered in Ningbo. Te city is one of the three
major home electric appliance production bases in
China, accounting for 30 percent of this industrys
national turnover. Ningbos software industry has
also been growing at a fast pace in recent years,
with an average annual growth rate of 40 percent,
ranking frst in China between 2007 and 2010.
During the 12th Five-Year Plan Period, Ningbo
will promote import of important energy
materials, raw materials, advanced technologies
and middle and high-grade commodities.
Development zones
Te main focus of industrial development in
Ningbo is not, in fact, in the old city itself, but
in Beilun city, lying 27 kilometers east and about
45-60 minutes by expressway. Tis bustling city
has grown up around the port and three major
development zones Ningbo Economic and
Technological Development Zone, Ningbo Free
Trade Zone, and Daxie Development Zone.
Ningbo Economic and Technological
Development Zone
Ni ngbo Economi c and Technol ogi cal
Development Zone is among Chinas earliest
and largest national level development zones,
established in October 1984, covering an area
of 29.6 square kilometers. Around 38 percent of
the zones FDI comes from Hong Kong, Japan
around 13 percent, Taiwan 18 percent, other
South East Asia countries 18 percent, and the
United States and the EU at 9 percent each.
Many multinationals have selected NETD, such
as Exxon Mobile, Samsonite and BP. Te zone
will eventually house four main industrial bases
which are currently under construction.
Ningbo Free Trade Zone
Established in 1992, and covering 2.3 square
kilometers, the zone has the functions of export
processing, international trade, bonded logistics
and commodity exhibition. It is the only free
trade zone in Zhejiang Province and is focused
on advanced manufacturing, warehousing and
logistics sectors. In 2010, the NFTZs GNP
reached RMB11.9 billion. It received foreign
investment of US$95.3 million, with contracted
foreign investment of US$60.6 million, and its
total export value recorded US$4.8 billion. Te
Ningbo Export Processing Zone, part of NFTZ,
houses a bonded logistics park.
Resources
Government organizations
Ningbo Government
Website: http://english.ningbo.gov.cn/
Ningbo Foreign Investment Development Board
Website: http://www.ningbochina.com/en/index.html
Development zones
Ningbo Economic and Technical Dev. Zone
Website: http://www.netd.gov.cn/en/nbjj_en_gs.php
Ningbo Port Co. Ltd.
Website: http://www.nbport.com.cn/portal/wps/
portal/en
Administration of Ningbo Free Trade Zone
Website: http://www.nftz.gov.cn
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