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Zhangjiagang :
Investment and Business Environment in Zhangjiagang

I. Investment environment

Located on the southern bank of the downstream area of the Yangtze River, China, and at the intersection of two major economic belts along the Yellow Sea and the Yangtze River, Zhangjiagang of Jiangsu Province is an emerging port industrial city, covering a land area of 999 km2 and accommodating 1.5 million (including 900,000 registered) permanent residents. Known as a city of “golden port” and “model for habitat”, it is the only county-level city that has been crowned “City of Civility in China” for five consecutive years nationwide.

Zhangjiagang boasts a strong comprehensive strength. Its economic strength has maintained one of the top three among all the county-level cities in the country since 1994. In 2017, the local GDP hit 259 billion yuan, the public budgetary revenue registered 21 billion yuan, and the investment in fixed assets reached 72.6 billion yuan. The throughput volume of the port was 287 million tons, and international trade volume, 210 billion yuan. Six companies were shortlisted into the Top 500 Chinese Private Enterprises, and 34 Fortune 500 companies invested in the city. There are 90-odd foreign-funded companies with a total registered capital of US $9 billion.

Zhangjiagang has been supporting structural adjustment and industrial upgrading with solid industrial foundation, pressing ahead with the development of three 100-billion-yuan-output-value bases for new materials, new energy, and high-end equipment, and making every effort to upgrade the economy. The city is home to 56 Fortune 500 companies either nurtured locally or introduced from abroad, 1,081 industrial enterprises above a designated size, and 986 foreign-funded companies. The market value of 20 listed companies totaled nearly 300 billion yuan, the highest among all the county-level cities (districts) in Suzhou. The city has nurtured 14 leading figures who have been selected into the Recruitment Program of Global Experts of China. A total of 768 companies have collaborated with 260 domestic colleges and universities in 2,169 industry-university-research cooperation projects.

II. Investment ecosphere

1. Industrial foundation

A. Metallurgical industry

The metallurgical industry is the pillar industry of Zhangjiagang. The city is home to a group of competitive enterprises including Shagang Group, which is a Fortune 500 company, Zhangjiagang Puhang Stainless Steel, Jiangsu Yonggang Group and Zhangjiagang United Copper, and several featured metal products enterprises, including Panhua Group and New Gangxing Technology. A fairly complete industrial system and industrial chain ranging from manufacturing of primary products to deep processing has taken primary shape.

B. Chemical industry

The provincial-level Yangzijiang International Chemical Industrial Park is home to such large enterprises as KDX Group, Dow, Dupont, Wacker Chemie AG, Honeywell. Zhangjiagang Huachang Pharmaceutical Company, and Guotaihuarong New Chemical Materials, which are known at both home and abroad. The industrial chains of optical film, organosilicone, engineering plastics, cold coating, surfactant and its accessory ingredients, chemicals used for electronic devices, fine chemical materials, and lithium batteries have come into being.

C. Electromechanical industry

Products range from complete equipment for the coal (oil) chemical industry, complete furnaces and furnace parts, new energy equipment such as LNG, engineering machinery and numerical control machine tools, energy-saving and eco-friendly devices, electrical equipment for power transmission and transformation, and modified automobiles and auto parts. Such enterprises as Zhangjiagang Furui Special Equipment, Thvow Technology, Hailu Heavy Industry, Zhangjiagang CIMC Sanctum Cryogenic Equipment, Changjiang Runfa Group, and Hyundai Wia are well-known in the trade.

D. Textile industry

There are over 300 textile companies above a designated size, and an industrial structure which is of wide range and composed of multifarious kinds of products, including cotton manufacturing, wool manufacturing, weaving, clothing, chemical fiber and printing and dyeing, has taken shape. Such leading enterprises as Huafang Group and Aoyang Group take up an important position in the textile industry nationwide and rank among the Top 100 Textile Enterprises in China.

E. Grain, oil and food industry

There are 11 grain, oil and food companies above a designated size, such as Donghai Grain & Oil, Yijiang Grain & Oil, Liangfeng Food, and Liangfeng Wine Making, whose products include refined edible vegetable oil, mixed feed, flour powder, rice, chocolate, dairy products, candies, yellow rice wine and soft drinks.

2. Priority industries

A. Modern equipment industry

(1) High-end equipment manufacturing

Jiangsu Yangzijiang Equipment Manufacturing Park is relied on to develop the machinery manufacturing industry, including special chemical engineering and metallurgical equipment, rail transport and relevant spare parts.

(2) Smart grid application equipment

The Modern Equipment Manufacturing Base is relied on to develop the smart grid application equipment manufacturing industry, including nuclear power equipment, wind power equipment, and electric transmission and transformation equipment.

(3) Semiconductors and electronic devices

The 6-km2 state-level Electronic Devices Industrial Park is pressed ahead with to develop special equipment for semi-conductors and integrated circuits, panel display parts and equipment, solar PV equipment and assembly equipment for electronic devices.

B. New energy industry

(1) New energy lithium batteries

The Zhangjiagang Lithium Industrial Base is relied on to develop a complete industrial chain ranging from electrode materials, electrolyte and its functional additives, and encapsulation of lithium batteries to new energy vehicles.

(2) Solar PV

The provincial-level Solar PV Industrial Park is relied on to develop silicon batteries, hull batteries and the third generation of solar cells, press ahead with system integration and power-station operation projects which are on the high-end of the industrial chain, and make efforts to build solar PV industrial clusters.

(3) Energy-saving and eco-friendly industry

The Zhangjiagang Photoelectric Industrial Base is relied on to introduce key and core technologies which are conducive to saving energy, protecting the environment and making circular utilization of resources, and to develop the LED industry as well as new devices and products which are energy-efficient and eco-friendly and can make circular utilization of resources.

C. New materials industry

(1) New types of metal materials

The Yangzijiang Metallurgical Industrial Park is relied on to prioritize the development of such new types of metal materials as high-duty dilute-alloy plates and high-end hot-rolling strip steel, and to support the development of metallic composites and new types of composites.

(2) New organosilicone materials

The organosilicone production base of Yangzijiang Chemical Industrial Park is relied on to develop the new organosilicone materials industrial chain on the basis of organosilicone monomer, including silicone oil, silicone rubber, silicon resin and silane coupling agent.

(3) Shale gas

The R&D and Production Base for Comprehensive Utilization of Shale Gas New Materials of Donghua Energy is relied on to build a complete industrial chain for propylene and ethylene and develop such macromolecule new materials as polypropylene and polyethylene. The annual production capacities for propylene, ethylene and butadiene have reached 1.3 million tons, 1 million ton and 1 million ton respectively.

(4) Optical film

The 10-billion-yuan optical film project of KDX Group is relied on to develop high-end optical film, develop and manufacture such high-end products as large horizontal flexible displays, and build a world-class macromolecule industrial ecosphere.

D. Modern service industry

(1) Modern logistics

The state-level Zhangjiagang Bonded Port Zone is relied on to develop the city into a regional logistics hub, an important international logistics center in the Yangtze River Delta and an important industrial logistics base in the downstream area of the Yangtze River.

(2) Service outsourcing

The Service Outsourcing Industrial Demonstration Park of the state-level Economic and Technological Development Zone as well as the five major public service platforms for software R&D, testing, training, international order receiving, and investment and financing are relied on to develop software and service outsourcing industries.

(3) Mobile Internet

The Zhangjiagang Mobile Internet Industrial Park is relied on to introduce leading enterprises for the new generation of mobile communication chips, smart phones, tablet computers, the mobile Internet and cloud computing, establish a complete industrial chain for the mobile Internet, and form industrial clusters of a new generation of the mobile Internet.

Ⅲ. General Environment

1. Transportation

Convenient transportation is a highlight of Zhangjiagang. It is one of the few cities in China with well-developed transportation system incorporating land (highway and railway), water and air transportation. Three superhighways traverse the city, including the one along the Yangtze River, the one connecting Wuxi and Nantong, and the one constituting an important part of the transportation system within the port area. It takes 30min to drive from Zhangjiagang to Wuxi High-speed Train Station and Shuofang International Airport, 1h to Shanghai Hongqiao Airport, 1h40min to Pudong Airport, and 2hs to Nanjing Lukou Airport.

Now, the section of Shanghai-Nantong railway within Zhangjiagang is under construction, while the intercity railway along the Yangtze River and Nantong-Suzhou-Jiaxing railway are under planning. Shanghai-Nantong railway is for both passenger and freight transportation with a designed speed of 200km. Once its construction is completed, it will serve as a quick passage between Qiangdao and Shanghai as it will connect seamlessly to Yancheng-Nantong, Lianyungang-Yancheng, and Qiangdao-Lianyungang railway. The intercity railway along the Yangtze River, starting from Nanjing South Railway Station with a designed speed of 350km/h and crossing Nanjing, Zhenjiang, Changzhou, Wuxi, and Suzhou, will ultimately have access to Shanghai transportation hub through Shanghai-Nantong railway. Nantong-Suzhou-Jiaxing railway, stretching north to south with a designed speed of 350km/h, will start from Nantong West Station, cross the Yangtze River and cities such as Zhangjiagang, Changshu, and Suzhou, and connect to Shanghai-Kunming railway at Jiaxing South Station.

The construction of the above-mentioned three railways will ensure Zhangjiagang’s role as an important transportation hub within the Yangtze River Delta region. Once the railways are open to traffic, investors and those who choose Zhangjiagang as their destination for innovation and start-up businesses will enjoy more convenient transportation since it will take only 25min from Zhangjiagang to Shanghai, 20min to Suzhou, 40min to Nanjing, and only 10min to Nantong,

2.Recreational Resources

Zhangjiagang has a desirable living and business environment. Six five-star hotels, a large number of office buildings, western restaurants, bars and international-standard 27 hole golf courses are located in this city, and so are a number of commercial complexes, including Injoy Plaza, Mambat Plaza, Yangshe ancient street, shopping park, and Wanda Plaza (under construction).

The city is known for its good ecological environment with four AAAA scenery spots—Shuangshan Mountain, Xiangshan Mountation, Fenghuang (Phoenix) Mountain, and Dongduyuan (the starting point of Monk Jianzhen’s journey to Japan). It is also a place where such historical celebrities as the great poet Su Shi and the famous travel writer and geographer Xu Xiake left footprints and stories. Famous tourist sites include Shiji Plaza, Jiyang Lake Eco Park, Zhangjiagang Park, and Shazhou Park. The first-ever island-based golf course in China was established in Shuangshan Island Resort.

IV.Sci-Tech Talents

Recent years have witnessed Zhangjiagang’s total input of RMB 1 billion to attract talents from both home and abroad. We have introduced in or nurtured 14 experts of the national Thousand (Ten Thousand) Talents Program, 102 people of the provincial Innovation and Entrepreneurship Plan, 180 people of the municipal Gusu Plan, and 550 municipal-level leading talents (teams).

V. Investment platforms

Zhangjiagang has two national development zones—Zhangjiagang Free Trade Zone and Economic and Technological Development Zone, one provincial high-tech zone—Zhangjiagang High-tech Industrial Development Zone, and one provincial-level featured industrial park—Jiangsu Yangtze River International Metallurgy Industrial Park. As a pioneer project for free trade, Zhangjiagang Free Trade zone, complete in function, enjoys most preferential policies and convenient customs clearance. Zhangjiagang Economic and Technological Development Zone, adopting the strategy of driving economic growth through the development of advanced manufacturing industry and modern service industry, has grown into a national paradigm as an eco-friendly industrial zone. Zhangjiagang High-tech Industrial Development Zone has been built into a base for innovation and business start-ups depending on the three institutes of higher learning, ten industrial technology research institutes, and a national incubator—Shazhou Lake Technological Innovation Park that situated within this area. And different towns have developed their own investment platforms suited to their specific industrial characteristics.

1. Three zones and one park

A. Zhangjiagang Free Trade Zone: Constructed after the State Council’s approval in 1992, it was developed into a free trade zone in 2008 and was subject to integrated administration with Jingang Town. The administered area was expanded from 4.1km2 to 152km2 with 350,000 residents. Over two decades of development has given birth to diversified platforms, including the bonded port zone, car import port, Yangtze River Chemical Park, Yangtze River Equipment Manufacturing Park, new eco-friendly material industrial park, Binjiang district and Xiangshan scenic area. Special focus was given to the development of emerging industrial bases for Kangdexin optical films production, Honeywell Company, and flavor and fragrance production. Commodity markets for chemical, textile, grain and oil, and timber as well as emerging markets for imported vehicles and consumer goods have been nurtured. There are 8,000 companies within the zone, among which 30 are world top 500 investors and six are listed domestic companies. All these demonstrated that Zhangjiagang Free Trade Zone has grown into a great receiver of international capitals within the Yangtze River Delta region, a big modern industrial cluster and a commodity distribution center. It has been on the name list of the National Demonstration Zone for Economic Transition and Upgrading along the Yangtze River Economic Belt, the eco-friendly industrial zone, the economic park with greatest investment potential in China, and the National IPR Protection Demonstration Park. In the future, Zhangjiagang Free Trade Zone will push forward integrated development of the port area, industry and city through openness and innovation to live up to its name as the demonstration zone for economic transition and upgrading along the Yangtze River Economic Belt.

B. Zhangjiagang Economic and Technological Development Zone: Established in 1993 with a planned area of 153km2, it grew together with the urban area of Zhangjiagang municipality. Striving toward the goal of becoming a modern industrial cluster, a demonstration zone for scientific innovation, a pioneer zone for openness, and an area with livable environment, it implements the strategy of innovation-driven development to replace the old driving force with new ones, puts emphasis on such emerging industries as smart manufacturing and remanufacturing, new energy (PV, lithium cell, hydrogen energy), semi-conductors (LED, new generation of semi-conductors). More than 50 out of the world top 500 companies and internationally famous investment companies settled in the development zone. Seven listed companies and 15 NEEQ-listed companies were nurtured. There are also 17 provincial-level or above featured industry bases within the development zone and 15 nationally approved bases, the demonstration base for new industrialization (smart manufacturing of equipment), the high-tech industrial base for energy-saving and eco-friendly equipment, the demonstration base for remanufacturing, the pilot zone for circular economy reform, the industrial park of robotics, the trial park for film and television and animation, and sci-tech industrial incubator, among others. 500,000m2 is dedicated to platforms for innovation and start-up businesses. Shazhou Lake Technological Innovation Park has introduced in seven research institutes under national first-class universities such as Tsinghua University, Harbin Institute of Technology, and Northwestern Polytechnical University. The zone, with 120 above-provincial-level scientific research platforms, has been pointed as the national IPR demonstration area, national base for international sci-tech cooperation, and demonstration base for start-up businesses of overseas talents and for innovation collaboration among industries, research institutes and universities. The development of modern industry within the zone is now led by signature industries and core technology and supported by above-scale enterprises.

C. Zhangjiagang High-tech Industrial Development Zone: Its construction was officially approved on November 12, 2015 by Jiangsu Provincial People’s Government. The date July 31, 2017 marked the establishment of the Party Working Committee and the Administrative Committee. Zhangjiagang High-tech Industrial Development Zone incorporates a scientific education park, a remanufacturing base, a smart equipment industrial park, a new energy industrial park, Korean company-concentrated industrial park, and a laser industrial park. By 2020, it will be developed into a core area for independent innovation in South Jiangsu with the output of high-tech industry constituting 70% of the total.

D. Jiangsu Yangtze River International Metallurgy Industrial Park: This featured industrial park was approved to be set up by Jiangsu Provincial People’s Government in January, 2003 with planned area of 36.8km2. This industrial park was to be built into a new industrial base and logistic base for iron and steel with Shagang Group and Zhangjiagang Pohang Stainless Steel Co., Ltd as the core, iron and steel production and metal processing as the main businesses, and machinery manufacturing, auto parts and new material production as industrial extension. Based on the industrial strength and good location of this area, RMB 30 billion was invested in building a metallurgy logistic center with Jiulong Logistics under Shagang Group as the leader in an effort to develop a large-scale modern metallurgy logistics and industrial base.

2. County-level platforms

A. Zhangjiagang New Energy Industrial Park: Established in 2010 with planned area of 17.38km2, this modern high-tech industrial park of new energy, with its main focus on the supporting industry for new energy vehicles, integrates the procedure of R&D, production, and sales. Industrial cluster of new energy, new material and new equipment led by such companies as Yinhe Electronics, Soul New Energy, Lejia New Energy, and Uchen New Energy has taken shape. In 2013, the industrial park was awarded by All-China Environment Federation for its good environment.

B. Zhangjiagang High-tech Industrial Park (Korean company-concentrated industrial park): Zhangjiagang High-tech Industrial Park, located in Fenghuang Town, was established in 2003. Its planned central industrial area registered 20.5km2. Now, 10km2 out of the total planned area is finished with high standard infrastructure. 120 foreign-invested companies, including world top 500 ones such as DuPont, Ashland, Solvay, and Hyundai, settled within the industrial park, bringing over USD 2 billion of foreign capital. Years of development has nurtured such industries as electronics, machinery, auto parts, and new material.

C. Zhangjiagang Precision Mechatronics Industrial Park: Located in Nanfeng Town, Zhangjiagang Precision Mechatronics Industrial Park covers an area of 4.7km2 and is 8km from Nanfeng station, one stop at Shanghai-Nantong Railway which is under construction. As an important base for machine tool and general machinery manufacturing, it has won the title of the national-level mechanism and components industrial base within the National Torch Plan and Jiangsu Provincial demonstration base for small enterprises. 200 companies in such fields as tube machinery, precision mechanism, CNC, automobile and motorcycle engine, electronic hardware, and electric tools have settled within the area, enabling the formation of a mature supporting system covering the procedure of casting, forging, machining (turn, mill, plane, grind, bore), sheet metal processing, heat treatment, and assembly as well as three pillar industries—auto parts, precision CNC and cutting machinery.

D. Zhangjiagang Linjiang Green Sci-tech Innovation Park, located in Leyu Town and covering a planned area of 4.2km2, was established in February, 2013 and became a provincial-level sci-tech company incubator in July, 2014. More than 100 enterprises ranging from auto and auto parts industry, high-end machinery to new material industry settled in the park. The park, with plenty of space and well-developed industrial foundation and supporting facilities that can be customized according to specific requirement, is a good choice for implementing mature project and incubating start-up ones. Now we are making great efforts to build Leyu in to a featured town with special focus on clean manufacturing by attracting high-end development elements and talented people.

E. Zhangjiagang Advanced Laser (equipment) Industrial Park, an incubator for sci-tech companies, is located in the northern suburbs of Zhangjiagang, right in between three big industrial parks—Zhangjiagang Free Trade Zone, Zhangjiagang Economic and Technological Development Zone and Yangtze River Metallurgy Industrial Park and in the heart of the industrial belt along the Yangtze River. The park covers an area of 50mu (33,333 m2) and floor area of 60,000 m2. RMB 200 million was invested in its construction. It has 2000m2 of Class 1000 clean room and testing laboratories with high-end detecting instrument. The development focus of the park lies in attracting and nurturing talent teams and sci-tech-based companies, home and abroad, in such fields as laser (equipment) industry, modern equipment manufacturing, and precision mechanism. The park has signed MOU with Nanjing Institute of Advanced Laser Technology (sub-branch of Shanghai Institute of Optics and Fine Mechanics of the Chinese Academy of Sciences) and established Zhangjiagang sub-center of Nanjing University of Aeronautics and Astronautics technology transfer center.

F. Changyinsha Agricultural Park: Located in the eastern part of Zhangjiagang and adjoining the Yangtze River, it is where you can enjoy the beautiful view of stretching reeds and rising tides. The park is known as the national demonstration base for agricultural industrialization, Jiangsu modern agricultural park, Jiangsu modern agricultural science and technology park, and Jiangsu modern agricultural demonstration park. Covering an area of 50km2 with 50000mu (33km2) of farmlands, it is the only urban “oasis” against the industrial background of Suzhou and South Jiangsu. By focusing on three pillar industries—high-efficiency fruit and vegetable growing, green rice, and featured aquaculture, it is developing into the highest-standard agricultural park in South Jiangsu that integrates R&D of new products, seedling breeding, standardized planting, processing, distribution, warehouse logistics service, industry incubation, and tourism.

G. Zhangjiagang Shuangshan Island Resort: Located in the northwestern suburbs of Zhangjiagang, the island, with a coastline of 16.8km, covers a total area of 20km2, among which 16km2 is within the embankment and 4km2 of wetland on the outside. In September, 2012, the resort was listed as Jiangsu Provincial Tourism Resort. Untouched by any industry in the past century, it is regarded as one of the most well-preserved islands in the middle and lower reaches of the Yangtze River. Now, we are building the island into a high-quality resort by combining the Yangtze River culture and the unique resources of the island.

Ⅵ.Promotion Policy

1. Human resources policy: A dozen of policies were introduced one after another, such as Subsidy to High-level Innovative and Career-Creating Talents, Measures for the Implementation of Key Innovative and Career-Creating Team Introduction of the Smart Port City and its operation details, and Implementation Details of Serving Enterprises by Leading Personnel and Promoting Angel Investment. An all-dimension system of policy support, from project startup to financial support, and from registration to settling down, has been structured. Once recognized as the key innovative and entrepreneur team by the City, the team may get the highest financial support of RMB 50 million, and the other programs by leading personnel can obtain as high as RMB 16 million. Once approved by the superior governments through our application channel, one can not only get access to support of the superior governments (if awarded “Suzhou Municipal Key Team”, one can get the highest amount of support of RMB 50 million; if awarded “Jiangsu Provincial Innovative and Entrepreneur Team”, one could be given a subsidy of as high as RMB 8 million; if on “the Recruitment Program of Global Talents”, one can have RMB 1 million for financial support), but also gain the support of the City. Meanwhile, we give development subsidy and remuneration allowance to enterprises that independently introduce and cultivate high-level talents (The maximum subsidy could stand RMB 1 million).

2. Financial policy: there are 162 financial institutions of all kinds covering the fields of banking, insurance, securities and venture capital investment in Zhangjiagang, leading the county-level cities nationally. In the capital market, enterprises of Zhangjiagang are very active in financing, acquisition and reorganization, with eye-catching performance and fruitful results. The City built “Town of Finance”, founded the city industrial capital centre, set up “three platforms” (Information and deals of Stocks, futures, Foreign Exchange and debts, Information Publishing of Additional Issue and Holding Shares Reduction, and Information Requirements of Investment and Financing), and developed “four centers” (venture capital investment, capital transaction, financial service and wealth management). We launched an industrial investment fund of RMB 10 billion, attracting all kinds of funds nationally including venture capital investment, private equity, and banking. We initiated a “guidance fund for emerging industries” of RMB 300 million to support and guide various funds to be channeled into emerging industries, offering comprehensive support to key and high-quality programs.

Ⅶ. Future Goals

We will enhance industrial structure optimization through major project construction, and make greater efforts to develop emerging industries of strategic importance, which are abbreviated to “two new and one high-end” industries, shorthand for new materials with comprehensive utilization of shale gas and optical film as pillars, new energy with lithium battery, LNG utilization and green energy as the main industries, high-end equipment manufacturing with smart equipment and remanufacturing as representatives. We will strive to build one industrial cluster of RMB 200 billion and two industrial clusters of RMB 100 billion. At the same time, we will actively expand the industries such as semiconductor integrated circuit, new energy automobiles and biomedicine to form new industrial advantages. We will actively connect with “Made in China 2025” and industry 4.0 to transform and upgrade the traditional industries.

We will carry forward craftsmanship spirit, support traditional industries to intensify technological, process and management innovation, and boost industry and consumption upgrading with competitive products. We will deepen the strategy of “port prospering the City”, and speed the development of modern service industry. We will intensify pilot projects for comprehensive service reform, promote business model innovation in various industries and accelerate development of new business pattern in service industry. We will reinforce efforts in port resources integration and enhance port upgrading. We will speed up the extension from off-line to on-line, and increase the competitiveness of key professional markets including chemicals trading market and the e-commerce platform of Jiulong online. We will connect with both domestic and external markets, actively explore offshore financial settlement, and promote construction of cross-border e-commerce park and e-commerce industrial parks in a coordinated way. We will expedite the extension from simple logistics business to comprehensive business, complete logistics service system in the areas of finished automobile import, cold-chain logistics and imported goods, and drive modern logistics industry to move forward from large quantity to high-quality.