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Q & A
 
 
 
Basic data of TEDA
Transportation
Meteorological Condition
Investment
Land
Factory building
Public utilities
Tax
Human resource
Customs

1. Basic data of TEDA
1.1 Founded in: (year) December 6th, 1984
1.2 Area Mother area 40 km2, 2nd phase: 48 km2
1.3 Geographic location

In the north of China
130 km from Beijing, 40 km from Tianjin, 180 km from Beijing Capital International Airport, 5 km from Tianjin Port, 38 km from Tianjin Binhai International Airport.




2. Transportation
2.1 Most important ports 5 km to Tianjin port, the largest general port for international trade in the north of China, connected to 400ports in 180 countries.
Able to handle bulk cargo, container, liquid material.
2.2 Railway connections

- Six major railways to all directions in China.
- Beijing-Tianjin-TEDA passenger express.
- Tianjin-TEDA metro.
2.3 Important road connections
- 9 express ways
- 6 inter-province highways
2.4 Nearest airport • 180km (2hours) from Beijing Airport
• 38km (40mins) from Tianjin Airport
- Terminal for passenger lines inside China
- The largest cargo airport in China



3. Meteorological Condition
3.1 Annual average temperature - 12¡æ
3.2 Average temperature in Winter
- 2.3¡æ
3.3 Average temperature in Summer
- 25.2¡æ
3.4 Annual rainfall
- 602.9 mm
3.5 Prevailing wind direction and its frequency - Generally, the prevailing wind is southwestern wind. In winter the prevailing wind is northwestern, southwestern wind is also frequent, while in summer southeastern wind dominate.



4. Investment
4.1 Investment structure
4.1.1 Number of foreign funded enterprises 

2006(By the end of Oct.)

- 4269
4.1.2 Countries where most of our clients comes from

(1) Hongkong (Note: many multinationals set their Asia-Pacific Headquarters in HK)
(2) USA
(3) Japan
(4) S.Korea
4.1.3 Pillar Industries Electronics, Automotive, machinery, food, bio-pharmaceutical
4.1.4 Major investment projects Motorola, Toyota, Novozyme



4.2 Investment procedure
4.2.1 Types of investment Wholly foreign owned company, joint venture, cooperative company
4.2.2 Procedure for establishing a corporation

- consulting with TEDA EDB
- prepare documents required and submit to TEDA EDB
- Get certification and business license within 5 working days
4.2.3 The minimum FDI amount and FDI ratio
The amount of FDI shall be at least as following"

- Productive oriented company: RMB 500,000 yuan
- Wholesale oriented company: RMB 500,000 yuan
- Retail oriented company: RMB 300,000 yuan
- Technical develops, consulting and service oriented company: RMB 100,000 yuan

In principle, the FDI ratio shall be 25% or more of the stocks of a company.
4.2.4 Which department to contact
TEDA Economic Development Bureau (TEDA EDB)
Tel: 86-22-2520 1924, 2520 1365
Fax: 86-22-2520 1412
4.2.5 How big is the time and effort involved Normally, a project under 30 million US dollars can be examined and approved by TEDA EDB directly. In case the industry is special or total investment is higher than 30 million USD, the project shall be approved by higher authorities in Tianjin or the state council, and TEDA can still help you to deal with these authorities in a short timeframe.
4.2.6 How long does it take In TEDA, we take 5 work days to handle the business license.
4.2.7 Costs Registered fee: The registered capital amount below 10,000,000 RMB yuan, 0.8¡ë of the registered capital should be paid; as for the part in excess, 0.4¡ë of this part should be paid. Registered fee cannot be charged over 44,000 RMB yuan.



 5. Land
5.1 Total land area
TEDA east area has a total area of 40 sqkm and west area total area of 40 sqkm.
5.2 What land options are available for purchase or for land grant?
As long as you have confirmed your size requirement, we will offer 2-3 land lot choices with layout drawings.
5.4 What further costs are applicable per year?
Yearly land use fee: RMB 1/m2
5.5 What is the plot / building ratio
- Plot ratio required (construction size to land size): 0.5-1.2
- Building covering ratio (building foundation size to land size): 30-45%
5.6 What is the application procedure for land grant?
- First, apply to TEDA Economic Development Bureau for land purchase and received a favorable land price.
- Second, sign the land transfer contract with TEDA Investment Holding Company, the land developer.
- Third, go through the administration procedures in TEDA Land Administration Bureau to obtain the land use certificate and follow up with other construction procedures.
5.7 What happens after the expiry of the land grant period of 50 years?
The customer may apply to TEDA government for extending the term of the contract.
5.8 What are the infrastructure supplies to the land All the land to be transferred in TEDA are equipped with necessary utilities. Electricity, water, gas, steam, sewage, communication, roads, etc are connected to the border (red line) of the land lot.



 6. Factory building
6.1 Availability of existing factory buildings Ready to lease factory available from 1000 sqm to 10000 sqm
6.2 Is lease possible, could somebody else build and we rent?.
Both are possible
6.3 Is workshop steel or concrete
Steel construction.
6.4 Is it possible for a turn-key project
Yes.
6.5 The prices of the currently available ready built factories Negotiable



 7. Public utilities
7.1 Power supply
- Available power supply capacity
- Classification of voltage
- Price
- Reliability of supply

- 55 0,000 KVA
- 110KV, 35KV,10KV
- Average cost RMB 0.51-0.616 per KWH depending on different voltages. In addition, TEDA also implement the alternative timing-based charges for customers, and cost is RMB 0.286-0.892 per KWH depending on different timings.
- TEDA made commitment to supplying non-stop electricity to customers. In the annual shutdown of electricity, the administration will inform the customers concerned one month in advance.
7.2 Water supply
- Scale of available water supply plant
- Price ton.
- at present, 180,000 T a day and the capacity in the post procedure will reach to 422,000 T.
- Water consumption fee: RMB 3.2 per
7.3 Heat supply
- supply capacity
- price
- 2 heating boiler stations, 2 heat-electricity boiler stations and 4 geothermal heating wells. The whole capacity reaches to 910 T an hour.
- hot water for heating at RMB 6.5/m2; steam for industrial use at RMB 99/ton.
7.4 Gas
- supply capacity
- price
- 600,000 m3 a day
- Natural gas: RMB 2.1 per cubic meter. Notes: For customers with significant volume of usage, this price is negotiable.
7.5 Waste water disposal
- According to layout of the area, the sewage system will have 10 pumping stations and 2 sewage farms in which the whole tonnage will reach to 7.18 m3/S.
- Wastewater treatment fee: RMB 1.0 per ton. An enterprise whose waster water disposal facilities attested to have met National Grade-II Discharge Standard shall be exempt from sewage water treatment rates.
7.6 Telecommunication - ISDN and IP phone services have already been available.
- 8M DDN line provided by China Telecom is the most advanced in the region of Beijing and Tianjin.
- Broadband services of 1-10M are available to individual clients and services of 10-100M are available to company clients.



8. Tax

 

8.1 What taxes and charges are applicable? The corporate income tax rate for a hi-tech enterprise is 15% and that for the other types of enterprises is 25%.



9. Human resource

9.1 How to find personnel? - TEDA Talents Service Center can give free services, to publish ads in medias and websites. They can also give headhunting services for companies. The Talent Service Center has a service of recruiting labors from HR authorities of nearby provinces at lower cost. Professional school or high school education for skilled workers, junior middle school for common workers.
9.2 What are the average salaries?
- Intermediate Managerial Staff
- Common Managerial Staff
- Ordinary worker

 

- 3,036¡«18,829
- 2,064¡«7,402
- 1,237¡«5,062

9.3 What is the social security Approx. 36£¥ of the monthly average salary of the previous year.
9.4 Information of local labor resource
- population of the city
- university, junior college
- technical school

 

- more than 10 million population, over 2 mil. industrial workers in Tianjin
- 43 universities/colleges
- 230 professional schools




10. Customs
10.1 Customs Duty Deductions Imported capital equipments for self-use by a foreign-funded enterprise, the cost of which does not exceed the total amount of investment, shall be exempted from import duties and import VAT in case the project belongs to the state encouraged industries.