Fu Chun Jiang Economic Development Zone, situated in the southwest of Hangzhou, is a zone approved by the provincial government. As on the connection point of Shanghai-Hangzhou-Nanjing --- the Golden Triangle, FCJEDZ enjoys the unique transportation conveniences to Hangzhou (35 kilo, about 35 minutes), to Shanghai (180 kilo, about 2 hours), and to the port city Ningbo via Fuchun River and Qiantang River. Besides, the zone is in the Fuyang city, extending to the North of the river, having the National 320 Road and the Fu-Hang highway for its wings. The transportation by sea, by air, by land is well-waved. The principle of "see Pudong, adjoin Qianjiang, stress the key and develop all" has been drafted to serve as guidance. And in the form of land rent, land sales, and stocks, FCJEDZ has been well underway to develop into a new industrial city with new & hi-tech industries and modern factories, and a tourist city with graceful natural surroundings and entertainment facilities by introducing capital, technology, and advanced management. In so doing, FCJEDZ is bound to achieve the goal of a worthwhile garden in Changjiang Triangle.

From the establishment in May 1992 to the end of the year 2000, the projects introduced had counted up to 236, including 20-odd projects with investment more than US$ 10 million. The actual foreign capital practiced reached more than US$ 180 million. It was praised as a star economic zone for its great achievements in introducing foreign investment. For example, Sino-Japan Futong Zhaohe Optical Telecom Corporation, with total investment of US $22 million; Taiwan-invested Hangzhou International Golf Course, with US$ 30 million;CHEDI Holiday Inn, with US$25 million; and Hangzhou Wild Animal World, taking up 3.5 hectare, with 150 million RMB investment; and a series of Hangzhou-Fuchunjiang road projects carried out by cooperating with Bolivia, with the total investment over 120 million RMB. During the nine years, the infrastructure has been meticulously designed and constructed, and now it starts to operate well. The industrial output in the year 2000 recorded 283 million RMB. Day by day the economic zone is becoming a hotspot in the momentum of the economic growth in Fuyang.

In 2000, added to the previous 8-square-kilo land with Silver Lake, High Bridge, Fuchun Bay and Peasants City four parts on it, another 13-square-kilo plot has been spared, on account of its resources priority, in which New & High-tech Park occupies 300 acre. The New & High-tech Park belongs to Hangzhou New & High-tech Zone and enjoys the national preferential policies. FCJEDZ will highlight tour industry and real estate by making full use of the rich natural resources of the river, the hills, the islands and the forests combined with the local cultural background, to be melt into the framework of “Great Hangzhou-Great Transportation-Great Tourism” and to conform to the Hangzhou’s strategic plan of “a city of gardens”. To ensure a successful new & hi-tech park, more flexible preferential policies will be adopted to attract more hi-tech projects, more foreign invested program, and more projects for up-scaled enterprises. As for some special projects, particular policies can be drawn up accordingly. The management of the zone is enclosed. It’s promised the most efficient services and ultimately simplified procedure.

Green hills and slight slopes constitute the landform of the zone, the New & High-tech Park standing in an open valley. With rivers and hills around, mild climate, scenic landscape, and clear water, and fresh air, all decide FCJEDZ an ideal place to invest in tourism, hi-tech enterprises and scaling industrial projects.

Fundamental Facilities

At present a complete set of infrastructure and service facilities are provided in conformity with the construction standards of five “accessibility’s and leveled land.

Electricity: Three substations of 110 thousand volt are operated well to supply power for the zone. The capacity is 300 thousand KW.

Water supply:Fuyang No.2 Water Plant is supplying water directly to the zone every day. Its daily capacity is 100,000 tons.

Telecommunication: A network with digital, optical cable, microwave, and mobile telecom combined has been set up. The new Fuchun Bay telecommunication building is equipped with 50,000 line program-controlled exchangers.

Road: Given Golf Road is the axis, the National 320 Road and Hang-Fu Road along the river can be the wings, which constitutes the sketch of the road system. Now another main road with 40m in width is under construction.

Sewage: A sewage treatment plant with capacity of 10,000-ton has come into use. The sewage and rain in the zone are run out separately.

Residence: In the zone, different standard residential quarters, villas, hospitals, and supermarkets has been built up. The large-scaled tour resorts, international golf links, wild animal world, etc, together with star hotels & restaurants and clubs can well meet the investor’s needs in entertainment.

Investment Expenses

[Geography]FEDZ is located in the Zhejiang Province, on the juncture of Shanghai ,Hangzhou and Ningbo, also known as the "golden triangle". Fuyang lies at 119°25′~120°9′E. and 29°44′~30°11′N. The Fuchun River divides it into two parts. Fuyang has a moderate ,humid north subtropical monsoon climate, with annual rainfall of 1410mm and four distinct seasons. The annual average temperature is 16.1 degrees C.

[Transportation]The No.320 National Highway and First Grade highway along the Fuchun River traverse the whole FEDZ and join the Shanghai-Hangzhou Highway, Hangzhou-Ninbo Highway and Hangzhou-Nanjin Highway. It's only half an hour to reach the Hangzhou international airport and Hangzhou train station. Waterway transportation reaches Hangzhou, Shanghai, Ninbo, and Wuxi via the Fuchun River, the Qiantang River and the Grand Canal. The transportation is very convenience.

[Water and power supplies]There are two 20 thousand tons Yinhu and Fuchungwan waterworks and one 30 thousand tons Gaoqiao waterworks in FEDZ which have been connected the 100 thousand tons waterworks in the downtown. The two 110KV Yinhu and Fuchunwan substations have gone into operation and join the 220KV Zhongbu substation.

[Communications]FEDZ has joined the Hangzhou municipal automatic telephone network and a program controlled telephone system with an installed capacity of 50 thousand sets has been put into use. Mobil phone, wireless pager, fax, E-mail etc. advanced communications are fully equipped.

[Drainage]FEDZ adopts a divided-flow sewerage system separating rainfall from sewage .The rainfall joins directly the network of rivers, the sewage is brought into the network of sewage pipes and treated before discharged into the Fuchun River.

[Culture and Science and Technology]Fuyang has more than 400 schools of various kinds and has popularized nine-year compulsory education. It has Fuyang's Marshal Arts Hall ,Yongxin middle school and Hangzhou Jiulong Air Steward Training Academy etc characteristic school. It has modern gymnasium, cinemas, theaters, dancing halls, the international Golf Course and Hotels. Fuyang also has 145 medicine units and hospitals among which the Orthopedics Hospital of Traditional Chinese Medicine has won fame in and outside the province. Some state-level scientific research institutes were also established in Fuyang. Such as the Subtropical Forestry Research institute under the Chinese Academy of Forestry, the Hangzhou Applied Acoustic Research institute of China, and the China Rice Research institute.

[Human Resources]Fuyang is rich in human resources. There are 440000 qualified manpower. Every year more than 800 university students come to work in Fuyang. Now there are 12856 middle and high grade scientific staff in different fields and three state-level scientific research institutes. Fuyang has a close cooperation relationship with ordinary institutes of high learning of Hangzhou , especially with Zhejiang University.

[Service Organizations]Overseas Investment Center, Economic Development Bureau, Fuyang Land Administration Bureau FEDZ Substation Bureau, Fuyang Urban Construction Bureau FEDZ Substation, Hangzhou Customs Fuyang Branch.

[Estate administration]The estate administrative office takes charge of infrastructure maintenance and provides the investors with various services in time.

[Lows and Regulation]'The Contract Law', 'The Clear Regulation for Foreign invested enterprises', 'The Provision for Encouragement of foreign investment', 'The Protective Law of the People's Republic of China for Taiwan compatriots', 'The Income Tax Law of the People's Republic of China for the foreign-invested and foreign enterprises'.

Preferential Policy

Preferential policies for foreign investment in development zones

1. Policies for the land price

Foreign investors who have managed their manufacturing enterprises over 10 years, are permitted to pay for the land sales by stages within two years or they can rent lands by half of the rent for use .

2. Revenue policies

(1) Foreign invested manufacturing enterprises with over 10 years of management term can enjoy the preferential policies as below:
a. From the profit year, the income tax paid to the nation is exempt for the first 2 years and halved for the following 3 years; and that to the local district is exempt for the first 5 years and halved for the following 5 years.
b. Allowance is given to the enterprise when it imports equipment for its own use within the total investment.
c. The enterprise should and have to pay the value-added tax of the current year at least RMB 1 million. Half of the part that exceeds will be returned as encouragement. This policy can be enjoyed for the following 5 years.
d. The remained portion of value-added tax for the local district which is from affirmed new and high-tech products of the new and high-tech enterprises(of national standard) in the first 2 years of management, is supported.
e. The depreciation rate of fixed assets of the enterprise is allowed to be 12.5%; the annual rate of depreciation of the instrument and equipment that used to develop new products in new and high-tech enterprises cognized by the City of Hangzhou, can be 25% at most.
f. Taking the portion of income tax for the local district the year before the enterprise is cognized to be a new and high-tech one by the City of Hangzhou as the base, the exceeding part of every following year is supported.
g. The expense for technology exploitation of new and high-tech enterprises cognized by Zhejiang province or the City of Hangzhou, should not be less than 3% of the current year’s sale. If there’s balance, it’ll firstly be used for the technology exploitation of the next year; the insufficiency then is equalized with the cost. If this expense increases by at least 10% of that of the last year, after the year-end check Tax Office will offset a certain part of the income tax of the year correspondingly.
h. The income of technology development and transfer for the achievement of new and high-tech enterprises and correlative technology consultation, service and train, is exempted from sales tax after the cognizance and registration at the science committee of the city and after the ratification at the tax departments.

(2) As for the foreign invested project of tourism, the income tax for the local district is exempt for the first 5 years and halved for the following 5 years.

3. Other policies
Besides, foreign invested projects also enjoy interest allowance, capital increase and charge, etc.

4. For some important projects, particular policies can be drawn up accordingly.

Preferential policies for the investment of enterprises of other places in the country

1. Revenue polices

(1) For the enterprise invested and stock-controlled by the investor of other places of the country which is managed over 10 years and accords with on of the terms as below, from the profitable year, its income tax remained for the local district is exempted for the first 2 years and halved for the following 8 years.
a. If the investor of other places invests in the high-tech products which are cognized by science and technology departments of the level higher than Hangzhou city, the capital stock in the registered capital is required to be not less than 1 million RMB.
b. If investing in tourism projects, the investor of other places is required to invest capital stock of at least 10 million RMB.
c. If the investor from other places invests in other projects of industry, the registered capital is required to be over 5 million RMB.
(2) For the invested enterprise in which the number of allocation of people with no job, out of work and coming off sentry duty before in the local city and town exceeds 60% of the total staff number, its income tax is exempted for 3 years; after that, if the number of new allocation reaches 30% of the total staff, the income tax could be halved for another 2 years.
(3) Taking the income tax remained for the local district of the year before the enterprise is cognized to be a high-tech one by the government of province or the City of Hangzhou as the base, the increasing part of every year is supported.
(4) The remained portion of value-added tax for the local district which is from affirmed new and high-tech products of the new and high-tech enterprises(of national standard) in the first 2 years of management, is supported.
(5) The depreciation rate of fixed assets of the enterprise is allowed to be 12.5%; the annual rate of depreciation of the instrument and equipment that used to develop new products in new and high-tech enterprises cognized by the City of Hangzhou, can be 25% at most.

2. Charge policies

For the scientific research institution and academy of the level higher than the province which come to establish development bases and technology centers in the zone, the land is offered according to the agreement; the land rent for the level difference is exempted and the expense is preferential.

3. As for the important projects, particular policies will be taken for certain cases on the basis of that stated above.

Industry Guide

I. The development emphases of technology and industry of Fuyang

New & High-tech Park New & high-tech industry projects A and B:
1. Optical telecom, micro-electronic science and electron communication technology;
2. Space Science, Aeronautics and Astronautics Technology;
3. Photoelectron Science and Optics-Mechanics-Electron-in-one Technology;
4. Life Science and Biology Engineering Technology;
5. Material Science and New Material Technology;
6. Energy Science and technology of producing and saving energy;
7. Zoology Science and Environment-protecting Technology;
8. Earth Science and Ocean Engineering Technology;
9. Medicine Science and Biology and Medicine Engineering Technology;
10. Other new technics and technology on the basis of traditional industries.

II. Up-scaled enterprises, lustration industries and industries making foreign exchanges

1.Projects of zero- or low-polluted industries with investment of over US $ 10 million;
2.Machine manufacture such as fabric machines and paper machines;
3.Projects of auto industries;
4.Projects of fabric and clothing industries;
5.Projects of articles used for living, sports, entertainment, art, etc.;
6.Other projects of industries making foreign exchanges.

III. Industry, tourism and real estate will be the focuses of FEDZ

Zhejiang Fuchunjiang Economic & Technical Development Zone Management Committee
Address: 100, Shixin North Road, Fuyang city, Zhejiang, China
Tel: 86-0571-63326027 (Office for Committee Chairman)
63349977 (Office for Director of Investment Promotion Bureau), 63320844
63322336 (Office of the Investment Promotion Projects)
Fax: 86-0571-63326026
Postcode: 311400
Website: http://www.fyedz.com/
E-mail: fcjk@fy.hz.zj.cn