With approval of the State Council, Ningbo Daxie Development Zone was set up as a State-level development zone on March 5, 1993, and China International Trust and Investment Corporation (CITIC) undertakes its overall development.

Situated at the east of Ningbo City, Ningbo Daxie Development Zone is 40 Km distant to the downtown area. Naturally sheltered by Zhoushan Archipelagoes and backed by the southern mainland that is less than 500m away, it is in the middle of the harbor area of Beilun, one of the four noted deepwater transshipment harbors in China, and in immediate approximation to the international navigation route. By a mere strip of water, it is separated from Ningbo Economic and Technical Development Zone and Ningbo Free Trade Zone. Daxie Island alone has an area of 30.84 Km2, and boasts 10.7 Km deepwater coastline with 150m offshore draft up to 20-30 meters. Daxie water area features in deep water, smooth current and mild wave, and is free from ice or silt all year long. What is boasted by Daxie makes it a perfect spot for development of mega-port and port-related industrial projects.

Ever since CITIC initiated Daxie development, large amount of capital has been directed in infrastructure facilities like water and power supply, road, bridges, telecommunication and etc. With investment environment improving in general, Daxie sea-spanning rail and highway bridge, the landmark project, opened to traffic in 2001. Daxie, a Class-A opening port approved by the country, is facilitated with all the institutions related. Daxie Customs Administration and Daxie Maritime Superintendence Authority formally started operation in April 2001. Office buildings for institutions like commodity inspection and quarantine authority, frontier inspection authority and etc. are to be put into use one after another in the year 2002. Daxie's advantage in foreign-oriented economy is growing on a daily basis.

Daxie, the former sea island, turns out to be a hot development spot for international investors. It has made great breakthroughs in attraction of investment in port and related industrial projects: so far, projects settled includes the BP LPG terminal for East China from the UK, the crude oil transshipment base by SINOPEC and Ningbo Port Authority, the high-grade bitumen project by Liwan Petrochemicals, and etc. In Daxie Industrial Park, which is oriented to light industries, dozens of manufacturing projects from domestic and abroad are settled, covering the fields of medicine, fine chemicals, new material, mechanic, home appliances and etc.

Development Plan

CITIC's target is to turn Daxie into an international mega-port and world first class foreign-oriented economic zone, which is to be headed by port, based on industry, and supported by export processing, domestic and foreign trade, storage and transportation; it is to be sound in environment, rational in layout, fully functional, and with pretty developed tertiary industry. Rong Yiren, former Vice President of China, rather briefly outlined the scheme as "Turn Daxie into a first-rate economic and trade zone with world first-class port". Specifically, the master plan is reflected in the following aspects:

1. Through exploration of the port advantage, set up port-related zones for giant industries, for high tech and for export processing.

2. Establish large-scale transshipment bases for liquid chemicals, crude oil, oil products and other materials.

3. Turn Daxie, along with the construction of Beilun Port, into the pivotal port for container transportation of Shanghai International Shipping Center, and the large-scale transshipment base for international container transportation.

4. Vigorously develop the tertiary industries such as finance, commercial and trade, storage, tourism, etc., and make Daxie a prosperous economic and technological development zone.

5. Endeavor to perfect facilities, beautify environment, upgrade service, create friendly investment environment, and pursue economic efficiency, and turn Daxie into a foreign-oriented economic zone.

The planned functional areas are: Administrative and Commercial Area; Harbor and Storage Area; Industrial Area; Living and Residential Area; Recreation and Holiday Area. Thirty berths ranging from 20,000 to 300,000 DWT are planned, with annual throughput of 100 million tons, in which container throughput is 3.15 million TEUs. Tourist-catering spots and facilities, such as an oceanic tourism zone, golf courts, villas, etc. are also planned.

Encouraged investment

Infrastructures
Harbor, wharves, warehousing, transportation and transfer
Storage and distribution of crude oil, oil products and liquid chemicals
Building and repairing of ships and containers
Oil refining, metallurgy, mechanical and electrical facilities
Construction materials
Telecommunication facilities and biographical technology
Environment protection technology and information technology
Fine chemical engineering and textile
Grain, plant oil, and aquatic products processing
Real estate
Tourism and other tertiary industries.

Major Projects

LPG Break-bulk Terminal Project for East China
Total investment USD 96.5 million, with BP as the major share-holder. It covers an area of 23.6 hectares, including two 250,000 m3 underground caverns, one 50,000 DWT berth, two 5,000 DWT berths, and relevant supporting facilities. It is designed to import LPG 1.6 million tons per year, being the largest LPG terminal in Asia. It was put into operation in June 2002.

Crude Transshipment Terminal for Ningbo Port It is a joint venture between Ningbo Port Authority and SINOPEC. It covers an area of 51.8 hectares, including one 250,000 DWT crude oil jetty, one 50,000 DWT oil jetty, one 20,000 DWT jetty, and a tank farm of 2,000,000 m3. Phase I of the project, which covers one 250,000 DWT crude oil jetty and six 55,000 m3 tanks with investment RMB 500 million, has been completed in September 2001. Phase II, which includes five 100,000 m3 tanks, is to be completed in September 2002. With operation of the project phase by phase, Daxie is to be the oil concentration and distribution center for East China and the reaches of the Yangtze River.

High-grade Bitumen Project by Liwan Petrochemicals
Invested by Hong Kong Liwan Group and using imported Olimulsion crude from Venezuela and home produced SZ36-1 crude as feed, it is to produce 0.3 MMTPA high-grade bitumen for highway paving, of which 0.106 MMTPA is SBS modified bitumen. Covering a total area of 11 hectares, it is to build a 80,000 DWT oil jetty, 200,000 m3 tank farm and bitumen processing units. Investment for Phase I, which is to be put into operation in March 2003, is USD 10 million.

20,000 DWT General-purpose Jetty It was put into operation in May 2002. Ships up to 50,000 DWT can be received by this jetty.

Soken Chemicals
It is a joint venture between the Japanese Soken Chemicals Co. and CITIC Daxie Development Co producing adhesive tapes of various kinds. Total investment for Phase I is USD 9,400,000. Phase II, which involves investment of USD 4,200,000 for production of specialty glues used in liquid crystal and plasma monitors, is in construction.

Jianxin Medicine
It is a sole investment of USD 30,000,000 by Hong Kong Baoshan (Holding) Group, covering an area of 15 hectares. The product is a State-level new injection of Class C for curing asthma.

Chengnian Medicine
Invested by Beijing Chengnian Medicine Science and Trade Co., it covers an area of 5 hectares for Phase I and involves an investment of USD 10,000,000. It is to be developed into a Chinese Medicine Park integrating R&D and marketing, with its Chengnian capsules for curing diabetes and hyperthyroidism (State-level new medicine of Class C) as the main products. Phase I is to be put into trial production in September 2002. Phase II and Phase III are targeted at establishment of a modern medicine industry park with main orientation in bio-medicine and oceanic medicine.
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Add.: Ningbo Daxie Development Zone, Ningbo, China
Post Code: 315812
Tel.: 86-574-86768458, 86768969
Fax: 86-574-86768433
E-mail: citicdx@mail.nbptt.zj.cn
Website: http://www.citic-daxie.com/

Infrastructure

Island-mainland Communication
A sea-spanning floating bridge with allowed access vehicle weight 80 tons was built in 1995. Daxie Sea-spanning Highway & Railway Bi-functional Bridge started construction in April, 1997, and will open to traffic in the second half of 2000.

Water and Power Supply
The present water supply capacity is 20,000 tons per day, and will be expanded to 130,000 to 150,000 tons per day when Daxie Sea-spanning Rail & Highway Bridge, with which two 1m steel water pipelines are installed, is completed. For the power needed by Daxie, it is provided via the Eastern China Electricity Grid. The present operational substation in Daxie is 35 kV, and a 110kV substation for Daxie is soon to be built. As planned, a 220kV substation will be set up in the middle term of Daxie development.

Road
The road network reaching every major areas has covered the whole Daxie Island.

Telecommunication
The present programmable switchboard in Daxie can serve 8,000 lines, another 60,000 line communication cable has been laid, and is ready for use any time. The wireless communication station and DDN network are in service.

Location

Daxie Island locates in the middle section of China's coastline, at which the golden waterway of the Yangtze River intersects with the golden seashore of the country. In municipality, Daxie Island belongs to Ningbo City, Zhejiang Province, China. It is about 40 km east to the downtown of Ningbo, and 100 km south to Shanghai. East to Daxie Island is the East Sea, and west to Daxie Island is the famous Beilun Port. Looking across Daxie Island to the north is the Zhoushan Archipelagoes, and the southern end of Daxie Island is less than 500m off the mainland. Daxie Island is immediate proximate to the international sea route.

Investment guide

Preferential corporate income tax rate of 15% for production-oriented projects by foreign investors.
Corporate income tax is exempted for the first two profit-earning years and half reduced to 7.5% for the forthcoming three years,provided the operation period of the investment project is above 10 years.
For investment in infrastructure like port, jetty, bridge, highway, railway, and etc, corporate income tax is exempted for the first five profit-earning years and half reduced to 7.5% from the sixth to the tenth year, given the operation period of such an investment project is above 10 years.
For production-oriented foreign investment, local income tax is exempted for the first five profit-earning years; provided the operation period is above ten years and criteria for local income tax exemption is met, local income tax can be exempted for the next five years subject to the approval of the taxation authority of NDDZ.
Profit gained by foreign investors from the investment enterprise can be remitted outside China, free of income tax.
For re-investment in NDDZ with profit gained by a foreign investor from its investment enterprise, given the operation period of the reinvestment project is above 5 years,40% of the income tax previously levied on the re-investment pottion can be refunded; provided the re-investment is on export-oriented production or hi-tech enterprises in NDDZ, all the income tax previously levied on the reinvestment portion can be refunded.
For investment falling into the category of the Encouraged and the Restricted(B) in the National Industry Direction Directory, customs duty and import-related value added tax are free for import of self-contained production equipment that is within the total sum of investment.
For production-oriented projects that are coherent to the master plan of Daxie development and industry direction, Daxie local fiscal authority is to grant a variety of financial support.

Encouragement areas:

Infrastructures
Harbor, wharves, storage, warehousing, transportation and transfer
Storage and transfer of crude oil, oil products and liquid chemicals
Manufacture and maintenance of ships and containers
Oil refining, metallurgy, mechanical and electrical facilities
Construction materials
Power, telecommunication facilities, biographical technology, environment protection technology, and information technology
Fine chemical engineering, plant oil, and aquatic products processing
Real estate
Tourism and other tertiary industries
Other