Xiaoshan Economic and Technological Development Zone (hereinafter referred to as XETDZ) was founded in August 1990 and was approved as a state-level economic and technological development zone by the State Council in May 1993. It is the key development zone and the region in Zhejiang with the highest concentration of investment from Japanese and Taiwan investors. Through the development of over one decade, an export-oriented and modern industrial park with industrial development, foreign capital attraction, and export for foreign exchange in the lead has taken shape.

XETDZ is endowed with an excellent geographic location and convenient transportation. Located in the southern wing of Yangtze River Delta along the southeast coast of China, XETDZ is within the boundary of Shanghai Economic Zone, and belongs to Xiaoshan District of Hangzhou, Zhejiang Province. It is adjacent to Xiaoshan District and has Shanghai-Hangzhou-Ningbo Expressway and Hangzhou-Jinhua-Quzhou Expressway going through the zone. XETDZ is 150 kilometers away from the ports of Shanghai and Ningbo respectively, 3 kilometers away from Xiaoshan Train Station, where two main lines, Zhejiang-Jiangxi Railway and Hangzhou-Ningbo Railway, meet, 10 kilometers away from Hangzhou Xiaoshan International Airport, and only 15 minutes¡¯ ride to Hangzhou city proper.

XETDZ is complete with all sorts of facilities and has good investment environment. Fulfilling the requirement of scientific planning, proper layout, and the strategy of maintaining the zone through environment, as well as a high starting point and high standard, the supporting facilities of the zone are gradually improving, the environment is being continuously optimized, and the image of the zone is steadily improving. Over a construction period of more than a decade, the infrastructure with complete facilities of road, water, communication, gas, electricity, heat, and sewage disposal, the necessary facilities for investment in the zone, has been built. XETDZ has introduced and built some public facilities such as schools, hospitals, shopping malls and cinemas. The green coverage is above 40% in the zone, and in October 2002, XETZ got the accreditation certificate of ISO14000 for environmental system. Because of the excellent investment environment, Xiaoshan ranked No. 1 of the ¡°most recommended cities for investment¡± for two years in succession from 2003 according to the assessment by Taiwan Electrical and Electronic Manufacturers¡¯ Association in its ¡°Survey on Mainland China Investment Environment and Risks¡±.

XETDZ treats projects as its life, and is attracting more and more investment. Up to April 2006, a cumulative total of over 540 industrial enterprises had been approved to enter XETDZ, among which over 370 were foreign-funded enterprises coming from 26 countries and regions. The foreign investment introduced into the zone totaled US$3.54 billion, the contracted foreign capital reached US$2 billions and the registered capital amounted to US$2.27 billion. 103 major projects carried an investment of over US$10 million. Some world renowned enterprises, such as GE from the United States, Ericsson from Sweden, Marubeni Corporation, Itochu Corporation, Aisin Seiki and Yamaha from Japan, Chemical Fiber Group, Fair Friend Group and Rexon Industrial Corp. Ltd. from Taiwan, have established their enterprises in XETDZ. An industrial structure with five pillar industries¡ªelectronic communication, precision machinery, medical food, textile and garment, building materials and chemical engineering¡ªhas taken shape in XETDZ.

XETDZ comprises two provincial-level development zones, Hangzhou Jiangdong Industrial Park and Xiaoshan Hi-tech Industrial Park, as well as Xiaoshan Expanded Module of the state-level Hangzhou Software Industry Base. Among them, Jiangdong Industrial Park aims to build an advanced manufacturing base in the Industrial Belt around Hangzhou Bay. It will become the new dimension and major platform of XETDZ¡¯s future development. At present, Jiangdong Industrial Park is the hotbed for investment and business startups for investors at home and abroad. XETDZ has successfully built Innovation Center of Hi-tech Park, Japan Shizuoka Industrial Area, Taiwan Machinery Industrial Park, and China (Hangzhou) Womens¡¯ Clothing Industrial Park, which has played an important role in upgrading the industrial structure, aggregating industrial strength and promoting regional economic development.

The administrative committee of XETDZ exercises the administrative functions of the development zone on behalf of the People¡¯s Government of Xiaoshan District, Hangzhou, dealing with such things as project examination and approval, business registration, project construction and recruitment with simplified procedures and high efficiency in a coordinated process. Service organizations have also been set up in XETDZ, such as the customs, commodity inspection, finance and insurance. ¡°Regulation on Xiaoshan Economic and Technological Development Zone¡± issued by the Standing Committee of the People¡¯s Congress of Zhejiang Province provides legal security for investors. In the meantime, XETDZ implements the relevant state policies regarding economic and technological development zones and open coastal cities, and enjoys preferential treatment in all aspects.

XETDZ will, under the guidance of Deng Xiaoping Theory and the important thought of ¡°Three Represents¡±, fully foster and put into practice the concept of scientific development. In accordance with the development guideline of ¡°three focuses, two commitments, and one promotion¡±, XETDZ will make efforts in establishing three bases¡ªSoftware Development Service Base, Numerical-control Machine Manufacturing Industry Base and the Base of Automobile Electronics and Key Components. XETDZ will also make great efforts in building the zone into a modern, urbanized and ecological industrial new town with hi-tech industry in the lead and with harmonious economic and social development.