About Yuhang Economic Development Zone

YHEDZ was established in the end of 1993 as a provincial industrial park by the approval of the Zhejiang PeopleˇŻs Government. It is located in east north of Hangzhou , Yuhang district. Surrounding YHEDZ there is a complete system of transportation including railway, motorways , airport , seaport. Huge potential market, solid industry foundation, abundant resources, efficient public administration, make YHEDZ an ideal place for industrial investment.Click here to more !

infrastructure

  The Administration of YHEDZ has invested a lot of funds in improving the infrastructure facilities and greenery. The 1st Phase of development area with an area of 11.32 sq. KM is finished the infrastructure and are occupied by various industrial projects. The 2nd phase is now starting with an additional area of 58 sq. KM, which is developed at a higher standard of overall planning and layout.

Roads: 
    The new 320 inter-province highway runs through the YHEDZ. The main roads and sub-main roads in the first initiated area are completed with total length in excess of 30 km and with width ranging from 18 m to 40 m and loading force of 20 T for ordinary vehicle and 100 T for long vehicle. The greenery are accommodated meanwhile. along each side of the roads.

Power Supply:
    YHEDZ, located at the center of the Zhejiang Power Network, guarantees sufficient and reliable electricity supply. The transforming station in YHEDZ with capacity of 24,000KVA to 35KV input and 63,000KVA to 110KV input can accommodate with around-the-clock uninterrupted electricity supply. In addition, the Dual-Loop electricity supply is also available at request of the clients.

Water Supply:
    The water plant in the city and water pipeline in YHEDZ (D400~D1000) have the capacity of 120 kilo tons of high quality tap water supplying per day for living or industrial purpose ,and the water quality and specifications are in line with the state standards of drinking water.

Electricity Supply:
    YHEDZ, located at the center of the Zhejiang Power Network, guarantees sufficient and reliable electricity supply. The transforming station in YHEDZ with capacity of 24,000 KVA to 35KVA input and 63,000KVA to 110KVA input can accommodate with around-the-clock uninterrupted electricity supply. In addition, the Dual-Loop electricity supply is also available at request of the clients.

 
Steam Supply

    The steam & power plant located in the zone is capable to provide steam at pressure of 7 kilogram per sq. cm and at temperature of 190??. And there is a plan of building 1/2 thermal power plant(s) inside the district. By then the steam provided will reach the pressure of 10-39 kg per sq.cm and the temperature of 300-440??.

Posts and Telecommunications:
    The transmission in the zone is digitized. The DDN, ISDN, and Packet Switching System have put into operation, as well as Visual Telephone System. Broad Band network has already been completed.

 
Drainage and sewage

    Rainwater and wastewater discharge works is separated. The rain water pipes (D1500) connect to the Grand Canal. The discharge and treatment network of wastewater has put into operation. The wastewater, pre-treated by that enterprise to reach the emission requirements, is then pumped into the sewage pipeline (D800), which links the River Discharging Project network.

policies

Corporate Income Tax

    ˇčThe Manufacturing Foreign-Funded Enterprise (FFE) in YHEDZ with a term of business exceeding 10 years shall be exempted from the Corporate Income Tax (CIT) for two years commencing from the first profit-making year, and shall be levied at a half rate from the third to the fifth year thereafter (equivalent to 'Two Year Exemption & Three Year Half Reduction').

    ˇčFFE with total investment exceeding US$ 1.5 million and foreign equity accounting for 50% or above shall be supported by LDT in form of refunding by up to 50% of the combined paid in CIT during the following third to sixth year (equivalent to 'Three Year Exemption & Three Year Half Reduction').

    ˇčFFE with total investment exceeding US$ 3 million and the foreign equity accounting for 50% or above shall be supported by LDT in form of refunding by up to 100% of the combined paid in CIT during the following third to fifth year, and 50% during the following sixth to tenth year, (equivalent to 'Five Year Exemption & Five Year Half Reduction').

    ˇčExport oriented FFE with annual export volume accounting for 70% or above shall be levied the CIT at a half reduction rate continuatively. Technologically-Advanced enterprise shall be levied the CIT at a half reduction rate for another three year after having enjoyed the aforementioned tax holidays.

    ˇčIn case that the established manufacturing FFE uses allotted profit to invest directly back in his enterprise to increase the registered capital, or uses it as equity to establish a new FFE with the term of business exceeding 5 years, apart from 40% refunding treatment subjecting to the re-investment amount as prescribed by the State, the paid in CIT shall be refunded by 40% additionally by LDT as support. In case of re-investing to establish or expand an Export-Oriented and Foreign Currency Making or a technologically advanced enterprise, all the paid-in CIT subjecting to the re-investment amount shall be refunded upon approval.

    Value-Added Tax

    ˇčAs for newly approved manufacturing FFE in YHEDZ, the paid in VAT shall be supported by LDT in form of refunding. The paid in VAT on a year basis exceeding RMB 1 million RMB shall be refunded by 10%. The paid in VAT on a year basis exceeding RMB 2 million RMB shall be refunded by 15%. The paid in VAT on a year basis exceeding RMB 3 million RMB shall be refunded by 20%.The period of refunding is no more than 3 years.

    Note:
    1. the administrative committee of YHEDZ keep the right of explain
    2. This translation is for reference only, the Chinese Text shall be the standard.

 Cost and fee

ITEM	Price
1. land use right	The granted land use right has a period of validity of 50 years When the amount of registered capital of investment project reached above 2 million US dollars,       RMB 120 thousand per hectare Above 5 million US dollars ,      RMB 105 thousand per hectare Above 1000 million US dollars ,   RMB 90 thousand per hectare Above 20 million US dollars,     the real price is negotiable
2.buiding of factory	Concrete & Brick Framing:                  RMB 600-700 /m2 Steel Structure Framing:                      RMB 300-600 / m2 Standard workshop rent::                     RMB 11 / m2 ¡ˇčmonth
3.labor	Average Worker£º                    Around RMB 600 per Month. Mid-level managers:                  Around RMB 1000 per Month. High-level managers:                 Around RMB 2000 per Month.
4.welfare	Endowment insurance                       21% of present year salary Hospitalization insurance                  5% of last year salary Unemployment insurance                  2% of last year salary Accidental hurt insurance                    0.4~0.8% of last year salary Childbirth insurance (female)             0.6% of last year salary
5.water	Used for industry                            RMB 1.7 each ton Used for commerce                       RMB 1.6 each ton Used for living                                  RMB 1.5 each ton
6.electricity power	Open Fee for Electricity:         10KV       RMB 220   per KVA                                                      35KV      RMB 165   per KVA  110KV     RMB 90    per KVA  1-10KV or above: £ˇ§for large scale industries£©  Peak Interval                                 RMB 0.611 RMB per KWH Valley Interval                                RMB 0.382 RMB per KWH 35KV or above: £ˇ§for average scale industries£©  Peak Interval    RMB 0.593RMB per KWH Valley Interval                                RMB 0.371 RMB per KWH
7.steam	Open Fee for Steam:                                  RMB 80,000 per Ton Hour Steam Price:                                                 RMB 104  per Ton Instruments Cost for heat supply:            RMB 38,500
8.telcommunication	Open fee of telephone                     RMB 100 each one Mobile                                   Local     RMB 0.6 per minute Remote                                               RMB 1.2 per minute ADSL                                                    RMB 500 per year
9.transportation	Railway 20 ton trunk to shanghai                         RMB 1416 20 ton trunk to ningbo                             RMB 1581 Motorway 20 tons trunk to shanghai harbor          RMB 1650 20 tons trunk to ningbo  harbor             RMB 1850 40 tons trunk to shanghai harbor          RMB2200 40 tons trunk to Ningbo  harbor             RMB 2400
10.register fee	Registered capital below 10 million RMB, pay 0.08%of the amount The extra part pay 0.04% of the extra amount. When the registered capital exceed 100 million . no add to register fee. The whole course still need additional RMB 5000 in application

Human resource

labor supply         Yuhang District has a population as high as 893 thousand , with 724.7 thousand in rural area. A large number of farmers can guarantee the labor supply for industrialization, and rich job opportunities attract workers from the else place of China. As the local labor market become more and more specialized, the enterprise in YHEDZ can easily recruit the needed workers, Meanwhile the cost of a average worker in YHEDZ is 30 to 50 cheaper than that of Shanghai.

Education and training          Hangzhou is now sponsoring the campaign called ¡®Living in Hangzhou, Studying in Hangzhou and Starting business in Hangzhou¡¯. Hangzhou has the advantages in attracting those will-be talents to come here and be educated here. Zhejiang University, the largest one in scale, is located beside the Westlake and has above-the-average power both in high level education and R/D. In 2000, the total enrolled college students in Hangzhou reached 224 thousand and is keeping going up year after year. Yuhang District now has one college, two adult colleges and 5 technical schools. At the same time, Yuhang District has established good relationships with some famous universities in Zhejiang Province, which supply plenty of technicians or talents each year.         Scientific support          Zhejiang Provincial Yuhang Hi-Tech Industrial Park (YHHYP), established with the approval by the Zhejiang Provincial People¡¯s Government, is the only provincial-level hi-tech park in Hangzhou area. There are 28 Hi-Tech enterprises and abundant well-educated employees in YHHTP.         Recruitment and citizenship permission         Yuhang provide green passage to college graduates or special technicians employed in YHEDZ, and facilitate the registration of permanent citizenship. The Administrative Committee of YHEDZ has a Human Recourse Department; which is charge of recruiting skilled personnel that enterprises want. If necessary . Local colleges and special school will arrange special training to meet the need of enterprises.   living condition  As the ultimate goal of YHEDZ is to build up a comprehensive and multi-functions new city, in the meanwhile YHEDZ boost its industry , it also emphasize building a comfortable living environment. YHEDZ lays back on old city, so it can take advantage of the ready facilities , The facilities of logistics such as advanced apartment, resident area, can satisfy all kinds of need of the employee in YHEDZ.        Housing: Because of the advantages of location, resource and land-value, Yuhang ¡¯real estate has draw not only Hangzhouese but also Shanghainese¡¯ attention, which greatly promote Yuhang¡¯s image. YHEDZ can find or offer dormitory for workers, the apartments and villas for managers and the technicians for either sale or lease. The price of good quality apartment houses with good living condition is at about RMB 2,800 RMB per sq m, and RMB 1,800 RMB to 2,200 RMB per sq m with ordinary living conditions. You could find residential area within YHEDZ; the better surrounding area is about 2 km to YHEDZ. The house price in YHEDZ or near YHEDZ is only one third of that in Hangzhou city proper area. Experts' Villas Complex for rental or sale at rather low price, one third of that of Hangzhou proper, for companies in YHEDZ.       Public Facilities: Hangzhou Yellow Dragon Sports Center can hold 7000 people and present all kinds of performances. Yuhang Gymnasium is the best room gymnasium in Hangzhou area. Also, most hotels in Yuhang District are well equipped with Bowling Hall, Swimming Pool, Tennis Court and Body Exercise House.       Hotels and restaurants: Near YHEDZ, there are one 4-star hotel, five 3 -star hotels, more than 20 Chinese restaurants with local cuisine and several Western food restaurants.        Schools:       There are three International schools, two colleges, four high schools, four primary schools and three kindergartens near YHEDZ .       Sanitation: At present, there are two comprehensive hospitals, One general hospital , one special hospital for women and children, and one Nursing home, two clinics and one first-aid center in the city where YHEDZ locates.       Tour and scenery spots       Hangzhou is the famous scenic tourist city. Yuhang District , where YHEDZ lies , also has many historical relics and scenery spots. Yuhang District is the birthplace of Japanese Tea Culture and the "Liangzhu clture" -the ancient civilization dating back to 4,500-5,000 years ago ,which was famed as the dawn of the Chinese Civilization. Many unearthed items such as porcelain, Black Pottery and jade found there. Chaoshan mountain scenic area is famed for its gorgeous plum blossom, GuangJI stone bridge is a masterpiece built in Min Dynasty . Tangxi Town keeps an ancient stele with scripture by Qianglong, the emperor of Qing Dynasty. Aside from these, there are five artificial amusements parks near YHEDZ. enviroment protection Public Environmental Infrastructures     Wastewater is pre-treated by that enterprise as to reach the emission requirements, is then pumped into the sewage pipeline, which are linked to the Central Waste Water Treatment Project Network. Rainwater and Wastewater discharge works are separated. The Rainwater pipes (D500~D1200) connect to the nearest river. Zhejiang Environment Science Research Institution Cooperated with YHEDZ establishes a project of wastewater treatment with 10.000 tons. They are specialized in management and operation on wastewater treatment.     Pollutants Emission Standards:     National First Grade Standard (GB8979-96) for Emission of Waste Water: COD: 100mg/L BOD: 30mg/L PH: 6¡ª9 SS: 70mg/L Color Index (times) 50 Sulphuric material 1 mg/L Ammonium-Nitrogen(NH4+-N) 15mg/L Phosphate (P measure) 0.5mg/L     National Grade ¢¨® Standard (GB12348-90) for Emission of Noise: Day:60dB (A) Night: 50dB (A) Frequent Bursting Noise at Night Peak Value <=60dB(A) Accidental Bursting Noise at Night Peak Value <=65dB(A) Related agency Custom house and logistics          A customs house, which has transfer partnership with customs house in Ningbo ports and Shanghai Port, is established in YHEDZ ¡£Hede Logistics Company, a joint venture invested by Yuhang municipal government and Barcelona Harbor Authority, is put into operation and can provide doorˇ§Cto-door transportation services. Banks and Financial organization         More than ten domestic banks, insurance company, financial institutes in YHEDZ can provide complete financial services such as loan granting, security, mortgage, insurance, stock transaction, foreign currency exchange, foreign trade payment settlement etc. Public management and proxy service         The Administrative Committee of YHEDZ has specified department and personnel in charge of human resources, labor union, safety operation, planning, construction, fire prevention, project approval, duty free application for imported machinery, social welfare and insurance so on services for the enterprises in YHEDZ. Local department of treasury has set up a sub-bureau which is fully responsible for enterprise in YHEDZ who are export-oriented and has foreign trade-related business such as tax-rebate and tax holiday implementation etc.

Organization

The Administrative Committee of YHEDZ( ACoYHEDZ)

ACoYHEDZ is the organization in charge of the Business Promotion, Constructions, Land Granting, and Services in YHEDZ. It is composed of six departments and one Office. They  are the Business, the Comprehensive Administration, the Rural Affairs, the Land Administration, the Planning & Constructing, the Labor & Personnel and the General Office. The obligations and responsibilities of the departments are as follows respectively: Standing Director: Fang chen'er       Tel: 0086-571-86220518 Vice Director: Scott Meng                    Tel: 0086-571-86130108

Business Dept.:

Business Promotion, Market Survey, Feasibility Study, Project Approval, and Information. Tel: 86-571-86238500, 86243452 Contact Mrs. Lu min

Comprehensive Administration Dept.:

Assistance and Management of In-zone plants, YHEDZ-owned assets management, Services for In-zone enterprises. Tel: 86-571-86130336 Contact Mr. Wen Jinyou, Mr. Shi Zhongming

Land Administration Dept.:

State-owned Land Use Right Granting & Contracting, Land Use Supervision, and Land Use Right Transfer. Tel: 86-571-86237300 Contact: Mr. Hu, Minghai

Planning & Constructing Dept.:

Infrastructure Facilities Construction of YHEDZ, Project Planning, Project Construction Approval, and Liaison Services. Tel: 86-571-86227507 Contact: Mr. Xie Qi, Mr. Shan Yun, Mr. Zhu Jianzhong

General Office:

Internal Management of ACoYHEDZ, Receptions, General Information, and Propaganda. Tel: 86-571-86238582 Contact: Mr. Huang Liang

Procedure

Establishment procedures (Wholly-funded foreign enterprise)

Stage I : Project Preliminary Examination

1. Fill out the "Application Form For Establishment Of Foreign-Funded Enterprise" provided by Provincial Commission of Foreign Trade and Economic Relations£» 2. Submit it to Business Bureau of Hangzhou for Company Name Pre-Registration £» 3. Authentication of Legitimacy of the Foreign Party or the personal ID of the mother country£ˇ§or region£©shall be presented in case of investment by natural individual.

Stage II. Project Feasibility Study

1. Feasibility Study Report and List of Equipment endorsed by the legal representative of Foreign Party. 2. Application for approval on Feasibility Study Report 3. Qualification of foreign legal representative 4. Authentication of credit standing issued by the account-opening bank of the foreign party. 5. If foreign parties re-invest the profit in RMB £¬the Authentication made both by the local Taxation Authority and Foreign Exchange Administration Authority shall be presented 6. Project Environment Effect Assessment Report and endorsement issued by the Environmental Protection Authority 7. Acknowledgement of the Company Name Registration 8. Arrangement and Agreement on water, electricity, steam supply etc. In case of some special project or that the foreign investment is the restricted by the State Such as medicine, transportation, architecture, project engineering, advertisement, funeral and interment, real estate, foodstuff, tourism, approval and consent from related or governing authorities shall be presented. 9. Red Line Map on Project Siting and Mastering Layout. (if investors rent factory building instead of building it by themselves, the Lease Contract and Property Certificate shall be provided) 10. Document of approval on the export licensing and quotas for the expect-to-produce products, if any.

Stage III. Examination of Articles of Association

1. Copy of the signed by the legal representative of the foreign Party. 2. Application for approval on the Articles of Association. 3. Certificate of authorization on chairman, vice-chairman, directors, managers, and supervisors. 4. Members of the board (including information on ID No., original employment and position ) 5. The valid Power of Attorney in written signed by the legal representative if the Articles of Association and its Annex will be signed by an authorized agent.

Stage IV. Application for Certificate of Approval

1. Fill out application form for certificate of approval, form for file, name list of managerial stuff, etc. 2. With the approval document of Articles of Association, apply to Hangzhou Technical Supervision Bureau for uniform business code.

Stage V. Application for Business License

1. Fill out for Establishment of Foreign-Funded Enterprise, Certificate of Confirmation on Qualification of the Legal Representatives, Form of Registration of Legal Representatives, Form of Registration of Natives and Expatriate Management. 2. Preliminary examination by Business Bureau of Yuhang, Spot-Surveying and Recommendation 3. Submit to Business Bureau of Hangzhou for examination and apply for the Business License.

Establishment Procedures (Equity or Contractual Joint Venture)

Step I: Project Proposal

1. To provide the Application for Establishment of the Joint Venture or Project Proposal by the Chinese Party. 2. To sign the Letter of Intent by Legal representative of two parties. 3. The copies of Business License and the Authentication of credit standing of the Chinese Investor (if the Chinese Party is a State-owned enterprise, the document on Assessment of the State-owned Assets and the Confirmation by the Department of State-owned Assets Management shall be provided. 4. The copies of the Business License or ID and by the Foreign Party (if the foreign investor is an enterprise, the certification of qualification on the legal representatives shall be provided). 5. Approval or documents on export licensing and quotas, if any. 6. Red line Map of the land for the project. 7. To pre-register the name of the venture upon the approval of the project proposal.

Stage II: Project Feasibility Study.

1. Feasibility Study Report and the Checklist of the Equipment of the Venture 2. Notification or copy of the registered Name of the Venture 3. Project Environment Effect Assessment Report and endorsement issued by the Environmental Protection Authority. 4. Arrangement and agreement on water, electricity, steam supply etc. 5. Certification on Arrangement of the Equity Capital from the Chinese investor. 6. Authentication made both by the Local Taxation Authority and Foreign Exchange Administration Authority shall be presented in case that the foreign party re-invest the fund with the profit in RMB. 7. The Planning Layout of the project. 8. In case of some special project or that the foreign investment is the project which restricted by the state, approval and consent from related or governing authorities shall be present. (Such as medicine, transportation, architecture, project engineering, advertisement, funeral and interment, real estate, foodstuff, tourism, etc.).

Stage III. Examination of Contract and Articles of Association

1. The Contract and Articles of Association signed by the legal representatives of the two Parties (including the Annexed Agreement to the Contract, the checklist of the investment contributed in kind, the checklist of the Imported Equipment of the venture, the Agreement on IP Investment, and Exclusive Sale for Export Agreement etc.) 2. Application for approval on the Contract and the Articles of Association by Chinese party. 3. Certificate of authorization on chairman, vice-chairman, directors, managers and supervisors from each Party. 4. The name list of the board (including information on ID No., original employment and position). 5. The valid power of Attorney in written signed by the legal representative if the Articles of Association and related agreement will be signed by an authorized representative.

Stage IV. Application for certificate of Approval

1. To fill out Application form for certificate of approval, form for file, name list of Managerial Stuff, etc. 2. With the Approval documents of contract and articles of Association, apply to Hangzhou Technical Supervision Bureau for uniform business code.