Jinhua, known as Wuzhou in ancient times, got its name as the “place where the Jinxing (Venus) and the Wunu (star in Aquarius) compete for splendor”. It has a history of more than 1,700 years with a brilliant civilization. “Splendid is the Eight-Chant Tower ages through, leaving the posterity deep in blue; A thousand miles in South the river flows, Above the fourteen towns the City glows.” 860 years ago, Li Qingzhao, the famous poetess in the Southern Song Dynasty (1127-1279), once described the verve of Jinhua with this poem when she visited the Eight-Chant Tower of the City.

With a long history and the legends of glorious talents, Jinhua has been praised as “the state of historical and cultural relics, the place where famed people meet, the city of civilization and the county of blue mountains and green rivers”.

I. Investment Environment

1. Geographical position

Jinhua is located at latitudes 28°32-29°41 N and longitudes 119°14’-120°46’ E in the center of the eastern coastal province of Zhejiang. It is connected with the three port cities of Hangzhou, Shanghai in the north and Ningbo in the east. It extends in the west to the vast inland of the western part of Zhejiang Province and Fujian, Jiangxi and Anhui Province. Because of its geographical position, it has become a major hub of land transportation, a vital communication line connecting the four provinces of Fujian, Zhejiang, Jiangxi and Anhui, and a central city of the central and western Zhejiang.

2. Administrative Divisions

Under its jurisdiction, Jinhua has two districts, Wucheng and Jindong, four county-level cities, Yiwu, Dongyang, Yongkang, and Lanxi, and three counties, Pujiang, Wuyi and Pan’an. The municipal government is located in Wucheng District.

3. Area and Population

The total area of the city of Jinhua is 10,900 square kilometers with a total population of 4.517 million. The urban area is 2,044 square kilometers with a population of 922,100.

4. Natural Environment

Jinhua has a subtropical climate with four distinctive seasons. The average annual temperature is 16°-18°C and the average annual rainfall is 1303-1412 millimeters. Within its area there are intertwined basins, hills, rivers and valleys. It is rich in red soil and forest resources. The longest river Jinhua River (or Wujiang River) flows through Lanjiang River, Fuchunjiang River and Qiangtang River, and reaches the Grand Canal and other coastal ports.

5. Economy

Jinhua has a rather flexible economic system with distinctive economic characteristics in different areas. Its economic structure is largely dependent on the economy of private sectors. 90% of the enterprises are found in private sectors. Up to 88% of its GDP comes from private economy. Structure of Industry

First industry:                     6.0%

Secondary industry:           53.4%

Service industry:                40.6%

Major Economic Indices of 2005

Total GDP: 105.536 billion yuan

Fiscal Revenue: 12.125 billion yuan

Total Amount of Social-Consumables Retail: 41.884 billion yuan

Urban Residents'/Farmers' per capita Income: 15,387/5,516yuan

Total Volume of Self-operated Import and Export: US$4.722 billion

Total volume of Self-operated Export: US$4.387 billion

Total Deposit in Various Financial Institutions: 155.958 billion yuan

Total Loan: 119.930 billion yuan

6. Culture and Education

In its long history, a multitude of distinguished people once lived in Jinhua, and thus it attained a cultural reputation in the history, known as the "Mini Zoulu" ("Zoulu" is another name for Shandong Province, Confucius' hometown, which is believed to be the cradle of the Chinese civilization) and home to crafts, architecture, education, and doctors. A group of masters in arts and language have emerged from this place. The essays of Luo Binwang, the poems of Zhang Zhihe, the verses of Chen Liang, the calligraphy and paintings of Guan Xiu, the plays of Li Yu, the historical literature works of Wu Han, articles of Feng Xuefeng, the poems of Ai Qing, the paintings of Huang Binhong, the prose of Cao Juren, and the music of Shi Guangnan are vivid examples of the brilliant artistic and literature works. Other Jinhua celebrities included historian and social activist Hu Shi, national hero Zong Ze, medical scientist Zhu Danxi, prose writer Song Lian, poet, painter and seal cutting artist Donggaoxinyue, journalist Shao Piaoping, educator, Chinese language master and social activist Chen Wangdao, physicist Yan Jici, botanist Cai Xitao and photographer Lang Jingshan.

The local opera of Jinhua—Wu Opera—is a treasure of arts in China. It has had a history of more than 400 years and occupies a special place in the drama fields in China due to its simplicity, naturalness, straightforwardness, its special vocal music, its rich accompanying music and its martial arts performance.

Jinhua has always been laying great emphasis on education. At present, there are 2 comprehensive universities, namely, Zhejiang Normal University and Jinhua University, and dozens of other colleges and vocational schools in Jinhua. Due to the strong basic educational system and complete vocational training network, the education level in Jinhua is among the highest in the country. More than 10,000 students are admitted into colleges and universities every year, and the number of matriculates has been the largest of Zhejiang in the past over 10 years, honoring Jinhua as one of the top cities in education in the province. Among the Jinhua-born celebrities there are 12 CAS and CAE academicians, more than 2,000 professors and over 500 doctors, to whom the city attributes its reputation as a "City of thousands of professors and hundreds of doctors".

The excellent cultural and educational atmosphere in Jinhua brings along magnificent social ethics and turns out a group of highly qualified laborers and entrepreneurs, thereby providing lots of all-round talents for Jinhua's economic construction and science&technology-based development, and accumulating great potentials for further growth of the city. To invest in such a place of flourishing culture and excellent education for all-round development will help you get twice the result with half the effort.

7. Infrastructure

▲Transportation

Jinhua is located in the southern wing of the Yangtze River Delta Economic Zone with its center in Shanghai. It has such advantage of convenient transportation that it becomes the communications hub connecting the southeast coastal areas with the inland China. It is also a major hub of land transportation in China.

▲Highways

There is a crisscrossed network of highways in Jinhua that extend in all directions, leading to Hangzhou and Shanghai in the north, to Quzhou in the west, to Ningbo and Taizhou Ports in the east, and to Wenzhou Port in the south. The radiating highways, including the Hangzhou-Jinhua-Quzhou, Jinhua-Lishui-Wenzhou, Jinhua-Ningbo Expressways and 330 state highway and 03 provincial highway, all contribute to the transportation network, with the Jinhua at its center. The Taizhou-Jinyun and Zhuji-Yongkang Expressway is under construction. The plan of the Loop Road of Jinhua, Dongyang-Yongkang and Jinhua-Lin’an Expressways are under consideration. Today it is only a one-and-a-half-hour drive from Jinhua to Hangzhou, and a three-hour drive to Shanghai. When the Jinhua-Ningbo Expressway is open to traffic, the distance between the two cities will also be shortened to a 90-minute ride.

▲Railways

Three railroads, namely, the double-track Zhejiang-Jiangxi Railway, the Jinhua-Wenzhou Railway, and the Jinhua-Qiandaohu Railway, are intersected here in Jinhua. Among other railroads, the Jinhua-Ningbo and Jinhua-Jiaojiang Railways, and the Jinhua-Huangshan Railroad, are all included in the blueprint. Jinhua Railway Station, one that ranks Class 3 in Grade A according to the national standard, is the biggest marshalling yard in East China, and Jinhua is an important center of railway transportation in the area as well.

▲Airlines

It is a 1-to-3-hour drive from the city of Jinhua to the surrounding international airports in Hangzhou, Shanghai and Ningbo, and a 20-minute drive to Yiwu Civil Airport, where over ten air routes are available at present, including those destined for Guangzhou, Shenzhen, Beijing, Xiamen, etc.

▲Ports

In the vicinity of Jinhua are Shanghai Port, Ningbo Port and Wenzhou Port. The Jinhuajiang River (also known as the Wujiang River), the largest of the district, flows into the Grand Canal and other coastal ports. Today the waterless port—an international container freight station—has been put into operation in Jinhua, where a straight-through CIQ supervision office has been set up. Cargoes sealed in Jinhua can be shipped directly to Ningbo Port for export shipment. A public tariff protective warehouse, which is the only of its type in the mid-western area of Zhejiang Province, has been built in the neighborhood.

▲Postal and Telecommunications Services

2,075,600 urban and rural households in Jinhua have installed home phone service, that is 45.7 phones among every hundred people. There are more than 2,896,100 subscribers of cell-telephone service, plus over 288,200 Internet users. Being a pivotal city of optical cables in central Zhejiang, it boasts the SDH digital synchronizing network of optical cables.

▲Water and Power Supplies

Jinhua has adequate facilities capable of supplying tap water that measures up Grade A according to the national standard on drinking water, the amount of supply in the city being 350,000 tons per day.

As a component of the East-China Power Grid, the Jinhua Power Grid boasts a power transmission and transformation network that is composed of a primary sub-network covering 500 KV, 220 KV and 110 KV, and a subsidiary covering 35 KV and 10 KV. There are 135 substations that enjoy a transformer capacity of 35 KV and upwards, capable of supplying sufficient power to the city.

  ▲Financial Service

Being the financial center of central Zhejiang, Jinhua boasts more than 1,000 branches of various financial institutions with perfect facilities and outstanding services. In 2005, the amount deposited hit RMB 155.958 billion yuan, and loans of various kinds reached RMB 119.930 billion yuan.

▲Residential Environment

As a center of politics, economy, finance and culture, the city of Jinhua enjoys perfect urban functions with complete facilities for cultural entertainment and relaxation. In the city, there are quite a few recreational places like  Wuzhou Park, Huang Binhong Park, Camellias Culture Park, Camellia Species Garden, Shi Guangnan Musical Plaza, etc. the tidy and admirable environment earns it the reputation as a national sanitary city. 20% of the city area is covered with green fields. The harmless garbage disposal of the city hits 100%, and the sewage treatment 90%. The city boasts pleasant residential environment and excellent subsidiary service of real-estate management in residential areas. The living space per capita in the urban and town area is 15 square meters.

There are about 50 medical institutions in Jinhua at present. Jinhua Central Hospital, known originally as the Evangel Hospital of Jinhua, founded by an American doctor in 1908, is now a top hospital of the city, with tidy and pleasant environment, complete medical domains and facilities, and advanced medical level. Among other hospitals, the Hospital of TCM, Guangfu Hospital, and People's Hospital, all boast considerable scales, admirable facilities and high medical skills.

8. Services Available

▲Government Service

The municipal government of Jinhua has been working hard at constructing an administrative system that conforms to the international rules or practices. It aims at creating an image of being public, fair and efficient within the framework of laws while sticking to handling the administrative affairs in accordance with laws and building a government that provides services and administrates justice, being efficient and pragmatic, as well as honest and clean.

The government authorities of Jinhua concerning foreign service mainly include: Commission of Development Planning, Bureau of Foreign Trade & Economic Cooperation, Administration of Industry & Commerce, Administration of Foreign Exchange, Bureau of Commodity Quarantine & Inspection, China (Jinhua) Customs, etc., which operate with clear-cut responsibilities and high efficiency. The Administrative Service Center of the City offers package agency service to investors, and the municipal government has specially set up a Complaint Center to handle enterprise complaints about the environment of economic development.

To invest in Jinhua, you may turn to authorities concerning foreign affairs, which are the Administrative Service Center, the International Commerce-Promoting Center of Jinhua or other foreign-investment service agencies, for going through the formalities of investment, consultation, examination and approval, and so on.

▲Agency Service

Various intermediary services are available in Jinhua concerning personnel exchanges, social insurance, labor arbitration, notarization, accounting, auditing, tax accounting, etc. Foreign-invested enterprises are free to choose the necessary services in accounting, laws, notarization, auditing, assessing, counseling, etc.

9. Government Policies towards Investment

The major laws concerning foreign investment include the following three and their rules for implementation: the Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures, the Law on Chinese-foreign Cooperative Enterprises and the Law of the People's Republic of China on Foreign-Capital Enterprises. Foreign-invested limited-liability companies should observe the Company Law of the People's Republic of China, unless otherwise regulated by the three above-mentioned laws. The contracts for the establishment of foreign-invested enterprises, signed by Chinese and foreign investors, belong to the category of foreign economic contracts, which are to be under stipulation of The Contract Law of the People's Republic of China.

A series of laws concerning the establishment, operation, termination and liquidation of foreign-invested enterprises has been passed and enacted in China to effectively protect the legal rights of the investors from both home and abroad.

10. Favorable Terms

At present the Chinese Government has adopted low taxation policies for foreign-invested enterprises and reduced taxation or taxation exemption policies for investment in industries or regions that are encouraged by the government. Apart from the same favorable policies of the country for taxation and support, the foreign-invested enterprises in Jinhua can also enjoy the following favorable terms adopted by the municipal government of Jinhua for investment.

Industrial manufacturing projects with foreign capital of over US $5 million (registered capital) will be favorably considered in terms of water, electricity and land supply. Once the foreign capital is in place, based on the payment for the land use, awards will be granted at different levels. These awards should be specially used in the infrastructure of the projects. The details are: for projects over US$ 5 million (including $ 5 million) but under US$ 10 million, the awards are 15%-25%; for projects over US$ 10 million (including $ 10 million) but under US$ 20 million, the awards are 25%-35%; for projects over US$ 20 million (including $ 20 million) but under US$ 30 million, the awards are 35%-50%; for projects over US$ 30 million (including $ 30 million) or industrial manufacturing project of high technology invested by the top global 500 companies or multinational corporations, more favorable terms may be considered.

For advanced manufacturing or high-tech projects of foreign-capital investment, if the investment intensity (actual capital in place per capita mu) reaches a certain standard, once the foreign capital is in full place, based on the payment for the land use, awards will be granted at different levels. These awards should be specially used in the infrastructure of the projects. Details are: for projects with investment intensity over US$200,000/mu (including $200,000/mu), the awards are 10%-15%; for projects with investment intensity over US$250,000/mu (including $250,000/mu), the awards are 15%-25%; for projects with investment intensity over US$300,000/mu (including $300,000/mu), the awards are 25%-35%; for projects with investment intensity over US$350,000/mu (including $350,000/mu), the awards are 35%-50% (awards are granted only once according to the highest level and should not be repeated with the previous term).

For agricultural projects with foreign capital, on top of the favorable terms set by the state government, 30-50% of the local retained portion of the enterprise taxation will be awarded to these enterprises in the manner of revenue transfer payment for a term of 2-3 years. More favorable terms will be awarded to acknowledged “high-tech” projects or modern agricultural projects.

Besides, more favorable terms will be granted to foreign investors in various kinds of development zones and industrial parks.

11. Investment Costs

The Investment Cost on Your Part in Founding a Company

▲Registration Fee

0.8‰ of the registered capital if it is equal to or less than 10 million yuan;

0.4‰ of the registered capital if it is over 10 million but less than 100 million;

44 thousand yuan if registered capital is equal to or over 100 million yuan.

▲Capital-Confirmation Fee

300 yuan if registered capital is equal to or less than 100,000 yuan;

500 yuan if registered capital is over 100,000 yuan but is equal to or less than 500,000 yuan;

1,000 yuan if registered capita is equal to or over 500,000 but equal to or less than 2 million yuan;

0.35‰ of registered capital if it is over 2 million but equal to or less than 10 million yuan:

0.2‰ of the registered capital if it is over 10 million

▲Land Use Compensation

For business and residential use: 1,500-4,000 yuan/m2 (for reference)

For industrial use: 150-180 yuan/m2

▲Housing

Residential housing: 2,000-3,500yuan/m2 (for reference)

Employee apartment within industrial park: 730-750 yuan/m2 (for reference)

Monthly fee for property management: 0.5yuan/m2

Rent of standard plant: 5-8yuan/m2

▲Plant Building Cost (for reference)

Frame structure (multi-floor) construction cost: 550-650 yuan/m2 (construction area)

Brick and concrete structure (multi-floor) construction cost: 450-550 yuan/m2 (construction area)

Light steel structure construction cost: 450-550 yuan/m2 (construction area)

▲Electricity Cost

For strong industries: 0.526-0.556 yuan/kwh

For peak-hour use: 0.621-0.657 yuan/kwh

For non peak-hour use: 0.405-0.428 yuan/kwh

For non-industrial or common industrial use: 0.721-0.756 yuan/kwh

For commercial purpose: 0.912-0.947 yuan/kwh

▲Water Cost

For daily-life use: 1.8 yuan/t

For commercial use: 2.5 yuan/t

For industrial use: 2 yuan/t

▲Cost of Labor

Common workers: 580-900 yuan/month

Skilled workers: 800-1,200 yuan/month

Highly skilled workers: 1,200-4,000 yuan/month

▲Communications Cost

Telephones

     Program-controlled Telephone:

One-time Installation fee: 108 yuan

Monthly rental charge: 18 yuan

     Cell Phone: a monthly rental charge of 50 yuan for each

Expenditure of Dial-up Internet Service

    16300/96163 common user Internet Phone Charge: 0.02yuan/minute

     Internet dial-up charge: 0.015 yuan/minute

ADSL charge for company users:

1M: 160+(n-1)X 40yuan/month

2M: 200+(n-1)X 50yuan/month

▲License Fee

Ratification Certificate of the enterprise: 30 yuan

Registration fee of the company name: 100 yuan

License Fee: 50 yuan

Certificate of the enterprise code: 148 yuan

  II. Special Industry

1. Agriculture

A land flowing with milk and honey, Jinhua boasts plentiful resources. Abundant in farm produce and local specialties, it gains such names as "Second Largest Grain Depot of Zhejiang", "Home to Fruits", "Home to Camellias", "Home to Xianggu (a kind of dried mushroom) ", "Home to Medicinal Materials", and "Milk-Cow Base in Southern China". The favorable climate and plentiful natural resources provide advantageous conditions for the development of agriculture here. Among grain crops are over 400 different kinds of rice, wheat, legumes, potatoes, grain sorghums, millets, etc. Cash crops include cotton, oil plants, silkworm cocoon, sugarcane, melons, vegetables, edible mushrooms, tea, fruits, mulberry, medicinal materials, flowers, and local specialties such as mat straw, lotus seeds, Chinese chestnuts, Chinese torreya nuts, etc., which cover more than 400 types of over 70 groups. Other agricultural sideline products include hams of Jinhua, pigs, sausage, canned foods, ever-fresh and frozen vegetables, dairy products, bean products, rice wine of Jinhua Prefecture, lotus-root starch, shortbread of Jinhua, candied dates, Xianggu (dried mushroom) of Pan'an, Xuanping lotus seeds of Wuyi, ginger roots of Yongkang, etc. Fruit products of Jinhua include oranges, waxberries, strawberries, watermelons, muskmelons, candied pears, green dates, cherries, kiwi fruits of Wuyi, peach-shaped plums of Pujiang, ping-pong-sized grapes, etc. Special flowers from Jinhua include more than 200 varieties of camellias, fingered citrons of Jinhua, jasmines, orchids, etc. The animal husbandry of the city, featured by its pigs and milk cows, holds a decisive position in the province of Zhejiang.

Highly developed agricultural products in Jinhua include dairy products, flower and seedlings, vegetables and fresh fruits, tea, Chinese medicinal herbs and various kinds of edible fungi.

With its advanced cropping skills, Jinhua enjoys a complete range of different varieties of vegetables; its asparagus, Xianggu (dried mushroom) and fresh and frozen vegetables sell well to as far as Japan, west Europe and elsewhere. As the low-hill yellow earth of the area is rich in organic matter, and the environment is protected well from pollution, Jinhua is an ideal base for organic vegetables.

In the ascendant are the distinctive agriculture and the farm-based comprehensive agricultural development in Jinhua. The tourist agriculture, relaxation agriculture and export-oriented agriculture of the city enjoy large scales of development and they have reached a high standard. The construction of various experimental zones and demonstration parks of agricultural technology is also fruitful.

Jinhua is famous for its numerous famous-brand local specialties of high quality, some gaining names across the country or even throughout the world. For instance, the ham of Jinhua is renowned both at home and abroad for its aroma, color, taste and shape. Also very famous are Jinhua's fingered citrons, sausage, lotus root starch, green tea, jasmine tea, organic tea, shortbread and rice wine of Jinhua Prefecture, Lanxi's candied dates and green soy beans, Yiwu's dates, Wuyi's Xuanping lotus seeds and Chinese kiwi fruits, Yongkang's ginger roots, Pan'an's xianggu (dried mushroom), Dongyang's Chinese torreya nuts, and the Chinese traditional medicines of Pan'an’s and Dongyang’s, such as baishao (radix paconiae alba), yuanhu (Corydalis yanhusuo W.T. Wang), baishu (Atractylodes macrocephala Koiz), zhebei (fritilleria thunbergii), tianma (rhizoma gastrodiae), and so on.

2. Industry

Known as "Home to Crafts," Jinhua enjoys highly developed private-sector economy, with its industry mainly supported by manufacturing sector. It is an important manufacturing base in the southern wing of the Yangtze River Delta Economic Zone with its center in Shanghai.

During the last several years, by vigorously implementing the opening-and-guiding strategy and improving the investment environment, Jinhua has succeeded in optimizing its industrial structure and concentrating its resource allocation on strong industries and enterprises, so that a lot of trades competitive both in and outside the country are full-fledged here. The massive economy and the strong industrial clusters, characterized by their flexible mechanisms, distinctive regional features and industrial agglomeration, are influential in China. The China Commodity and Hardware Manufacturing Centers, based on the China Commodity City and the China Hardware and Technology City respectively, are burgeoning.

Jinhua is an important base of the country for production and export of electric tools, clothing and textiles, hardware, medicines, magnetic materials, light-industry commodities and ornaments, fluorine chemical products, fine chemical products, cultural and educational facilities, etc.

Commodities for daily use, small hardware tools, wood carving products and crystal art have sold well to other parts of China and overseas.

Traditional handicrafts have been flourishing in Jinhua. The wood carving and bamboo weaving in Dongyang, the straw plaiting, lace purling and crystal carving in Pujiang, and the hardware crafts in Yongkang, all enjoy a long history of development and the products sell well both at home and abroad .

A group of renowned enterprises in China have grown up in Jinhua, among which are Hengdian Group, China Commodity City, Zhejiang Guangsha Co. Ltd., Zhejing Jianfeng, Jinhua Neoplan Vehicle Co. Ltd, DMEGC, Langsha Group, Zhejiang Conba Pharmaceutical Co. Ltd., China Buyang Group, Qunsheng Group, China Xingyue Group, Wangli Group Co. Ltd., Liziyuan Milk, etc. Other renowned companies both home and abroad are China Huaneng Group, Top Software, Norinco Motors, Geely Holding Group, Zhejiang University Insigma Technology, Ginde Development, 999 Group, Asia Pharmaceutical Group (Hainan), Qingdao Eastern Industrial Group Co. Ltd. and some global 500 companies have set up production bases or cooperation relationships in Jinhua such as Itochu Corporation and Sumitomo Electric of Japan, Hyundai Motor of Korea, ThyssenKrupp Elevator of Germany, Man Ag of Germany, Neoplan of Germany.

To accelerate the speed of manufacturing industry development, Jinhua works at its full potential to build “one base, two centers and five industrial areas”. The one base refers to the automobile production base in central Zhejiang for the production of cars, motorcycles and auto parts; the two centers refer to the China manufacturing center of commodity of daily consumption based on China Commodity City, and the China hardware & tools manufacturing center based on China Hardware City; and the five industrial areas refer to the modern pharmaceutical and fine chemistry industry, green food processing industry, new-type electronic material industry, new-type construction material industry and high added-value industry. Jinhua will grow into an important base of the advanced manufacturing industry and the core area of the industrial belt of Jinhua, Quzhou and Lishui.

      Automobile, motorcycle and auto parts

Jinhua has become an important production base of automobiles, motorcycles and auto parts in China. There are 10 producers of whole automobiles, motorcycles and vehicle reconstruction, as well as over 300 producers of auto parts for vehicles and motorcycles. Among them 126 are big producers for luxury buses, mini passenger cars, vehicles for farm use, motorcycles, vehicle gears, transmission, bodywork, motorcycle engines, motorcycle shock absorbers, aluminium alloy wheel hub, etc. The Neoplan Automobiles Co. Ltd. of Jinhua has introduced the advanced bus production technique from Germany and has developed 45 models of luxury bus of 9 series. Zhejiang Zhengyu Electromechanical Co. Ltd. has already had the annual production capacity of 60,000 pickups.

        Hardware manufacturing

Hardware manufacturing industry led by the China Hardware City is the traditional feature industry of the city and it produces metal smelting and mangling, metal products, electric tools. The 10,000 enterprises make the city of Jinhua a production base for export tools in China. The export of many categories of tools take up a large percentage in China, such as electric tools, security doors, sliding doors, industrial measuring tools, locks, small hardware, and so on. This industry has produced a group of influential leading enterprises and famous name-brands and their products have been sold to the whole world.

  Commodity manufacturing

The commodity manufacturing industry led by the China Commodity City is the largest industry of the city of Jinhua. It covers a variety of products from over 33,000 producers. The total output value of this industry tops 70 billion yuan. The major products include textile products, garments, commodities for daily use, paper, printing, leather products, and art crafts. Among them, shirts, socks, seamless underwear, crystal crafts, and articles for decorations have occupied the largest share in the Chinese market.

     Pharmaceutical and chemical industry

Pharmaceutical and chemical industry is the one that is specially supported by the municipal government of Jinhua. Jinjua is the home to “the eight herbal medicines of Zhejiang” and is also the home of fluorites in China. It is rich in the deposit of fluorine. With the developed technology and the market share, this industry has a solid foundation for further growth. The whole city has 152 enterprises of considerable scales within this industry. Major products are Western medicines, Chinese medicines, medical intermediates, fluorite products, fine chemical products, paints, coating and activators.

      Electronic material industry

The electronic material and spare parts industry has taken shape in Jinhua. At present it is home to the largest magnetic material production base and producers. Major products are resonators, tube-shaped ceramic condensers, IC chips, magnetic materials, conductive glasses, AL203 ceramic parts, electronic dust removers, etc. Among them, permanent ferrite magnet and resonators account for a domestic market share of 70% and 80% respectively.

       Food processing industry

Food processing industry is a traditional industry in the city of Jinhua. There are 98 enterprises of considerable scales. The leading products are dairy products, beers, Chinese hams, canned food, MSG, fresh and frozen vegetables, edible fungi and organic tea. Chinese ham has a market share of 75% in China and the export of dried mushrooms takes up 80% of that of the whole country. The planting area of organic tea hits 15% of that in China. The city produces 107,200 tons of milk.

       Building materials industry

Building materials industry is a another traditional pillar industry in Jinhua with about 1100 producers and a total output value of 4.5 billion yuan. There are 31 producers of cement which is the leading product of this industry, with an annual production capacity of 14.7 million tons. The average enterprise production capacity is 470,000 tons, which is in the leading position in China.

3. Trade and Commodity Interflow

From ancient times on, Jinhua has been a prosperous market and it is also a distributing and circulating center in the mid-western part of Zhejiang Province. It hosts 377 trade markets or fairs with a total volume of business of 89.91 billion yuan in 2005. The China Commodity City in Yiwu is the largest distributing center of daily commodities in China with an annual volume of business of 28.849 billion yuan. It attracts 5,000 customers from home and abroad every day. The volume of business of Chine Hardware City in Yongkang tops 10 billion yuan every year. Other trade centers like Jinhua Auto City, Flower and Seedling City, Jinhua Shopping City all have their special features and extensive scales. They have brought huge opportunities to the investors and have great potential to the development of the economy in Jinhua.

The annual China Yiwu International Commodity Expo and China Yongkang Hardware Expo have become highly influential occasions both home and abroad.

So far Jinhua has the advantage of a market system that features modern shopping centers, special wholesale business and traditional fairs, as well as being multi-level, multi-function and multi-channel. New business models like chain store management, commodity distribution and e-business, and the circulation of the commodities have had a fast development. Modern commodity interflow in Jinhua has taken shape based on the Golden-Triangle Interflow Center and Yiwu International Interflow Center.

4. Foreign Trade and Economy

In 2005, Jinhua's total amount of self-operated import and export hit US$4.722 billion, 4.327 billion of which came from export. More than 1,000 sorts of products in 24 categories, such as electromechanical equipments, textiles and clothing, pharmaceutical and chemical products, non-ferrous metal, manufacturing crafts, foods, etc., were exported to 183 countries and regions including Hong Kong, EU, USA, Japan, Taiwan, Korea, etc. By the end of 2005, the city has ratified the establishment of 1,680 new foreign-invested enterprises with a total investment of US$4.5 billion. At present, there are 1,033 foreign- invested companies in Jinhua from over 60 countries or regions in the world. Jinhua has founded close to 100 companies or businesses outside the country, which have undertaken a series of foreign economic and technological cooperation and project-contracting business.

5. Tourism in Jinhua

Jinhua is a city with long history and beautiful mountains and river valleys. It hosts quite a lot of places of historic interest. They are scattered throughout the whole area of the city, which makes it a big tourist attraction in the southeastern part of China. It is also known as the “city of cultural and historical relics”. In the city the forest coverage reaches 60% and it is an outstanding tourist city and sanitary city of the provincial level.

The marvelous Double-Dragon Scenic Resort, a national attraction, is characterized by its dense woods and peculiar caves. The rock-and-water spectacles, the magnificent sight of wind and fog, and the cave paradises, are particularly impressive. Among all the caves the most famous are the Double-Dragon Cave, the Ice-Pot Cave, the Pilgrimage Cave and the Celestial-Cataract Cave. Also in the Resort are the relics of the Ancestral Temple to Huang Daxian (Huang the Great Immortal), a Taoist deity familiar to people living in Hong Kong, Macao and Taiwan. Among other key provincial and county-level scenic spots, the Six-Hole Mountain, the Xianhua Mountain, the Longtan-Dalaikou Scenic Area, the Sandu Rock Screen and so on, also attract a great number of overseas and domestic visitors every year.

Jinhua's folk customs are remarkable as well. The Twin-Wood Forest around the Grand-Buddha Temple, the bullfight in Jinhua, the temple fair in Fangyan District, the Pujiang Taige ceremony with kids on hand-carried stage, and the charcoal-fire treading in Pan'an, are all fascinating places or customs.

In recent years some new scenic spots have come to the fore, such as the Hengdian Movie City in Dongyang (known as the Oriental Hollywood), the Eight-Diagram Village of the Zhuge Family in Lanxi, the Guodong Ecological Village and the Yuyuan Taiji-and-Aspect Village in Wuyi, the Grand-Buddha Temple and the Chisong Taoist Abbey in Jindong, the Jiaxi Brook in Pan'an, the Shuanglin Scenic Resort in Yiwu, etc. Besides, there are many other cultural relics that are under special protection of the state, including the Official Residence of King Shiwang of the Taiping Heavenly Kingdom, the Mahavira Hall of the Song-Dynasty Tianning Temple, the Kiln relics of Tiedian in Jinhua, Eight-hundred Hall of the Mount Huang in Yiwu, Huqiao, the Eight-Chant Tower (located in Jinhua), the Ming-and-Qing-Dynasty residence of the Lu Family (in Dongyang), the Zhuge-Changle Folk Residences of the Ming and Qing Dynasties (in Lanxi), the Temple of Prolonged Blessings (in Wuyi) and so on.

In recent years, Jinhua has taken full advantage of it travel resources and increased its investment in this field. Featured traveling programs are on the rise such as natural scene tours, folk customs tours, temple tours, shopping tours and gourmet tours.

The city hosts two state-level scenic resorts (Shuanglong Cave and Fangyan), two scenic resorts of national 4A level, three holiday resorts of provincial level, seven scenic resorts of provincial level, ten historical and cultural relics under state protection. Jinhua has become a hot spot for tourists.

III. Featured Expositions

1. China Jinhua Fair of Cooperation in Industrial Science and Technology

China Jinhua Fair of Cooperation in Industrial Science and Technology is held in the city of Jinhua in late October every year. The Fair aims to demonstrate and promote the research products, sponsor forums of scientific and technological innovations, and organize technological cooperation through the efforts of the municipal government of Jinhua and institutions of higher education. It also aims at the promotion of cooperation between science and economy and the transfer of results of scientific research. It is a comprehensive fair for cooperation in science and technology, talents exchange, investment invitation, and discussion of economy and trade. Up to 2005, six fairs have been successfully held. Representatives of enterprises from 10 countries or regions like the USA, Canada, France, and Sweden have participated in the fair. 23 foreign-invested projects have been signed with a total investment value of US$141.4million. Intended investment totaled US$80.337million.

2. China Yiwu International Commodity Exposition

China Yiwu International Commodity Exposition started in 1995 and is now held on Oct. 22-26 every year in the Mei Lake Conference Center in Yiwu. So far ten expositions have been successfully held. It aims at “facing the world and serving the country” and it promotes the exchange of commodity and trade cooperation, boosts the export of commodities, improves commodity manufacturing techniques and pushes the development of regional economy by means of exhibitions of commodities, discussion of trade, introduction of commodities as well as forums and lectures. During the 2005 Expo, 1,700 enterprises sent their representatives and there were 14,219 overseas participants, 72 overseas purchasing groups, and 15 multinational retailer delegations. The sales volume totaled 8.098 billion yuan, among which 661 million yuan were from export.

3. China Hardware Exposition

China Hardware Exposition first started in 1995 and is now held on Sept. 26-28 in the China Hardware City in Yongkang. So far ten expositions have been successfully held. Through exhibitions, trade discussions, technological cooperation, talents recruitment and e-exposition, the Hardware Exposition tries to promote the trade of hardware, improve the hardware manufacturing techniques, and accelerate the cooperation and exchange of technology. The exhibits include hardware and tools, electric-mechanical equipment, building hardware, and water and heating equipment. 270,000 people attended the tenth China Hardware Exposition in 2005, 6,500 of which were customers and agents from over 30 countries or regions such as the USA, Japan, Korea, Australia, and Spain, and so on. 1,200 enterprises from China sent their representatives. The sales volume totaled 5.13 billion yuan, among which US$330 million were from export. 535 agreements on technological cooperation and 126 letters of intent were signed.