Capital of  China Canal, Hometown of Han Xin

Huaiyin

Investment Guidebook
             To invest in  Huaiyin, develop in Huaiyin and create brilliance in Huaiyin

Welcome
 Huaiyin, a city with long  history, boasts outstanding personalities and cultures. It was over 2200 years  ago that the Qin Dynasty established county system here. In the period of Ming  and Qing Dynasties, Huaiyin was among the four great metropolises along the  Beijing-Hangzhou Grand Canal: Suzhou, Hangzhou and Yangzhou.  Besides that, as one of main urban areas of Huai'an City, Huaiyin is hometown  of Zhou Enlai—the first primer of new China. The city is also famous for  its historical elites, such as the great militarist Han Xin, master of Han Fu  Mei Sheng and Mei Gao, master of Chinese pharmacology Wu Jutong, and sculptor  Hua Tianyou.

Huaiyin lies in unique  location and enjoys convenient transportation. Early in ancient times, Huaiyin  was awarded as “Thoroughfare to capital whether in landway or in waterway” and “Artery  to nine provinces and Throat of seven provinces”. Today, Beijing-Shanghai Expressway,  Nanjing-Huaian Expressway, Nanjing-Lianyungang Expressway, Tongjiang-Sanya Expressway,  Xuzhou-Huaian-Yancheng Expressway, 205 National Highway and 325 Provincial  Highway meet together within Huaiyin; Xinyi-Changxing Railway, which connects  with Longhai Line, runs across the whole boarders; Beijing-Hangzhou Grand  Canal, Old Yellow River, Yanhe River and sea-entering channels of Huaihe River  interlace here; thus a transportation network with high-level highways as  backbone and simultaneous development of waterways, landways and railways has taken  shape. Furthermore, since it is only 15 kilometers away from Huainyin to Huai’an  Civil Airport, which will be completed and put into operation in “the eleventh  five-year plan”, Huaiyin’s pivot transportation position in Jiangsu Province  even in East China will be further emphasized.

Huaiyin enjoys excellent  environment and abundant resources. It has climate features of both southern  and north areas concurrently: distinct seasons, sufficient rainfall and  pleasant climate. At present, 10 big production bases of agricultural  byproducts, including vegetables, economic forest, Siji goose and meat pigeon,  have been established; besides, Lingqiao Rice, Suyue Braised Pigeon, Laohou  Wild Duck and some other local products with unique features have become famous  in and out of Jiangsu.  Moreover, Huaiyin boasts abundant mineral resources: it possesses halite and  mirabilite mines with largest reserves in East China,  which has high value for exploitation because of thick mining deposits and high  quality.

Huaiyin is vigorous city  with good governance and harmonious people. Project concentration areas including  Province-level Huaiyin Economic Development Zone, Huaiyin New Industrial Zone and  Rural Industry Centralized Area have been established initially. The areas,  with complete infrastructures, attract various enterprises and businessmen. Huaiyin  has complete industries with distinct features: salt chemical industry,  mechanical manufacturing, textile clothing, agricultural byproducts processing  and other industries have taken shape. In particular, Huai’an Export Processing  Zone has obtained approval of the State Council. Taiwan Honhai Group (Foxconn),  one of the 500 World Top Enterprises, has landed in Huai’an, and some other  renowned national and foreign enterprises, including BenQ, TG Glass, Shagang,  Midea, Zhenda and Shineway, have also settled down in Huai’an, which accelerate  Huaiyin’s steps to new-type industrialization. In 2007, regional gross value of  production of Huaiyin reached 10.72 billion yuan; gross value of production per  capita reached 12,908 yuan; financial revenue reached 1.005 billion yuan, and  industrial added value reached 4.833 billion yuan. Besides, honest and  pro-business humanistic environment, effective and convenient services  environment, safe and comfortable living environment of Huaiyin have been  rewarded comments from external investors from various places.

CPC Huaiyin District  Committee and District Government warmly welcome friends of various circles  from home and abroad to take sightseeing tours, make investment and establish  enterprises here. We will provide you with excellent services, outstanding  environment and preferential policies to strive for development, look for  business opportunities and create a bring future together!

CPC Huaiyin District  Committee

People’s Government of Huaiyin  District

Huaiyin  Overview              

Huai’an (former Huaiyin  City) is a city of Jiangsu Province;  it is located in East China and center of North Jiangsu  plain. Huaiyin got its name because it was situated on the south of Old Huaihe   River. Huaiyin lies in  juncture of north subtropical region and temperate zone; it is also on the  golden north-south parting line of eastern coastal area of China, and on the grand external  ring of the economic cycle of the Yangtze Delta. Huaiyin is 400 kilometers away  from Shanghai, 198 kilometers away from Nanjing and 100 kilometers away from Lianyungang. It is also the hometown of the  first prime minister of the People's Republic of China:  Zhou Enlai, a national famous historic cultural city, national outstanding  tourism city, national sanitary city, national garden city, as well as a  north-south transportation hub in East China,  production and sales base of important agricultural byproducts and an emerging  industrial base.

Huaiyin is under the jurisdiction of  Huai’an City, which is the hometown of Chinese ancient militarist Han Xin and  governs 21 towns, 249 administrative villages and 880,000 populations; Huai’an  owns an area of 1264 square kilometers, among which there is 980,000 mu  farmlands, 150,000 mu woodlands and 380,000 water surfaces. Huaiyin is located  in the nearby position of state grade 1 and 2 development axial lines,  including the line along the Yangtze River,  coastal line and east Longhai line. It not only forms a component part of the  three axial lines, but also benefits from the “three-direction radiation”.

Huaiyin lies on the golden coastline of  economic development in coastal area in East China, which is one of the areas  with fastest economic development in China. Huaiyin was awarded titles  of “one of areas with energetic private economy in China” and “Potential city of  investment from enterprises of Shenzhen and Hongkong”. At present,  comprehensive strength of Huaiyin ranks the first among the eight counties and  districts in Huai’an.

A famous  city of China 
Huaiyin is a former revolutionary area and  hometown of many heroes. The famous Liulaozhuang battle during the  anti-Japanese war occurred here. In March, 1943, 82 heroes of company four of  battalion two of regiment nineteen of brigade seven of division three of the  new fourth army composed a striking and moving heroical here. After the victory  of the war, former Su-Wan Government was founded here. Heroic Huaiyin people  made great contribution to liberating undertaking of Chinese people and  foundation of new China.

Huaiyin is the oldest city in Huaihe River    Basin; ancient people lived here in the  Palaeolithic Age, and created brilliant historic culture here. Over 2200 years  ago, Huaiyin County was established by Qin dynasty, which united China, and  Huaiyin became a famous city of China during Han and Tang dynasties and reached  its most celebrated period during Ming and Qing dynasties, it was then called  “the four great metropolises along the Beijing-Hangzhou Grand Canal” together  with Suzhou, Hangzhou and Yangzhou.

Hometown  of celebrities
Huaiyin is a propitious place full of  outstanding personalities, it cultivated and brought up Han Xin, Mei Sheng, Mei  Gao, Bu Zhi, Zhang Lei, Gong Kai, Wu Jutong and so on. By dipping their brushes  in Huaihe River, celebrities of various  generations wrote undying historical articles to tell spirits of sword and  zither of Huaiyin people, and make great contribution to advancement of society  and development of human civilization.

A  metropolis along the Grand Canal
Huaiyin is the birthplace of the  Beijing-Hangzhou Grand Canal. In 486 BC, Fu Chai, King of State Wu, built Han  canal, which connected two large water systems: Yangtze River and Huaihe River.  From then on, Huaiyin has been located at the junction of the Canal and Huaihe River.  In the period from Song dynasty and Qing dynasty, Huaiyin was a hub of canal  transportation and an important place of water controlling. Emperors Kangxi and  Qianlong of Qing dynasty came here on tours of inspection for six times  successively, they examined river engineering project and supervised canal  transportation here. In thousands of years, Huaiyin was famous all over China for  titles of “Throat of seven provinces”, “Thoroughfare to nine provinces” and  “Horses in the north, boats in the south”.

Jiangsu Huaiyin Economic Development Zone 
Jiangsu Huaiyin Economic Development Zone  was approved to be a provincial level development zone by provincial government  in December, 2006. The Development Zone is located in the north side of Huai’an  main city zone, it is neighboring to Yanhe River, which is a state grade 3  water way, in the south, and is close to Ning-Lian (Nanjing-Lianyungang)  Expressway in the north and Jing-Hu (Beijing-Shanghai) Expressway in the east,  and the zone is connected to Xu-Yan (Xuzhou-Yancheng) Expressway in the west,  and Xin-Chang (Xinyi, Jiangsu-Changxing, Zhejiang) Railway goes across the  zone. Besides, Huai’an main station of railway passenger transportation and  Huai’an north station of bus passenger transportation are within the  Development Zone, and 4 north-south trunk roads are connected directly to the  urban area, and the Development Zone is well connected to Huai’an Development  zone. Moreover, Huaiyin Economic development zone is only 20 kilometers away  from Huai’an Airport, which is under construction. Such convenient internal and  external transportation is the best in North Jiangsu.
Planned area of the Development Zone is  totally 60 square kilometers, built-up area of traffic, electricity, water,  drainage, telecommunication, cable TV, coal gas, and natural land consolidation  (seven connections and one leveling) reaches 15 square kilometers, class 1 and  2 industrial projects with over 30 million yuan fixed assets investment (or 3  million dollars foreign capital) gather in the zone. Stage-three infrastructure  construction of 15 square kilometers has been promoted comprehensively. Nearly  1 billion yuan was invested totally in built-up area, and 13 primary and  secondary trunk roads, including Shenyang    Road and Nanchang  road have been constructed, the overall mileage reaches 48 kilometers,  afforestation area within the zone reaches 1.6 million square metes, and the  afforestation rate is 35%. Supporting facilities within the development zone is  becoming more and more complete, sewage disposal plant (Stage-2 completed in  2008) with 20,000 ton daily treatment capacity has been built, besides,  thermo-electric plant is also constructed, and three gardens inside the garden:  “Ning-Huai industrial garden, “Wenzhou industrial garden” and “Qianjiang  Pioneering Garden are newly built, they have standard plant of 150,000 square  meters, businessmen are invited comprehensively. 274 enterprises had settled in  the garden till the end of 2007, 7 billion yuan fixed asset investment has been  completed, and six characteristic industries--- household appliances, machine  manufacturing, textile clothing, automobile and auto-bike fittings, extension  of black materials and wood processing have been formed. Enterprises in the  garden include 24 foreign-funded enterprises and 116 government-listed  enterprises. Huai’an Zhenda Steel Tube Manufacturing Co., Ltd. became the first  enterprise whose sales amount exceeded 2 billion yuan in eight counties and  districts in Huai’an, Wanbang Aromatic Chemicals Industry Co., Ltd. became the  first listed company in Huai’an, Huihuang Solar Energy became the first China  renowned brand in Huai’an. Furthermore, Stage-One project of Suntory Beer, the  first enterprise who invested in Huai’an among the top 500 enterprises in the  world, has been completed and put into production, and Shineway Group, the  first state-level agricultural leading enterprise in China, has settled in the  Development Zone successfully.

Huaiyin  Industrial New Zone
Huaiyin Industrial New Zone is located in  Zhaoji and Nanchenji in Huaiyin District; it was founded on the basis of Hexi  Branch of Salt Chemical New Zone of Huai’an Industrial Garden, and is an  organic part of Salt Chemical New Zone of Huai’an Industrial Garden. Planned  area of the Industrial New Zone is 7.55 square kilometers, the earlier-stage  Start-up zone is 3.62 square kilometers. The Zone possesses 21.5 billion ton  halite and 1.43 billion ton mirabilite in Zhaoji Subsag, the largest network of  exploration and transportation pipelines of bittern in East China has been constructed,  and the Zone is the main exporting base of anhydrous sodium sulphate in China. The New  Zone owns excellent water and land traffic conditions, and is located in  inter-junction of transportation hubs, which are very important in North  Jiangsu, even East China. Jing-Hu, Tong-San,  Lian-Huai, Xu-Yan and Ning-Huai expressways pass here; golden waterways---the  Beijing-Hangzhou Grand Canal, Huaihe River, Huaishu  River and Yanhe River  form a water transportation system covering all directions; and the capacity of  Xinchang Railway is improving continuously. Transportation network that extends  in all directions and transportation ways of highway, railway and waterway show  the transportation advantage of Huaiyin Industrial New Zone.
Function orientation of the Industrial New  Zone: the chemical industrial garden, which takes halite resource as its  support and salt chemical industry and deep-processing, fine chemicals industry  and complex material as its main contents, it is developing into a state-level  salt chemical industrial base with international advanced level gradually.
Industry development planning: a salt  chemical industrial structure, which takes salt chemical industry as its main  body, chemical manufacturing industry and producing-service industry as its  auxiliary industries, and high-tech and fine chemicals industry and related new  material industries as its strategic industries, will be formed.
Currently,  various infrastructures in the Industrial New Zone are being constructed  rapidly. In projects of transportation, roads, waterways, docks, power supply,  heat supply and sewage disposal, “five connections and one leveling” of 3.62  square kilometers earlier-stage start-up area will be achieved basically within  2 years. And “seven connections and one leveling” of 5 square kilometers will  be completed by 2010 to form an industrial base with regional characteristics.

Key  industries

1. IT industry
Taiwan Honhai Group (Foxconn), the largest  manufacturer of computer connector and computer bare system in the world, has  settled down in Huai’an, and initial stage investment of the group in Huai’an  was over 2 billion dollars. Consequently, nearly 100 matching enterprises will  be brought to Huai’an, and development of IT industry here will be accelerated  greatly.

2. Steel and machining industry
Current total asset of Jiangsu Shagang  Group Huaigang Special Steel Co., Ltd. is 6.96 billion yuan. During “the  eleventh five-year plan”, steel production and materials amount of the  enterprise will reach 3 million ton respectively, and its sales income will  reach 15 billion yuan, profit and tax will be 1.2 billion yuan, and the  enterprise will become one of the top 10 special steel enterprises in the  world. And presently, annual capacity of seamless steel tube of Huai’an Zhenda  Steel Tube Manufacturing Co., Ltd. has reached 300,000 ton, and its amount of  sales is 2 billion yuan.

3. Salt chemical industry
Reserves of halite and mirabilite within  Huai’an reach 130 billion ton and 1.43 billion ton respectively, and annual productive  capacities of salt chemical industries in Huai’an are: 1 million ton vacuum  salt, 100,000 ton caustic soda, 300,000 ton soda ash, 80,000 ton chlor-alkali,  1.2 million ton anhydrous sodium sulphate, 8000 ton ethephon, 3000 ton  hexachlorocyclopentadiene, and 40,000 aqua fortis. Production scales of  ethephon, hexachlorocyclopentadiene and anhydrous sodium sulphate rank the  first, the second in the world and the first in East China  respectively.

4. Agricultural byproducts processing industry
 Huaiyin is a national famous production  base of green and harmless agricultural byproducts, key production base of  commodity grain, as well as a base of high-quality oil, commercial pig and  commercial lamb. Huaiyin district has 980,000 mu farmlands, 150,000 mu cultivable  waters and 150,000 mu woodlands. Minkang Grease, Xinfeng Flour and other  leading processing enterprises in Huaiyin have taken shape.

5. Textile and garment industry
 Huaiyin owns completed “five textile  industries”--- cotton, hair, needle, silk and chemical fibre. Upstream and  downstream products of gauze, cloth, dye printing, knitting, silk and clothes  form a complete set. And production capacity of 80,000 spindles of cotton  spinning and 10 million garments has been achieved.

Preferential  policies

1. Policies of finance and taxation

For industrial and agricultural production  projects which are created by external businessmen (businessmen from out of  Huaiyin District) and whose investment and operation periods are over 10 years,  the policy of “two years’ rewards and three years’ halving” of partial  corporate-income tax kept by local government is performed from the year of  making profit, that is: the sum of the partial tax is  to those enterprises in the first two years by local finance, and half of it is  rewarded in later three years in order to support development of the  enterprises. For high-tech projects above provincial level and projects with  outstanding investment scale, further preferential treatments up to “five  years’ rewards and five years’ halving” will be provided. And for port, dock,  highway and other infrastructure constructions in Huaiyin District which are  carried out by external businessmen and whose operation periods are over 15  years, “five years’ rewards and five years’ halving” of partial  corporate-income tax kept by local government will be carried out from the year  of making profit.

1. Local stipulated fees policy

For solely invested, jointly invested and  cooperated industrial production projects in Huaiyin District which are newly  invested by external businessmen, local administrative stipulated fees which  should be paid by investors during construction process should be paid by  district-level finance.

1. Other preferential policies

According to nature, industry and quality  of invested projects, enterprises are assisted correspondingly in applying for  technical innovation funds, science and technology achievement transformation  funds, enterprise development funds and so on, and enterprises will be helped  to grow bigger and stronger.

Prices of Production Essential Factors
Ⅰ. Power supply
 Selling Prices of  Electricity Network (Sujia electric work [2006] 223)
 Yearly lump-sum  reward of 0.10yuan/kilowatt-hour are given to projects that settle in the  development zone

2. TOU power  price implementation standard (Sujia electric work [2006] 223)
 (1)  Implementation range: large-scale industries and normal industries of 100 Kva  (kW) and above; (2) Time intervals dividing: peak time: 8:00-12:00,  17:00-21:00; ordinary time: 12:00-17:00, 21:00-24:00; valley time: 0:00-8:00;  (3) implementation date: implement from July 1st, 2006; (4) Selling  prices of enterprise time-of-use electricity in Jiangsu province (unit: yuan/  kwh)

			Peak time	Ordinary time	Valley time
Large-scale industry	Non- priority	1-10KV	0.937	0.562	0.247
		35-110 KV	0.912	0.547	0.242
		110 KV	0.887	0.532	0.237
		220 KV and above	0.862	0.517	0.232
Normal industries of 100 Kva  and above	Non- priority	1-10KV	1.272	0.763	0.314
		35-110 KV	1.247	0.748	0.309
		110 KV	1.222	0.733	0.304

Ⅱ. Water supply

Ⅲ.Transportation

Expense of  transportation to ports:
 Presently, water  transportation international port   of Huai’an has not been  completed, therefore, articles are transported to ports through land  transportation, detailed transportation prices are as follows:

Ⅳ. Worker salary

Ⅴ. Gas supply

Ⅵ. Communication

Ⅶ. Capital construction