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Q & A
 
 
Basic data of TEDA
Transportation
Meteorological Condition
Investment
Land
Factory building
Public utilities
Tax
Human resource
Customs

 1. Basic data of TEDA

 1.1 Founded in: (year)

December 6th, 1984

 1.2 Area

Mother area 40 km2, 2nd phase: 48 km2

 1.3 Geographic location

In the north of China
130 km from Beijing, 40 km from Tianjin, 180 km from Beijing Capital International Airport, 5 km from Tianjin Port, 38 km from Tianjin Binhai International Airport.




 2. Transportation

 2.1 Most important ports

5 km to Tianjin port, the largest general port for international trade in the north of China, connected to 400ports in 180 countries.
Able to handle bulk cargo, container, liquid material.

 2.2 Railway connections

Six major railways to all directions in China.
Beijing-Tianjin-TEDA passenger express.
Tianjin-TEDA metro.

 2.3 Important road  connections

9 express ways
6 inter-province highways

 2.4 Nearest airport

180km (2hours) from Beijing Airport
38km (40mins) from Tianjin Airport
Terminal for passenger lines inside China
The largest cargo airport in China




 3. Meteorological Condition

 3.1 Annual average  temperature

12oC

 3.2 Average temperature in  Winter

2.3oC

 3.3 Average temperature in  Summer

25.2oC

 3.4 Annual rainfall

602.9 mm

 3.5 Prevailing wind direction  and its frequency

Generally, the prevailing wind is southwestern wind. In winter the prevailing wind is northwestern, southwestern wind is also frequent, while in summer southeastern wind dominate.




 4. Investment
4.1 Investment structure

 4.1.1 Number of foreign  funded enterprises 

2011(By the end of Dec.)

- 4999

 4.1.2 Countries where most  of our clients comes from

Hongkong (Note: many multinationals set their Asia-Pacific Headquarters in HK)
USA
Japan
S.Korea

 4.1.3 Pillar Industries

Electronics, Automotive, machinery, food, bio-pharmaceutical

 4.1.4 Major investment  projects

Motorola, Toyota, Novozyme




4.2 Investment procedure

 4.2.1 Types of investment

Wholly foreign owned company, joint venture, cooperative company

 4.2.2 Procedure for  establishing a corporation

consulting with TEDA EDB
prepare documents required and submit to TEDA EDB
Get certification and business license within 5 working days

 4.2.3 The minimum FDI  amount and FDI ratio

The amount of FDI shall be at least as following"

Productive oriented company: RMB 500,000 yuan
Wholesale oriented company: RMB 500,000 yuan
Retail oriented company: RMB 300,000 yuan
Technical develops, consulting and service oriented company: RMB 100,000 yuan

In principle, the FDI ratio shall be 25% or more of the stocks of a company.

 4.2.4 Which department to  contact

TEDA Economic Development Bureau (TEDA EDB)
Tel: 86-22-2520 1924, 2520 1365
Fax: 86-22-2520 1412

 4.2.5 How big is the time and  effort involved

Normally, a project under 30 million US dollars can be examined and approved by TEDA EDB directly. In case the industry is special or total investment is higher than 30 million USD, the project shall be approved by higher authorities in Tianjin or the state council, and TEDA can still help you to deal with these authorities in a short timeframe.

 4.2.6 How long does it take

In TEDA, we take 5 work days to handle the business license.

 4.2.7 Costs

Registered fee: The registered capital amount below 10,000,000 RMB yuan, 0.8/1000 of the registered capital should be paid; as for the part in excess, 0.4/1000 of this part should be paid. Registered fee cannot be charged over 44,000 RMB yuan.




 5. Land

 5.1 Total land area

TEDA east area has a total area of 40 sqkm and west area total area of 40 sqkm.

 5.2 What land options are  available for purchase or for  land grant?

As long as you have confirmed your size requirement, we will offer 2-3 land lot choices with layout drawings.

 5.4 What further costs are  applicable per year?

Yearly land use fee: RMB 1/m2

 5.5 What is the plot / building  ratio

Plot ratio required (construction size to land size): 0.5-1.2
Building covering ratio (building foundation size to land size): 30-45%

 5.6 What is the application  procedure for land grant?

First, apply to TEDA Economic Development Bureau for land purchase and received a favorable land price.
Second, sign the land transfer contract with TEDA Investment Holding Company, the land developer.
Third, go through the administration procedures in TEDA Land Administration Bureau to obtain the land use certificate and follow up with other construction procedures.

 5.7 What happens after the  expiry of the land grant  period of 50 years?

The customer may apply to TEDA government for extending the term of the contract.

 5.8 What are the  infrastructure supplies to the  land

All the land to be transferred in TEDA are equipped with necessary utilities. Electricity, water, gas, steam, sewage, communication, roads, etc are connected to the border (red line) of the land lot.




 6. Factory building

 6.1 Availability of existing  factory buildings

Ready to lease factory available from 1000 sqm to 10000 sqm

 6.2 Is lease possible, could  somebody else build and we  rent?

Both are possible

 6.3 Is workshop steel or  concrete

Steel construction.

 6.4 Is it possible for a
 turn-key project

Yes.

 6.5 The prices of the currently  available ready built factories

Negotiable




 7. Public utilities

 7.1 Power supply
  Available power supply  capacity
  Classification of voltage
  Price
  Reliability of supply

650,000 KVA
110KV, 35KV,10KV
Average cost RMB 0.6383-0.8623 per KWH depending on different voltages. In addition, TEDA also implement the alternative timing-based charges for customers, and cost is RMB 0.3578-1.1818 per KWH depending on different timings. (details)
TEDA made commitment to supplying non-stop electricity to customers. In the annual shutdown of electricity, the administration will inform the customers concerned one month in advance.

 7.2 Water supply
  Scale of available water  supply plant
  Price

at present, 425,000 T a day and the capacity in the post procedure will reach to 450,000 T.
Water consumption fee: Industrial & Transportation Enterprises:RMB 6.00 per (details)

 7.3 Heat supply
  supply capacity
  price

The whole capacity reaches to 1,630 T an hour.
Industrial & Transportation Enterprises: hot water for heating at RMB 7.80/m2; steam for industrial use at RMB 170/ton.(details)

 7.4 Gas
  supply capacity
  price

1,200,000 m3 a day
Natural gas: Industrial  Users RMB 2.70 per cubic meter. Notes: For customers with significant volume of usage, this price is negotiable.(details)

 7.5 Waste water disposal

According to layout of the area, the sewage system will have 16 pumping stations and 2 sewage farms in which the whole tonnage will reach to 11.2 m3/S.
Wastewater treatment fee: RMB 1.20 per ton. An enterprise whose waster water disposal facilities attested to have met National Grade-II Discharge Standard shall be exempt from sewage water treatment rates.

 7.6 Telecommunication

ISDN and IP phone services have already been available.
8M DDN line provided by China Telecom is the most advanced in the region of Beijing and Tianjin.
Broadband services of 1-10M are available to individual clients and services of 10-100M are available to company clients.



 8. Tax

 8.1 What taxes and charges  are applicable?

The corporate income tax rate for a hi-tech enterprise is 15% and that for the other types of enterprises is 25%.




 9. Human resource

 9.1 How to find personnel?

TEDA Talents Service Center can give free services, to publish ads in medias and websites. They can also give headhunting services for companies. The Talent Service Center has a service of recruiting labors from HR authorities of nearby provinces at lower cost. Professional school or high school education for skilled workers, junior middle school for common workers.

 9.2 What are the average  salaries?
  Intermediate Managerial  Staff
  Common Managerial Staff
  Ordinary worker

3,036~18,829
2,064~7,402
1,237~5,062

 9.3 What is the social security

Approx. 36% of the monthly average salary of the previous year.

 9.4 Information of local labor  resource
  population of the city
  university, junior college
  technical school

more than 10 million population, over 2 mil. industrial workers in Tianjin
 43 universities/colleges
230 professional schools




 10. Customs

 10.1 Customs Duty  Deductions

Imported capital equipments for self-use by a foreign-funded enterprise, the cost of which does not exceed the total amount of investment, shall be exempted from import duties and import VAT in case the project belongs to the state encouraged industries.