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Zhejiang - Hangzhou High-tech Industry Development Zone (Hangzhou HTDZ)

Published: 24 Apr 2009 14:34:17 PST

Facts&Figures (2007)

Rating
Year of Establishment	1991
Land Area	12.12 km²
Location	Binjiang District, Hangzhou, Zhejiang Province
GDP	RMB 14.6 billion (value-added industrial output)
FDI	US$628 million
Utilized FDI	US$361 million
Major Investors	Nokia, Alcatel, BOS, Panasonic, Mitsubishi, Daewoo, TCS, CA, INTECH, Alibaba, SISTEMA, ZTE, IBM, NTT, Microsoft, AISIN, UTStarcom
Major Industries Encouraged	Electronics&information, biochemicals, pharmaceutics, opticals, mechanical and electronic integration

Source: Hangzhou Hi-tech Industry Development Zone

Introduction

Hangzhou Hi-tech Industry Development Zone (Hangzhou HTDZ) won the State Council’s approval to become a state-level development zone in 1991. It covers an area of 12.12 km² and is located in Binjiang District in Hangzhou, approximately 180 km from two of China's busiest ports – Ningbo-Zhoushan Port and Shanghai Port.

The Shanghai-Hangzhou, Zhejiang-Jiangxi, Xuanzhou-Hangzhou and Hangzhou-Ningbo railways intersect in Hangzhou, and the Shanghai-Hang-Ningbo and Hangzhou-Jinhua-Quzhou expressways also cut across the city. The zone is located only 15 km from Hangzhou Xiaoshan International Airport, which offers 181 airlines to major domestic and offshore cities per week.

The zone is an educational base in Hangzhou, with over thirty universities (such as Zhejiang University and China Academy of Art), nineteen research institutions and nine state-level key labs. Hangzhou’s local government has also built two educational bases in Binjiang District and Xiasha District, where the zone is located.

Investment Climate

Hangzhou HTDZ consists of 3 areas, of which Xiasha Sci-tech Industrial Park (located close to the state-level Hangzhou Economic and Technological Development Zone) and Zhijiang Sci-tech Industrial Park are the two most important. Hangzhou HTDZ mainly encourages investments in electronics&information, biochemicals, pharmaceutics, opticals, and mechanical and electronic integration.

After years of development, Hangzhou HTDZ has become one of China's eleven national industry bases for software, IC design, BPO and animation. It is the home to over 1,100 software developers and BPO enterprises. Nokia, Motorola and Siemens have established research centers in this zone. In 2007, the export value of software rose 21.1% year-on-year to US$316 million, accounting for 16.8% of China’s total. Around 8% of China’s IC design firms are located in the zone. In addition, its animation base has produced 10% of China’s total animated TV series. Hangzhou HTDZ has become renowned as the “Paradise Silicon Valley” of China.

Over 70% of high-tech companies in Hangzhou have congregated in the zone. At the end of 2007, there were over 5,000 hi-tech firms in the zone, which generated an industrial output value of RMB 101.6 billion, accounting for more than one eighth of Hangzhou’s total industrial output.

In 2007, Hangzhou HTDZ attracted US$628 million worth of FDI, accounting for 11.2% of the city's total, while the utilized FDI hit US$361 million. Big foreign enterprises such as Nokia, Panasonic, Mitsubishi, IBM, NTT, Microsoft and AISIN have invested there. It is also home to Alibaba.com, the world's largest online B2B portal.

Alibaba, founded in 1999, is an online marketplace for over 32 million registered traders throughout the world. Currently, Alibaba.com is operating 5 online portals, including Alibaba.com, Alipay, Taobao, Alisoft and Alibaba. In 2007, it was listed on the Hong Kong Stock Exchange, becoming the largest Chinese website in terms of market value.

Investment Costs