Zhejiang - Hangzhou Export Processing Zone (Hangzhou EPZ)

Facts&Figures (2007)

Source: Hangzhou Export Processing Zone

Introduction

Hangzhou Export Processing Zone (Hangzhou EPZ), which received its nod of approval from the State Council in 2000, has a planned area of 3 km². Nestled in the Hangzhou Economic and Technological Development Zone, east of Hangzhou city, it is located an equal distance from Shanghai, Suzhou, Shaoxing and Ningbo. The zone is a mere 1.5-hour drive from the four cities.

Hangzhou EPZ is 15 km away from Hangzhou Xiaoshan International Airport, which operates 149 domestic airlines and 32 overseas airlines. It is also close to Ningbo-Zhoushan Port and Shanghai Port, two of China's most important deepwater ports.

The central axis of Zhejiang province's expressways was built in the zone, connecting the Hangzhou-Nanjing, Shanghai-Hangzhou, Hangzhou-Jinhua-Qutang and Hangzhou-Ningbo Expressways. Additionally, it also has a well-established railway network, as the Shanghai-Hangzhou, Zhejiang-Jiangxi, Xiaoshan-Ningbo and Xuancheng-Hangzhou railways intersect in Hangzhou city. 

Investment Climate

As one of the first batch of export processing zones approved by the State Council, the zone enjoys favorable policies that exempt it from duty, bonded duty and license. Electronics, telecommunications and home appliance industries are encouraged in this area.

The electronics industry plays an important role in the zone's economic development. Between January and June in 2008, it realized an industrial output value of RMB 4.7 billion, accounting for 85.5% of the export processing zone’s total. In addition, it has attracted a number of Fortune 500 enterprises, such as Toshiba, Matsushita and Alcoa. The zone’s FDI totaled US$144 million in the first two quarters of 2008, nearly triple the amount in the same period last year.

However, in the first half of 2008, it realized GDP of RMB 5.5 billion, about 23.9% down from the preceding year, accounting for 9.1% of Hangzhou Economic and Technological Development Zone’s total. Export value stood at US$676 million, down 19.8% year-on-year. The decrease of GDP and export value can be attributed to the rising labor and material costs, appreciation of RMB, and the change in production structure of Panasonic and Toshiba, whose export values account for nearly two thirds of the zone’s total.