Shanghai - Shanghai Qingpu Export Processing Zone

Shanghai Qingpu Export Processing Zone

Facts&Figures (2007)

Source: China Free Trade Export Association

Introduction

The State Council approved the Shanghai Qingpu Export Processing Zone (Shanghai Qingpu EPZ) as a state-level development zone in 2003. It is the fourth export processing zone in Shanghai and it covers an area of 3 km². The zone is located in Qingpu District, about 20 km from downtown Shanghai. The Qingpu District lies southwest of Shanghai, and is the intersection point of Shanghai, Jiangsu and Zhejiang.

Shanghai Qingpu EPZ is easily accessible. It is only a 20-minute drive to Shanghai Hongqiao Airport and a 50 minute drive to Shanghai Pudong International Airport. The Shanghai Port, the largest seaport in China in terms of cargo traffic and container throughput in 2007, is 45 km away from Qingpu EPZ.

It also has convenient railway and road networks. The Shanghai-Nanjing Expressway, Shanghai-Hangzhou Expressway, Suzhou-Hongqiao Highway, Shanghai-Hangzhou Railway, 320 National Highway and 318 National Highway all pass through the zone, connecting it with Nanjing, Hangzhou, Suzhou and other major domestic cities.

Investment Climate

By the end of 2007, Shanghai Qingpu EPZ had attracted investments totaling US$358.4 million FDI. Foreign trade value in the zone exceeded US$347 million in 2007, representing an increment of 36.1% over the previous year. Export value reached US$178.8 million, up 47.5% year-on-year while contractual foreign investment surpassed US$47.9 million in 2007, more than five times that of the previous year. Within the same period, utilized FDI totaled US$19.6 million, similar to the amount recorded in 2006.

The export processing zone has been encouraging investments in auto and auto parts, electronic information, new materials, fine machinery, manufacturing equipment and high-tech industries. By the end of 2007, a total of 16 foreign-invested projects had been established in the zone, including Pratt & Whitney, Alpha-Cure, Shlumberger, Unielec, Hitachi, Parlex, BASF, Wafer Works, Sofima, CPS and Gateway Technology.

Schlumberger, the world famous oilfield services provider, inaugurated Stage II of the Schlumberger Oilfield Equipment (Shanghai) Co. Ltd in Qingpu EPZ in 2007. Stage I had commenced operations in 2006. With investments totaling US$17 million, the project is expected to bring US$100 million worth of export value to the French oilfield service giant.

U.S.-based Pratt & Whitney, a leading company in the design and manufacture of aircraft engines and space propulsion systems, agreed in 2005 to set up a joint venture, Shanghai Pratt & Whitney Aircraft Engine Maintenance Co. Ltd, with China Eastern Airlines in Shanghai Qingpu EPZ. The venture, established in 2007, involved a total investment of US$99 million and covers approximately 23,000 m². It aims to provide maintenance as well as repair and overhaul services to airline customers in China and the Asia Pacific region.