Friday, February 15, 2008

Report 3 on Four of China's Tier-3 Cities: Wuhu

Wuhu is home to Chery Automotive Company. As one of China's rising automotive powerhouses
, Chery has an ambitious goal of selling 1,000,000 automobiles annually within the next five years. Preliminary plans to enter the US market were derailed when their partnership with Malcolm Bricklin fell apart. They'll be back - probably hitting the US by 2012.

Many other companies and investments have started to grow around Chery's remarkable story and home base. Here's Wuhu's summary:

Wuhu is located in southeastern Anhui. Historically known for its agriculture and trade, during the Qing Dynasty it had one of China’s biggest rice markets. Wuhu Port is an important deep water port on the Yangtze River. Today the city’s backbone industries include autos and auto parts, new construction materials, and electronic appliances. The city, with a population of 2.3 million, posted a GDP of approximately 48 billion yuan (USD6.3 billion) in 2006, an increase of 15.4 percent year-on-year.

In his 2007 best-selling book, China Shakes the World, former Financial Times Bureau Chief of Beijing and author James Kynge writes of Wuhu, “The city of Wuhu, a river port on the Yangtze’s middle course, was a backwater as recently as 1998. When I first went there at that time, it took me six hours along a bone-jangling, potholed road to reach it from Hefei, the provincial capital. When I did the journey again in 2002, it took an hour and a half, and Wuhu had been transformed. In just four years, four expressways, a road-and-rail bridge over the Yangtze, and a river port had been built. It was not possible, the vice mayor told me, to reach 250 million people within eight hours of the city center. ‘That is the population of America,’ he said with a smile.” (p31)

Wuhu 2004 GDP: 34.5 billion RMB; expected 2007 GDP: 64 billion RMB

Wuhu 2004 per capita GDP: 15,366;


Wuhu Export Processing Zone

Wuhu Export Processing Zone (EPZ) is one of two major industrial bases in Wuhu. It was approved and set up by State Council in 2002, with a planned area of 2.95 km², the first phase consisting of 1.1 km². Since April of 2003, Wuhu EPZ has been operating service sectors including Customs Commodity Inspection, Banking, Logistics, Storage, etc. that cooperate for one-stop export services.

Wuhu EPZ enjoys the following advantages:
Geographic Situation: Wuhu is a transportation hub for East China, connecting 3 highways and 5 railways. The Wuhu Yangtze River Bridge is the largest dual-duty bridge of railway and highway. Wuhu port is currently the last deepwater port upstream in the Yangtze River which can provide major logistics support to export-oriented enterprises along the Yangtze.
The largest dual-use (railway and highway) bridge over the Yangtze River is in Wuhu,

Pillar Industries: The Wuhu EPZ lies within Wuhu Economic & Technological Development Area (WEDA), which is the most important industrial production base in East China and now has more than 150 enterprises in production, forming 3 pillar industries: automobile and automotive parts, electrical appliance, and building materials.

Human Resources: Wuhu has two universities, six colleges, and more than twenty technical schools offering over 60,000 students available for corporate recruitment of all majors and at different entry levels.

Investment: Wuhu PZ is located between the new urban area and the old industrial area, hence its infrastructure and water supply are stable after long-term construction with plentiful utility supply, including power, natural gas, and water. Land use rights are cheaper than in the rest of WEDA.

Wuhu Economic and Technological Development Zone

Economic and Technological Development Zone (WEDZ) was approved as a state-level development zone in April 1993. The zone has a developed area of 10 square kilometers and is situated in northern Wuhu.

Transportation and Infrastructure
The main traffic routes in the zone are part of the municipal transportation network and are directly joined with three expressways leading to Shanghai
, Hangzhou, and Hefei. as the 3 expressways and 5 railways mentioned above all converge here. Wuhu Harbor is also the last deep-water port at the upper stream of the Yangtze River joining all important ports around the globe. Water carriage routes were opened to such designations as Hong Kong, Japan and Southeast Asia. WEDZ is one hour's ride to Luokou International Airport of Nanjing, and Luogang Airport of Hefei, both of which have flights to major domestic and foreign destinations.

-2 of China’s 4 eastern trunk railways of Beijing to Nanjing, Shanghai to Nanjing, Nanjing to Wuhu and Wuhu to Yingtan (Jiangxi) meet in Wuhu, connecting with major trunk railways and large and medium sized cities all over China. So Wuhu is an essential railway hub to connect with Central, East, and North China.

Manufacturing Industries
Three pillar industrial groups have come into shape in WEDZ, including automobiles and parts, electronics and electrical appliances and new building materials.

In view of its industrial structure and current stage of development, WEDZ encourages investment in the following sectors:

Automobile and parts:
Development and manufacturing of

  • Car bodywork and accessories
  • Car engines, gear-boxes, and other key components
  • Car moulds
  • Electronics
  • Precision founding of major car components, black founding, and colored casting semi-finished production
  • Light materials
  • Key car parts and components
  • Car discharge emission systems
  • Car accreditation and inspection systems

Electronics and electrical appliances:

  • Intelligent household appliances
  • Electronic components
  • Photo-electronic products
  • Integrated Circuits

New materials:

  • New building materials
  • New energy-saving materials
  • Micro-electronic and photo-electronic materials
  • Surface coatings and films
  • High-quality structure materials
  • Environmentally friendly materials

Bio-medical and bio-pharmaceutical products:

  • Bio-medicines and drugs
  • New traditional Chinese medicines
  • Synthetic and chemical medicines
  • Medical equipment and electronic apparatus
  • Refined chemicals.

Software products:

  • Software platforms and intermediaries for all types of business applications
  • Application systems in broad-band networks
  • Critical software for corporate informatization and information security systems
  • Management software for E-commerce

    Administration Committee
    Tel: 86-553-5841768
    Fax: 86-553-5841876

Human Resources

-Anhui Normal University is located in Wuhu. Founded in 1928, it is the oldest institution of higher education in Anhui Province and also one of the national comprehensive universities established at a very early stage. The university is a major scientific research institution. In addition to Anhui Normal, Wuhu’s other major institutes of higher learning include: Anhui University of Technology and Science, Wannan Medical College, Wuhu Radio and Television University, and Wuhu Vocational Institute of Technology

Principal: Jiang Yumin
Zip code: 241000
Address: NO.1 Beijing Road(E), Wuhu, Anhui
Tel: (0553)3869234

-Some factories in Wuhu (and surrounding regions) pay workers the equivalent of $0.30 an hour.


-Yinghua Wire sold controlling interest of a wire harness plant in Wuhu to the Michigan company KenSa,

-Wuhu’s Conch International Hotel is consistently filled with guests from Germany, Australia, Japan and the United States.

-There are 104 factories owned or partly owned by foreign companies, up from 55 just five years ago.

-Germany-based Siemens AG builds automotive gauges in Wuhu.

-Tower Automotive, based in Troy, builds suspension components.

-Wuhu is one of dozens of industrial centers in China, which has become “a Candyland for Rust Belt manufacturers hungry for cheap labor.”

Tuesday, February 12, 2008

Report 2 on Four of China's Tier-3 Cities: Foshan

The second in our series of tier-3 cities, Foshan is on the rise. It recently broke the 300 billion RMB GDP mark (for FY2007), and along with 5 tier-2 cities for 2007. Hence, it is probably fair to call Foshan a tier-2 city at this point, but because it flies so low on the radar, we will keep it in the tier-3 grouping for now. Once again, if not otherwise noted, the information comes from Wikipedia.

Foshan (Chinese: 佛山; pinyin: Fóshān) is a prefecture-level city in central Guangdong province, People's Republic of China. The city has jurisdiction over an area of about 3,840 km² and a population of 5.4 million of which 1.1 million reside in the city proper (2000 census figures).

Total GDP ¥292.67 billion; Per Capita GDP ¥50,207 (2006)


The prefecture-level city of Foshan administers 5 county-level divisions, all of which are districts.

These are further divided into 64 township-level divisions, including 37 towns and 27 subdistricts.

Transportation and Infrastructure

External links

-Foshan Airport was once a regional airport with mixed usage (both military and domestic transport) since January 22, 1987, as it became a base of China United Airlines (CUA) in Guangdong Province. When CUA ceased domestic flights in November 1, 2002, Foshan Airport remained military service only. The airport resumed its regional airport status in 2005 when the regrouped CUA, which was partly purchased by Shanghai Airlines, resumed domestic flight service. It is expected domestic flight linkages between Foshan and at least 10 Chinese cities including Beijing, Nanjing, Hangzhou, Yinchuan will begin in the near future.

-Foshan is close to Guangzhou and considers its link with Guangzhou very important. A Guangzhou-Foshan metropolitan region is being formed as well as the 37-km Guangfo subway line linking the two cities.

-Foshan is a main interchange for railway routes linking Guangzhou, Hong Kong, western Guangdong Province and Guangxi Province. It is connected with Hong Kong via the KCRC Guangdong Through Train service from Foshan railway station. The inter-city through train service was extended from Guangzhous to Foshan in the late 90s.

- China's Ministry of Communications and the Communications Administration of Guangdong Province have jointly approved the planning of constructing Foshan Port in Guangdong in mid-July 2007. The Foshan Port under planning will have a cargo flow of 110 million tonnes by 2010 and 150 million tonnes by 2020. The Foshan authority plans to bring Hong Kong's logistics industry to the port. (NewsTrak D-(Jan. 16, 2008)- Construction on the second phase project of Foshan Aomei Aluminum Co., Ltd., the Southeast Asia's largest aluminum material enterprise, has been completed, bringing the company's annual production capacity to 200,000t. According to a source, Aomei Aluminum is the largest aluminum processing enterprise and largest production base funded and established by Qili Industry Group, it is headquatered in Malaysia's Kuala Lumpur and has large production or sales bases in Great Britain, Australia, Hong Kong and Dubai.( )

-The first phase of the first specialized logistics distribution base in Foshan City's Sanshui District formally began operations on December 12th, according to the latest news released by Foshan Automobile Transportation Group. The base occupies an area of more than 6.67ha (100mu) and was funded by Foshan Automobile Transportation Group with RMB40M. The base will provide modern logistics services such as storage, distribution, freight forwarding, third party logistics and value-added services of the supply chain, with the designed monthly cargo transportation volume at 60,000t and the truck handling volume exceeding 3,000 units. (China Industry Daily News, 12/14/07)



There are Agricultural Model Districts (AMD) around the prefecture, such as Shunde Chencun AMD, and AMDs in Daili Town, Shatou Town and Locun Town in Nanhai, with a total area of about 9.4 km². The AMDs aims at providing an all-round environment for modern agriculture. Agricultural process is upgraded through technology, and sale service is incorporated with a new style tourism, that attracts target clients. The modern integrated practice mode resulted in the reputation of the largest base for wholesale, food production, storage and logistics of agricultural products in Guangdong Province.

Manufacturing industries

Following Shenzhen and Guangzhou, Foshan is the third largest manufacturing base in the Pearl River Delta. Once home to a strong State-Owned Enterprises sector, its current economic strength lies in private firms and Township and Village Enterprises in Shunde and Nanhai. In 2002, private firms contributed 56.12% of the industrial output and firms from Hong Kong, Macau, and Taiwan contributed 63.44% in exports.

Key industries in Foshan include:

  • household electrical appliance and tool manufacturing
  • furniture
  • non-metal ore and manufacturing
  • ceramics
  • garments
  • chemicals
  • electronic information
  • medicine
  • food and beverages
  • building materials
  • automobile parts
  • high technologies
  • electronics and communications
  • stainless steel products
  • Plastic products

Towns in Foshan specializing in pillar industries are as follows:

  • Beijiao Town, Shunde (顺德北滘) - household electrical appliances
  • Chencun Town, Shunde (顺德陈村) - flowers and horticulture
  • Dali Town, Nanhai (南海大沥) - aluminium products
  • Lecong Town, Shunde (顺德乐从) - furniture production and distribution
  • Nanzhuang Town, Nanhai (南海南庄) - building materials
  • Xiqiao Town, Nanhai (南海西樵) - tourism and textiles
  • Yanbu Town, Nanhai (南海盐步) - underclothes

Several well-known brands to come out of these pillar industries include Midea, Kelon (before its 2005 bankrupcy), Jianlibao, and Galanz Group (Galanz Group and Midea Group jointly hold more than 80% of China's microwave oven market, according to a report by China Market Monitor Co., Ltd.). Foshan's furniture and lighting industry is known as the world's largest, including the world’s largest furniture wholesale market and the world's largest lighting wholesale market.

Development strategy

Foshan aims to become a manufacturing giant and the third largest city in Guangdong. To do this, it has pledged to make large-scale investments in the construction of transportation and energy infrastructure. Urban development will focus on the Central Urban Group and Shunde Urban Group, each with more than one million inhabitants.

-China Development Bank, a policy bank in the country, has granted more than CNY 2 billion loan to Nanhai district, Foshan city, China's southern Guangdong province. The local government used the capital to finish the preliminary construction of Qiandeng Lake and planned to set up a financial business zone there. Guangdong, a developed province in China, wants to build Qiandeng Lake to be a financial high-tech development zone, which covers an area of some 4.5 square kilometers. Chen Yunxian, mayor of Foshan, said that Qiandeng Lake was positioned as a financial logistics base for the province, containing data processing center, call center, disaster recovery center, training center as well as innovation and R&D center.


- Chi Mei Optoelectronics Corp. (CMO), the No. 2 manufacturer of thin film transistor-liquid crystal display (TFT-LCD) panels, plans to set up a LCD module (LCM) production plant in northern Vietnam in 2008 and form a panel-industry cluster in the region, according to company president Ho Chao-yang. Ho said CMO's two LCM plants in mainland China have effectively solved the labor-shortage problem at his company's facilities in Taiwan and cut costs.

- Shanghai. October 16. INTERFAX-CHINA - The Guangdong provincial government announced yesterday that the province's largest LCD module manufacturing line, established by Taiwan-based Chi MeiOptoelectronics in the city of Foshan, has started operation and is expected to produce more than 200,000 units of LCD modules by the end of this year. The line was established with an investment of $480 million and is expected to produce more than 10 million units of LCD modules next year, according to the Guangdong government. Guangdong Province plans to build Foshan into a TFT-LCD TV center by establishing a sound supply chain for the TFT LCD TV industry, including the supply of LCD modules, displays and TV components. Chinese TV giant Hisense also started construction of a flat panel TV manufacturing center in Foshan at the end of September, planning to produce 1 million units of flat panel TVs after completion.

-HSBC opened its thirteenth Global Service Centre in Foshan, Guangdong province on December 3. Vincent Cheng, chairman of HSBC Asia-Pacific, says Foshan is the perfect location to set up a global logistics centre thanks to its outstanding investment environment and urban planning. The new centre is situated at the National High-tech Development Zone in Foshan and is equipped with the most advanced communication and information technology facilities. (NewsTrak Daily, 12/4/07)

- In Guangdong, the home province for Belle International, Foshan-based Saturday Shoe Co., Ltd. has also secured VC investments from Lenovo Capital and is preparing to go public in 2008. "From 2006 on, the prices of raw materials like leather have been on the rise, but our shoe products have to remain where they are now, otherwise we'll lose our competitiveness," explains Wu. Saturday, along with other Chinese shoe brands such as Aokang, Kangnai and Fuguiniao, are also grappling with rising prices for raw materials. "The current net profit margin of the leather shoe industry is about 8%," claims Wu. Despite the rise of raw materials and labor costs, Saturday still has a bigger net profit margin than the industrial average with its higher brand value… Saturday shares the idea of Belle International: maintenance of the department store channel is a part of the brand management, because it gives an opportunity to contact the consumers and to deliver the brand value. Saturday now has over 1,000 sales outlets, 70% of which are self-operated stores and 30% franchised stores. (11/8/07 China Business Feature)

- Zhang Shuhong, a 52-year-old businessman, had apparently committed suicide, just days after Mattel blamed his company, Lee Der Industrial, in Foshan, in southern China, for the recall of one million toys coated in toxic lead paint. In a summer of high-profile recalls of Chinese exports -- pet food, shellfish, tires -- Mr. Zhang's suicide read like the latest twist in a morality play. Each week, it seemed, brought news of another faulty Chinese product; and with it, growing concerns about unscrupulous Chinese businessmen: cutting corners; pouring cheap, sometimes lethal, ingredients into their products; endangering consumers around the world, even children, to make a bigger profit. But at the Lee Der factory in Foshan, an industrial city 140 miles northwest of Hong Kong, Mr. Zhang's colleagues and workers tell a less familiar narrative. They say that Mr. Zhang was a victim, too -- of his own duplicitous suppliers, of China's faulty supply chains, and of the pressures of its loosely regulated brand of capitalism, where Chinese entrepreneurs feel squeezed between Western companies' appetite for cheap goods and the fierce local competition to satisfy it. (8/23/07 New York Times)

- The Sanshui District Bureau of Economy and Trade revealed that Tsingtao Beer Sanshui Company will improve its production capacity in 2007 and Budweiser Beer will begin operations in this district at the end of 2008, thus the District's beverage industrial output value is expected to soar in the next one to two years.(China Industry Daily News, 1/14/08)

- Beiqi Foton Motor Co., Ltd. an SOE holding company mainly involved in car manufacturing in China, plans to increase the production capacity of its factory in Nanhai District, Foshan in southern Chinese province of Guangdong. Construction of the new factory is planned to start from May or June 2008. The phase I project is expected to be finished in 2009 and the whole project will be finished in 2015. By then, the new factory, which mainly produces SUVs, pickups, small MPVs and the like, will be four times larger than the old one. It aims to seek sales of more than CNY 5 billion by 2010. (Sinocast, 1/10/08)

- Guangdong Foshan Glanz Co., Ltd., a leading home appliances manufacturer in China, planned to sell 6 million air-conditioners in 2008, with 70% of them sold at home. The company intends to export 30% of output in 2008, higher than 20% in 2007. A report by Boston Consulting Group tells that more and more Chinese people are interested in high-end and expensive products and five times more consumers tends to increase spending than those to reduce. (Sinocast, 1/9/08)


- More workers in Guangdong Province will be able to negotiate with their employers and fight for higher wages, according to the provincial labor and social security department. The wage negotiation system was first launched in Guangzhou in 2001, and has covered 44,000 enterprises and benefited 2.4 million workers up to June this year. Workers have signed more than 14,000 collective wage agreements with various employers… Workers can nominate representatives or the labor union of their factories to negotiate on their behalf with employers. They can even hire professionals, such as lawyers or consultants, as long as they are familiar with the labor law. (8/15/07, China Daily)

-Guangdong is on the verge of finalizing details of a labor law that will place about 20 million factory workers under better welfare protection but add to the burden of manufacturers already reeling from rising production costs. As a nationwide policy to be promulgated on January 1, the law will set welfare standards and responsibilities of employers and employees by binding the two parties to a labor contract. Welfare protection such as work hours, extra shift compensation, commission and wages, holidays, arrangement for parting and other benefits are expected to be key conditions on a contract, according to some manufacturers in Guangdong. The Guangdong Labor and Social Security Bureau was studying the feasibility of regulating wages such as distribution of wages and setting up a mechanism to lift salaries by engaging about 10 enterprises in Foshan, Guangzhou media reported. (11/19/07 South China Morning Post)


-(Jan. 14, 2008)- The tax payments by Sanshui District's beverage industry surged by nearly 30% in 2007 and accounted for 12% of the District's total, revealed Foshan City's Sanshui District Office of the State Administration of Taxation. In 2007, Tsingtao Beer Sanshui Company paid more than RMB103M in tax, the highest among Sanshui's tax payers, while the tax payments generated from Jianlibao drink products increased over 2006 and exceeded RMB56M last year. (1/14/08 China Industry Daily News)


- Calculating based on the data for the third quarter of 2007, Foshan, Ningbo, Nanjing, Chengdu, Dongguan, Wuhan and Dalian have joined the "300-billion-yuan GDP Club" for Chinese cities in 2007. 300 billion yuan is equivalent to US$41 billion. From 2006 to the first three quarters of 2007, annual economic growth in Foshan was 19.2 per cent, 19.3 per cent and 19.2 per cent. (1/2/08, Asia Pulse)

Real Estate

- Shui On Land Limited (" Shui On Land", Stock Code: 0272) today has successfully acquired by auction the development right and land use rights of the land in Zumiao Donghua Lane, Foshan City, Guangdong Province. Shui On Land will capitalise on the huge potential and rapid growth of Foshan to develop an integrated project, aiming to facilitate the transformation of the city into a major economic and cultural hub in Southern China. The site has a planned net developable area of approximately 517,471 square metres with a gross floor area of approximately 1.5 million square metres. The new integrated project will include residential and office buildings, as well as retail, restaurant, entertainment, tourism and cultural facilities. (11/30/07

Sunday, February 10, 2008

Report 1 on Four China Tier-3 Cities: Shijiazhuang

Today is the first of four posts on tier-3 cities. We will feature Shijiazhuang, Changzhou, Wuhu, and Foshan (which at this point is actually a tier 2 city, but we'll still group it with these other Tier 3 cities). The common theme among them is lots of money, not a lot of recognition among us in the west. They are all hot spots for investment among the Chinese themselves and other Asian investors. There is no set paradigm for the reports and they are really a collection of articles from various media sources over the last year to highlight major industries, infrastructure, real estate, and the economy at large in each city. Please think of this as a clipboard of media on each city that should shed some light on what is going on in each area for those looking for a general overview of what is going on beyond the borders of China's international cities. Each report is infused with a little bit of background from Wikipedia to set the stage. So, without further ado, we give you Shijiazhuang:

Shijiazhuang (simplified Chinese: 石家庄; traditional Chinese: 石家莊; pinyin: Shíjiāzhuāng, literally, "The Stones' Village") is a prefecture-level city about 320 kilometers south of Beijing and the capital of Hebei province. Shijiazhuang was established in the Second Sino-Japanese War as a communication outpost. Shijiazhuang is China's first big city that allows immigration population settles in it without paying any fees. (Wikipedia on Shijiazhuang)


-Shijiazhuang has direct jurisdiction over 23 districts, counties, and cities.

Sister cities

Infrastructure and Transportation

-Shijiazhuang is a transportation hub: it is at the intersection point of the Beijing-Guangzhou, Taiyuan-Dezhou, and Shuozhou-Huanghua railroads and many expressways, including the Beijing-Shenzhen and Taiyuan-Cangzhou Expressways. The Shijiazhuang Daguocun International Airport has flight connections to major cities in China.

-The Industrial and Commercial Union of Shijiazhuang city in Hebei province of China set up a logistics association in the middle of December 2007. The association will perform as a communication platform between enterprises and the government. It encourages local logistics enterprises to unite and to share resources. The logistics industry is a major growth momentum of the local economy. It covers cargo transportation, loading and unloading, storage and distribution related to construction, electronics and clothing businesses. (NewsTrak Daily, 1/3/08)

-Shijiazhuang High and New Technology Industrial Development Zone was established in March, 1991. It is among the state band high-tech zones approved by State Council. At the beginning, the zone is located at the west wing of the present one. For meeting the needs of development, the CPC Committee and People's Government of Shijiazhuang City decided to join Shijiazhuang Economic & Technical Development Zone and Liangcun Economic & Technical Development Zone with Shijiazhuang New and High-tech. Development zone from the year 1991, which has formed the frame of "One zone and three Gardens." The zone has the designed area of, with 40,000 staff. (

-Taihang Mountain Tunnel, the key project of Shijiazhuang ¨C Taiyuan Railway, was completed on December 22nd. The passenger railway is a key project in the Eleventh Five-Year Plan period (2006-2010), and is China's first passenger railway project, on which construction began, totaling 189.93km in length. Construction on the railway project began on June 11th, 2005, and is expected to be completed at the end of 2008. The 27.8km-long double-hole Taihang Mountain Tunnel has established one entrance, one exit, nine slope mines and eleven construction routes. (12/27/07, China Industry Daily News)

- The construction of an express passenger railway which links Beijing with Shijiazhuang, capital of north China's Hebei province, will begin in June and finish in four years. The National Development and Reform Commission has approved the project, and a ground breaking will be done on June 1, said a source with the city government of Shijiazhuang, adding a special company will be set up to take charge of the construction. The new line is planned to alleviate transport pressure on the northern end of Beijing-Guangzhou railway, a north-south trunk route, and boost the development of areas around Beijing. The projected route will stretch 281 km starting from Beijing West Railway Station and ending at Shijiazhuang South Railway Station. Trains can run at a speed of 350 km per hour. Speed in the initial stage can be 300 km per hour, cutting the transit time to just over an hour. The investment of 43.87 billion yuan (about 6.01 billion U.S. dollars), will be shared by the Ministry of Railways and the governments of Beijing Municipality and Hebei Province. (Xinhua, 1/12/08)

-Shijiazhuang Public Transportation Company increased the number of natural gas buses in 2007 on the basis of environmental protection principles, according to the latest news released by Shijiazhuang City's Public Transportation Department. The City purchased 371 buses in 2007, with natural gas buses accounting for 150 units, thus bringing the total number of its natural gas buses to 748. Shijiazhuang City presently has 2,210 public buses, with natural gas buses accounting for 33.8% of the total. (1/29/08 China Industrial Daily News)

- The main route of Shijiazhuang City's Loop Highway (Shihuan Highway) was opened to traffic on a trial basis on November 11th. Construction on the Shihuan Highway began on September 30th, 2005. The first phase of the project, involving a total investment of RMB4.77bn, is 79.9km long, with the length of the first-grade bi-directional six-lane highway accounting for 46.1km. A total of 62 bridges and culverts have been established. The main body of the 74.2km-long main route of the Shihuan Highway has been completed, while the other projects are under construction.(11/13/07 China Industrial Daily News)

- Shijiazhuang Customs and Qingdao Customs formally signed a cooperation MOU on customs reform on May 22nd. This is the second cooperation agreement on customs reform between inland areas and coastal areas, following the agreement between Shanxi and Tianjin Customs.

The new regional customs-passing system will provide companies in Hebei Province, especially in central and southern areas, a more convenient way of passing customs. (5/24/07, Xinhua)

- Shanghai Juneyao Airlines opened two air routes on July 10th, namely Shanghai (Hongqiao) ¨C Shijiazhuang and Shanghai (Pudong) ¨C Baotou. Round-trip flights will operate on the Shanghai ¨C Shijiazhuang route on Tuesdays, Wednesdays, Fridays and Sundays, and a weekly round-trip flight will operate on the Shanghai ¨C Baotou route. (7/11/07 Xinhua)

-Relevant sources from Shijiazhuang Government revealed on May 29th that the first phase of the Runfeng Logistics Center project opened on May 27th. The first phase of the center projected is located at the intersection of the city's South Second Ring Road and Jianshe Street. Construction of the logistics center was divided into two phases, with a total area of 13.33ha (200mu) and an investment of RMB20M. 180 logistics enterprises are now settled in the center, including eight of China's top ten logistics companies, such as Guangda Logistics and Chengxin Logistics. Once the center goes fully into operation, it will transport and distribute over 10,000 tons of cargo daily. (5/30/07 Xinhua)

- Tianjin Port is confident about achieving its target of handling 300 million tons of cargo by 2010. With its seamless cargo transport operation, Tianjin Port has brought in efficiency to its port economy. To reduce transport cost and time, it has formed a literally "waterless port" or seamless operation with Zhengzhou and Shijiazhuang. The waterless port arranges effective logistics from the source of cargo, to custom clearance, ship order booking, storage, and to packaging all in one effective sequence. (8/20/07 NewsTrak Daily)

-Hebei Province in Central China aims to see its ports be capable of handling 592 million tons of cargo, including 1.2 million containers (TEU), in 2010. (1/8/08 Sinocast)

- SHIJIAZHUANG - Several petrochemical projects will be launched at Shijiazhuang Petrochemical Base in Hebei province, the nearest province to Chinese capital Beijing. (8/24/07 Asia Pulse)

-Shijiazhuang Section of the South-to-North Water Diversion project will be completed at the end of 2007, and after the trial period, it will be able to transmit water before April 2008, according to the news released by the Beijing Water Affairs Bureau on November 5th. Hebei Province will transmit 300 million cbm of water to Beijing annually. (11/6/07 Xinhua)

Human Resources

-Shijiazhuang Railway Institute is a prestigious university of applied engineering science as well as the specialties for Arts Science, Economy, Management and Law. It has formed a closed educational system, including graduate students, undergraduates, specialty students and the adult education. More than 40,000 students, famous academies and experts in engineering technology and advanced management have been cultivated. The institute has been enrolling students from the whole country. Now the institute has established 12 schools and 6 departments including 45 majors with more than 16,000 full-time students. We have 13 specialized approved accredited master degree programs such as the Civil Engineering, Construction Engineering, Bridge and Tunnel Engineering, Mechanical Design and Theory, Transport Tools Application Engineering, Managing Science and Engineering. Road and Railway Engineering, Materials, Electric Power Electronics and Electronic Conveying, Computer Application, Solid Mechanics, Disaster Prevention and Reduction Engineering and so on. At the same time, it was authorized to enroll doctor degree students, award master degree to those who have reached the required level. The institute possesses a faculty of 1,500, in which 700 people specialize in educational science, 270 professors, associate professors or senior engineers, 74 teachers have got the doctor degree. 46 young experts have made outstanding contributions to Hebei province even to the nation. Meanwhile, academician from academy of science, academy of engineering or famous professors were appointed as our part-time professors. (

-Hebei Medical University is located in Shijiazhuang, Hebei Province, North China Plain. It consists of the original Hebei Medical College, Hebei Provincial College of Traditional Medicine and Shijiazhuang Medical College, which were combined in 1995. Of them the original Hebei Medical College was established the earliest and grew out of the Hebei Medical School which was set up in 1915. Hebei Medical University has become a comprehensive medical university composed of western medicine, traditional medicine, pharmacy and other subjects. It has 14 colleges, and 15 specialities. The university has Basic Medicine, Clinical Medicine and Integrated Traditional and Western Medicine Postdoctoral Research Institutions. It has been authorized in conferring Ph.D. degree in 14 and master degree in 47 specialities. There are 9781 full-time students in school, 6728 adult students, and nearly 50 foreign students from South Korea and Japan and so on. Now it has been qualified to enroll students from Taiwan, Hongkong and Macao. (

-Hebei University of Economics and Business is a multi-subject and Comprehensive university offering a wide range of courses in Economics, Administration, Laws, Literature, Engineering and Science, with emphasis on the study of Economics. HUEB is privileged to confer Master's and Bachelor's degrees on qualified students. At present the university has 13 master degree programs and 39 bachelor degree programs. The students of the university come from 16 Provinces, cities and self-governing municipality. The student population is more than 18000. Besides the full time students, the College of Continuing Education of the university has more than 13000 part-time students. (Website:

-The Institute of Genetics and Developmental Biology (IGDB) of the Chinese Academy of Sciences (CAS) was founded in 2001 by merging of three former Institutes of CAS, the Institute of Genetics, the Institute of Developmental Biology and the Shijiazhuang Agricultural Mordernization lnstitute. The Institute has a strong and young scientific community. Among 614 employees, 469 persons are directly involved in research activities. Scientists in the Institute work with plant and animal models to address fundamental questions in life sciences, such as genetic control of growth and development, gene expression, signal transduction, structural and functional genomics, and bioinformatics. (Website:

-Shijiazhuang City in Hebei province held the 5th Overseas Chinese Professionals Economy and Technology Discussion Fair on 26 June, 2007. The theme of the fair was to increase communication and cooperation with overseas Chinese businessmen. The fair is organized by Shijiazhuang City Government with support from the State Council. Over 100 overseas Chinese from the US, Canada, Singapore, Australia, France, Japan and other countries attended and participated in the fair. Among the participants, there were professionals in medicine, new material, electronic information and financial investment services. Successful entrepreneurs and businessmen were also invited to the fair that aimed to promote innovative power. (7/18/07, News Trak Daily)


- Shijiazhuang's history tied to medical sector In 1953, the Ministry of Chemical Industry and the Ministry of Light Industry decided to construct a large-scale pharmaceutical base in Shijiazhuang, one of 156 prioritized projects of China's first-ever Five-Year Plan. In the early 21st century, the National Development and Reform Commission approved Shijiazhuang as the first national biological medicine production base. In 2004, Hebei's provincial government said it would build a biological medicine industry belt beginning in Shijiazhuang and covering neighboring cities. Shijiazhuang's government said it plans to transform the city into China's "medicine capital" in the next five to 10 years. (6/19/07 China Daily)

-Shijiazhuang City's prices for packaged chicken, aquatic products, eggs and sugar dropped in December 2007, while the prices for meat, vegetables, fruits and edible oil increased, according to the monitoring data of daily necessities released by the Municipal Bureau of Industry and Commerce. (1/8/08 China Industry Daily News)

- Shijiazhuang is also quickly becoming a consumer market that pursued by both domestic and foreign enterprises. In 2006, the city's per capita disposable income reached RMB11,250 (US$1,486), up 12% from 2005. ;On Zhongshan Road, the major business street in Shijiazhuang, you'll spot "2,999" emblazoned on passing buses. A closer look will reveal the numbers are an advertisement for RMB2,999 HP computers. The computer maker rarely launches advertising campaigns of this size in larger cities. "The changes started in the second half of 2006," says Xing Kai, a local HP distributor. "People here had a vague idea about HP, but now, it has dropped its airs, and released a spectrum of medium to low-end products. We're delighted with it. You know, the supply of the RMB2,999 (US$396) model can hardly meet demands." (8/6/07 CEO CIO China)

-The total foreign trade value of Shijiazhuang City in Hebei Province exceeded US$ 5bn and hit US$ 5.13bn in 2007, up by 22.62% year-on-year, with exports accounting for US$ 4.149bn, rising by 21.98% year-on-year. More specifically, Shijiazhuang's exports of steel products soared in 2007, while exports of fur and leather garments dropped sharply. In addition, exports of hi-tech and electromechanical products increased rapidly, while antibiotics exports surged.(China Industry Daily News, 1/23/08)

- In the first seven months of 2007, the traditional Chinese medicine export value was US$ 3,265,777 in Shijiazhuang City of Hebei Province, down 3.73% year-on-year, according to the latest statistics released by the China Chamber of Commerce for Import and Export of Medicines and Health Products on September 17th. Of the total, the export value of traditional

Chinese medicinal materials and medicines in ready-to-use form reached US$ 2,332,197, down 7.06% year-on-year, the export value of traditional Chinese medicinal extracts was US$ 226,588, down 1.37% year-on-year, the health product export value was US$ 3,748, down 91.28% year-on-year, and the export value of Chinese patented medicines was US$ 703,244, up 15.19% year-on-year. (9/21/07 Xinhua)

- A total of 14.35 million overseas and domestic tourists visited Hebei Province's Shijiazhuang City in the first eight months of 2007, with the tourism income reaching RMB7.2bn, rising 9% and 16% year-on-year respectively, according to the latest statistics released by Shijiazhuang City's Bureau of Tourism. (9/21/07 Xinhua)

-Shijiazhuang - Nearly 7,000 hectares of biodiesel forest will take shape in the north China province of Hebei this year, part of a national campaign to fuel the fast growing economy in a green way. In no more than five years, the Pistacia chinensis Bunge, whose seeds have an oil content of up to 40 per cent, will yield five tons of fruit and contribute about two tons of high-quality biological diesel oil, according to the provincial forestry administration. (1/17/08 Asia in Focus) Hebei is among seven regions designated by the State Forestry Administration (SFA) in 2006 to develop biofuel demonstration forests.


-Shijiazhuang Listed Companies:


Changjiang Securities Co Ltd






Huda Technology & Education Development Co Ltd






Jointo Energy Investment Co., Ltd. Hebei.




Real Estate Transactions


Shijiazhuang Baoshi Electronic Glass Co Ltd




Components for Electronic Goods


Shijiazhuang Changshan Textile Company Ltd






Shijiazhuang Dongfang Thermoelectric Co Ltd




Electricity/Gas Utilities


Shijiazhuang Aircraft Industry Co.,ltd



Aerospace Products/Parts





-Shijiazhuang Pharmaceutical Group Ltd., one of China's largest antibiotic producers, is planning to launch an antibiotic production technology development project in the near future, a company official said today. "The feasibility of the project, Key Technology Innovation for Mass Producing Antibiotics, has recently passed expert appraisal," said Zhang Heming, vice director of the general affairs office of the company, adding that the project will receive government investment, though he declined to specify the amount. The project will focus on creating technology capable of producing antibiotics on top of developing fermentation technology and equipment, as well as separation engineering technology and equipment… Shijiazhuang Pharmaceutical Group Co. Ltd., Harbin Pharmaceutical Group Co. Ltd., North China Pharmaceutical Group Co. Ltd., Shandong Lukang Pharmaceutical Group Co. Ltd. are the four largest antibiotic manufactures in China. (10/17/07 China Pharmaceuticals and Health Technologies Newswire)

-Legend Holding, the parent company of Lenovo Group (HK:0992, LNVGY.PK) has finally concluded its buyout negotiation with Shijiazhuang Municipal State-owned Assets Supervision and Administration Commission, the owner of Shijiazhuang Pharmaceutical Group Co., Ltd. The two sides on June 16 formally signed an agreement to transfer the 100 percent stake in the drug maker to Legend Holding for 870 million yuan, 30 million yuan higher than the bottom price originally set for auction. (6/18/07 Xinhua)

-Shijiazhuang - North China Pharmaceutical Group Corporation (NCPC), one of the largest pharmaceutical manufacturers in China, has entered into a strategic contact with the Institute of Microbiology, Chinese Academy of Sciences (IMCAS) to march into the field of biomass as well as the bio-based chemicals, said local media at the 1st China Bioindustry Convention. Butylalcohol, the biofuel NCPC and the IMCAS focused on, is expected to tart production in August. In September, the biofuel will receive an automobile-oriented testing in the UK, revealed a senior executive of the pharmaceutical giant. Presently, the company has gained several thousand tons orders. The btylalcohol product can be distributed soon provided that the result of concerned testing is satisfactory by then. (6/21/07 Sinocast)

-Guodian Power Development Co (GPDC), a publicly listed company, said it will buy a 20 percent stake in Shijiazhuang City Commercial Bank. GPDC, a subsidiary of China Guodian Corporation (CGC), one of the country's top three power generating firms, will acquire the bank's 313 million shares for 1.2 yuan apiece. GPDC will become the bank's largest shareholder with the 375 million yuan capital investment, it said yesterday. The cash injection from the issue of new shares will lift the bank's capital adequacy ratio to above 10 percent, paving the way for the bank to hold an initial public offering (IPO) on the mainland A-share market in the future. (11/22/07 China Daily)

-Chang An Bus, a subsidiary of Chang An Auto Group, reported heartening performances for the first nine months of the year. In Jan-Sept, the company, based in Dingzhou, Hebei province in north China, produced 94,320 vehicles and sold 84,830 of them. Established in end-2002, Chang An Bus is the sole base of Chang An Auto Group to produce mall passenger and export-oriented vehicles. Over the nine months, the company gained overseas orders totaling 6,000 vehicles while its products were marketed to more than a dozen of countries and regions, with both export-oriented production and sales reaching respective historical highs. By end-September, the company realized sales revenue of 2.61 billion yuan and contributed 106 million yuan of tax to the state coffer. (10/29/07, Xinhua)

-Hebei Huadan Complete Biodegradation Plastics Company Limited (HHCBP) signed an agreement with Hong Kong Tianhao (Chinese phonetic alphabet) Development Company Ltd. on June 17th, on jointly constructing a new bio-degradation plastics particles project in Yuhua Biology Industry Zone, Shijiazhuang, Hebei province. The facility will produce 150 000 tons of bio-degradation plastics particles per year for shopping bags, one-off dinner bucket, one-off water cups, one-off medical goods and rubbish bags, with a total investment of approximately RMB400 million. Its first phase is scheduled for startup at the end of 2007, with a capacity of 20 000 t/a. (China Chemical Reporter, 7/6/07)

-TTCM China, Inc. (TTCH) announced the acquisition of ShiJiaZhuang HuaTeng Technology Company who is engaged in the design and manufacturing of IC-based smart card water-meters as a strategic acquisition related to the water supply industry. The Company is expected to complete the audit and evaluation of the IC-based smart card water-meter company within this month. The acquired company has the annual production capacity of 300,000 units of such high-technology water-meters. (Knobias, 1/22/08)

-Shijiazhuang Sanlu Group plans to let its subsidiary, Shijiazhuang Sanlu Group Co., Ltd., offer Chinese yuan-denominated A shares in 2008, the Chinese milk powder maker announced on October 10, 2007. The subsidiary is a joint venture founded by Sanlu Group and New Zealand-based Fonterra Cooperative Group Ltd. in June 2006 and was designed to get listed since its foundation. Fonterra Cooperative Group, the world's biggest dairy exporter, became the second largest shareholder of the Sanlu Group by acquiring a 43% stake in it with CNY 864 million in June 2006. Situated in the north Chinese province of Hebei, Sanlu Group is devoted to providing dairy products in China. It targets a CNY 10 billion revenue for 2007 and a CNY 30 billion by 2010, and the number was CNY 8.6 billion in 2006, said its chairman Tian Wenhua. (10/16/07, SinoCast)

Real Estate

-The Shijiazhuang Municipal Government recently announced the housing construction and guarantee plan for the period 2008-2010. In the next three years, the City will provide 2,530 low-rent apartments to low-income families with housing problems, and will also construct 123,700 apartments of different types, with 103,600 units of 90sq.m-and-below apartments, accounting for 77% of the total residential floor area. Furthermore, the City will design and construct 33,900 units of affordable housing with floor area of 2.05 million sq.m. (12/13/07, China Industry Daily News)

- Hong Kong contractor Chun Wo Holdings will become a mainland property developer with a two billion yuan investment in Shijiazhuang, the capital of Hebei province. The company, founded in 1968, will be renamed Chun Wo Development Holdings as part of the change. "The mainland will become the company's major profit contributor over the next few years, especially from the project in Shijiazhuang," said Dominic Pang Yat-ting, managing director of Chun Wo's mainland unit, Chun Wo (China). The company is the sole non-mainland property developer in the city. Its residential and retail project, known as Arc De Royal, covers a total gross floor area of 400,000 square metres and accounts for 85 per cent of the company's land bank. (9/28/07 South China Morning Post)