Research Report on the Investment Environment of Qingpu ,

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© 2020. For information, contact Deloitte China. By Air e 2h15min on Qingpu Beijing ic Z om on 2h30min Preface Ec Qingpu Guangzhou lta e 2h40min D Qingpu Shenzhen er Yellow Sea iv By High-speed Railway R e 5h Known as “a pearl on the upper ”, Research Report on the Investment Environment of tz Qingpu Beijing g Qingpu District, located at the heart of the Yangtze Qingpu District, Shanghai for investors from an n River Delta (YRD) region, is the only administrative objective third-party perspective using specialized a 1h15min district in Shanghai that borders both and research and analysis methodologies. Y -Hour Transp Qingpu Provinces. In recent years, Qingpu has been e or In addition to information and data on the On t quickening its pace to become a gateway of Shanghai C economic and industry development of Qingpu Nanjing ir 25min c Qingpu to serve larger markets and a demonstrative player in District, this report also includes views and le the integrated development of the YRD region. insights obtained through interviews with various Building on its unique advantages in location, government officials and companies management 50min Qingpu eco-environment and industries, Qingpu is focusing in the district, combined with Deloitte’s rich on improving local ecological conditions, developing experience in the research of investment Chongming-Qidong Yangtze River Bridge specialized industries and reinvigorating rural environment and industry development. The 6h51min Suzhou Shanghai Port Qingpu Guangzhou economies, as part of its leaping and high-quality Research Report aims to present a comprehensive Sunan Shuofang International Airport Shanghai Yangtze overall development plan to transform itself overview of the investment environment in Qingpu River Bridge into a “New Qingpu” both vibrantly modern and District from the following five aspects: Shanghai By car ecologically livable. • Government policies and services Yangtze River Tunnel Qingpu Shanghai Hongqiao In recent years, Qingpu has been optimizing its • Business environment Lake Tai Qingpu 15min Shanghai International Airport business environment, and increasing its visibility • Infrastructure District • Human resources Shanghai Hongqiao as a hub of services, manufacturing, shopping and of International Airport • Living environment Qingpu 65min Shanghai culture. In supporting the integrated development Shanghai Pudong International Airport of the YRD region, it is cultivating modern services, The Report also provides an overview of the International Airport advanced manufacturing and strategic emerging current development and future outlook of Qingpu Huzhou 15min Shanghai Hongqiao industries in a coordinated way. Focused efforts District, presenting insights into its advantages in Qingpu Railway Station are made to develop local pillar industries in a investment environment and prospects, specifically: Airport Luchao Port “3+2+1” pattern(1), and facilitate the clustering of • Superior geographic location and favorable 1h20min Sunan Shuofang specialized industries to create new engines for eco-environment Yangshan Qingpu International Airport quality economic growth. • Comprehensive government support and Deep-Water Port Jiaxing Port Following the “3+2+1” pattern of industry efficient administrative services Qingpu 1h20min Jiaxing Airport development, Qingpu is vigorously developing: • Specialized industry clusters and a vibrant innovation ecosystem • 3 major industries, to upgrade its modern Hangzhou Xiaoshan service sector and boost headquarters As China continues to shift its approach Hangzhou International Airport economy as a new hub of modern services in to economic growth and facilitate industry Shanghai; transformation and upgrading, and in the context of Beilun Port • 2 high-end industries, to drive transformation Shanghai’s march towards a global city of excellence, of local manufacturing and create new Qingpu District is further aligning with international economic momentum in the district; and trends to create a more attractive, competitive and Ningbo • 1 specialized industry, capitalizing on new sustainable environment for business. Ningbo Lishe International Airport market opportunities in health and wellness 苏南硕放 国际机场 Shanghai Port to create a base for innovation-driven, Shanghai Yangtze integrated development of cultural tourism & River Bridge wellness. Shanghai Shanghai Qingpu Economic Commission At a time of new opportunities, Deloitte China Yangtze River Tunnel (hereinafter “Deloitte” or “we”) is honored with Shanghai Qingpu Commerce Commission Qingpu the request from Qingpu District to develop this Deloitte China Shanghai Shanghai Hongqiao International Airport Line 17 of Note: The “3+2+1” pattern refers to 3 major industries – logistics, convention & exhibition, and commerce; 2 high-end industries – IT and Shanghai Metro Shanghai Pudong intelligent manufacturing; and 1 specialized industry – cultural tourism & wellness. International Airport

04 Research Report on the Investment Environment of Qingpu District, Shanghai 05

嘉兴机场 Qingpu Plan Map Tables of Contents

Chapter I Overview of Qingpu District...... 2 Basic Facts Economic Development Huaqiao Town Jiading Anting Town District Chapter II Government Policies and Services...... 6 Kunshan City Kunshan City Research Summary Baihe Town Transparent and Targeted Government Policies

Huaxin Huaxin Industry Effective and Efficient Government Services Town Minhang Community District Minxing Sci-tech Chapter III Business Environment...... 11 Innovation Community World-leading Modern Service Fengxi Commerce and Research Summary Industry Cluster Business Cluster Xujing Industry Zhonggu Community Industry Layout Node City with Comprehensive Town Hongqiao Zhonggu Sci-tech West Hongqiao Functions in the YRD Region Center Qingpu Industry Park Innovation Community Commerce and Priority Industries Town Business Cluster Xujing Zhaoxiang Commerce and Town Logistics Services Zhaoxiang Qingpu New City Sci-tech Business Cluster Qingpu Town New Innovation Cluster Exhibition and Convention Services City East Qingpu Sci-tech Innovation Cluster Commercial and Business Services Advanced Information Technology Shangta Sci-tech Innovation Community Advanced Smart Manufacturing YRD Integrated Collaborative t Zhujia- el Cultural Tourism and Health Industries Innovation Area jiao B Sheshan nt Town Town lopme Featured Industry Platforms eve t D Industry n s ive e n at Community m o ov Environment for Innovation and Entreprenuership p ti n lo c In e n u ev u o D F zh u ve HuWest Qingpu Sci-tech ho si ai- Chapter IV Infrastructure...... 26 uz en ngh Innovation Cluster i-H eh Sha gha pr Legend Songjiang District an om Minhang Research Summary Sh f C elt o Songjiang Town B New City Key Town Development Belt District Transportation Network Key Town Development Axis Wujiang District Jinze Sci-tech Function Node of First-tier Town Innovation Community Industry Infrastructure Function Node of Second-tier Town Liantang Industry Function Node of Third-tier Town Commercial Facilities Liantang Community Town Function Node of Fourth-tier Town Function Node of Fifth-tier Town East Qingpu Chapter V Human Resources...... 33 Qingpu New City Legend West Qingpu Research Summary Jiashan County Rail Line Jiashan County Industry Base Human Resource Supply Water Sci-tech Innovation Community Expressway/Highway Commerce and Business Cluster Human Resource Costs Railway Station Airport Industry Community Urban Development Limit Sci-tech Innovation Center Provincial Administrative Boundary Chapter VI Living Environment...... 38 Shanghai-Huzhou Sci-tech Corridor District Administrative Boundary Research Summary Education Facilities Qingpu Qingpu Industry Medical Facilities Public Cultural Facilities Overall Plan Map Layout Map Cultural Landscapes Leisure and Recreation

Chapter VII Summary and Prospect...... 46 Appendixes...... 48 Basic Facts

Premium Location as the Gateway of Shanghai Rich Culture as the Origin of Shanghai Qingpu District, adjacent to the Hongqiao Integrated As the origin of Shanghai’s culture spanning over Transport Hub, is the only administrative district in 6,000 years, Qingpu has always been home to great Shanghai that borders both Jiangsu and Zhejiang talents across its history. It has bred the splendid Provinces. It aims to become a gateway of Shanghai Songze Culture and Fuquanshan Culture during the to serve larger markets and a demonstrative player in Neolithic period, and enjoys the heritage of numerous the integrated development of the YRD region, and businessmen gathering at this critical hub of China’s contribute enormously to the development of Shanghai maritime silk road over a thousand years ago in the into an excellent global city. Tang and Song dynasties. Shaped by the wisdom of Since the beginning of the 13th Five-Year Plan period ancient residents, the district now boasts compelling (2016-2020), Qingpu has developed into a new stage unique features characterized by distinguished characterized by all-round leaping growth. Building on inclusiveness. existing achievements, Qingpu, the origin of Shanghai, is Picturesque Scenery and Green Environment rapidly transforming into the gateway of the metropolis Qingpu has taken the unraveling eco-environment as towards home and abroad. one of its competitive advantages, maintaining a leading Innovative Development of Specialized Industries position in Shanghai in terms of the air quality, the forest Taking advantage of its current industries and coverage rate, and the green coverage rate. The district resources, Qingpu has established a pillar industry has been recognized as a National Model District for system in the “3+2+1” pattern, and increased its visibility Environmental Protection in China, and the towns of as a hub of services, manufacturing, shopping and Zhujiajiao, Liantang and Jinze as National Eco-towns. culture. Based on the industry platforms of exhibition A Continuously Optimized Business Environment services, logistics, BeiDou navigation satellite system, In Qingpu District, distinctive government service civil aviation and cross-border e-commerce, the district patterns of grid management and mass approval have is proactively promoting transformation and upgrading been deployed to effectively complete the last-mile to foster smart and digital-enabled industries. connections between government agencies and citizens/ Qingpu is working to function as a science and businesses. technology innovation stronghold pillared by BeiDou Aligning with the highest international standards, navigation system, artificial intelligence, and mobile Qingpu is leveraging all its strengths to build a favorable devices, aiming to help develop Shanghai into an and globally-oriented business environment ruled by innovation center of science and technology with law, which features open and inclusive administration global influence. mechanisms, stable talent resources, and supports for free and unimpeded trade.

Titles & Highlights National Model District for Environmental Protection Chapter I One of the First National Ecologically Strong Cities/Districts Building a National Demonstration Zone for Ecological Progress Overview of Building a National Model District Qingpu District 2 Research Report on the Investment Environment of Qingpu District, Shanghai 3 Economic Development Economic Development (Continued)

Steady Growth in Economy Sound Industrial Development A Growing Standard of Living Driving Consumption Table 3: Per Capita Disposable Income of Residents Qingpu District maintained a steady growth in In 2019, the added industrial value in Qingpu District In 2019, Qingpu continued to take lead in econimic in Qingpu (2015-2019) GDP and per capital GDP from 2013 to 2019. In reached RMB 41.38 billion, and the overall output of local growth in Shanghai, with the per capita disposable 60,000 2019, its GDP increased by 5.8% on a year-on-year industrial enterprises with an annual revenue of RMB 20 income of urban and rural residents recording RMB 50,000 basis to RMB 116.63 billion. million or more recorded RMB 155.94 billion. 51,563, a 8.9% increase over the previous year, which is 40,000 In recent years, Qingpu has made progress in the one of the highest average growth rate in Shanghai. 30,000 47,336 51,563

(In RMB) 43,225 Table 1: Qingpu’s GDP and its Growth Rate transformation and upgrading of manufacturing industry. In In the same year, the retail sales of consumer goods 20,000 36,188 39,614 (2013-2019) 2019, the overall output of companies in strategic emerging in Qingpu grew by 4.5% over the previous year to a total 10,000 industries increased at a real growth rate of 2% to RMB 39.8 of RMB 54.23 billion. Around 42.58% of the total sales 0 150 10.00% billion, accounting for nearly 25.5% of the total output of was generated by businesses above a designated size, 2015 2016 2017 2018 2019 Qingpu’s industrial enterprises with an annual revenue of RMB which totaled RMB 23.10 billion, up by 0.8% over 2018. 7.50% 7.40% 8.00% 7.20% 7.00% 6.40% 20 million or more. The next-generation information technology Table 4: Total Retail Sales of Consumer Goods in 6.10% Highly Vibrant Capital Market 100 5.80% industries boasted fastest growth in the six strategic 6.00% In 2019, the value added of financial industry Qingpu (2013-2019) 60 emerging industries, among which high-end equipment in Qingpu increased by 11.6% from 2018, to RMB 116.6 4.00% manufacturing, new energy, biomedicine, energy saving and 4.56 billion. As of 2019, there were 25 public listed 50 40 94.0 100.9 107.4 environmental protection industries saw real growth. companies in Qingpu. 82.7 87.8 77.2 2.00% 53.87 56.40 58.10 54.23 Increased Attraction for Foreign Investment 44.45 48.97 GDP (In RMB Billion) 20 38.99 In recent years, Qingpu has made remarkable 0 0.00% Saving energy (In RMB Billion) 2013 2014 2015 2016 2017 2018 2019 and reducing achievements in attracting foreign investments. In 2019, 0 In 2019, consumption the contractual investment value in Qingpu totaled USD 2013 2014 2015 2016 2017 2018 2019 GDP Growth Rate the energy consumed per output of RMB 10,000 1.4 billion. Among the foreign invested projects were by industrial enterprises 31 each receiving an investment of over USD 10 million, Table 5: Total Contractual and Executed FDIs in with an annual revenue of and USD 1.15 billion in total. The executed FDI recorded Continously Optimized Economic Structure RMB 20 million or more Qingpu (2015-2019) In 2019, Qingpu witnessed a progress in the reduced by 5.3% USD 800 million, among which USD 630 million is from 1,500 1400.00 Sustainable 23 projects that each receive an investment of over optimization of economic structure towards “tertiary, over 2018 development 1,200 secondary, primary industry” (in the order of the USD 10 million. 903.34 900 811.42 800.00 proportion of contribution to GDP, from highest to Burgeoning Import and Export Trading 635.40 656.59 618.62 600 lowest). In the same year, the output of the primary, Withstanding the challenges posed by domestic 411.25 416.93 45,178 Service Industry Driving Economic Development secondary and tertiary industries was RMB 760 and international economic situations, Qingpu (In USD Million) 300 In recent years, the service industry in Qingpu has million, 43.37 billion and 72.50 billion respectively, enjoyed a growing import and export trading value in 0 grown fast. In 2019, the added value of the tertiary industry 2015 2016 2017 2018 2019 with a ratio of 0.6% : 37.2% : 62.2%. 2019, totaling RMB 76.84 billion, an increase of 0.9% increased by 11.9% compared with 2018, which is 5.8 Contractual FDI Executed FDI over 2018. percentage points higher than the growth rate of local GDP. Table 2: Percentage of the Three Industries With its value added accounting for 62.2% of local GDP. Companies listed on China’s two main boards (2013-2019) 11

100% 7 Companies listed on ChiNext

80% 43.2% 45.4% 48.5% 51.3% 52.9% 55.6% 62.2% 4 Companies listed on China’s SME Board 60% 1 Company listed on New York Stock Exchange 40% Company listed on Hong Kong Exchanges and 55.5% 50.5% 2 Clearing Market 53.5% 47.8% 46.3% 43.6% 37.2% 20% Companies or so listed in the National Equities 1.3% 1.1% 1.0% 0.9% 0.8% 0.8% 0.6% 44 Exchange and Quotations 0% 2013 2014 2015 2016 2017 2018 2019 Tertiary Industry Secondary Industry Primary Industry

4 Research Report on the Investment Environment of Qingpu District, Shanghai 5 Summary

Transparent and targeted policies, Testimonial from a Resident Company and effective and efficient services A well-developed government service system provided by the Qingpu government and stable government policies are important safeguard the economic development considerations for companies when they choose of the district, giving a major impetus their locations, as these factors will safeguard to the transformation and upgrading of long-term corporate business plans and future local industries, and the creation of a industry development toward sustainable favorable environment for innovation and development. We have received a lot of support entrepreneurship. and help from the Qingpu government in our Qingpu has launched effective policies process of incorporation and operation. in favor of businesses, to promote the development of advanced manufacturing Shanghai ROTAI Health Technology Co., Ltd. and modern services. To build a service- oriented government system, Qingpu government has endeavored to provide targeted and professional services for businesses, and create a fair, transparent and open business environment enabling innovation.

Chapter II Government Policies and Services 6 Research Report on the Investment Environment of Qingpu District, Shanghai 7 Research Summary Transparent and Targeted Government Government Policies and Services Policies

In order to further optimize industrial structure and enhance efficiency, the Qingpu District Government has launched Survey Feedback on Government Policies and a number of policies to support sustainable business Importance / Satisfaction Services development in a continuously improving environment. • Qingpu scores 9.7 out of 10 in the rating of importance on this dimension, which is rated by Government policies and services 93.8% of the surveyed enterprises as crucial to Industry Policies tional transaction costs by creating a more enabling 10 Importance the investment environment; Promoting “Smart Ungrading” of Industries institutional environment for their production and 9 Satisfaction • Qingpu scores 9.4 out of 10 in the rating of To promote industrial transformation and economic operation activities. Meanwhile, targeted support 8 satisfaction on this dimension, which is rated by development pillared by new technologies, industries, is provided to help companies address operational Living Business 86.6% of the surveyed enterprises as satisfactory; business forms and models, the Qingpu District challenges, including in project implementation, financing environment 7 environment • On this dimension, the district’s impartiality Government has encouraged local companies to take and IPO costs, thereby facilitating sustainable business 6 and transparency of government policies and measures such as “upgrading and updating products”, development throughout the lifecycle of their operations. talent attraction policies are rated as the most “optimizing and upgrading technical equipment”, A Strong Support System for Innovation important factors; “developing and introduing energy-efficient technologies” Qingpu has been encouraging innovation within • On this dimension, the respondents are and “integrated use of information technology”. industrial clusters or individual companies, developing most satisfied with the district’s impartiality Infrastructure Human resources Subsidies are granted to fund their projects for technical makerspaces, and incentivizing technological breakthroughs, and transparency of government policies transformation and intelligent upgrading in an amount to accelerate industrial transformation and upgrading, as and government service consciousness and proportional to the total investment in equipment. well as technological innovation and development. Incentive administrative efficiency. Supporting the Expansion and Growth of Companies funds are awarded to selected high-tech industries, projects To help locally based companies enhance their core of technological outcome transformation, and technological competitiveness, Qingpu has put in place a series of policies financing projects, to transform local companies into a for supporting the growth of leading companies, fast growing powerhouse of technological innovation that plays a vital enterprises or major players from various industries operating role in supporting industrial development. Breakdown of Importance / Satisfaction within its border. A tiered incentive program is set up to Accelerating the Development of Modern Services reward such companies based on their annual operating Annual dedicated funds have been allocated to revenues and growth rates, and guidance is provided in services enterprises in modern trade and commerce, Sustainability of development brand building and increasing corporate influence. modern logistics, convention and exhibition, cultural Helping Companies Reduce Operating Costs creativity and innovative finance industries, as an Maturity of legislation The local government has been helping companies incentive to drive their innovative development, improve reduce their financial burdens, especially the institu- operation capacity and expand market presence. Protection of information security Talent Policies Table 6: “Qingfeng” Talent Development Policies (Non-exhaustive) Protection of intellectual The plan encourages enterprises, public institutions and industry Housing allowance of up to RMB 5 platforms in Qingpu to attract top-level talents from China and overseas. property rights Increased support million and dedicated apartment It targets key industries including intelligent manufacturing (integrated support Policies encouraging for attracting and circuit, AI and biomedicine), digital economy (5G and its application, cloud keeping talents computing and big data), service economy (convention and exhibition, technology innovation logistics, software information, trade and commerce, and cultural tourism Qingfeng Whole-process guidance on and and health), innovative finance and headquarters economy. Specifically, Building a strong Top-level “green fast lane” of household government subsidies and incentives are provided to magnetize experts Talent At- registration Talent attraction policies talent pool who lead the industry development and master core technologies to local traction Plan entities, especially leading companies, “hidden champion”, unicorns, and Supportive policies for platform enterprises with global influence and representing future trends. Dedicated funds for technological Application requirements: involving in the district’s key industries, with outcome transformation and industries and implementation influence and leadership in these industries; and capable of solving prioritized access to working space and critical problems and making significant contributions to the economic world-class laboratory equipment Impartiality and transparency and social development of the district. of government policies CAS and CAE academicians Housing allowance: up to RMB 5 million Government service conscious- Incen- Listed in Chinese state-level talent programs Housing allowance: up to RMB 3 million tives for ness and administrative efficiency Recruited in Shanghai municipal-level talent programs, with expertise in the Introducing Housing allowance: up to RMB 1 million High-caliber district’s key industries, and receiving an annual salary of over RMB 1 million 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 Experts Served as CEO, CTO or the equivalent in the companies listed in the Fortune Rent allowance: up to RMB 4,000 per 500, China Top 500 Private Enterprises or other authoritative rankings month Importance score Satisfaction score Supporting Teams at companies listed as Shanghai’s Major Companies in Strategic Programs Talent support fund for each team: Emerging Industries, Shanghai High-tech Companies, and Shanghai Hi- for Top-level up to RMB 12 million tech “Little Giants” Talent Team

8 Research Report on the Investment Environment of Qingpu District, Shanghai 9 Effective and Efficient Government Services

In recent years, Qingpu has taken improved satisfaction of businesses as a key criterion for optimizing its government services that are ruled by law and facilitate both Chinese and international players. Efforts have been accelerated to identify weak spots and consolidate strengths, so as to build a globally leading business environment featured by convenient trade and investment, efficient administration workflows, standardized service management, and comprehensive laws and regulations.

Among all of the 519 administrative approval items in Qingpu District, those concerning business incorporation, real estate registration, and construction of investment projects are most frequently applied, but feature the longest approval lead time and the most complicated procedures. The “3-5-15” and “3-5- 45” approval patterns have been adopted to simplify the approval of these items, significantly improving the satisfaction of businesses with the business environment in Qingpu.

3 working days for business incorporation

Leveraging the traditionally advantageous 5 working days for real estate registration business communities that provide a whole package of agency services, Qingpu has developed a three-layer agency service mechanism incorporating district-level authorities, business 15 working days 45 working days for communities, and banking partners. In this mechanism, dedicated service staff and standard for approval of approval of other statements of authorization and promise are industrial projects investment projects in place for businesses to enjoy free agency services. As a result, a newly established company “3-5-15” “3-5-45” may receive various licenses and permits Approval Pattern Approval Pattern required for business operation after a simple procedure comprised of one notice, “one-window” acceptance, a whole package of agency services, three-day handling by government agencies, and approval results delivery by express mail.

Integrated Approval

Agency Joint Services Review

Online Services De- livery by Online Express Only Mail Con- solidated Assess- Chapter III ment Business Environment

10 Research Report on the Investment Environment of Qingpu District, Shanghai 11 Research Summary Business Environment

Summary

Importance / Satisfaction Survey Feedback on Business Environment • Qingpu scores 9.5 out of 10 in the rating of importance on this dimension, which is rated by A high-quality business environment Testimonial from a Resident Company Government policies and services 91.8% of the surveyed enterprises as crucial to is an important indicator of the core After years of development, Qingpu has 10 the investment environment; competitiveness of a region and is one of Importance built a solid industry foundation facilitating 9 Satisfaction • Qingpu scores 9.1 out of 10 in the rating of the crucial factors for attracting potential frequent business cooperation and exchange satisfaction on this dimension, which is rated by 8 investors. activities in the district. We have organized Living Business 78.4% of the surveyed enterprises as satisfactory; environment environment Taking full advantage of its industry many business gatherings to share latest 7 • On this dimension, the district’s industry development and supported by its pillar industry information and resources, and 6 clustering level and economy of scale, and overall industry system in a pattern of “Three discuss new products and technologies in economic development are rated as the most Major Industries, Two High-end Industries, the industry. Thanks to the current business important factors; and One Specialized Industry (3+2+1)” environment in the district featured by • On this dimension, the respondents are most pattern, Qingpu has made great efforts a pattern of “attracting new business Infrastructure Human resources satisfied with the Qingpu-based logistics service to promote the integrated development enterprises with existing ones”, Qingpu-based and business exchange platforms of advanced manufacturing and modern leading enterprises have attracted a growing service industries to drive regional number of new enterprises to the district. economy. Thanks to the scientifically sound regional planning, pioneering Shanghai Huace Navigation Technology Ltd. strategic transformation philosophies and close connections between upstream and downstream industries in the district, Breakdown of Importance / Satisfaction Qingpu has formed a favorable industry ecosphere that provides more business Business exchange development and market opportunities. platforms

Logistics service

International presence

Technology innovation platform Specialized institutions and services

Financial institutions and services Industry clustering and economy of scale

Overall economic development

6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0

Importance score Satisfaction score

12 Research Report on the Investment Environment of Qingpu District, Shanghai 13 Industry Layout: Industry Layout(Continued): Advanced Manufacturing Commerce and Business

In recent years, as the integrated development of advanced manufacturing and modern service industries is Since 2016, Qingpu has seen continuous optimization promoted in the district as the main driving force for the district’s industry development, Qingpu has made great of economic structure as the share of tertiary sector efforts to develop local pillar industries in the “3+2+1” pattern and facilitate the clustering of specialized industries maintains a stable growth. Commerce and business based on a new industry layout. Now an overall layout of advanced manufacturing supported by one industry base industry clusters represented by exhibition and Fengxi Commerce and four industry communities has taken shape in Qingpu. conference services, modern trade services and software 10km and Business Cluster and IT services have enjoyed a rapid and tremendous 1.1Km2 Shanghai Qingpu Industrial Zone growth. At present, Qingpu plans to establish a well- Shanghai Qingpu Industrial Zone, which covers a planning area of 56.2 2 structured pattern for development of commerce and km , is located at the center of the YRD Economic Zone and served by a Qingpu District Hongqiao One Industry Base transportation hub connecting Jiangsu, Zhejiang and Shanghai. In 2019, business focusing on three clusters: the total output of industrial enterprises with an annual revenue of RMB Key Commerce and Business Clusters Zhaoxiang Commerce 20 million or more in this industrial zone recorded RMB 101.59 billion. The and Business Cluster West Hongqiao contractual FDI value totaled USD 500 million, and the executed FDI USD 2.6Km2 Commerce and 200 million. The total fixed assert investment reached RMB 4.83 billion. West Business Cluster In the same year, it built comprehensive strategic partnerships with Suzhou Hongqiao 3.9Km2 Industrial Zone in Jiangsu, Jiaxing Economic and Technological Development Fengxi Zone in Zhejiang, and Chaohu Economic Development Zone in Anhui. Zhaoxiang Industry Development The industrial zone is developing high-end smart manufacturing, biomedicine, new materials, software and information, print media and fast- West Hongqiao Commerce and Business Cluster Zhaoxiang Commerce and Business Cluster moving consumer goods manufacturing as its six dominant industries. Covering an area of 3.9 km2, the West Hongqiao Planned to cover a land area of 2.6 km2, the Meanwhile, proactive efforts are being made to boost the development Commerce and Business Cluster stretches to Songze Zhaoxiang Commerce and Business Cluster, which is of high-end smart manufacturing industries, such as civil aviation and artificial intelligence, and to further facilitate the application of information Avenue in the north, Yinggang Road (E) in the south, currently accessible by Shanghai Metro Line 17 at the technologies in its manufacturing industries by leveraging the resources of Jiading-Minhang Elevated Highway in the east, and Jiasong Road (M) Station and by Shanghai-Chongqin specialized industry parks, such as Industry Base, Life Science Shenyang-Haikou Expressway in the west. Based on its Highway (G50) at the Zhaoxiang exit, will be expanded Industry Park, High-tech Achievement Transformation Base and Civil Aviation advantages in location, transportation access, industry to incorporate the major part of Shanghai Shixi Software Industry Park, for a faster establishment of advanced manufacturing clusters adaptation, and eco-environment, this commerce and and Information Park, now under construction. It has specializing in advanced IT and smart equipment manufacturing. business cluster is able to place its focus on six leading made continuous efforts to build a smart business Leading companies: Unicharm (China) Co., Ltd., Sealed Air (China) Co., Ltd., Amada (China) Co., Ltd., Heidelberg Graphic Equipment (Shanghai) Co., sectors: exhibition and conference services, circulation circle featuring innovative business models and new Ltd., Nivea (Shanghai) Co., Ltd., Hitachi Elevator (China) Co., Ltd., Shanghai services, headquarters economy, modern financial functions such as leisure and recreational facilities and Four Industry Communities Pratt & Whitney Aircraft Engine Maintenance Co., Ltd. services, creativity industry, and strategic emerging departure tax refund services. Efforts are also being industries, while continuously stepping up its efforts to made to develop new retail models and facilitate the cultivate extended clusters of headquarter commerce, transformation of existing business and trade clusters Shanghai Huaxin Green Industrial Park Shanghai Xujing Green Industrial Park business and trade, and recreational tourism, with a view toward experiential shopping destinations, with an aim Shanghai Huaxin Green Industrial Park is home to many Shanghai Xujing Green Industrial Park focuses on the well-developed industries such as transportation equipment development of competitive industries and platform to building itself into a world-class functional center for to building a new-type international business center that manufacturing, retailing, metalware manufacturing, companies specializing in new materials, equipment business, trade, and exhibition and convention services. will significantly contribute to the branding of Shanghai express and logistics, and auto parts manufacturing, each manufacturing and modern logistics. as a global shopping center. contributing an output of over RMB 1 billion. Leading companies: Geely Innovation Center, Shanghai Fengxi Commerce and Business Cluster 2 The expanded Zhaoxiang Commerce and Business Leading companies: ZTO Express Co., Ltd., YTO Express YongLi Belting Co., Ltd., Shanghai MedBridge Medical With a planned land area of 1.1 km , Fengxi (Logistics) Co., Ltd., Yunda Holding Co., Ltd., Benteler Technology Group Co., Ltd., Hongjing Investment Management Commerce and Business Cluster reaches north to Cluster will accelerate the construction of Caohejing Hi-tech Automotive Shanghai Co., Ltd., Shanghai Xin Peng Industry Ltd. Co., Ltd., E Link World Business Park Park (Zhaoxiang section) and the upgrading of New Town 1 2 Gusibang Road, south to Beiqing Highway, east to New Tongbo Lake, and west to Jiasong Road (M). It is making Economic Zone, with a focus placed on developing emerging Shanghai Zhujiajiao Industrial Park 3 4 Shanghai Liantang Industrial Park vigorous efforts to attract leading service providers information industries to further advance innovative Shanghai Zhujiajiao Industrial Park aims at developing Shanghai Liantang Industrial Park is home to industry in commerce and business, logistics, and design and technologies and cultural creativity industries with an low-carbon industries and green economy with a focus clusters specializing in electrical machinery and expanded diversity of industry functions, for the purpose of on competitive manufacturing industries including equipment, automobile, metalware and general equipment creativity, aiming to develop itself into a high-end better serving the “Made in China 2025” program. new materials, cultural products and sports outfit manufacturing. function zone for modern services in Qingpu District. manufacturing, and biomedicine. Leading companies: Jinhe Biotechnology Co., Ltd., Leading companies: Kingfa Sci. & Tech. Co., Ltd., Shanghai Chuangshi Industry Group Co., Ltd., SafBon Water Shanghai Trendzone Construction Decoration Group Co., Service (Holding) Inc., Shanghai, Shanghai Yongmaotai Auto Ltd., Shanghai ROTAI Health Technology Co., Ltd., Shanghai Parts Co., Ltd. Yongguan Adhesive Products Co., Ltd., Shanghai Fangda Medical Co., Ltd., Shanghai Mizuno Co., Ltd.

14 Research Report on the Investment Environment of Qingpu District, Shanghai 15 Priority Industries Logistics Services

Building on its competitive industries and strong resources, Qingpu has stepped up its efforts since 2016, the The Shanghai Qingpu Smart Logistics Specialized Industry Base under the national Torch Program was officially beginning year of the 13th Five-Year Plan period, to develop priority industries in the “3+2+1” pattern with a focus inaugurated in 2017, and Huaxin Town was recognized as Shanghai Trade and Service-oriented National Logistics Hub in on modern services, advanced manufacturing, and strategic emerging industries, in the context of optimizing the 2019, both of which marked a significant step forward in the district’s distinctive development of logistics industry and its economic structure and serving the need for industry transformation and upgrading. further transformation and upgrading. Since the beginning of the 13th Five-Year Plan period in 2016, Qingpu District has made efforts to further develop the clustering effect of corporate headquarters and speed up the intelligent and high- end development of logistics industry through the initiative to build an Internet-based logistics network and transform Upgrading the “Two the ecosystem of logistics services, with an aim to forming an industry cluster producing an output of RMB 100 billion or High-end Industries” to facilitate the strategic more and establishing an Information Technology Innovation Center for logistics corporate headquarters across China. Enhancing the industry transformation of “Three Major Industries” to advanced manufacturing Further Scaling up the Logistics Industry develop a new excellence in the district towards 1 center of modern service Cultivating the “One through the Headquarters Cluster new functions of the industries Specialized Industry” Supported by the vibrant cluster of leading logistics technology innovation to create a new featured center companies’ headquarters, Qingpu has seized the base for developing opportunities brought by the rapid development of cultural tourism and health industries e-commerce to facilitate local logistics companies in gaining Logistics Services Advanced Information Technology more market share, scaling up the industry, and increasing Qingpu is endeavoring to develop a new The establishment of the Qingpu-based their presence in the domestic market. industry cluster that produces an annual output Shanghai Shixi Software and Information Improving the Smart Distribution System through of RMB 100 billion or more through enhanced Park has provided an opportunity for the 2 headquarters agglomeration and capacity extension of Shanghai’s new-generation IT Cultural Tourism and Health Industries the Internet-based Logistics Network upgrading in logistics services, while speeding industries to the district. Facilitated by the Taking advantage of the strong The district is enhancing the use of cloud computing, IoT, cultural and ecological resources in the up the transformation and upgrading towards Huawei R&D center, the BeiDou navigation and technologies applied on terminal equipment represented the formation of new-type logistics services industry platform, and Hexagon Qingpu western Qingpu, the district plans to by BeiDou navigation satellite system and RFID, with a view through integration with big data, capital Smart Industry Park, Qingpu is proactively build a comprehensive health platform operation, finance, and settlement, with an promoting the R&D and applications of intended to boost innovative, clustering to establishing an Internet-based logistics network for aim to building a Chinese national information emerging technologies represented by and integrated industry development of integration of supplier resources. Featuring multiple functions Building an Industry Ecosystem Featured technology innovation center for express next-generation information technology, medical care and medicine, senior care such as online transaction and payment, shipment tracking, and healthcare, fitness, and cultural and by a “Logistics + N” Pattern through the delivery and logistics service headquarters. cloud computing, big data, software and information release, the network aims to serve as an 3 information, location services, IoT, mobile recreational tourism, in an effort to pro- Transformation of Logistics Industry Exhibition and Convention Services mote the social recognition and market information platform for logistics companies across the supply Based on the National Exhibition and internet, smart city, and intelligent Development Model presence of these featured industries, chain in the YRD Region and improve the Internet-based Convention Center (NECC), Qingpu is driving, while enhancing the integrated contributing to the establishment of an By availing smart information technology, accelerating the building of a master platform development of advanced information distribution system through a better use of logistics data. industry cluster producing an annual logistics companies in Qingpu have made for exhibition and convention services to technology and financial industries. output of RMB 100 billion or more. As the leading unicorn companies in the local logistics industry, ANE efforts to integrate and reconstruct their scale up the industry that matches the Advanced Smart Manufacturing Logistics and Yimidida are committed to supply chain management through construction size and functions effectively to Qingpu is pushing forward the the integration of traditional logistics services, the Less than Truckload Shipping business operations with optimized techniques boost the district’s economy, while promoting industry transformation towards network, and the information and technology platform, taking the lead in the in data collection, screening, and gathering, the clustering and synergic development of advanced smart manufacturing featured intensive and innovation-driven development of the logistics industry. thus accelerating the transformation of business, trade, recreational tourism, and by improved industry capacities, logistics services from the traditional model to other related industries. with a focus on the five competitive a smart and advanced one. industries in the district, namely, smart Case Study Commercial and Business Services In addition, efforts have been made to create Leveraging the existing resource base automobiles and key auto parts; artificial Following the establishment of its national headquarters in Qingpu built on Shanghai Outlets and a series intelligence and smart equipment District in 2002, ZTO Express (ZTO) has grown into an industry- a logistics ecosystem and develop new market of established business service brands, manufacturing; aviation manufacturing leading company in terms of business turnover, service quality, and segments featuring specialized, professional, and and general aviation; targeted medical technological innovation after years of rapid development. As an Qingpu is making efforts to develop the value-added services. Through the expansion care and advanced medical equipment; active player in the “widespread entrepreneurship and innovation”, “station economy” and upgrade the capacity of logistics services into other industries, a of modern business services by taking and energy saving, environmental the company has created a distinctive and worth-sharing “ZTO Model” advantage of the operation of the Qingpu- protection and new-energy equipment for companies in the capital market, e-commerce platforms, and growth model featuring brand building, scale bound Shanghai Metro Line 17. manufacturing. the express and logistics industry. On the one hand, ZTO has been development and professional services is taking constantly developing new technologies and utilizing new equipment shape, facilitating the capacity upgrading of the to enhance its operational efficiency and optimize the cost structure, logistics industry towards high value-added areas. aiming to provide better services and explore new markets. On the other hand, ZTO has been dedicated to promoting industry As noted in the “China Smart Logistics Development Report” integration through its subsidiary companies represented by ZTO released by Deloitte China, smart logistics holds the key for logistics International Logistics, ZTO Freight, ZTO Warehousing, and Ztbest. Propelled companies to gain competitive advantages in the near future. by its continuously extended value chain and improved ecosystem, the Facing the emerging trend, logistics companies should attach company is undergoing transformation for higher production efficiency, greater importance to three key factors – technology, prior planning, and data collection, to gain competitive advantages. As the market of with a vision to become a larger and more competitive company. smart logistics grows rapidly, the whole industry is shifting its focus from automation to data-oriented and smart development.

16 Research Report on the Investment Environment of Qingpu District, Shanghai 17 Exhibition and Convention Services Commercial and Business Services

Based on NECC, Qingpu has been developing its convention and exhibition industry with a focus on establishing Since the beginning of the 13th Five-Year Plan period, Qingpu District, which is ideally located within the Shanghai platforms for exhibition and trade, to accelerate the scale-up and capacity building of industries matching the Hongqiao Central Business District, has capitalized on the operation of the Qingpu-bound Shanghai Metro Line 17 to construction size and functions of NECC. Meanwhile, Qingpu is extending the industry chain of convention and facilitate the scale-up and capacity upgrading of its “station economy”, further promoting the development of new business exhibition to promote the synergic development of commerce, trade, cultural creativity, and recreational tourism models and the headquarters economy, and contributing to the branding of Shanghai as a global shopping center. driven by the exhibition economy. Headquarters Economy Capacity Upgrading Distinct Industry Strength A Complete Industry Chain Emerging Business Models • A Stronger Thanks to the robust development of the convention • Station Economy After being put into operation, NECC has held • Supply Chain in E-commerce Headquarters Economy many large-scale, influential exhibitions with high and exhibition industry in recent years, Qingpu has seen • Experiential Shopping a clustering of industry resources and factors, such as • Cross-border E-commerce • Local Companies’ Increased quality, including China International Medical Destination Equipment Fair, China International Industry Fair, and information, technologies, commodities and talents. Global Presence China International Trade Fair for Apparel Fabrics Qingpu is now accelerating the aggregation of upstream and Accessories. The 46th WorldSkills Competition and downstream industries, focusing on the development of Capacity Upgrading New Commerce and Business Models and other branded and professional exhibitions and information services, consulting and evaluation, booth planning Qingpu has been dedicated to driving the economic Qingpu has made constant efforts to expand the competitions with global presence will be held in and building, venue management, advertising agency, exhibit growth along the Shanghai Metro Line 17 through the economic ecosystem for the business and commerce NECC, the permanent venue of China International transportation, facility leasing, exhibit declaration, exhibition integration of commercial resources, including Qingpu industry. Building on its steadily developed real Import Expo. news release and marketing. Factory Outlets, JSWB Global Home Furnishing Center, economy, the district has offered an enabling Driven by the “One Core & Two Wings” strategy Taking full advantage of the spillover effects of exhibition Shanghai Pearl River Creative Exhibition & International environment for the growth of e-commerce, striving and the development of Shanghai Hongqiao Central economy, Qingpu is developing itself into the core functional Commerce Center, Ganso Dream World, and Xijiao to create new development models such as “digital + Business District, and with NECC serving as the core area of Shanghai’s exhibition industry to hold world-renowned International Agricultural Product Trade Center. experiential”, “online + offline” resources integration, exhibitions, setting an example nationally for the development platform for expanding the convention and exhibition and omni-channel retailing of “products + services”. industry, Qingpu has been making dedicated efforts to of convention and exhibition industry. Through the innovation of business models, the district Supported by an end-to-end solution, Qingpu plans improve exhibition services with superior information facilitates the transformation of existing commerce and to build a complete e-commerce supply chain and strategic consulting services; to enhance technical business clusters, Zhaoxiang Commerce and Business support with big data-based technologies, such Cluster in particular, towards experiential shopping covering from needs identification to delivery, thus to as visual data, data analysis library and cloud destinations. By providing better integrated services and achieve a diversified and upscale development with increased presence in the global market. computing; and to boost customer experience ion products with increased visibility, these clusters have at In d d with intelligent technologies including AR n u enabled the upgrading of consumption structure, thus In addition, facilitated by the bonded logistics u s and VR. Envisioned to develop itself into a o t F r y driving the development of commerce and business services in the Shanghai Qingpu Export and y stronghold in providing high-end exhibition r C t h industry in Qingpu towards high-end areas. Processing Zone, Qingpu takes the lead in s services, Qingpu has been stepping a u

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d establishing a cross-border e-commerce industry up efforts to realize digital-enabled n I park featured by multiple functions such as smart transforming and upgrading of its convention and exhibition industry with In exhibition, trading, and warehousing of imported te g t optimized business modes. ra en goods, constantly promoting the development of o ted pm f D Develo s cross-border e-commerce to vitalize local economy. iv rie erse Indust

Integrated Development of Diverse Industries Since 2016, led by the development of convention and exhibition industry and located advantageously adjacent to the Hongqiao Integrated Transport Hub, Qingpu has been promoting the integrated development of convention and exhibition along with business, recreational tourism, and sports industries with complete supporting facilities and cultural creativity, to make Qingpu more vital, charming and attractive. Commercial Complexes Driven by the development of the West Hongqiao In addition, Qingpu has been developing financial services to strengthen the development of convention and exhibition. In Business District, Qingpu, currently accessible by cooperation with financial institutions, Qingpu offers enhanced Shanghai Metro Line 17, has stepped up efforts to boost financial services of investment and financing, supply chain the commerce and business industry by developing finance, consumer finance, mergers and acquisitions to attract commercial complexes including Broadway, Bowanlanyun more new financial institutions and capitals. Complex, Powerlong Plaza, Greenland Hongqiao World Center, Wanda Mall, Injoy Plaza, and Dongdu Enjoy City.

18 Research Report on the Investment Environment of Qingpu District, Shanghai 19 Advanced Information Technology Advanced Smart Manufacturing

Since 2016, supported by the BeiDou navigation industry platform and the Huawei R&D Center project, Qingpu Responding actively to the strategic plan of Made in China 2025, Qingpu has been continuously making has been vigorously promoting the forward-looking industries, such as the location services provided by the BeiDou breakthroughs in system integration technology, equipment manufacturing, software development and innovative navigation satellite system, big data and cloud computing, software information and IoT, with a focus on the high- application of smart manufacturing, based on its competitiveness in industries such as automobiles and spare end R&D and commercialization of information technologies, to build an industry ecosystem featuring a full-fledged parts, aircraft engine maintenance, precision electromechanics and electronic information, as part of the efforts to chain connecting R&D, production and application. promote the presence of Shanghai as a global manufacturing center. Supported by the Huawei Shanghai R&D Center, Qingpu has vigorously promoted the R&D of 5G Intelligent Vehicles and Essential Spare Parts technology, and has built a world-class platform In recent years, Qingpu has been pushing forward integrating the research, software and hardware the transformation and upgrading of traditional development, testing and experiment of 5G technology. manufacturing through further integration of Location Services Provided by the Qingpu aims to serve as the R&D headquarters for the industrial development and information technology. BeiDou Satellite Navigation System wireless internet products by leveraging its advantages The district has prioritized the development of Based on the China BeiDou Technology Innovation on standard patents, technologies and industry influence. smart manufacturing of essential spare parts, which West Hongqiao Park, Qingpu’s satellite navigation IoT (Internet of Vehicles) is supported by a series of R&D on numerical control industry has developed rapidly and achieved a Starting from the Internet of Vehicles, Qingpu has machines, intelligent control systems, advanced significant clustering effect, creating an industry chain fully taken advantage of its sound industry foundation sensors and other key technologies in this sector. that connects the R&D, testing, production, distribution in fields like car components manufacturing, R&D and and after-sale services of the BeiDou navigation satellite production of key chips, packaging tests of IC, and key Leading company: system and location- service applications. electronic components and assemblies manufacturing. WM Motor, headquartered in the National Exhibition and Convention Upstream companies in the industry chain have It is focusing on the R&D of core IoT technologies and Center, is a well-known unicorn company specializing in new energy been dedicated to the R&D of navigation chips and the key components manufacturing, while promoting the automobiles and an emerging solution provider in the transportation components manufacturing for navigation machines; application of these technologies in logistics, aviation, industry. It plays a significant role in the integrated development of vehicle manufacturing, new energy, Internet and artificial intelligence. midstream companies are focused on navigation products, healthcare and other fields, which in turn drives the such as the measuring receiver and integrated control technological innovation of the industry. system; downstream companies mainly provide services Aircraft manufacturing and General Aviation based on core technologies of the BeiDou navigation Case Study Apart from strengthening its advantage in civil aviation, Qingpu is endeavoring to attract and cultivate more top satellite system, such as comprehensive surveying and Shanghai Huace Navigation Technology Ltd. (SZ: 300627) service providers in general aviation and prioritize the development of maintenance and testing of aircraft engines mapping, health monitoring and public transport services. is a high-tech group company focusing on the independent for an extended industry chain and a clustering development of the aviation sector . Big Data and Cloud Computing R&D, production and distribution of GNSS. Because of its highly specialized technologies and excellent R&D and Qingpu is also seeking the application of general aviation in related industries, including exhibition and Backed by the Huawei Cloud Data Center, Qingpu is innovation capability, the company has won two national convention services, logistics, BeiDou navigation and tourism, to achieve a synergistic development and boost local committed to developing core technologies in three levels, awards in science and technology, respectively second prize real economy. respectively the data collection, data management and of the State Technological Invention Award and second prize data use, with an aim to building and optimizing a big data of the National Science and Technology Progress Award. Artificial Intelligence and Advanced Smart Manufacturing industry platform by creating a full-fledged industry chain. As one of China’s three major companies specialized in Qingpu has attracted a host of robotics companies focusing on core technologies such as sensors, artificial the high-precision BeiDou navigation satellite system, Huace intelligence and automation to settle down in the district-based HIT Artificial Intelligence Park, with a view to In addition, Qingpu has fully leveraged the impetus Navigation keeps seeking technology-driven growth. It has facilitating the coordinated development of industrial robots and advanced manufacturing in the district. effects of Tencent Cloud Computing Center and developed a wide range of core technologies with independent other leading companies, and introduced enterprises intellectual property rights, and offered plenty innovative products and processes by maximizing the application of its specialized in cloud computing, so as to cultivate new R&D achievements. Its distribution and service network has cloud-based business modes. reached 97 countries and regions around the world. Case Study HIT Artificial Intelligence Park, a total-factor clustering Software Information Industry platform, is committed to providing expertise, information, Taking Shanghai Shixi Software and Information industry standards, capital and market opportunities for its Park as the center, and expanding the industry scale by resident companies. As of now, dozens of artificial intelligence setting up related businesses along the Metro Line 17 companies and entities affiliated to HIT Robot Group, including and G50 Shanghai-Chongqing Expressway, Qingpu has HIT Artificial Intelligence Institute, have moved into the Park. Specializing in cutting-edge technologies like robots, unmanned built a development network for the software information aerial vehicles, laser communications and smart manufacturing, industry, in a bid to continuously improve the technological they together offer a strong support for the development of R&D and innovation capability of this industry for an artificial intelligence industry in Qingpu. application-oriented and services-based development.

20 Research Report on the Investment Environment of Qingpu District, Shanghai 21 Cultural Tourism and Health Industries Featured Industry Platforms

In recent years, leveraging its rich natural and cultural resources, Qingpu has been developing modern service The accelerated development of key industry platforms of express and logistics services, convention and businesses, including cultural tourism, ecological health, wellness and elderly care, to create stronger industry clusters. exhibition, BeiDou navigation satellite system, and civil aviation has helped speed up local business clustering and development, and industry capacity upgrading, to create a new “growth pole” in the district. “Culture +” “1+1+3” Cultural Industry Layout The establishment of NECC and World Crafts Express and Logistics Services Industry Expo Park has invigorated the cultural scene A north-to-south ancient In 2019, the express and logistics service providers cultural corridor that traces in Qingpu. To promote cultural confidence, and the origin of Shanghai in Qingpu generated a revenue of RMB 101.3 billion, A belt of distinctive envisioning itself as a culturally competitive district joins the three relic sites representing 78.6% of the total in Shanghai, and 13.5% cultural attractions in the district – Songze which serves a unique role in shaping Shanghai into an has been built in of that in the country. Village, Mount Fuquan and international cultural metropolis, Qingpu is working on public spaces along Qinglong Town – which Now, Qingpu is home to 14 national or regional the Shanghai Metro a “1+1+3” layout for local cultural development in close represent Qingpu’s rich Line 17. headquarters of express companies, including five synergy with the tourism industry. cultural heritage. One Belt industry leaders in China – ST, STO, YTO, ZTO, and A variety of international cultural and sporting Yunda – along with 63 transportation companies with events have been hosted in the district, including an annual revenue of RMB 20 million or more, and 88 One Shanghai International Chinese Dragon Boat Invitational enterprises licensed to operate express services. Corridor Tournament, China (Shanghai) International Youth As a headquarters base for Chinese private express Football Invitational and Shanghai International Double Three companies, Qingpu has developed a strong advantage Convention and Exhibition Dutch Contest. They have helped shape a robust Zones in industry clustering development, featured by highly Officially put into operation in June 2015 as industry chain of cultural tourism in Qingpu, creating concentrate companies, a well-developed industry the largest convention and exhibition complex new possibilities and dynamics for local development. worldwide, the NECC in Qingpu features six Guided by a “One Core & Two Wings” strategic chain and a full-fledged factor market. In addition, with a focus on its water town of development plan, Qingpu is developing an urban functions – exhibitions, conventions, activities, Zhujiajiao, Qingpu has brought in new types of financial culture zone in its central Dianshan New Town, flanked business, office and hotels, with a floor area of by a Shanghai-style fashionable culture zone in the east 2 2 institutions, such as private equity, debt and venture • NECC gross floor area: 1.47 million m , including 500,000 m available for and a lakeside cultural tourism zone in the west. 2 capital funds, to create synergies with the local cultural 1.47 million m exhibition purposes. Now, there are over 1,000 and creative businesses, while maintaining its traditional • Area available for exhibition: registered enterprises engaged in convention and cultural identity. 500,000 m2 exhibition in the district, and Shanghai Convention & Exhibition Industries Association (SCEIA) and • Nearly 1,000 registered convention & leading companies such as Informa Exhibitions, Health exhibition service providers China Foreign Trade Macalline Exhibition and Digital Qingpu is bringing in high-quality healthcare and rehabilitation • 49 exhibitions and events hosted in Expo have settled down. institutions and specialized elderly care providers from across 2019 China and beyond, while developing in-home elderly care and As one of the productive service industry zones in healthcare outsourcing businesses, to drive constant upgrading of Shanghai, NECC held a total of 80 exhibitions and events 2 local healthcare service sector. in 2018 in an exhibition area of 5.73 million m , including the International Automobile & Manufacturing Technology Exhibition, China International Industry Fair, and the Health Industry Summit, with around Tourism 7 million participants from across the world. NECC Leveraging its rich natural and cultural resources, Qingpu is hosted the first session of China International integrating the ongoing agro-tourism projects, and developing rural Import Expo in November 2018 and will serve as tourism that features countryside recreations and distinct living the permanent site of the event, which is expected experiences, to build itself into a livable and laidback destination. to further invigorate local exhibition services that drives forward regional economic growth, and the transformation and upgrading of related industries. Tapping into the unique advantages of NECC, Qingpu Sports will continue developing local businesses across the Qingpu has been hosting and organizing a variety of industry chain of convention and exhibition, with a international and national lakeside sporting events, with a view focus on traditional and new exhibition and convention to developing the local sports industry. services, intermediary services, and integrated development of exhibition services and tourism.

22 Research Report on the Investment Environment of Qingpu District, Shanghai 23 Featured Industry Platforms (Continued) Environment for Innovation and Entreprenuership

BeiDou Navigation Industry Platform In supporting Shanghai’s effort to develop into an innovation center of science and technology with global China West Hongqiao Base for Technology Innovation of BeiDou influence, Qingpu District pursues an innovation-driven development strategy, imitating the innovation scheme of Satellite Navigation is the first navigation industry park in China that “One Belt, Three Centers and Four Industry Communities”. As part of its ambitious scheme, the district, which enjoys focuses on the innovative application of location services, and an a favorable location on the Shanghai-Huzhou Innovative Development Belt, aims to shape an integrated industry important industry base for China's satellite navigation industry. system of innovation and entrepreneurship by connecting the East Qingpu Sci-tech Innovation Cluster composed The Base, which is planned to cover a total area of about 70,000 of the Shanghai Shixi Software and Information Park and the West Hongqiao Business District, the Qingpu New City m2, is endeavoring to develop an integrated service platform with Sci-tech Innovation Cluster represented by the Qingpu Industrial Zone, and the West Qingpu Sci-tech Innovation navigation and location services at the core. Cluster which hosts the Huawei Technologies Shanghai R&D Center. As an influential innovation demonstration base in the BeiDou Distinct Advantages for Entrepreneurship navigation industry, the Base is now home to over 200 companies, generating a remarkable gross output value of RMB 2.23 billion in 2019. Strong In 2019, Qingpu was home to 637 high-tech businesses. It has made constant efforts to build a local Technology Silicon Valley. In the year, 16 Qingpu-based companies were granted the title “Shanghai Little Tech Giant and Innovation (under development)”, and two companies, including Kingfa Sci. & Tech. Co., Ltd., respectively received Capabilities second and third prizes of the Shanghai Municipal Science and Technology Progress.

Led by the BeiDou navigation industry The Base is promoting the The Base is focusing on making and location services, the Base’s core integration of the BeiDou navigation multiple technological breakthroughs industries and related applications industry with unmanned aerial and extensive R&D in smart traffic A Huge strides have been made in technology and innovation capabilities. 8,161 patent applications have developed rapidly. It has attracted vehicle (UAV), and has attracted UAV control and satellite navigation, Considerable were filed in the district in 2019, of which 5,492 had been approved, up 13.7% year-on-year. 17 many national-leading companies and players, such as U-Cloud Shanghai and developing segments such as Number of Qingpu-based company was listed as "2018 Shanghai Patent Demonstrative Enterprise" and 49 other institutes such as Shanghai Huace Service Center, UAV Wi-Fi indoor positioning, vehicle Patents companies as "2018 Shanghai Patent Pilot Enterprise". Navigation Technology Ltd., Shanghai Industrialization Center of Nanjing tracking, general location services, Galileo Industries Ltd., Shanghai Highgain University of Aeronautics and community supervision, smart public Information Technology Corp., Ltd., Astronautics (NUAA), and WHUS transportation and shipping, and Shanghai Pushi Piloting Technology Co., UAV Flight Service Center, to cluster, high-precision location services. Ltd., and Shanghai BeiDou Research demonstrating the leading effect of These efforts have improved the Qingpu District has been committed to creating an enabling enviroment for startup companies for Diversified 2 Institute. Along with a specialized public the Base. core competitiveness of this industry years. The district hosts 43 makerspaces that cover a total floor area of 279,000 m , represented by service platform, a fully functional BeiDou platform, contributing to smart city Incubator Emobile Park, Fasto Park, Excellence+ and Qingpu VC Innovation Space. Among them, there are 2 national industry base for innovative application initiatives. Platforms high-tech incubators, 8 municipal incubators, 20 district-level incubators and 13 recorded district-level has taken shape. start-up spaces.

Civil Aviation Industry Platform Factors Supporting Innovation and Entrepreneurship Shanghai Qingpu Civil Aviation Park, which is Rich in Talents: Qingpu District continues to promote the development of endeavoring to build itself into a national demonstration academician and expert workstations, while making active response to the Case Study base of new industrial development, is home to 44 national plan to recruit oversea intelligence, as part of its endeavors to attract Founded in 2015, Emobile Park is a companies whose total output value reached RMB 3.40 technology and innovation professionals. Dedicated to reserving high-caliber mobile internet industry base offering ecological offices and facilitating billion in 2019. Meanwhile, the Park has developed a professionals, the district has been cooperating with Shanghai National cluster led by four top companies in the industry, namely R&D, business communication, and Accounting Institute in terms of talent cultivation. In 2019, Qingpu offered a innovation and entrepreneurship. Shanghai Pratt&Whitney Aircraft Engine Maintenance reward of RMB 47.98 million to teams composed of excellent innovation and As a municipal-level incubator for Co., Ltd., China Eastern Airlines Pilot Training Center, entrepreneurship talents. As of now, it has introduced 18 academicians and technology business and a model base Air France Industries KLM Engineering & Maintenance - 104 experts to its 30 academician and expert workstations. for startup incubation in Shanghai, Components China, and Shanghai Sheci Flaw Detector Emobile Park is dedicated to providing Extended Industry Chain - General Aviation Powerful Financial Support: In line with its 18 guidelines of technology and high-quality office environment and In exploring the transformation and development of Manufacturing Co., Ltd. It has also established an in- innovation, Qingpu has better utilized financial services to develop real professional guidance to startups, the aviation industry in the context of "New Normal" of depth cooperation with China Eastern Airlines in areas economic growth, Qingpu has attracted many aviation economy, and supported the operation and innovative development of and helping growing companies to service companies and R&D and manufacturing companies such as aviation technologies and aviation services. seek financing and other resources. such as Unicorn Aviation Technology Co., Ltd., Shanghai micro-, small- and medium-sized companies (MSMEs) by means of VC funds Qingpu is building a new aviation economy sector With its one-stop services from R&D X-Square Aviation Co., Ltd., Zhuoyun (Shanghai) Aerotechnics and the like. Take the Qingpu Development VC Guidance Fund, which was set Co., Ltd., and Shanghai Lianhang Aviation Service Co., Ltd. To based on its solid industry strengths and abundant project reporting to production and realize the integrated development of air freight and general up in 2015 by the district government with a target size of RMB 600 million, application, the platform is fueling up industry factors. Efforts have been made to promote aviation, the district has reached strategic cooperation with for example. It is focusing on providing firm financial support to the its resident companies to thrive in this the East China Regional Administration of the East China the development of aircraft engine maintenance and promising district for innovation and Regional Administration of the Civil Aviation Administration establishment of MSMEs and incubation of high-tech projects, particularly in accelerate the clustering of aircraft engine maintenance, entrepreneurship. of China (CAAC) to jointly build and improve the general key fields including BeiDou navigation, logistics, exhibition services, health and aviation industry system in Qingpu District. aircraft component manufacturing, aviation service wellness, and tourism. training, specialized leasing and financial leasing.

24 Research Report on the Investment Environment of Qingpu District, Shanghai 25 Summary

Infrastructure is a major consideration Testimonial from a Resident Company for companies to choose their locations, Locating our headquarters in Qingpu, as it plays an important role for their a place with reliable infrastructure, helps operation and growth. minimize our costs and offers us more The Qingpu District, located at the heart opportunities to expand the market. of the YRD region, boasts a comprehensive The convenient and well-established transportation network integrated with transportation network enables us, a airports, ports, highways and railways, logistics company, to provide stable, reliable providing an expanded access to and efficient services. We believe that our resources for companies while reducing company will continue to grow, together with their costs in acquiring productive factors. the whole logistics industry in Qingpu. Business supporting facilities, such as exhibition halls, business offices and Shanghai YTO Express (Logistics) Co., Ltd. hotels, are offered here to meet the needs of companies in manufacturing, business operation, expansion and communication.

Chapter IV Infrastructure

26 Research Report on the Investment Environment of Qingpu District, Shanghai 27 Research Summary Transportation Network Infrastructure

Located at the heart of the YRD Economic Rim where Jiangsu and Zhejiang Provinces and Shanghai meet, Qingpu serves as a gateway to Shanghai. It has taken the lead in establishing an integrated multi-mode transportation system which includes highways, railways, and air and water transportation, with a view to promoting the Survey Feedback on Infrastructure development of the YRD region into a world-class city cluster. Importance / Satisfaction • Qingpu scores 9.4 out of 10 in the rating of Air Transportation importance on this dimension, which is rated by Road Transportation Qingpu is traversed by an interconnected expressway Government policies and services 89.7% of the surveyed enterprises as crucial to network consisting of six expressways – the G2 Beijing- 10 the investment environment; Importance • Qingpu scores 8.9 out of 10 in the rating of Shanghai Expressway, the G60 Shanghai-Kunming Beijing 9 Satisfaction Expressway, the G50 Shanghai-Chongqing Expressway, Tianjin satisfaction on this dimension, which is rated by Shijiazhuang 8 the G1501 Shanghai Ring Expressway, the G15 Shenyang- Living Business 74.2% of the surveyed enterprises as satisfactory; 2h10min environment environment • On this dimension, the district’s supporting Haikou Expressway and the S26 Shanghai-Changzhou 2h20min 7 2h20min services for production (supply of water, Expressway. In addition, the Jiading-Minhang and Songze 6 electricity and coal) and the regional transporting Elevated Highways connect Qingpu with the integrated connectivity (airports, highways and ports) are transportation hub of Hongqiao. The well-developed road 2h45min Xi’an Yangtze River Delta rated as the most important factors; transportation network provides the businesses in Qingpu Economic Zone • On this dimension, the respondents are most with an easy access to resources in neighboring regions. Qingpu Infrastructure Human resources satisfied with the district’s supporting services Southwest for production (supply of water, electricity and Water Transportation Economic Zone Shanghai coal) and the regional transporting connectivity With crisscrossing rivers in the east and lakes in 30min 3h min (airports, highways and ports). 50 the west, Qingpu enjoys an advantage in inland river 2h

min h transportation, featuring multiple waterways at Class 3 30 h 2 min h min 50 3 h VI or higher, and 16 navigable for 500-metric ton ships. 40 1 h 2 The waterways connect with the Suzhou River in the Kunming Xiamen north and the Dianpu River in the south, as well as Nanning Breakdown of Importance / Satisfaction Guangzhou Shenzhen Jiangsu and Zhejiang Provinces. They also link Qingpu Hong Kong to the sea through the Huangpu River, and to the world via neighboring ports. Economic Zone Haikou Operational costs 40 km from the Shanghai Port Railway Transportation Supporting services for Ranking the first globally in production Qingpu 23min Suzhou terms of container throughput Qingpu 28min Yancheng for several consecutive years Qingpu 46min Changzhou Information technology Qingpu 59min Nanjing Qingpu Hefei development 2h12min Qingpu 45min Hangzhou Qingpu 1h48min Ningbo Chuzhou Regional transporting Zhenjiang 70 km from the Yangshan Port connectivity Nanjing Zhangjiagang Hefei Changzhou Ma’anshan The largest deep-water port Wuxi Wuhu Qingpu for container ships in China Suzhou Transportation facilities Shanghai within the area Huzhou Tongling Xuancheng Jiaxing 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 Anqing Hangzhou from the Zhoushan Port Ningbo Importance Score Satisfaction Score 100 km Shaoxing Zhoushan Four-year winner of the world’s busiest port in terms of cargo throughput Jinhua

Taizhou

28 Research Report on the Investment Environment of Qingpu District, Shanghai 29 Transportation Network (Continued) Industry Infrastructure

Hongqiao Integrated Transport Hub (HITH) Different Transport Modes A comprehensive network of supporting Easy Transfer between As China’s largest modern transportation hub infrastructure has been put in place in Qingpu to that links different modes of urban transport facilitate industry clustering and stable economic – high-speed, inter-city and intra-city railways, growth. buses, taxis, and airlines, it connects western Shanghai with downtown, and in a broader Land Use Management sense, the metropolitan Shanghai with YRD • The Qingpu government has been improving cities and other cities in China and beyond. market-oriented allocation of land[1] and land management across lifecycle to optimize the structure of urban land supply and conversion, therefore contributing to local economic and social development. • Thanks to reduction in inefficient use of A World-leading Low-carbon Transportation Hub land, more land has been used economically and intensively in the District, a remarkable An integrated management information system progress explicitly recognized by the State has been deployed at HITH to ensure globally Council of China. recognized operational efficiency. Sitting on the world’s largest concrete foundation ever poured, Utility Supply HITH features the latest low-carbon and green • The comprehensive utility service system technologies, such as natural ventilation and lighting, in Qingpu guarantees a stable supply of and eco-friendly roads. More power, drinking water, and natural gas, and a 2 Efficient 5.6-km land convenient access to supportive services such Land Use used ineffi- as waste water treatment, in support of smooth ciently business operations.

Total length: Speed up to Metro Line 17 13 stations Note: See the appendix attached for utility prices in Qingpu District. 35 km 100km/h

th Downtown To build a “Smart Qingpu” during the 13 Five-Year Plan period, the local government is joining efforts with Shanghai The Shanghai Metro Line 17 starts from the Hongqiao Railway Station in the east (interchangeable with Line telecommunication operators in driving digitalization. IT infrastructure is being built to improve the comprehensive 2 on the same platform, and with Line 10 at the same station), and runs westwards in parallel to Songze Road services of local IT and communication networks. and across G15 Shenyang-Haikou Expressway, then along East Yinggang Road to downtown Qingpu, Lake Dianshan New City and Zhujiajiao Town, and finally down the National Highway 318 to the Oriental Land resort. Hong- As a crucial transit link across the city, Metro Line 17 weaves together different parts of Qingpu District, qiao Integrated and offers a more convenient connection from Xujing, Zhaoxiang and Zhujiajiao towns and the central part Transport of Qingpu District to downtown Shanghai. Hub Qingpu is ready to have in In the coming two years, a place district-wide databases district-wide, integrated, smart Downtown on local actual population size, and reliable network of IT Qingpu business credit records, and infrastructure will take shape geological and spatial information, in Qingpu to support “digital which will significantly benefit health”, “digital education” and its economic, social, livelihood, other projects that truly benefit environmental, ecological and local residents, and a 75% of Oriental Land —— Landmarks in Qingpu District —— Hongqiao Railway Station urban development. free Wi-Fi coverage in public spaces will be achieved. A Smart Urban District

Note: In China, business entities and individuals are entitled to the right of land use for a defined period after paying required land-transfer fees to the government. According to the Property Law of the People’s Republic of China, the maximum period of the granted land use right is, respectively, 70 years for residential use, 50 years for industrial use, 40 years for commercial use, and 50 years for various forms of development.

30 Research Report on the Investment Environment of Qingpu District, Shanghai 31 Commercial Facilities

Qingpu District is well equipped with commercial facilities including office buildings, hotels and meeting venues that can satisfy all kinds of business needs. A good many professional services are integrally incorporated into these business buildings. Always putting people first, this district has created a modern service industry cluster where fully functional buildings of innovative styles in a sound ecological environment can be accessed through a reasonably structured traffic system.

Office Buildings There are a variety of high-class office Office buildings in Qingpu buildings in Qingpu District along the Metro • National Exhibition and Conven- Line 17, including Class-A and Class-B ones tion Center (NECC) • Bowanlanyun Complex that can meet enterprises’ needs: • Greenland Hongqiao World Center • Powerlong Plaza • Luen Mei Group Commercial • Fushen Commercial Center Complex on Caoying Road

National Exhibition and Convention Center (NECC) • Located in the West Hongqiao Commerce and Business Cluster, the NECC (Shanghai) is a state-level major exhibition center co-built by the Ministry of Commerce of China and Shanghai Municipal Government. Currently, it is the world's largest exhibition complex with a total construction area of 1.47 million m2, among which exhibition halls cover an area of 500,000 m2, the NECC Plaza 150,000 m2, office buildings 180,000 m2, and a premium hotel 60,000 m2. • With three metro lines and four metro stations available and close to Jiading-Minhang and Songze Elevated Highways, the NECC enjoys easy commutes and provide convenient and quality business experience for domestic and foreign enterprises.

Hotels Qingpu boasts a number of high-end hotels with quality services, complete amenities and convenient transportation, offering business travelers from around the world a pleasant living environment and well-equipped business venues.

Premium hotels in Qingpu • InterContinental Shanghai Hongqiao NECC • Holiday Inn Shanghai More commercial Hongqiao West facilities in Qingpu • Primus Hotel Shanghai Hongqiao • Radisson Exhibition Center Shanghai • Meliá Shanghai Hongqiao • Crowne Plaza Shanghai Chapter V Xiayang Lake • Hotel Ahn Luh Zhujiajiao Shanghai Human Resources

32 Research Report on the Investment Environment of Qingpu District, Shanghai 33 Research Summary Human Resources

Summary

Importance / Satisfaction Survey Feedback on Business Environment • Qingpu scores 9.4 out of 10 on the importance of this dimension, in the rating of importance on Government policies and services this dimension, which is rated by 88.7% of the 10 Importance surveyed enterprises as crucial to the investment 9 Satisfaction environment; 8 • Qingpu scores 8.7 out of 10 in the rating of Human resource is an essential factor Testimonial from a Resident Company Living Business satisfaction on this dimension, which is rated by for business development and industry We think a great deal of human resources. environment 7 environment 61.9% of the surveyed enterprises as satisfactory; upgrading. Good human resources serve Qualified professionals with specialized skills 6 • On this dimension, the district’s labor relations as a cornerstone of stable operation and a play a vital role in maintaining our day-to- and overall R&D and innovation capacity in the key driver for innovation and profit-making day production and operation. It’s easier to district are rated as the most important factors; of an enterprise. Moreover, rational labor secure talent in Qingpu, thanks to the district • On this dimension, the respondents are most cost is a significant component of business government who offer us much support. It Infrastructure Human resources satisfied with the district’s labor relations and operation costs. organizes job fairs and commissions other overall R&D and innovation capacity. Qingpu has a rich and diverse talent agents to provide vocational training, helping pool and the capacity to compete with us reach out to talent we want. other districts of Shanghai in labor costs. Appealing to professionals, especially the Trützschler Textile Machinery (Shanghai) highly skilled ones, Shanghai has brought Co., Ltd. together excellent people with expertise Breakdown of Importance / Satisfaction in a variety of areas, meeting the human resource needs of enterprises. Overall R&D and innovation capacity

Quantity and quality of human resources agencies andservice providers

Labor relations

Labor costs

Basic human resources supply

Medium- and high-level technology professionals supply Medium- and high-level management professionals supply 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0

Importance score Satisfaction score

34 Research Report on the Investment Environment of Qingpu District, Shanghai 35 Human Resource Supply Human Resource Costs

In recent years, following the strategy of building A Rich Pool of Vocational Talents Talent Attraction Program Ushering in New an increasingly competitive Qingpu by pooling more Qingpu houses 15 secondary vocational schools and Development talents, the district has made great progress in creating one senior vocational school, as well as 40 vocational Qingpu plans to introduce around 21,600 a favorable environment for talent attraction and training institutions, including: professionals with expertise in high demand from development through dynamic updates of the latest talent 2017 to 2019, 20,000 of which will be channeled to the policies and best practices on the Qingpu Talents website innovation-oriented sectors, including 10,000 engaging 青浦人才 青浦组 (http://www.21qphr.com), weibo (“ ” and “ in smart manufacturing industries, such as new 工 青浦人才 ”), and WeChat official account (“ ”). materials, biomedicine, precision electromechanical, civil aviation and BeiDou navigation. Complete with new ◎◎ Shanghai Qingpu Vocational 8 experts talent policies, the talent attraction program will further 8 experts under receiving special School improve the competitiveness of Qingpu. the “10,000 Talents allowance granted ◎ Program” of China by State Council of ◎ Shanghai Business and 60 China Information College Introducing 10,000 professionals in young smart manufacturing industries professionals ◎◎ Shanghai Real Estate School 11 leading under the to facilitate the development of professionals Abundant Resources in Higher Education Youth Talent innovation-oriented sectors in Qingpu of Shanghai Program As of the end of 2019, Thanks to the convenient transportation, there were 230,000 Qingpu District enjoys the abundant education “Chief Technician” Rating and talents resources of Shanghai. Each year, As of the end of 2018, more than 40 professionals in talented professionals 4 experts Over 300 working in Qingpu under the Ex- more than 130,000 graduates from 68 colleges Qingpu were rated as Chief Technician, including 25 at leading pro- cellent Youth and and universities in Shanghai join the workforce. the municipal level. fessionals at Elite Entrepre- the district neur Programs Among the educational institutions, Fudan Chief Technicians are highly skilled professionals level in and Shanghai Jiao Tong with rich practical experience and strong organizational 79,000 University have been listed in world’s 33 experts stu- skills employed by businesses and vocational holders of mid- dios at the district top 100 universities by the QS World and senior-level training institutions in Qingpu, who strictly adhere to level th professional University Rankings, taking the 40 and professional ethics and have made great contributions. titles 62nd positions respectively. Human Resource Costs • To engage more One-time Subsidy highly-skilled pro- In 2016, the employees’ average annual salary fessionals in ratings in Shanghai stood at RMB 78,045. Local companies < Shanghai Jiao Tong annually assumed 38.2% to 39.9% of the Five • To promote the de- 90min University Insurances and One Fund for their employees since Earmarked Allow- velopment of highly Qingpu April 2017, with an upper limit of RMB 19,512. District Tongji ances for Expertise skilled talents University The percentages businesses assume for the medical East China Normal and unemployment insurances of their employees were University reduced by 0.5% respectively, with effect from January 1, 2017. CAS/CAE Academician Workstation in Shanghai National Accounting Institute Qingpu Industrial Zone Proportion of the Five Insurances and One Fund The Shanghai National Accounting Institute (SNAI) The CAS/CAE Academician Workstation based Contributed by Qingpu-based Companies focuses on providing advanced continuing education for in Qingpu Industrial Zone is Shanghai’s first Pension Insurance 20% national macroeconomic agencies, large-and-medium- pilot academician workstation established in an Medical Insurance 9.5%

sized SOEs, financial institutions and intermediary industrial zone. With a focus on large private Employment Injury Insurance 0.2-1.9% agencies. SNAI has created a teaching model underpinned technological companies while meeting the Maternity Insurance 1% by the three pillars of degree programs, executive demands of small- and middle-sized technological development programs and distance education. Over businesses in innovation, the workstation connects Unemployment Insurance 0.5% the years, it has gradually established its reputation as a businesses with CAS/CAE academicians, to Housing Provident Fund 7% “spiritual home” for accounting practitioners. maximize the role of top intellectual resources in Total 38.2%-39.9% promoting companies’ independent innovations.

36 Research Report on the Investment Environment of Qingpu District, Shanghai 37 Summary

Testimonial from a Resident Company Living environment can include different dimensions: the surrounding The livable and business-friendly community, daily life services, and environment in Qingpu has helped us to access to educational, medical, cultural recruit and retain talents from different and tourism resources. A pleasant and countries, from New Zealand to Singapore. The convenient living environment is often environment here is beautiful and comfortable, a key factor for investors, higher-level and the full range of public facilities offer us professionals and expats in deciding diverse leisure opportunities. The good quality where to live, work and invest. of medical and education services helps us to Dedicated to protecting its ecological concentrate on work without other worries. assets as a comparative advantage, Qingpu has been recognized as a Shanghai Pratt & Whitney Aircraft Engine “National Model District for Environmental Maintenance Co., Ltd. Protection” for its efforts in creating an eco-friendly green environment.

Chapter VI Living Environment

38 Research Report on the Investment Environment of Qingpu District, Shanghai 39 Research Summary Education Facilities Living Environment

Qingpu is rich in quality educational and medical resources. Focusing on balanced economic and livelihood development, the district has been improving its cultural image, overall competitiveness and international attractiveness, aiming to become an ideal place to live and work, where residents and investors alike can gain a true Survey Feedback on Living Environment sense of fulfillment and happiness. Importance / Satisfaction • Qingpu scores 9.3 out of 10 in the rating of importance on this dimension, which is rated by 86.6% of the surveyed enterprises as crucial to • National Pioneer District in Digital Education Government policies and services the investment environment; • One of the first county-level divisions recognized 10 Importance • Qingpu scores 9.2 out of 10 in the rating of as national models in adult education 9 Satisfaction satisfaction on this dimension, which is rated by • Qingpu Teachers College listed as a “National 8 81.4% of the surveyed enterprises as satisfactory; County-level Demonstration Institution for Business Living • On this dimension, the level of public security in Teaching Staff Training” environment 7 environment Qingpu and surrounding areas and ecological 6 environment in the district (e.g. quality of air and water, and green coverage) are rated as the most Quality Basic Education important factors; A Well-resourced Education System Qingpu is home to a number of prestigious • On this dimension, the respondents are most • Qingpu is home to 90 kindergartens, 67 institutions for basic education, such as Shanghai Infrastructure Human resources satisfied with the level of public security and institutions for compulsory education, 6 senior Qingpu Senior High School, Qingpu Shiyan Middle ecological environment in the district (e.g. quality high schools, 2 special schools, and 57 secondary School, Shanghai Qinghewan Education Park, of air and water, and green coverage). vocational education institutions. Over 60 Soong Ching Ling School, the High School Affiliated higher education institutions are within 50 km of to Fudan University (Qingpu Campus), Shanghai Shanghai Qingpu Industrial Zone. Qingpu World Foreign Language School, and Shanghai Pinghe School (Qingpu Campus). • In recent years , guided by the overarching strategies of invigorating Qingpu through science and Breakdown of Importance / Satisfaction education and by talent pooling, the government investment in education has increased year on year, leading to a stronger education system. Public security in Qingpu and surrounding areas Education institutions and supporting services (in Qingpu and surrounding areas) A Diversity of International Schools Quality education for children of Medical facilities in expatriates working in the district is provided Qingpu and surrounding areas in a diversity of international schools, Entertainment, leisure, and sports including the Western International School facilities and supporting services of Shanghai, the German School and (in Qingpu and surrounding areas) Kindergarten Shanghai, the Lycée Français Case Study: Shanghai Qingpu World Foreign Language School The Modern and international de Shanghai, and Shanghai American School. level of living community Shanghai Qingpu World Foreign Language School (QWFLS) is a sixteen-year full-time school. Operating in Living quality in Qingpu and cooperation with the prestigious Shanghai World Foreign surrounding areas Language Primary School (WFLPS), it aims to establish itself as a nationally leading and globally oriented school offering a broad array of high quality and distinctive Ecological environment programs. With its goal of “Let the students embrace the world and make the world part of the school”, it has 6.0 6.5 7.0 7.5 8.0 8.5 9.0 9.5 10.0 re-constructed quality courses from WFLPS with new ideas, and developed a unique “4+1” curriculum system Importance Score Satisfaction Score proven to help students make real gains.

40 Research Report on the Investment Environment of Qingpu District, Shanghai 41 Medical Facilities Public Cultural Facilities

Medical and Heathcare Facilities In recent years, Qingpu has been improving its public • Qingpu has 345 medical and healthcare institutions of cultural services, and a network of community cultural all kinds at different levels, including 1 under the direct facilities has taken shape. The district is now home administration of the district government (Qingpu Branch to many cultural landmarks such as cultural centers, of Affiliated to Fudan University), museums and libraries, and a number of newly built and 23 under the administration of the district health and rebuilt community cultural centers, where various commission (1 Grade 2 general hospital, 1 traditional recreational and sports activities are held. Chinese medicine hospital, 1 specialized disease prevention hospital, 10 community healthcare centers, 1 maternal and child health care center, 1 medical emergency center, Qingpu has been recognized as a “Nationally and 8 other medical and healthcare institutions). These Qingpu Branch of Zhongshan Hospital Leading District in Cultural Promotion” and institutions have a total of 2,221 inpatient beds available, Affiliated to Fudan University a and were sufficiently staffed by 3,646 health professionals “Nationally Advanced District in Cultural to serve the medical needs in the district. Heritage Conservation”. • Quality medical resources in downtown Shanghai are also easily accessible by various means of transport. Grade 3A hospitals within 1-hour drive:

Public sports facilities Qingpu has built 16 community playgrounds • Shanghai Sixth People’s Hospital and 425 sports parks and fields, and launched • Zhongshan Hospital Affiliated to Fudan University 126 rural fitness projects. Local residents now • Affiliated to Fudan University have access to the gymnasiums and stadiums • Shanghai Ninth People’s Hospital Affiliated to Shanghai in 47 primary and middle schools. A number Jiao Tong University School of Medicine Qingpu Traditional Chinese Medicine Hospital of high-profile sports events have been held • Children’s Hospital of Shanghai (Luding Road Division) in Qingpu, such as the Shanghai International Libraries Chinese Dragon Boat Invitational Tournament, A district-level public library, Qingpu Library is a local and the China (Shanghai) International Youth cultural landmark known for its modern architecture, Football Invitational Tournament. advanced technologies and elegant design. The library collection includes approximately 500,000 volumes and 1,000 journal titles as well as a huge number of digital books and electronic periodicals. It is integrated Museums and Galleries into the network of , public libraries As the cradle of Shanghai’s culture, Qingpu is in other districts and counties of Shanghai and rich in cultural and artistic heritage, materialized primary information service centers, to operate a free in different kinds of museums and galleries that interlibrary loan system that more flexibly caters to the have significantly enriched local cultural life. readers’ needs. Shanghai Donglei Brain & Spine Hospital DeltaHealth Hospital in Shanghai

Yodak Healthy City Shanghai Yodak Healthy City (under construction) is an independent, multidisciplinary • Qingpu Museum and modern healthcare complex of two Grade 3 non-profit general hospitals that provide • Shanghai Songze Ruins Museum basic health services and one Grade 3 for-profit international hospital that offers high- • Quanhua Watercolour Art Gallery end medical services, integrating medical care with research, teaching and preventive care. Different from traditional general hospitals, Yodak Healthy City is developed as a • Zhujiajiao Museum of Humanities & Arts healthcare cluster, with each department specialized in different disease categories, aiming to serve the ever growing medical demands in Qingpu, Shanghai and beyond.

42 Research Report on the Investment Environment of Qingpu District, Shanghai 43 Cultural Landscapes Leisure and Recreation

Qingpu District, located in the western suburb of Shanghai, is known by the world for its ancient culture and In recent years, aiming at developing into a watery landscapes, which houses cultural tourist attractions represented by the picturesque Zhujiajiao, one of recreation and nature tourism destination in the YRD the distinctive towns in China. The cradle of the Songze Culture dating back to the Neolithic Age, it recorded the region, Qingpu District has integrated its tourism evolution of civilization in ancient Shanghai. resources to facilitate the transformation of the tourism sector from one based on sightseeing spots to a Zhujiajiao Town distinctive all-in-one tourism focusing on recreation. Reputed as a “Pearl in South China”, Zhujia- jiao is a historic town with rich tourism attrac- tions, and has been listed as one of the Four Historical and Cultural Towns in Shanghai. Grand View Garden Oriental Land Shanghai Oriental As the only large park in Shanghai providing Kezhi Garden Yacht Club Kezhi Garden was the largest private man- Land integrated services including outbound training, th & Resort or garden in South China in the early 20 Qingpu social practice for teenagers, team building, and century, uniquely blending the traditional Chi- Leisure and recreation and tourism, the Oriental Land fully nese and western architectural designs. Recreation satisfies the needs in tourism, recreation and Ganso education with its lush scenery, grand buildings Outlets Dream and well-equipped outdoor facilities. Qushui Garden Fuquan Mountain Cultural Relics World Qushui Garden, literally meaning zigzagging Fuquan Mountain, also named Fuchuan Mountain and Grand View Garden rivers, is a small yet quaint garden. This five- Qingxi Xuedao Mountain, is located in the heart of the Chonggu star park is reputed as one of the five classical Park The Grand View Garden, which is a replica gardens in Shanghai. Town, Qingpu District and was listed as a national historical of the garden depicted in The Story of the Stone, and cultural site to be preserved in China. The cuboid a famed Chinese novel written in the mid-18th shaped mountain is measured at 94m from west to east, century, is a destination for tourism and recreation. Qinglong Town 84m from south to north, and 7.5m in height. It conserves Featuring rivers and streams, moving or still, and The Qinglong Town is a historic town where the the cultural relics of different periods from 6,000-7,000 Dianshan Lake Ecological Park buildings that have become part of the landscape, 2 ports business and foreign trade of Shanghai began, years ago through now, including the Songze, Liangzhu, Spanning an area of 62 km , Dianshan Lake, which the garden was granted by the previous Ministry of and also where the prosperity of the city began. Legend and Majiabang Cultures dating back to the Neolithic Age is located in the west of Qingpu, and adjacent to the Construction of China with the title of an Excellent has it that the town took its name from the Qinglong and the relics of the Warring States period (475–221 BC), city of Kunshan, Jiangsu Province, is the largest natural National Scenic Area in China. Warship built here during the period of the Three thus hailed by archaeologists as the “Soil-made Pyramid in freshwater lake in Shanghai and where the Huangpu Kingdoms (220-280), and was built as a township in the China” and the “Cradle of Shanghai”. River, the mother river of Shanghai, starts. The vast Qingxi Park period of 742-755, serving as a trading hub in Southeast and picturesque lake surrounded by green trees The only suburban park featured by wetlands in Shanghai, the Qingxi Park pools nearly all China. It had witnessed prosperity for nearly 200 Jinze Town and blooming flowers, together with the modern years, especially in the (960-1279) when Known as the First Town of Bridges in South China and archaized buildings around the Dianshan Lake, natural aquatic species native in Shanghai, in a maritime and trade administration was established and a living museum of ancient bridges, the Jinze Town such as the Grand View Garden, a yacht club and which a diversified ecosystem featuring wetlands, is home to numerous old bridges of diversified styles, here, making the town a foreign trade port known as lakes, rivers, forests and islands has formed, which is unparalleled in South China. an aquatic sports center, makes the Dianshan Lake “Small Hangzhou”. Ecological Park one of the most popular tourism and providing habitats for abundant species. recreational destinations in Shanghai. Songze Cultural Relic Site The Songze Cultural Relic Site is the cradle of the ancient cultures of Shanghai, evidenced by the remaining geometric stamped potteries and the Neolithic residential sites, and has been listed as a national historical and cultural site to be preserved in China.

Former Residence of The former residence of Chen Yun, one of the most influential leaders of China during the 20th century, is now open to the public as a biographical museum of Chen, and has been rated as a “National Demonstration Site for the Promotion of Patriotism” and a “Major Revolutionary Site to Visit” in China.

44 Research Report on the Investment Environment of Qingpu District, Shanghai 45 Summary and Prospect

Based on the above analysis, four most competitive advantages of the investment environment of Qingpu District are concluded as follows:

Strategic Location with Infinite Opportunities Favorably situated in the YRD Economic Zone, China’s most economically vibrant region, Qingpu District of Shanghai is conveniently connected with the bordering Jiangsu and Zhejiang Provinces and beyond thanks to the Hongqiao Integrated Transport Hub. Today, Qingpu, the origin of Shanghai, is transforming into the gateway of the metropolis towards home and abroad. It is also serving as a pioneer in the integrated development of the YRD region, and capitalizing on the significant opportunities for leaping growth with high quality. Taking advantage of its premium location and opportunities brought by national strategies, Qingpu is focusing on consolidating its strong industries and improving the quality of economic growth, so as to lead the integrated development of the YRD region.

Clustering of Industries and Innovation Capabilities As China deepens the industry transformation and upgrading, Qingpu has been developing major local industries in a “3+2+1” pattern to push forward the coordinated development of the growth-generating advanced manufacturing and modern services. Based on the strong capabilities and well-arranged layout of local industries, the district has established industry platforms of exhibition services, BeiDou navigation satellite system, logistics, and civil aviation featured by cutting- edge technologies. These platforms, fully leveraging the clustering of various industry factors and the leading role of top enterprises, are contributing to the regional industry capacity upgrading as a new growth pole for Qingpu. Meanwhile, the rapidly growing emerging industries represented by cross-border e-commerce, new energy vehicles, intelligent robots and medical devices also help the district achieve leaping economic growth with high quality. In addition, following the arrangement of “1 Belt + 3 Centers”, Qingpu has been establishing platforms for scientific research, innovation and start-up incubation to accelerate the innovation capability clustering and technological outcome transformation. In this way, it is developing a comprehensive innovation and entrepreneurship system that drives industry innovation and upgrading.

Simplified Administration Workflows to Optimize Services The Qingpu District Government aims to provide a favorable business environment that is ruled by law and facilitates both Chinese and international players. To this end, it has been committed to aligning with highest international standards, identifying weak spots, and consolidating strengths, so as to improve its competitiveness in the YRD region. Authorities at all levels in the district are proactively introducing institutional reforms and innovations. Moreover, they are working together to meet the demands of companies with efficient, effective and convenient administration services, striving to win wide recognition for the district’s services. Specialized government services and all-round policy supports have continued to drive innovations, expansion and growth, and transformation and upgrading of local businesses. Our survey on the businesses in Qingpu shows that investors are much impressed by efficient and effective government services.

Green Qingpu, the Most Livable District Known as a bright pearl in western Shanghai, Qingpu is dedicated to protecting its abundant ecological resources and maintaining good water and air quality as it pursues economic growth. To roll out the unique development strategy of integrating industries, waterside eco-environment and urban functions, it is creating an eco-friendly green environment, and an all-round waterside gateway with new functions that is based on the greater Hongqiao area and serves the YRD region. In addition, the district presents rich education and medical resources, comprehensive amenities, exciting cultural and leisure events, and awe-inspiring historic tourist attractions. With such a livable environment, it is an ideal place for investors to live and work. Chapter VII As the gateway of Shanghai and a demonstrative hub in the integrated development of the YRD region, Qingpu strongly facilitates Shanghai’s urban function upgrading and the YRD region’s coordinated development. It is committed to developing itself into a livable district with excellent eco-environment and achieving all-round leaping Summary and Prospect growth with high quality, so as to create a unique image of “Green Qingpu, the Most Livable District” characterized by beautiful eco-environment, strong innovation momentum, and splendid waterside culture.

46 Research Report on the Investment Environment of Qingpu District, Shanghai 47 Appendix I: China’s Regulations on Registered Capital and Total Amount of Investment of Foreign Invested Enterprises

How to Make Capital Contributions The Ratio Between the Total Amount of A foreign investor may contribute freely convertible Investment and the Registered Capital foreign currency or Renminbi directly from offshore, The ratio between a Sino-foreign joint equity or use machinery and equipment, industrial property enterprise’s registered capital and total investment shall rights, proprietary technology or other items, the value comply with competent laws and regulations in China. of which is capitalized, as investment. Where a Sino-foreign joint equity enterprise increases Subject to approval from competent authorities, a its investment, the same applies to the ratio between foreign investor may also invest Renminbi dividends the amount added to its registered capital and the obtained from other wholly foreign-owned enterprises amount by which its total investment is increased. it has established in China. Regulations on Capital Contributions The registered capital of a limited liability company Total Registered capital shall be the amount of the paid-up capital contributions investment of all its shareholders as registered with the Company Registration Authority. Where the minimum registered At least one-third of the total investment, capital of a limited liability company in specified > USD 30 million or no less than USD 12 million if the total trades needs to be higher than those stipulated in the investment is under USD 36 million. Company Law of China, it shall be stipulated by the laws USD 10 million – At least 40% of the total investment, or and administrative regulations separately. USD 30 million no less than USD 5 million if the total Each shareholder shall make in full the amount of the (USD 30 million investment is under USD 12.5 million capital contribution subscribed for under the articles inclusive) of association of the company. Where a shareholder USD 3 million – At least half of the total investment, or makes its capital contribution in currency, it shall USD 10 million no less than USD 2.1 million if the total deposit the full amount of such capital contribution in (USD 10 million investment is under USD 4.2 million currency in the interim bank account opened by the inclusive) limited liability company to be established. Where a shareholder makes its capital contribution in the form < USD 30 million At least 70% of its total investment of material objects, industrial property rights, non- patented technology or land-use rights, the transfer procedures for the property rights shall be handled in accordance with law. Shareholders failing to make the capital contributions they subscribed for in accordance with the preceding paragraph shall be liable for breach of contract towards the shareholders who have made in full their capital contributions.

Source: 1. Detailed Rules for the Implementation of the Law of the People’s Republic of China on Wholly Foreign-Owned Enterprises (Revised in 2014); 2. The Company Law of the People’s Republic of China (Order No.8 of the PRC President); 3. Provisional Regulations of State Administration for Industry and Commerce on the Ratio Between the Registered Capital and the Total Amount of Investment of Sino-foreign Equity Joint Ventures (No.38 [1987] of the State Appendixes Administration for Industry and Commerce).

48 Research Report on the Investment Environment of Qingpu District, Shanghai 49 Appendix II: Taxes Applicable to Appendix III: How to Register a Foreign-invested Enterprises Company in 3 Working Days

Steps for Registering a Company in 3 Working Days Income tax Scope of taxation Tax rate Application Applicable to resident enterprises on incomes derived Statutory tax rate: 25% Corporate from inside and outside China; and non-resident Small-scale, low-profit enterprises: 20% enterprises on China-source incomes as well as incomes High and new technology enterprises: 15% Name Check System of the Municipal income tax from outside China that are effectively connected with Withholding at source: 20%, reduced to 10% in Administration for Industry & Commerce their establishments or sites in China. actual taxation Rejected

Applicable to individuals with residence in China, or who have no residence but have lived legally in China for no less than Company name approval one year on incomes derived from inside and outside China; Individual and individuals who have no residence and do not live in Statutory tax rate for salary: 3%-45% Approved income tax China, or with no residence and having lived in China for less than one year on incomes derived from inside China. Submitting documents Service window of the Industry & There are 11 categories of individual income, including Bank Branch Commerce Administration salary, and compensation for labor services. Re-submitting in the Administration Center documents

Turnover tax Scope of taxation Tax rate • Signing the Letter of Undertaking by the • Signing the Letter of Undertaking by the applicant applicant Applicable to entities and individuals selling goods, • Verification of the applicant’s identity • Verification of the applicant’s identity providing labor services of processing, repairing and • Review of the forms of registration documents • Reviewing the forms and content of Value-added Statutory tax rate: 6%, 9%, 13% replacement (“labor services”), or selling services, • Providing contact information and signing the registration documents Levying rate: 3%, 5% tax intangible assets or real property in China, or importing Letter of Authorization (for making company • Providing contact information and signing the goods to China. seals, buying taxation disks, and applying for CA Letter of Authorization (for making company certificates) seals, buying taxation disks, applying for CA Calculated based on price: 1%-40%; • Applying for bank account opening certificates), and applying for opening accounts Applicable to entities and individuals that producing, at the bank in the Administration Center Calculated based on quantity: beer and yellow • Choosing pickup/delivery options to get your processing under consignment, importing or selling licenses and certificates • Choosing pickup/delivery options to get your wine: RMB 220-250/metric ton; product oil: RMB consumer goods taxable. licenses and certificates Consumption 1.20-1.52/liter; The tax may be calculated based on the price or Mixed calculation: liquor: 20% plus RMB 0.5/500 gram; tax quantity of such goods. Cigarette: 36%-56% plus RMB 0.003/stick, with an There are 15 types (categories) of taxable consumer Review by additional tax rate of 11% plus RMB 0.005/stick goods, including tobacco, wine, and cosmetics. Rejected the Municipal Industry & added in case of wholesaling; Commerce Administration and Providing information submission to competent Applicable to consignees of imported goods, consignors authorities for Tariff Depending on specific goods of exported goods, and owners of inbound goods. approval Submitting documents Approved Other taxes Scope of taxation Tax rate Applying for bank account pre-opening Issuing business licenses

Applicable to the assignees of the right of use of the land Contract tax or the real estate in China, based on the price of the Statutory tax rate: 3%-5% Reporting to the People’s Bank of Making property. China for bank account opening company seals CA Certificate Applicable to owners of the real estate in urban and Levied on sales price (after a 10%-30% deduction Property tax township areas, based on the taxable value or rental from the original value): 1.2% income of the property. Levied on rental income: 12% Issuing tax receipts and buying taxation disks Land Applicable to entities and individuals receiving incomes from the transfer of the right of use of state-owned appreciation Statutory tax rate: 30%-60% Pickup or delivery land, above-ground structures and their attachments, (Business licenses, company seals, CA certificates, bank accounts, tax receipts and taxation disks) tax based on the value of appreciation. Note: 1. All procedures, from submission of application documents to the bank or the service window in the Administration Applicable to entities and individuals executing or Statutory tax rate (calculated based on the contract Center, to bank account opening, issuance of business licenses and tax receipts, and company seal making, are to be accepting taxable instruments as specified in tax laws price): 0.005%-0.1% Stamp tax completed within 3 working days; in China, based on the contract price or a fixed amount Calculated based on a fixed amount: RMB 5 per 2. Black arrows represent common procedures, green arrows represent processes carried out in the bank, and blue per instrument. instrument arrows at the service window in the Administration Center; 3. Interprocess operations shall be handled by the correspondent bank and all delivery fees thus incurred are borne by Source: 1. State Administration of Taxation (as of July 1, 2017) the government. Source: 1. State Administration of Taxation of China (As of July 1, 2017)

50 Research Report on the Investment Environment of Qingpu District, Shanghai 51 Appendix IV: Utility Prices of Shanghai Appendix V: How to Contact Main ( applicable for Qingpu) Government Agencies for Investment Services in Qingpu

Water (water supply and drainage services provided by Shanghai municipal water utilities) Agencies Providing Investment Attraction Services

Annual Household Sewage Treatment Agency Address Contact Types of Usage Water Prices (RMB/m3) Usage (m3) Fees (RMB/m3) Shanghai Qingpu Economic Commission 100 Gongyuan Rd, Qingpu District 86-21-69215222

Tier-1 0-220 1.92 1.70 Shanghai Qingpu Commerce Commission 100 Gongyuan Rd, Qingpu District 86-21-59732890-19228

Household Tier-2 221-300 3.30 1.70 Shanghai Qingpu Industrial Zone 2500 Caoying Rd, Qingpu District 86-21-69228000 Development Co., Ltd. Tier-3 >300 4.30 1.70 Shanghai Lake Dianshan Newtown 777 South Huaqing Rd, Qingpu 86-21-39716666 Non-household (charged at the household price) 2.12 1.70 Development Co., Ltd. District

Shanghai West Hongqiao Business 1362 Shanghai-Qingpu-Pingwang Notes: 86-21-59888211 Development Co., Ltd. Highway, Qingpu District 1.The total amount of wastewater disposal fee=water usage ×sewage treatment fee× 0.9 2. If water supply and drainage services are provided by district-administered water utilities, please consult the local price administra- Tower B, 1-72 Lane 2855 Shang- tion or water authority for corresponding prices. Shanghai Shixi Software hai-Qingpu-Pingwang Highway, 86-21-39882666 and Information Park Qingpu District

Electricity Competent Authorities for Industry Project Facilitation Annual Household Prices (RMB/kw) Types of Usage Usage (kw) Fixed Rates Time-of-Use Rates Authority Office Contact Peak 0.617 Tier-1 0-3120 0.617 Qingpu Development and Reform Commission Investment Management Office 86-21-69714310 Off-peak 0.307 Peak 0.677 Qingpu Economic Commission Project Management Office 86-21-59732890-10302 Household Tier-2 3121-4800 0.667 Off-peak 0.337 Qingpu Commerce Commission Investment Facilitation Office 86-21-59732890-19228 Peak 0.977 Tier-3 >4800 0.917 Construction and Management Qingpu Construction and Management Committee 86-21-69714338 Off-peak 0.487 Office Non-household (charged at the household price) 0.641 － Qingpu District Planning and Natural Resources Bureau Planning and Land Office 86-21-69714257

Qingpu Ecological Environment Bureau Environment Assessment Office 86-21-69729039

Natural Gas (supplied by Shanghai municipal gas utilities) Qingpu District Health Commission Supervisory Office 86-21-69714359

Types of Usage Annual Household Usage (m3) Prices (RMB/m3) Qingpu Water Authority Planning and Management Office 86-21-69714392

Qingpu Landscaping & City Appearance Management Greening Office 86-21-69714275 Tier-1 0-310 3 Bureau

Business Registration and License- Household Tier-2 311-520 3.3 Qingpu Administration for Market Regulation 86-21-69715733 issuing Office

Tier-3 >520 4.2 Qingpu Civil Defense Office Construction Office 86-21-69714398

Non-household (charged at the household price) 3.05 Qingpu Administrative Services Center Administrative Services Office 86-21-59725517

52 Research Report on the Investment Environment of Qingpu District, Shanghai 53 China Public Service Team Contacts of Deloitte Offices in China

Beijing Hangzhou Deloitte (Shanghai) Deloitte Touche Tohmatsu Certified Public Deloitte Touche Tohmatsu Certified Public Floor 30, Bund Center, 222 East Yan An Road, Shanghai, China Accountants LLP Beijing Branch Accountants LLP Hangzhou Branch 12/F, China Life Financial Center, 23 Zhenzhi Unit 1206-1210, Approval Center East Tower, 9 Feiyunjiang Road,Chaoyang District, Beijing, 100026, PRC Road, Shangcheng District, Hangzhou, 310008, PRC Eunice Kuo Tel.: + 86 (10) 8520 7788 Tel.: + 86 (571) 8972 7688 Managing Partner of Deloitte China Fax: + 86 (10) 6508 8781 Fax: + 86 (571) 8779 7915 / 8779 7916 Tax & Business Advisory Services Changsha Harbin Tel.: +86 21 6141 1308 Deloitte & Touche Financial Advisory Services Deloitte Consulting (Shanghai) Company Limited Fax: +86 21 6335 0003 Limited Changsha Branch Harbin Branch E-mail: [email protected] 20/F, Tower 3, HC International Plaza, 109 Furong Road Room 1618, Development Zone Mansion, 368 Changjiang North, Kaifu District, Changsha, 410008, PRC Road, Nangang District, Harbin, 150090, PRC Tel.: + 86 (731) 8522 8790 Tel.: +86 (451) 8586 0060 Fax: + 86 (731) 8522 8230 Fax: +86 (451) 8586 0056 Maria Liang Managing Partner of Eastern China Chengdu Hefei Region Tax & Business Advisory Services Deloitte Touche Tohmatsu Certified Public Unit 1201, Office Tower A, Winbond ICC Building, Accountants LLP Chengdu Branch 190 Qianshan Road, Government and Cultural New Tel.: +86 21 6141 1059 17/F, Block F, Zhonghai International Center, 365 Jiaozi Development District, Heifei, 230601, PRC Fax: +86 21 6335 0003 Boulevard, Gaoxin District, Chengdu, 610041, PRC Tel.: +86 (551) 6585 5927 E-mail: [email protected] Tel.: + 86 (28) 6789 8188 Fax: +86 (551) 6585 5687 Fax: + 86 (28) 6317 3500 Hong Kong Chongqing Deloitte Touche Tohmatsu Jeff Xu Deloitte Touche Tohmatsu Certified Public 35/F, One Pacific Place, 88 Queensway, Hong Kong Accountants LLP Chongqing Branch Tel.: + (852) 2852 1600 Managing Partner of Government & Public 43/F, World Financial Center, 188 Minzu Road, Yuzhong Fax: + (852) 2541 1911 Services, Tax & Business Advisory Services District, Chongqing, 400010, PRC Jinan Tel.: +86 21 6141 1278 Tel.: + 86 (23) 8823 1888 Deloitte Touche Tohmatsu Certified Public Fax: +86 21 6335 0003 Fax: + 86 (23) 8857 0978 Accountants LLP Jinan Branch E-mail: [email protected] Dalian Units 2802, 2803 & 2804, 28/F, China Overseas Plaza Deloitte Touche Tohmatsu Certified Public Office, 6636 2nd Ring South Road, Shizhong District, Jinan, Accountants LLP Dalian Branch 250000, PRC Room 1503, Senmao Building, 147 Zhongshan Road, Tel.: +86 (531) 8973 5800 Eddie Yan Dalian, 116011, PRC Fax: +86 (531) 8973 5811 Partner of Government & Public Services, Tel.: + 86 (411) 8371 2888 Macau Tax & Business Advisory Services Fax: + 86 (411) 8360 3297 Tel.: +86 21 6141 1097 Deloitte Touche Tohmatsu Guangzhou 19/F, The Macau Square Apartment H-N, 43-53A Av. do Fax: +86 21 6335 0003 Deloitte Touche Tohmatsu Certified Public Infante D. Henrique, Macau E-mail: [email protected] Accountants LLP Guangzhou Branch Tel.: + (853) 2871 2998 26/F, Yuexiu Financial Tower, 28 Pearl River East Road, Fax: + (853) 2871 3033 Guangzhou, 510623, PRC Nanjing Tel.: + 86 (20) 8396 9228 Deloitte Touche Tohmatsu Certified Public Fax: + 86 (20) 3888 0121 Accountants LLP Nanjing Branch Hainan 6/F, Asia Pacific Tower, 2 Hanzhong Road, Xinjiekou Deloitte Consulting (Hainan) Company Limited Square, Nanjing, 210005, PRC 16/F, LanHai Plaza (Sanya Huaxia Insurance Center), 279 Tel.: + 86 (25) 5790 8880 Xinfeng Street, Jiyang District, Sanya, 572099, PRC Fax: + 86 (25) 8691 8776 Tel.: +86 (898) 8861 5558 Fax: +86 (898) 8861 0723

54 Research Report on the Investment Environment of Qingpu District, Shanghai 55 Contacts of Deloitte Offices in China Acknowledgements (Continued)

Shanghai Wuhan Companies interviewed (in random order) Deloitte Touche Tohmatsu Certified Public Deloitte Touche Tohmatsu Certified Public Shanghai Hugong Electric (Group) Co., Ltd. Accountants LLP Accountants LLP Wuhan Branch 30/F, Bund Center, 222 Yan'an Road East, Shanghai, Room 4901, 49/F, New World Trade Tower, 568 Jianshe Shanghai Huace Navigation Technology Ltd. 200002, PRC Avenue, Wuhan, 430000, PRC Shanghai Panda Machinery (Group) Co., Ltd. Tel.: + 86 (21) 6141 8888 Tel.: + 86 (27) 8538 2222 Fax: + 86 (21) 6335 0003 Fax: + 86 (27) 8526 7032 Shanghai Pratt & Whitney Aircraft Engine Maintenance Co., Ltd. Shenyang Xiamen Shanghai Donglong Eider Down Products Co., Ltd. Deloitte Consulting (Shanghai) Company Limited Deloitte Touche Tohmatsu Certified Public HIT Artificial Intelligence Park Shenyang Branch Accountants LLP Xiamen Branch Unit 05-06, 36/F, Forum 66 Office Tower 1,1-1 Youth Unit E, 26/F, International Plaza, 8 Lujiang Road, Siming HAND Enterprise Solutions Co., Ltd. Street, Shenhe District, Shenyang, 110063, PRC District, Xiamen, 361001, PRC Kingfa Sci. & Tech. Co., Ltd. Tel.: +86 (24) 6785 4068 Tel.: +86 (592) 2107 298 Fax: +86 (24) 6785 4067 Fax: +86 (592) 2107 259 Shanghai YTO Express (Logistics) Co., Ltd. Shenzhen Xi'an Shanghai ROTAI Health Technology Co., Ltd. Deloitte Touche Tohmatsu Certified Public Deloitte & Touche Financial Advisory Services Hongqiao Headquarter Base of Emobile Park Accountants LLP Shenzhen Branch (China) Limited Xi'an Branch 13/F, China Resources Building, 5001 Shennan Road Room 5104A, 51/F, Block A, Greenland Center, 9 Jinye East, Shenzhen, 518010, PRC Road, High-tech Zone, Xi'an, 710065, PRC Research report preparation committee members: Tel.: + 86 (755) 8246 3255 Tel.: +86 (29) 8114 0201 Eunice Kuo, Maria Liang, Jeff Xu, Eddie Yan Fax: + 86 (755) 8246 3186 Fax: +86 (29) 8114 0205 Susan Sun, Raymond Yu Suzhou Zhengzhou Deloitte Touche Tohmatsu Certified Public Deloitte Consulting (Shanghai) Company Limited Accountants LLP Suzhou Branch Zhengzhou Branch 24/F, Tower A, Building 58, Suzhou Center Square, 58 Suxiu 5A10, Tower 8, Kineer Center, 51 Jinshui Road East, Road, Suzhou Industrial Park, 215021, PRC Zhengzhou, 450000, PRC Tel.: + 86 (512) 6289 1238 Tel.: +86 (371) 8897 3700 Fax: + 86 (512) 6762 3338 / 6762 3318 Fax: +86 (371) 8897 3710 Tianjin Deloitte Touche Tohmatsu Certified Public Accountants LLP Tianjin Branch 45/F, Metropolitan Tower, 183 , Heping District, Tianjin, 300051, PRC Tel.: + 86 (22) 2320 6688 Fax: + 86 (22) 8312 6099

QR code for QR code for Qingpu Investment in Qingpu SME Services

56 Research Report on the Investment Environment of Qingpu District, Shanghai 57