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Research Report on the Investment Environment of Taicang, Jiangsu Province

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Research Report on the Investment Environment of Taicang, Jiangsu Province Research Report on the Investment Environment of Taicang, Jiangsu Province 太仓投资环境报告书_en.indd 1 2015/7/13 12:15:53 Railway Jingjiang Expressway Provincial Road / National Road Light Rail Y Nantong ang tz e Zhangjiagang R Shanghai-Nantong iv e Railway r Haimen Shanghai-Nanjing Expressway Nanjing S338 Jiangyin Beijing–Shanghai Railway Qidong 204 Port City Metro (BRT) (Planned) Changzhou Jiangsu Province Chongming Island Wuxi Yangtze Delta Changshu Yanjiang Expressway Shuofang Airport Shanghai-Taicang Expressway Taicang Shanghai Port S339 Suzhou-Kunshan-Taicang Changxing Island Yixing Expressway S312 Suzhou Kunshan Kunshan-Taicang Expressway Taihu Shanghai Wujiang Hongqiao Airport Pudong Airport Huzhou A20 Zhejiang A30 Province Hangzhou Jiaxing 太仓投资环境报告书_en.indd 2 2015/7/13 12:15:54 Railway Jingjiang Expressway Provincial Road / National Road Light Rail Y Nantong ang tz e Zhangjiagang R Shanghai-Nantong iv e Railway r Haimen Shanghai-Nanjing Expressway Nanjing S338 Jiangyin Beijing–Shanghai Railway Qidong 204 Port City Metro (BRT) (Planned) Changzhou Jiangsu Province Chongming Island Wuxi Yangtze Delta Changshu Yanjiang Expressway Shuofang Airport Shanghai-Taicang Expressway Taicang Shanghai Port S339 Suzhou-Kunshan-Taicang Changxing Island Yixing Expressway S312 Suzhou Kunshan Kunshan-Taicang Expressway Taihu Shanghai Wujiang Hongqiao Airport Pudong Airport Huzhou A20 Zhejiang A30 Province Hangzhou Jiaxing 太仓投资环境报告书_en.indd 3 2015/7/13 12:15:54 Preface Located in Jiangsu Province just south of the Yangtze River, 1. City of Connections Taicang is a city renowned for its long history, rich culture and Taicang is the Yangtze River Delta region's golden gateway to the well-developed education system. With a history that spans sea. The city is also the only way to connect to the Shanghai- more than 4,500 years, Taicang is nicknamed as the "Beautiful Nanjing Expressway, Yanjiang Expressway and Shanghai-Nantong Golden City of the Southern Yangtze". As a city along Yangtze Railway (under construction). Its prime location serves as "the river with the closest proximity to Shanghai, Taicang possesses first major port for foreign trade of Jiangsu Province", the world's remarkable advantages and broad prospects for development link to the Yangtze River Delta region, and the best way for by virtue of its geographical location, economic foundation, and Shanghai to radiate cities in southern Jiangsu Province. When the living environment. Shanghai-Nantong Railway officially opens, it will only take 18 minutes to reach Shanghai. Shanghai Deloitte Tax Ltd. (hereinafter referred to as "Deloitte" or "We") is honored to be commissioned by the Taicang 2. Hometown of German Enterprises Investment Promotion Bureau to present investors with a More than 220 German enterprises have established themselves research report on the investment environment of Taicang. This in Taicang, earning the city recognition as the nation's first report was written from an objective third-party perspective "Sino-German base for business cooperation" and the first and was compiled applying professional research method and "Sino-German demonstration zone for SME cooperation". analytical approach. Taicang has proven itself as number one investment choice for German enterprises in China in terms of its investment density This report is the result of our independent research as well as and credibility. Currently, Taicang also represents one of the quantitative and qualitative analysis of Taicang, and was created best places for German enterprises in terms of development to provide investors with necessary information on all aspects opportunities and the number of German enterprises. of the region that may influence investment decisions. From an investor's point of view, our research identifies key variables of 3. City of Livable Spaces the investment environment with specific attention paid to the Taicang has always been known as the "land of milk and five dimensions below: honey" in the Southern Yangtze River. Taicang is currently striving to become a modern garden city of "farmland in the • Government Services and Policies city, and city in the garden". The city has a reputation for its • Business Environment sustainable charm as a city in south of the Yangtze River, "which • Infrastructure and Supporting Facilities only hundred steps needed to see a scenery, and thousand • Human Resources steps needed to see a park". • Living Environment 4.City of Prosperity In the meantime, this report has been compiled based on Taicang was ranked fourth overall in national socio-economic our analysis of Taicang's development plan and investment strength among hundreds of counties in 2014. Taicang is also policies, thus illustrating Taicang's advantages and prospects for among Jiangsu Province's first crop of well-off county-level cities development. in an all-round way, and has already become a premium city known for its dynamic businesses and development potential. 5. City of Openness With a "contract- and service-oriented government" philosophy, Taicang is committed to its ambition to create a city that is not only prosperous but inclusive as well. Both new and old citizens of Taicang are working together to form a symbiotic relationship to create a modern city of prosperity, civilization and openness. 太仓投资环境报告书_en.indd 4 2015/7/13 12:15:54 Table of Contents 1. Overview of the City 2 2. Government Services and Policies 7 3. Business Environment 11 4. Infrastructure and Supporting Facilities 19 5. Human Resources 24 6. Living Environment 27 Research Report on the Investment Environment of Taicang, Jiangsu Province 1 太仓投资环境报告书_en.indd 1 2015/7/13 12:15:54 1. Overview of the City 1.1 Overview of Taicang 1.2 Macro-economy 1.3 Consumer Market 1.4 Investment Environment 2 太仓投资环境报告书_en.indd 2 2015/7/13 12:15:55 1.1 Overview of Taicang Taicang, also known as Loudong in ancient times, is the birthplace of Loudong culture. The city served as the starting point of Zheng He's seven voyages to the Western world, and was the origin of Jiangnan Stringed and Woodwind Music (traditional musical instruments). Over thousands of years of transformation and development, Taicang mixed its deep and rich cultural environment geographical advantage together, evolved into the "Beautiful Golden City in the Southern Yangtze" that integrates Southern and Northern cultures as well as merges river-sea civilization. Taicang's Major Achievements Investment and Economy Livable Environment • Ranked 6th on Forbes "Best County-Level • China's Happiest City Cities in Mainland China" • National Ecological City • Cities (counties) of "Best Investment • National Garden City Value" in the Yangtze River Delta region • National Model City for Environmental • Cities (counties) of "Most Dynamic Private Protection Economy" in China's Yangtze River Delta • China's Excellent City for Tourism region • China's Highest Achievement Award for • Top 100 Small and Medium Counties Urban Life (cities) Nationwide by Comprehensive Strength • Top 100 Best Comprehensive Development Counties (Cities) Nationwide • Sino-German Base for Business Cooperation Technological Innovation Urban Development • National Technologically Advanced City • National Advanced City of Civilization • National Model City for Scientific • Top 10 Small and Medium Economical Achievement Cities Nationwide • National Key Contact Base for Patent • National Advanced County for Public Protection Security • Innovative Pilot City of Jiangsu Province • First Wave of Inaugural Port Cities for Cross-Strait Direct Shipping Source: ① Taicang Statistical Communique on National Economic and Social Development for 2014 Research Report on the Investment Environment of Taicang, Jiangsu Province 3 太仓投资环境报告书_en.indd 3 2015/7/13 12:16:07 1.2 Macro-economy Stable and Sustained Development of the 2009-2014 GDP for the Taicang region① ① Regional Economy Units: RMB 100 million In 2014, Taicang reported a GDP of RMB 106.533 1,100 1,065.33 billion, an increase of 8.6% over the previous 1,002.28 year on a comparable price basis. From 2009 to 1,000 955.12 2014, Taicang's compounded annual rate of GDP 900 867.53 growth has reached up to 11.72%. 800 730.32 Secondary and Tertiary Sectors as the Major 700 Economic Structure① 612.01 Taicang continues to optimize its industrial 600 structure. In 2014, the output value of primary 500 industry improved by RMB 3.884 billion which increased 3% compared to the previous year. The 400 2009 2010 2011 2012 2013 2014 output value of secondary industry grew RMB 55.668 billion, increased 8% over last year. The ① output value of the tertiary industry increased 2014 Industrial structure of Taicang RMB 46.981 billion that achieved a year-on-year Approximately 4% growth of 9.8%. As aforementioned, tertiary Approximately industry had the fastest development speed. 44% Primary Rapid Growth of Industrial Output① Industry In 2014, the total industrial output was RMB Secondary 263.027 billion, achieving an increase of 2.60% Industry compared to the previous year. This included an Tertiary industrial output of RMB 208.236 billion for large- Industry scale industries, showing an increase of 4.80%. Approximately At the end of 2014, there were 1,165 large- 52% scale enterprises in the city with 336 enterprises exceeding RMB 100 million in annual output. This included: Note According to the "Classification of Three Economic Sectors" released by the • 20 enterprises with over RMB 2 billion National Bureau of Statistics in 2003, the three sectors are classified as follows: • The
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