Fine natural harbor
Advantageous geographic location
Pleasant climate
Rich natural resources
Vast hinterland and market
Well-established infrastructures
Efficient and enlightened government
Strong scientific and technical capability
Internationalized metropolis culture
First class living environment
Low operation cost
Strong economic growth
Stable and safe economic environmentment

World Famous Enterprises that have Wisely Chosen Dalian

GE, Goodyear, Pfizer, Dell, Accenture, Wal-Mart, Canon, Toshiba, Mabuchi, Sanyo, Matsushita, Hitachi,LG Industry, Hyundai, Posco, Carrefour, Total, Tyssen Krupp, Liebherr, Nokia, Ericsson

Industry

In 2006, rapid growth in industry was sustained. The total value of industry reached 105.8 billion Chinese Yuan, increased by 20.8%. The added value of industry was 85.18 billion Yuan, increased by 27.6% according to comparable price.
The enterprises engaging in digital audio and video, fine chemical, machine tool, refined steel, bearing, pharmaceutical, port facility, new building material, furniture, garment and glassware industries also top the list in China in terms of scale.

Agriculture

Dalian is a famous fruits production base; aquatic products from Dalian are well known both in China and abroad.
Annual production volume:39.05 billion Chinese yuan
Vegetables:2.546 million tons(In 2006)
Fruits: 1067 thousand tons(In 2006)
Meat: 653 thousand tons(In 2006)
Poultry and eggs: 234 thousand tons(In 2006)

Finance

Eight overseas banks have set up operating branches, and Six foreign financial institutions have set up offices in Dalian.

U.F.J.Bank Ltd. Dalian Branch
The Yamaguchi Bank, Ltd. Dalian Branch
The Bank of Tokyo-Mitsubishi, Ltd. Dalian Branch
Mizuho Corporate Bank Dalian Branch
NANYANG Commercial Bank Dalian Branch
The Bank of East Asia, Ltd. Dalian Branch
HSBC Dalian Branch
Korea Exchange Bank Dalian Branch

Sumitomo Mitsui Banking Corporation Dalian Representative Office
Standard Chartered Bank Dalian Branch
BNP-Paribas international finance Dalian Representative Office
The Bank of Fukuoka, Ltd. Dalian Representative Office
The San-in Godo Bank, Ltd. Dalian Representative Office
JCB Internatinal Co., Ltd. Dalian Representative Office

Education and Talents

22 colleges and universities where there are 189 thousand students.
18 academicians from China Academy of Sciences and China Academy of Engineering.

Urban Construction

---Urban green coverage has reached 42%, per capita public green land is 10 square meters.
--- Dalian received United Nation's Human Habitat Award in 1999.
--- Dalian received United Nation Environment Program's "Global 500 Award" in 2001.

Dalian Economic & Technological Development Area (DDA)

DDA is the first state-level development area approved by the State Council in September 1984. It is an economic area enjoying the preferential policies for coastal development area and applying new administrative system which follows the international practices. DDA is also one of the biggest economic & technological development areas in the north of China.

Dalian Free Trade Zone and Export Processing Zone

Dalian Free Trade Zone??the only one in Northeast China, and Dalian Export Processing Zone, one of the most successful of its type, are the special economic zones with the most preferential and open policies in China. Though located in China, the Zones are considered outside the Customs territory. The bonded and duty-free features of the two zones provide manufacturers, importers and exporters unique opportunities to apply innovative solutions to the challenges associated with doing business in China. The main functions of the Zones are:
International Trade
Export Processing
Bonded Warehousing
Bonded Exhibition
Entrepot Trade
Processing with imported materials

Preferential Policies for Foreign Investors

State regulations provide that the income tax for enterprises with foreign investment is 30% of the taxable income, yet for those enterprises operating within the jurisdiction of Dalian municipality enjoys a favorable tax rate of 24%, and enterprises operating within those pilot zones enjoys an even more favorable rate of 15%.

Any enterprise with foreign investment of a production nature scheduled to operate for a period of not less than ten years shall, from the year beginning to make profit, be exempted from income tax in the first and second years and allowed a fifty percent reduction in the third to fifth years. These enterprises shall also be exempted from local income tax, which is 3% of the taxable income for seven years.

For those enterprises that export their products, after the above favorable treatment period expires, the rate of corporate income tax shall be 12% if 70% or more of their total product value in the year are exported, and this rate is 10% for enterprises in the Pilot Zones.

Technically advanced enterprises can enjoy three more years of favorable corporate income tax rate of 12% after the above tax benefits period expires, and for the enterprises operating in the Pilot Zones can enjoy an even more favorable rate of 10%.

Foreign investors who reinvest their profits/dividends from their enterprises in China for a period of or over 5 years can be refunded 40% of the tax they have paid for the reinvested amount. For reinvestment that is injected into an export-oriented enterprise or enterprise with advanced technology, all the income tax that is already paid on the reinvested part will be refunded.

Equipment imported by overseas-funded projects for their own use is exempt from customs duties and import linkage value added taxes, provided these projects are listed in the "Catalogue for the Guidance of Foreign Investment Industries" as projects being encouraged, except those listed in the "Catalogue of Commodities Imported by Overseas-funded Projects which Shall Not Be Entitled to Any Tax Exemption".

If manufacturing enterprises with foreign investment can meet the following requirements, they are allowed to be engaged in purchase and export of the commodities which are not controlled with quota, permit or exclusive rights, and may participate in the export quota bidding for their self-manufactured products.
1. Foreign-funded manufacturing enterprises with an annual export volume of over 10 million US Dollars.
2. No record of violation of laws or regulations concerning taxation, foreign currency and import and export for two consecutive years before applications.
3. With professionals in international trade.Foreign investors working in the joint venture companies will be exempted from personal income tax for the dividend and bonus they get from their joint venture companies.

For those overseas students pioneering in Dalian, if they are using high and new technology achievements for production, their salaries earned in Dalian will be regarded as income outside China and they can enjoy preferential personal income tax policies.

Children of those foreign staffs working in the joint venture companies shall enjoy preferential tuition fees; graduation certificate will be issued after they have finished all the courses and passed the exams.

Relaxing entry requirements for qualified personnel employed by foreign invested enterprises; Lifting residence registration restrictions for technical staffs and senior management personnel needed by foreign invested enterprises.

Areas Where Foreign Investment is Encouraged

Electronic information technology- the development and manufacture of software, network, optical communication, digital audio and video products, computer peripheral equipment and other components, new video products and micro electronic components.
Bio-engineering-bio-pharmaceutical, medical material, functional food, bio-pesticide and fertilizer, bio-chemical material, bio-treatment of polluted water, genetic engineering and tissue engineering.
Environment protection industry-solid waste treatment, purification by desulphurization, waste water treatment, compressing of high density organic waste water and mud, manufacturing of environment protection facilities.
New type material-environment protection, energy saving and nanometer technology materials
Green agriculture-Introduction and cultivation of fine seeds, seedlings and breeding stocks; Fresh keeping and deep processing of fruits, vegetables and flowers; Cultivation and processing of animal products and aquatic products.
Machinery industry- Research, develope and manufacture of large units of equipment; high grade, precision and advanced basic equipment, component and major technical equipment.
Service and trade sector-transportation, logistics, tourism, construction, medical and public health, education, accounting and law, leasing, insurance and finance.Foreign investors who reinvest their profits/dividends from their enterprises in China for a period of or over 5 years can be refunded 40% of the tax they have paid for the reinvested amount. For reinvestment that is injected into an export-oriented enterprise or enterprise with advanced technology, all the income tax that is already paid on the reinvested part will be refunded.

Equipment imported by overseas-funded projects for their own use is exempt from customs duties and import linkage value added taxes, provided these projects are listed in the "Catalogue for the Guidance of Foreign Investment Industries" as projects being encouraged, except those listed in the "Catalogue of Commodities Imported by Overseas-funded Projects which Shall Not Be Entitled to Any Tax Exemption".

If manufacturing enterprises with foreign investment can meet the following requirements, they are allowed to be engaged in purchase and export of the commodities which are not controlled with quota, permit or exclusive rights, and may participate in the export quota bidding for their self-manufactured products.
1. Foreign-funded manufacturing enterprises with an annual export volume of over 10 million US Dollars.
2. No record of violation of laws or regulations concerning taxation, foreign currency and import and export for two consecutive years before applications.
3. With professionals in international trade.Foreign investors working in the joint venture companies will be exempted from personal income tax for the dividend and bonus they get from their joint venture companies.

For those overseas students pioneering in Dalian, if they are using high and new technology achievements for production, their salaries earned in Dalian will be regarded as income outside China and they can enjoy preferential personal income tax policies.

Children of those foreign staffs working in the joint venture companies shall enjoy preferential tuition fees; graduation certificate will be issued after they have finished all the courses and passed the exams.

Relaxing entry requirements for qualified personnel employed by foreign invested enterprises; Lifting residence registration restrictions for technical staffs and senior management personnel needed by foreign invested enterprises.

Infrastructure

The annual cargo handling capacity of Dalian port is 145.162 million tons, the container handling capacity is 2.2112 million TEU.
The passenger volume of Dalian airport is 4.614 million person-time, the cargo and mail handling capacity is 118 thousand tons, and it has opened over 88 air routes, among them 17 are international routes, including Dalian to Japan, Korea, Russia and Hong Kong.
The Dalian's expressway which has linked Shenyang, Beijing, Changchun and Harbin has the mileage of 244 kilometers.
There are totally 600 million Cubic meters of water reserve in the over a dozen of reservoirs dispersed across Biliu River and Yingna River. The daily water supply capacity is 1.3 million tons with 900 thousand tons of water being actually utilized. With the increasing demand for the future development of the city, Dalian will divert water from Dayang River and Yalu River.
Sufficient supply of power and gas can meet the requirements of economic development.

Commerce

The turnover of social consumption goods in 2006 is 83.93 billion Yuan, which was increased by 14.7% than that of the past year.
By the end of 2004, the trade volume in Dalian Commodities Exchange Center has surpassed 17900 million Yuan, it ranks the top in Asia and the second in the world, only next to Chicago, U.S.
Dalian hosts nearly 60 domestic and international exhibitions each year including the Dalian International Garment Fair, which is one of the three largest garment fairs in China. It is also quite influential among the world fashion circle.

Tourism

Dalian is one of China's top ten tourism cities, major attractions include:
The Xinghai Plaza--Backed by mountains and facing the sea, it has a total area of 1.8 million square meters.
Lushun Snake Island- a marvelous world for animals
Golden Pebble Golf Course-rated the sixth among US Golf Club Member Courses in 1999, the 7th lane is the most challenging one and is praised as the demon lane.
Beach Road: It is a national level scenic spot with a total length of 35 kilometers. The road links through over a dozen tourism attractions including the Charm of the Sea Square, the Bangchui Island, the Tiger Beach Park, the Beida Bride, the Golden Sand Beach, the Bird Nest Ridge, the Fujia Villa and the Xinghai Plaza.
SunAsia Ocean World: Chinese first under-water tunnel aquarium with a length of 118 meters, it ranks the top in Asia.
Polar Ocean Animal Park: large ocean water park with various kinds of polar animals.

Dalian Hi-Tech Industrial Park

Dalian Hi-Tech Industrial Park is a national Industrial Park approved by the State Council in 1991, it has three characteristics:
---The fastest developing Overseas Students Park in China with the best infrastructure. Approved by the Ministry of Personnel, the park hosts Chinese Overseas Students Pioneering Week at the end of June and the beginning of July each year.
---Chinese first class software park of international standard, which is Software export base approved by the Ministry of Science and Technology. The largest and best training institute for software in China-NEUSOFT Institute of Information Technology is located there.
---Dalian DD Port (Digital and DNA) guided by advanced concept. Chinese Academy of Sciences has set up the Hi-Tech Industrial Incubation Fund within the DD Port and encourages their affiliating institutions to localize their achievements to the port, they have also established talents training base in the port.

Golden Pebble Beach National Resort

It is the only national resort approved by the State Council in 1992 and AAAA Nation Tourist Attraction in northeast of China. In 2002, it obtained the accreditation of international quality and environment system----ISO9000 and ISO14001. It enjoys
* unique natural conditions----encircled by sea on three sides with 30km-long coast line and possessed over hundred of natural geological scenic spots formed 900 to 600 million years ago.
* complete infrastructures ----the Light Rail from Downtown to Golden Pebble Beach has put into operation and become a main tourist line of this Resort.
* a series of recreation facilities with international standard and of different styles ----36-hole golf course, International Convention Center, International Yacht Club, Waxing Imagery Museum, Grotesque Rocks Hall, China Martial Arts Museum, Movie & TV Art Center, Theme Parks (under construction), Hi-tech Agriculture Sightseeing & Demonstration Park (under construction), Golden Pebble Valley Country Club (under construction), etc. It's an excellent place for tourists and a better choice for investors.

Areas Where Foreign Investment is Encouraged

Electronic information technology- the development and manufacture of software, network, optical communication, digital audio and video products, computer peripheral equipment and other components, new video products and micro electronic components.
Bio-engineering, bio-pharmaceutical, medical material, functional food, bio-pesticide and fertilizer, bio-chemical material, bio-treatment of polluted water, genetic engineering and tissue engineering.
Environment protection industry-solid waste treatment, purification by desulphurization, waste water treatment, compressing of high density organic waste water and mud, manufacturing of environment protection facilities.
New type material-environment protection, energy saving and nanometer technology materials
Petrochemical industry- Production of ethylene, engineering plastics and plastic alloys
Green agriculture-Introduction and cultivation of fine seeds, seedlings and breeding stocks; Fresh keeping and deep processing of fruits, vegetables and flowers; Cultivation and processing of animal products and aquatic products.
Machinery industry- Research, develop and manufacture of large units of equipment; high grade, precision and advanced basic equipment, component and major technical equipment.
Service and trade sector-transportation, logistics, tourism, construction, medical and public health, education, accounting and law, leasing, insurance and finance.

Documents Required for Establishing Foreign Invested Enterprises

Name Registration Form provided by the Industry and Commerce Bureau
Project Proposal (joint-ventures and cooperative enterprises)
Application for project (solely foreign owned enterprises)
Enterprise Application Form (solely foreign owned enterprises)
Contracts for lease or purchase of sites for production or offices of foreign-funded enterprises, or contracts for land use rights. (leasing agreement and duplicate copy of the owner's property certificate should also be provided )
Feasibility study report
Contract (joint-ventures and cooperative enterprises)
Articles of Association for the company
Duplicate copies of the business licenses for both parties (duplicate copies of identity cards for investors investing in personal names).
Credit status certificates for both parties (original copy and duplicate copy)
Appointment Letters for members of the board of directors, name list of the board of directors and duplicate copies of the aforementioned persons' ID cards.
Examining and approval comments of the administrative authorities of the industry. (special industries listed by the Central Government).

Procedure for Establishing Foreign Invested Enterprises

Investor
Locate office site
Pre-register company's name at the Industry and Commerce Bureau
Compile feasibility study report

Projects that are encouraged or allowed in "Catalogue for the Guidance of Foreign Investment Industries" and need not to be balanced by central government with a total investment volume of less than 30 million US Dollars.(1)

Projects that are encouraged or allowed in "Catalogue for the Guidance of Foreign Investment Industries" but need to be balanced by central government or projects listed as restricted ones with a total investment volume of less than 30 million US Dollars. (2)

Projects that are encouraged or allowed in "Catalogue for the Guidance of Foreign Investment Industries" and need not to be balanced by central government with a total investment volume of over 30 million US Dollars. (2)

Projects that are encouraged or allowed in "Catalogue for the Guidance of Foreign Investment Industries" but need to be balanced by central government or projects listed as restricted ones with a total investment volume of over than 30 million US Dollars.(3)

(1)Registered, examined and approved by local foreign trade and economic cooperation bureau, local business promotion bureau or other local organizations with examination and approval rights

(2)Registered by competent municipal authorities (or submit to superior authorities), examined and approved by Municipal Foreign Trade and Economic Cooperation Bureau

(3)Registered by competent national authorities, examined and approved by The Ministry of Commerce(issuance certificate of approval)

Receive organization code form the Municipal Technical Supervision Bureau
Issue certificate of approval by the Municipal Foreign Trade and Economic Cooperation Bureau
Registration at the Municipal Industry and Commerce Bureau
Registration at the State Administration for Industry and Commerce (only for projects examined and approved by The Ministry of Commerce)
Receive the organization code certificate at the Municipal Technical Supervision Bureau
Registration at the Foreign Exchange Administration Bureau for opening the account
Registration at the Municipal Taxation Bureau
Registration at the Customs

Development Blueprint of Building a "Great Dalian"

With the aim to construct a well-off society in an all-round way, CPC Dalian Committee and Dalian Municipality have put forward the development blueprint of building a "Great Dalian".
* To expand the space for urban development
The urbanized area will be enlarged to "Two cities and three stars". Two cities are namely the main city and the new city. The main city will have districts of Zhongshan, Xigang, Shahekou, Ganjingzi and Lushun under its jurisdiction; the new city will cover Jinzhou, Development Area, Golden Pebble Beach, Double "D" Port, Dayao Bay Harbor Area into its administration. Three stars refer to the three satellite cities of Zhuanghe, Wafangdian and Pulandian. In the year of 2020, the urbanized area is expected to reach 1000 Sq. meters with the urbanization rate increased to 85%.
* To enlarge the general economic volume
By the year of 2007, GDP will be doubled to that of 2000 with the per-capita GDP amounting to US $ 5000. By 2010, GDP will reach 342 billion Chinese Yuan with a per-capita GDP of US $ 7000.
* To elevate the comprehensive urban functions
Special efforts will be directed to instill an international flavor into the city. Endeavors will be taken to ensure Dalian the important kernel status in the region of Northeast of China and Bohai-rim economic area.
* To forge a better urban environment
The urban construction work will be undertaken in a spirit of pursuing high profile and high standard. The most business friendly and habitat-friendly urban environment will be brought into being.

Policy Consultee:

Dalian Foreign Trade and Economic Cooperation Bureau
Mr. Dechun, Liu Director
Tel: 86-411-83686706
Fax: 86-411-83686426
Ms.Liying, Wang Chief of Foreign
Investment Division
Tel: 86-411-83686865 3686575
Fax: 86-411-83686865
E-mail: wjwwz@dalian-gov.net