China's Engine --Shanghai

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China's Engine --Shanghai Powered By Docstoc
					China’s Economic Engine
Picture of China,Yangtze delta & Shanghai

10 Years Change of ”Pudong New Area” in Shanghai



Overview of Shanghai
Area -      6,340.5
            3,924 - urban
            2,416 - rural area

            Population – 13.52 million
            non-registered - 3 million
            Foreigners -72,895
Chinese (HK,TW, Macao)~400K

                                East - East China Sea
                                South - Hangzhou Bay
                                North - Yangtze River
       The center of China's coastal line.
       Shanghai is the most important shipping center in China
Shanghai Economic Growth in GDP
Total GDP in 2004:US$89.76 Billion, Growth 13.6%

National Statistic Information

In 2004 (US$ billion) and % of National total

Composition of Shanghai Economy
Shanghai Foreign Direct Investment Contract by Industry in 2003/04

’04 Total: US$11,691 Million for 4334 projects
’03 Total: US$11,063 Million for 4321 projects

       The First Industry:
                 US$4 Million for 14 projects
       The Secondary Industry:
                 US$7,316 Million for 1941 projects
       The Tertiary Industry:
                 US$3,702 Million for 2366 projects

Foreign Companies in Shanghai
Until 2004, the investment foreign country and area is 116.
392 investment projects above USD10 million

In 2004,
30 Multinational Enterprises set up Asia head office in SH, total is
15 Foreign Investment Companies in SH, total is 105
34 Foreign R&D center in SH, total is 140

Norwegian companies in the region

In 2004,

There are 57 Norwegian business entities established in the region
•   of these 42 are in Shanghai,
•10in Jiangsu province,3 in Zhejiang province, 1 in Anhui
province,1 in Fujian province
•26     entities are maritime related
• 13 entities are engaged in production and/or assembly, the
remainder are Representative offices, or providing consulting or
trading services.

Shanghai Focused Industry Fields

        Marine
        Electronics and Information
        Automobile Manufactory
        Petroleum Chemical and Fine Chemical Industry
        Fine Steel Products
        Equipment Manufactory
        Biology and Medical Technologies

Industry Zones (1+3+9) & Parks in Shanghai

 1 is Pudong New Area
                                         Main Industry Parks
 3 National Economic Development Zones
       1. Caohejing
       2. Minghang                         Lujiazui finance and trade
       3. Songjiang Export                  zone
 9 City Industry Zones                     Jingqiao export processing
       1. SongJiang                         zone
       2. XinZhuang                        Waigaoqiao bonded area
       3. BaoShan Urban
       4. KangQiao                         Zhangjiang high-tech park
       5. SH Industry
       6. QingPu
       7. JiaDing
       8. JinShanZui
       9. ChongMing

Business opportunities in Shanghai/China
       * Maritime equipment and services
            (Shanghai is planning to be the world largest ship producing centre)

       * Localized production – component production
       * Environmental technology
       * ICT
       * Seafood
       * Construction
            (Expo 2010, new deep sea harbour)
       * Biotechnology, Pharmaceutical, Genetics, etc.
       * Furniture and construction materials
            (Booming real estate)
       * Automotive industry
       * Tourism
       * Service industry
            (Financial services, Public services, technology & know-how, Consultancy)

Business Opportunities in Shanghai-

“Better City, Better Life!”

      May 1st~October 31st, 2010

      Big Numbers:
        -Total investment: US$15 Billion
        -Number of visitors:70 Million
        -Forecast revenues: US$12.9 Billion
        -Forecast contribution to GDP growth:0.6%

Expo 2010 Shanghai
Infrastructure                       Environmental Protection
-Direct investment for Expo Garden: -Expenditure 3% of annual GDP
US$3 Billion                         (2003 US$2.31 Billion, 2004 US$2.71 Billion)

-Indirect investment:US$15~30        -Areas include:
Billion                              Waste water, noise, gas, solid waste
-Building Areas:300k square meters   & protection of natural scenery

-Estimated visitors:70 Million
-Forecast revenue:US$12.9 Billion

                            China - Shipbuilding

•   The major forces of China’s shipbuilding industry are:

- China State Shipbuilding Corporation (CSSC) (Southern Group)

- China Shipbuilding Industry Corporation (CSIC) (Northern Group)
-The     CSSC and CSIC count for more than 70% of China’s new-building capacity today.

•Most of the other shipyards belong to the local provincial
governments, the Ministry of Communications and private or JV
- The majority of ships below 20,000dwt are built at the shipyards in this category. They
normally offer more competitive prices than CSSC and CSIC shipyards.
- Some of these shipyards are expanding quickly and several of them are aiming to build
vessels up to Aframax size.

                                Jiangsu Province:
                                New Century (NCS)              Dalian:
                                Jinling Shipyard               Dalian Shipyard
                                                               Dalian New Shipyard
                                Jiangyang Shipyard
                                Yangzijiang Shipyard                 Bohai
                                Jiangdu Shipyard
                                KouAn Shipyard                               Dalian
                                Xinhua Shipyard            Xingang
     Shanghai:                  Chengxi Shipyard                              Yantai
     Jiangnan Shipyard
     Hudong-Zhanghua Shipyard
     Shanghai Waigaoqiao
     Shanghai Shipyard
     Shanghai Edward

                                                                              Fuzhou (Mawei)
                                 Guangzhou Shipyard Itl.                     Xiamen
                                 Huangpu Shipyard               Guangzhou
                                 Wenchong Shipyard

             Market Opportunities in Marine
•   Ship building
-   Equipment suppliers, manufacturing/assembling in Shipyard
-   Openness to foreign equipment
-   Competitive edge – quality and service
-   Price challenge – local production
-   Design
-New designs – LNG, VLCC, special designs for special type vessel,
new materials (design software), design cooperation
-   Investment in yards
-   Offshore sector/products
-   Design and equipment

         Market Opportunities in Marine                    (cont’d)

•   Shipping
-Increased freight volumes for both import (especially energy and
ore) and export
-New possibilities in the logistics field, from sole transportation to
supply chain.
-   New buildings
-   Increased capacity for ship repairs
-   Chinese seafarers

Chinese business establishment

Five basic company structures defined by Chinese law:
     • Sino-foreign equity joint ventures
     • Co-operative (or contractual) joint ventures
     • Wholly foreign owned enterprises (WFOE)
     • Joint-stock companies
     • Holding companies
Foreign investors are opting more and more for the WFOE structure

     Representation office

Chinese Business Culture

20% of the world’s population

Large regional differences:
     • Language
     • Culture
     • Standard of development

Entertainment (Over the Food)

     • Use these occasions to build contacts and relationships
     • Problems are often easier solved over dinner (and wine) than
       at the negotiating table
     • The best occasion to get inside information
     • Best way to find out what is on their minds – and get honest

Do Preparation for Your China Business

•Know    the industry background in China
•Identify   the right place to start your business
•Understand     local business culture
•Finding    right cooperated partners in your business value chain
•Always    keep contact with local partner
•Used   to negotiate
•Learn   from other players in your business

Innovation Norway-Shanghai
                 We Give Local Ideas Global Potential!


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