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Shenzhen Free Trade Zone

Facts & Figures (2010)

Rating A
Year of Establishment Shenzhen Yantian Port FTZ:1996
Shenzhen Futian FTZ: 1991
Shenzhen Shatoujiao FTZ: 1987
Shenzhen Yantian Port BLP: 2004
Land Area 3.43 km2
Location Shenzhen, Guangdong
GDP RMB 61.29 billion, 1.9% up
FDI N.A
Utilized FDI US$ 47.47 million
Major Investors Lenovo, Wal-Mart, IBM, Mitsui, NEC, Sony, Samsung, Hitachi, 3M, JDS Uniphase, Philips, AEON, BCS, Thomson, Sanyo, Intel, Honey, Toshiba, Petronas, Ricoh, Sumitomo, Kerry
Major Industries Encouraged Warehousing, logistics, trade, export processing
Source of Facts & Figures Source: Administrative Committee of Shenzhen Free Trade Zone
Introduction Shenzhen Free Trade Zone (Shenzhen FTZ) consists of four state-level development zones: Shenzhen Yantian Port Free Trade Zone (Shenzhen Yantian Port FTZ), Shenzhen Futian Free Trade Zone (Shenzhen Futian FTZ), Shenzhen Shatoujiao Free Trade Zone (Shenzhen Shatoujiao FTZ) and Shenzhen Yantian Port Bonded Logistic Park (Shenzhen Yantian Port BLP).

All four free trade zones are located in Shenzhen Special Economic Zone, which is endowed with special economic policies and flexible government measures. Shenzhen Shatoujiao FTZ, located in Shatoujiao Port 1 km from Yantian Port, was set up in 1987, and is the oldest free trade zone in Guangdong Province. Shenzhen Futian FTZ, approved in 1991, is located next to the Guangzhou-Shenzhen Expressway and is connected with Hong Kong via the Lok Ma Chau Bridge. Shenzhen Yantian Port FTZ and Shenzhen Yantian Port BLP, both located in Yantian Port, were approved as state-level development zones by the State Council in 1996 and 2004, respectively.

Shenzhen FTZ enjoys convenient transportation. Shenzhen Port was the fourth-largest port in the world in 2008 in terms of container throughput. Shenzhen Bao’an International Airport was the fourth-largest airport in mainland China in 2008 in terms of cargo traffic. The zone is only one hour from the airport. Shenzhen is at the intersection of the Beijing-Guangzhou Railway and the Beijing-Kowloon Railway and is the starting point for the Shenzhen-Shantou Expressway and the Guangzhou-Shenzhen Expressway.
Investment Climate Shenzhen is the largest export base in Guangdong Province. The export value of Shenzhen surpassed US$204.18 billion in 2010, accounting for 12.9% of China’s total and 45.1% of Guangdong’s total, respectively. Shenzhen has maintained its position as the largest exporter among all the cities in mainland China for 16 years. The foreign trade value in Shenzhen FTZ amounted to US$47.49 billion in 2010, accounting for 13.69% of Shenzhen’s total.

Shenzhen FTZ encourages investment in warehousing, logistics, trade and export processing. In 2010, its gross industrial output grew 1.9% from the previous year and reached RMB 61.29 billion.

The utilized FDI in the zone has exceeded US$47.47 million. By 2010, 37 Fortune 500 enterprises had invested in the zone. Major investors in the zone include Wal-Mart, IBM, Mitsui, Thomson and domestic firms like Lenovo. Lenovo Shenzhen International Information Products Corp, set up in 1994 by IBM and China Great Wall Group, has a factory in Shenzhen Yantian FTZ that mainly produces ThinkPad laptops and ThinkCentre desktops. In 2001, Kerry spent RMB 220 million to set up Shenzhen Kerry Yantian Port Co Ltd and build a 43,000-sq m logistics center in Shenzhen Yantian FTZ.
Winning Edge and Limitation Winning Edge
  • The zone enjoys geographic advantages. Guangdong Province has the largest economy in China, while the GDP of Shenzhen ranked fourth among mainland cities. The zone also enjoys close proximity to Hong Kong
  • The zone enjoys convenient transportation. Yantian Port is a large container port in China
  • Shenzhen Free Trade Zone is the largest exporter among all the free trade zones in China.
  • By 2008, 37 Fortune 500 enterprises had set up businesses in the zone.


Limitations
  • The investment costs in the zone are high
  • The zone lacks land resources
  • Many companies in the zone are export-oriented and easily affected by the global economic situation and the foreign exchange rates
The Administration Committee Tel: 86-755-83591440, 83480639, 25260666, 25281181
Website: www.getdd.gov.cn>/a>

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