I . Survey

(i)Geographic Location

Zhejiang is located in the southern part of the Yangtze River Delta on the southeast coast of China. It lies in between north latitude 27°01’and 31°10’, east longitude 118 °01’ and 123° 08’,with a total area of 101.8 thousand km2. It faces the East China Sea on the east and Fujian on the south. With an extensive hinterland in the rear, it borders Jiangxi and Anhui on the west and Shanghai, and Jiangsu on the north.

Zhejiang province features complex landforms, with 70.4% of mountainious regions and hills; 23.2% of plain and basins； 6.4% of rivers and lakes and only 2.0817 million ha. of farmland.

Zhejiang is renowned for its picturesque landscapes. It boasts famous lakes such as the West Lake in Hangzhou, the East Lake in Shaoxing, the South Lake in Jiaxing and the Dongqian Lake in Ningbo. The Thousand- Islet Lake in Chun’an County of Hangzhou is the largest man-made lake in the country. Major rivers in the province include the Qiantang River, the Oujiang River, and the Nanxi River. The Beijing-Hangzhou Grand Canal runs through the northern part of the province, and merges into the Qiantang River in Hangzhou.

Zhejiang has two sub-provincial cities, namely Hangzhou and Ningbo(Ningbo is a citiy with separate planning status). Wenzhou, Huzhou, Jiaxing, Shaoxing, Jinhua, Quzhou, Zhoushan, Taizhou and Lishui are the 9 prefecture-level cities, and there are 36 counties, 22 county-level cities, 32 sub-city districts and 837 towns in Hangzhou province.

 (ii)Climate

Zhejiang is located between Eurasian Continent and Northwest Pacifi c Ocean on the east coast of China.Under the typical subtropical monsoon conditions, the climate of Zhejiang is characterized by four distinctive seasons, abundant sunshine and rainfall ,moist air and diverse climate characteristics.It has an annual average temperature of 15-18 ℃ with the extremely maximum temperature of 33-43℃ and minimum temperature of -2.2 - - 1 7 . 4 ℃. It has an annual average rainfall of 980-2,000mm with the climax of 2,200mm as well as an annual sunshine hours of 1,710-2,100.

(iii)Population and Ethnic Groups

The permanent poplulation of Zhejiang reached 48.98 million in 2005,among which the non-agricultural popluation amounted to 27.42 million and the agricultural population totaled 21.52 million.The population of Han nationality came to 48.42million,accounting for 98.93% of the whole population.There are 53 ethnic minorities in Zhejiang ,including mainly She, Tujia, Miao, Buyi, Hui, Zhuang, Dong nationalities.

(iv)Infrastrure and Transportation

Railways

A railway transportation network, with the capital city Hangzhou as its center, has been formed in Zhejiang by intensive railway lines including 3 double–track railway lines ,namely Shanghai-Hangzhou, Zhejiang-Jiangxi, Hangzhou-Ningbo,and 4 trunk lines, that is, Hangzhou-Xuancheng (Anhui), Jinhua-Wenzhou,Xinyi-Changxing and Jinhua-Qiandaohu (Chun’an). The length of railways in operation in Zhejiang is 1,212km with the passager-carrying capacity of 51.17million and cargo-carrying capacity of 28.06 million tons for a full year.Zhejiang has the direct access to all major cities in China.

Highway

The total length of highways in Zhejiang is 46,935 km, among which 1,475 km are expressways and 2,487 km are Class I roads. A highway network has been basically established, connecting the capital city Hangzhou with all the other counties and cities of Zhejiang and other neighbouring provinces.

Airports

There are 7 civil airports in Hangzhou, Ningbo, Wen zhou, Zhoushan, Yiwu, Taizhou and Quzhou,with an annual takeoffs of 129,000 sorties ,passager handling capacity of 11.41million and goods post handling capacity of 242,000 tons.These airports have direct links with over 30 large-and-middle sized cities such as Beijing, Shanghai, Guangzhou, Shenzhen, Hongkong, etc as well as direct flights to many foreign cities such as Seoul, Bangkok, Tokyo, Osaka,Singapore and Busan.

Ports

With 9,893 km inland waterways, Zhejiang has 5,495 inland harbor berths and 958 seaport berths, among which 71 can berth 10 thousand tons and above. There are fi ve major ports, namely Ningbo, Zhoushan, Wenzhou, Taizhou and Jiaxing. The total handling capacity of seaports reaches 310 million tons. Beilun habour in Ningbo, which can berth freighters of over 300,000 tons, is one of four international entrepots in China. Aoshan port in Zhoushan,being able to berth the super tankers of 250,000 tons, is the largest petroleum transfer port in China.

金融机构名称

Names of Financial Institutions

Finance and Insurance

In 2005,the total deposit balance in RMB and foreign currency of the financial institutions reached 1,541.6 billion yuan,the total loan balance in RMB and foreign currency of them amounted to 1,241.9 billion yuan and balance of saving deposits of rural and urban residents of this year came to 688.9 billion yuan.

In 2005,a full year 's premiunm totaled 26.03 billion yuan ,among which the property insurance premiun added up to 7.18 billion yuan ,life insurance premiun reached 18.85 billion yuan and the total indemnity expenditure and payment arrived at 6 billion yuan.

Post and Telecommunications

The urban and rural fixed telephone switching system has a total capacity of 26.23 million sets. The urban and rural fixed telephone subscribers reached 19.75 million,with the popularity of 59.8 sets per hundred capita.The urban and rural mobile telephone subscribers reached 23.23 million, with the popularity of 49.2 sets per hundred capita. The registered Internet users, including Broad Band Users, reached 5.06 million. 37,882 administrative villages have access to fi xed telephones,accounting for 99% of the total. The mobile telephones reach all parts of Zhejiang Province.The postal express mail network integrates a variety of comprehensive transportation means such as airways,railways ,highways, etc.The international mail exchange offices have been set up in Hangzhou,Ningbo and Wenzhou. The automation level of the newly-built Hangzhou Center for Handling Mails ranks top in China.

     (v)Foreign Exchange

Since the start of the reform and opening to the outside world,Zhejiang province has established friendly relations with 72 cities including New Jersey, Shizuokaken, Schleswig-Holstein, Parana, etc. Many cities such as Hongzhou and Ningbo have also established friendly relationships with foreign cities.

Foreign Exhibitions in Zhejiang Province

China Yiwu International Commodities Fair (Yiwu Fair for short) ,whose predecessor is China Yiwu Small Commodities Fair first held in 1995, is the only international daily consumer goods fair approved by the State Council . Since 2002,the fair has been promoted to an international fair sponsored by Ministry of Commerce.So far,it has been held for 11 successive years.The fair plays an important role in enlarging the export of commodities,promoting the small commodity manufacturing industry and boosting the development of the regional economy with the purpose of facing the world and serving the country .Meanwhile,it has become the largest, most infl uential and productive commodity fair, which is on the top of exhibitions in China.

Zhejing Investment & Trade Symposium (ZJITS) is sponsored by Zhejiang Provincial People’s Government, and China International Consumer Goods Fair (CICGF) is sponsored by China National Ministry of Commerce and Zhejiang Provincial People’s Government. ZJITS and CICGS ,being held in Ningbo from June 8th to 12th every year ,is a carrier for Zhejiang to introduce capital,technology, talented personnel and managerial expertise and also a platform to promote the further opening-up of Zhejiang Province . Since 1999, seven symposiums have been held successively. The province has received a total of 50,000 overseas guests from 109 countries and regions, with more than 2,395 foreignfunded projects and contractual foreign investment of over 18.3 billion US dollars. Meanwhile, the accumulative volume of business for foreign trade had hit 2.473 billion US dollars since CICGF was held during the same period as ZJITS in 2002.

2006 Hangzhou World Leisure Exposition is a theme exposition fi rst jointly sponsored by All-China Federation of Industry and Commerce ,Zhejiang Provincial and Hangzhou Municipal People’s Government and the relevant ministries and commissions directly under World Leisure Organization,China NationalTourism Administration .Taking“ Leisure-Changes Peoples’ Lives”as its theme,the exposition integrates leisure ,tourism,recreation,con ferences,exhibitions and grand events as a whole,interacts with the 8th West Lake

Exposition ,popularizes the advenced leisure notion, advocates the healthy leisure style and enables people to enjoy the high-quality leisure services and promotes the brand of “Oriental Leisure City”.

淅江省涉外展会列表

Table of Foreign Exhibitions in Zhejiang Province

 (vi)Higher Education and Scientifi c Research

There are 73 regular full-time institutions of higher education in Zhejiang province.The total number of students on campus reaches 572,800 including 16,254 postgraduates for master’s degrees and 5,808 Ph.D. candidates.There are 395 fulltime vocational schools,among which there are 128,100 secondary vocational school students, 547,300 on-campus vocational high school students, 53,200 adult secondary vocational school students and 177,800 adult college students.The institutions of higher education, entitled to confer masters degrees in 481 programs and doctoral degrees in 193 programs ,have altogether 22 academicians from Chinese Academy of Sciences and Chinese Academy of Engineering.There are more than 10 key universities such as Zhejiang University,Zhejiang University of Technology ,Zhejiang Normal University. Among which Zhejiang university ,as one of the best universities in China,is wellknown both at home and abroad,and is praised by Dr. Jeseph Jeseph Needham as“ Oriental Cambridge”.

In 2005, there was RMB 30 billion spent on the scientific and technical activities, occupying 2.25 per cent of the provincial GDP.Zhejiang has over 200 independent R&D institutions of county level and above,among which there are 105 National and Provincial Key Laboratories, and 21 State Engineering Technology Centers.

 (vii)Tourism

Zhejiang boasts a beautiful landscape and a galaxy of talents.The mountains stretch one after an other, the plains crisscross with each other ,the rivers flow continuously and the islets spread all over. The picturesque scenery is formed by the mountains ,rivers ,lakes, beaches ,forests,caves and springs,revealing varied landscapes.The marvellous spectacle fosters numerous celebrites ,attracted enormous outstanding figures and reserve a large number of places of cultural heritages.There are over 800 important geomorphological sights, more than 200 watery sights and over 100 biological sights and 100-odd places of cultural interest.It has 14 scenic areas of national level, namely, the West Lake, Fuchun-Xin’an Rivers, Yandang Mountain , Putuo Mountain, Nanxijiang River, Tiantai Mountain, the Shengsi Islands, Xuedou Mountain, Mogan Mountain, Double Dragon Cave, Xiandu, Xuedou Mountain,Five Waterfalls (Wuxie), Jianglang Mountain, Xianju and 42 of provincial level including Dongqian Lake, the Big Buddha Temple,lanke Mountain etc. Zhejiang also has 5 famous historical and cultural cities at national level ,that is, Hangzhou,Ningb o,Shaoxing,Quzhou and Linhai and 12 at provincial level. There are 279 historical and cultural sites under provincial protection,7 nature reserves at national level,20 forest parks at national level.

West Lake occupies an area of 6.03 square km. The west Lake is divided by Su Causeway and Bai Causeway into five parts including Outer Lake, North Inner Lake,Yue Lake ,West Inner Lake and Small South Lake. Three islets of the Outer Lake including Lesser Yingzhou,Mid-Lake pavillion and Ruangong Isle mount the lake and show the graceful bearings ,displaying a scene just like Penglai wonderland in the fairy tales.When Su Dongpo,a celebreated poet of the Song dynasty ,was the prefecture chief of Hangzhou,he wrotes a poem in praise of the West Lake ,“The West lake,like Xizi,the classic beauty,who is invariably enchanting in either light or heavy makeup .”

Tiantai Mountain boasts an enchanting scenery with a lot of places of historical interest. In accordance with its geographic location and characteristics, it falls into 13 scenic spots,among which 8 sights such as Shiliang Waterfall,Sunset Clouds on the Huading peak, etc are the most famous.With stones whose colour is just like fi re,the castlestyled Chicheng Hill is the birthplace for both Buddhism and Taoistm.Tiantai Mountain is a place for men of talents. As early as the period from Han to Jin dynasty,Gexuan,Gehong and Tao Hongjing came here to cultivate themselves according to religious dictrines and make pills of immortality.Afterwards,those famous monks and Taoist priests also came to the mountain to found new religious schools or live in seclusion to write books.Therefore,Tiantai Mountain becomes a celebrated tourist attraction with the fame of“ Holy Mountain of Buddhism”.

 Putuo Mountain, situated in the central Putuo District in Zhoushan ,is among the fi rst scenic spots at national level announced by the State Council. Being one of the four Famous Buddhist Mountains in China with Wutai Mountain, Emei Mountain and Jiuhua Mountaini,it enjoys the reputation of “Buddhist Fairyland on the Sea” throughout the country and beyond for its long history of buddist culture and unique sceneries of mountains and sea. The Putuo Mountain derives its name from Sanskrit and it was called“ Meiling Mountain” before the Tang and song Dynasty.During the late Tang Dynasty,there appeared some Buddhism events.At present,there exist 3 big Buddhist temples ,namely,Puji Temple,Fayu temple and Huiji Temple,and over 30 monastaries including Dasheng ,Fumei ,Yangzhi ,etc.

 (viii)Local Products and Food

Local Products

Zhejiang Silk:Zhejiang Silk is classifi ed into 14 kinds inclinding silk fabric, satin, brocade, suiting silk,leon,etc with the magnificent patterns,over 200 varieties and more than 2,000 designs. Winning the Award for High Quality at Provincial and National level for many times ,it has been sold to faraway markets in 100-odd countries and regions throughout the world and and praised as“ Flower of Oriental Art” by international friends.

Wangxingji Fan:Wanxingji Fan has a wide range of fans such as black paper fan, sandalwood fan, silk fan,white paper fan, feather fan, round silk fan etc.

Zhang Xiaoquan:Zhang xiaoquan Scissors enjoys high fame both at home and abroad for its choice materials,even ringed -steel,fine grinding work,extreme sharpness,exquisite styles and strong duribility.

Local Food

Longjing Tea:The mountains surrounding the West Lake are the home of Longjing Tea.Longjing Tea is constantly commended because of jade colour,rich fragrance,mellow taste and beautiful features.It also contains rich chemical elements such as amino acid,chlorophyll,vitamin C, etc.

Jinhua Ham:Coming into being from Southern Song Dynasty, Jinhua Ham has a long history of over 800 years.

West Lake Lotus Root Starch:The lotus root starch is the famous brand of the same kind. It is the nourishment most suitable for babies ,the old and patients for many uses including promoting salivation,reducing fever,moistening the lung, replenishing vital essence, etc.

Zhejiang Province has other local food which are renowned both at home and abroad such as“ Wufangzhai” Zongzi (pyramidshaped dumplings made of glutinous rice wrapped in bamboo or reed leaves),Haining Leather,Wuzhen Sisters-in-law Cake,Fengqiao Torreya,Shaoxing Wine,Shaoxing Preserved Beancurd,Shaoxing Moulded dried vegetable,Shaoxing Wuzhan Hats,Shengzhou Bamboo Knitting,Ling lake Fishing,Huzhou Writing Brush,Silver Fish,Taihu lake Crabs,Xiaoshan Dried Tunip,Jinhua Crisp Cake,Tongyang Wood Carving,Shousheng Rice Wine, Kuding Tea, Huangyan Orange, Yuhuan Orange,Qingtian Stone Carving,Qingyuan Mushroom,Taro,Yuyao Preserved Vegetable, Large Yellow Croaker, Common Eel,Saltedcrab,Salted Crab Paste,Dongsha Smoked Beancued, etc.

II . Economy

(i)GDP Data

In 2005 the GDP of Zhejiang province was 1,336.5 billion RMB, among which the added value from the primary industry was 87.3 billion RMB, the added value from the secondary industry was 714.7 billion RMB, ;the added value from the tertiary industry was 534.5 billion RMB, , thus the industrial structure stands at 6.5/53.5/40 . The per capita GDP of the province was 27,552 RMB,namely,3,363 US dollars,so Zhejiang ranked the fourth in China.

(ii)Data of Resource, Industry and Agriculture

Natural Resource

The gross amount of the average water resource takes up 93.7 billion cubic meters in Zhengjiang province, which ranks 4th in China according to its unit surface area with possession capacity of 2,004 cubic metres per capita. Zhengjiang is a comprehensive agricultural area with high yield and the industries of tea, natural silk, aquatic products, citrus, bamboo products play an important role in China. The forest coverage rate amounts to 59.4%, all ranking top in China. Zhejiang is also abundant in tree resources, therefore always enjoys the reputation of the“Treasure House of the Southeast Plants”.

The main component of mineral resources is in non-metallic mineral reserves. The storage capacity of stone-like coal, tuff (used in cement or building) ranks top and fl uorite ranks 2nd in China.

Zhejiang occupies an ocean area of 260,000 square kilometers. It is the province with the most islands among which there are 3,061 islands more than 500 square kilometers. The Zhou Mountain Island is Chinese 4th biggest one with an area of 495.4 square kilometers. The province also boasts a coastline totaling 6,648.24 kilometers, ranking top in China; the continental coastline occupies 2,200 kilometers, ranking 5th in China. The coastline is long and river is deep, hence the 290.4 kilometers deep water coastline of more than ten thousand tons can be built , which makes up one third in China. And 105.8 kilometers deep water coastline of one hundred thousand tons can also be set up. Rich deposits of petroleum and natural gas in the continental shelf basin of the East sea are awaiting exploitation.

Industry

The industrial added value reached 634.3 billion RMB in the whole year of 2005, which gained profi ts of 107.28 billion RMB, with 56.4% in heavy industry and 43.6% in light industry. The yearly added value if high-tech industry is 38.5 billion RMB. The yield of the equipment of integrated circuit, optical communication, microwave communication, mobiles and microcomputer grows quickly.

Agriculture

Yearly yield of meat is 1,654,000 tons and of eggs 445,000 tons and of milk 267,000 tons. The full production capacity of Zhejiang aquatic products is 4,838,000 tons. The aquiculture yield is 1,602,000 tons and fi shing yield of 3,236,000 tons. There newly increases 200 hectare effective irrigated area and 44,500 hectare water saving irrigated area and agricultural machine total output of 21,110,000 kilowatt.

 (iii)Advantages of Zhejiang Province

System Advantages

The reform of market economy system in Zhejiang Province has taken a relatively leading position with socialist market economy system fundamentally established: the proprietorship structure of keeping the public sector remaining dominant and allowing diverse sectors of the economy to develop side by side has been comparatively perfected, an open market system with orderly competition has initially been set up, a new distribution framework has taken shape, and multi-level social security system has primarily been established. A predominant advantage of the market reform has come into being.

Location Advantages

On the southern wing of Yangtze River Delta, Zhejiang boasts its peculiar location advantages due to its geographically“ along rivers and seas, bridging the east and the west, and linking the south with the north”, Zhejiang has unique advantages in geographical position. Yangtze River Delta is becoming the most vigorous and promising area in China's economy. Zhejiang, as part of the Yangtze River Delta, is no doubt to enjoy enormous opportunities. With the continual acceleration of the construction of international economy, trade, fi nance and shipping centers in Shanghai, its huge convergence and radiation capacities are supposed to directly push the Yangtze River Delta area to a sustainable and sound development.

Industry with Cubic Features

The regional industrial areas bear the trait of“ small commodities, large markets, low costs and high profi ts”, with the earliest start-up and the largest scale over the country, enjoying rather dynamic vigor and sound development foreground. As per incomplete statistics, in the whole province there are more than 500 cubic economic groups owning a gross industrial production value over a hundred million RMB, involving 175 sectors and more than 240 thousand enterprises, which accounts for around 50% of the provincial total production value, among which 52 sectors enjoy a domestic market share over 30%, and 14 sectors, a world market share over 10%. For instance, ties in Shengzhou occupy a domestic market share of 80% and world market share of over 30%.

Ecology Advantages

Foundations of environmental protection and ecological construction are fairly good. Zhejiang province has been the fifth trial province of the national ecological province construction. In general, the quality of the ecological environment in the province takes a leading position over the country. There occur evident achievements in developing the ecologyoriented economy. The industry of green food and organic food such as tea, cans, fresh fruit, grain and oils, etc. keeps developing by leaps and bounds. The ecology-oriented industry, especially the environmental protection sector, develops quite fast. What’s more, a batch of bases of production-study-research and bases of distinctive industries are developed as a priority. Based on the rich resources of beautiful scenery and historic figures and cultural heritage in Zhejiang, the ecology-oriented tourism in our province is just on the rise, making Zhejiang an important province featuring tourism.

Mountains & Seas

Zhejiang is a terrestrial small province but a large maritime province. The mainland coastline and the island shoreline totaling 6,500 kilometers rank the fi rst in China, among which 333 kilometers are precious deep-water shoreline over ten meters, and the resources of “harbor, fi shery, scenery, oil and gas” are richly endowed by nature. In Zhejiang maritime space, shorelines where over ten thousand tons deepwater berths can be built account for 1/3 of the total over the country, and where 100 deepwater berths of 100 thousand tons may be built up ranks the fi rst in China.

 (iv)Characteristics of Zhejiang Province

1. Industrial Characteristics and Its Major Products

Light industry is the major industry structure of the province. The labor intensive industries, namely textiles, rag trade, coat and down products, products for culture and education and gym, petroleum refi ning, coking plant, chemical fiber manufacturing and conventional machinery, have predominant advantages.

Industries with Zhejiang characteristics: Raw material industry of ecological agriculture, green food, organic food, petrochemical processing, complex material, new-pattern building material; traditionally advantageous industry of machinery, textiles, chemical, foodstuff, building material; hightech industry of software, photoelectron, microelectronics, biology, new medication, new materials, environmental protection, photo-electromechanical integration; modern service industry of modern logistics, electronic business, characteristic tourism and intermediary services ; industry of comprehensive utilization resource, renewable resource as well as new technology and new equipment used in prevention and cure of environmental protection.

2 . Surrounding Hangzhou Bay

Industry Belt

All the cities and counties bordering open and surrounding Hangzhou Bay possess a great group of large-scale industry cluster, such as Jiashan wooden industry, Haining leather warp knitting, plain of Shaoxing and Xiaoshao fiber textile, as well as Cixi home appliances, Shengzhou ties, Yuyao plastics, Ningbo costume, all of which take a predominant advantage. Take industry cluster of chemical fiber as an example, among the top 30 sales volume enterprises in Chinese counterparts industry, there are 8 located in Hangzhou Bay, which makes it one of the most important chemical fi ber industry belts all over China. Advanced chemical fiber industry belts provide upper reach formidable industry chain for the textiles bordering opon the Hangzhou Bay. Textile fabrics produced in single Shaoxing county makes up 15% of the gross output in China.

Jumped-up high and new technology industries also rise in Hangzhou Bay. Centered in Hangzhou, radiating to Shaocxing, Ningbo, Jiaxing, Huzhou, assembling morn than 70% of Zhejiang microelectronic industry, Hangzhou Bay has shaped clear-cut distribution and cooperation system which makes it account for over 80% of Zhejiang informational product manufacturing and over 90% of software industry scale. Therefore it turns to be another IT industry base after Beijing and Shanghai.

3. Markets with Zhejiang Characteristics

Zhejiang has a thriving professional market. Numerous trade markets of commodity have large scale, strong comprehensive ability and wide radiating capability, which basically covers aspects of life, all respects of production means, shapes the consumers’ market as the center, characterized by professional markets, takes production means market as follow-up and forms supporting commodity trade market for other markets. Zhejiang people also run a number Zhejiang Markets, Wenzhou Street and other markets all parts of the country, furthermore they even start new markets in Russia and Middle East.

a. Yiwu China Commodity City

China Commodity City composes of China Yiwu international commerce and trade city, Huangyuan market and Binwang market in cluster, involving 34 trades, 1,502 categories, 320 thousand kinds of commodities and almost all the daily industrial goods such as handicraft, decorations, hardware, household articles, rainwear, electric apparatus, children's toys, cosmetics, recreation and sports, socks, non-staple food, watches and clocks, threads and strips, needle and cotton, textile, ties, costume, etc. are included, among which sales of decorations, socks, children’s toys accounts for one third in domestic market. It has a high competitiveness in international market with good quality and low cost and every category.

b. Shaoxing China Textile City

China Light & Textile Industries City was founded in October 1988,which now owns 4 trade areas of the east, central, west and north as well as 19 professional markets. It covers an occupying area of 492,000 square meters and floor space of 605,000 square meters, as well as 135,000 pieces of business occupancies, in which there are 13 textile markets, 1 raw material market for light textile, 5 markets for fl y-frame and light industry products. China Light & Textile Industries City is famous at home and abroad with its new products in high quality. More than 10 thousand types of cloth have been sold into market, the number of daily flowoff passengers is up to 10 thousand, and daily volume of business 60 million RMB.

 (v)Data of Commerce

Data of imports and exports：total volume of export and import in Zhejiang reached 107.39 billion US dollars with exports of 76.80 billion US dollars and imports of 30.59 billion US dollars.

Absorbing foreign investment

3,396 foreign-invested enterprises are settled, and actually utilized foreign capital grew up to 7.72 billion US dollars in 2005. The authority of the province approved and set up 35,700 foreign-invested enterprises in total and actually utilized foreign capital reached 36.73 billion US dollars by the end of 2005.

International economic cooperation

Zhejiang province external economic turnover reached 1.76 billion US dollars in 2005, sending 9,778 labors abroad and 27,700 labors still working overseas at the end of 2005. The government had accumulated and approved 2,194 enterprises investing abroad with total investment fund of 1,012 billion US dollars and investment from Chinese entrepreneurs of 802 million US dollars.

Circulation of commodities

The amount of the total consumer items retail sales of the whole society reached 463.2 billion RMB in 2005, among which consumer items retail sales of cities grew to 304,7 billion RMB and consumer items retail sales of the county, towns and villages came to 158.5 billion RMB. In accordance with trade, retail sales of wholesale and retail trade amounted to 402.1 billion RMB, of catering trade came to 53.32 billion RMB and of other trades reach 7.77 billion RMB.

Zhejiang is a huge market province, whose yearly volume of business ranks 1st in 15 successive years all over country. Totally there are 4,008 trade market of commodity in 2005, 120 of whose yearly volume of business surpass more than 100 million RMB, 10 over 10 billion RMB, separately increasing by 6 and 1 compared with last year. Business volume of commodity trade market reaches 717,3 billion RMB, ranking 1st in 15 successive years.

III . Investment

(i)Policy and Administrative Rules

Catalogue of Related Laws

Foreign Trade Law of the People’s Republic of China

Customs Law of the People’s Republic of China

Law of the People’s Republic of China on Import and Export Commodity Inspection

Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures

Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures

Law of the People’s Republic of China on Foreign-Capital Enterprises

Company Law of the People’s Republic of China　

Law of the People’s Republic of China on the Entry and Exit Animal and Plant Quarantine

Law of the People’s Republic of China on Control of the Entry and Exit of Aliens

Law of the People’s Republic of China on the Control of the Exit and Entry of Citizens

Securities Law of the People’s Republic of China

Income Tax Law of the People’s Republic of China for Enterprises with Foreign Investment and Foreign Enterprises

Individual Income Tax Law of the People’s Republic of China

Law of the People’s Republic of China on the Administration of Tax Collection

Environmental Protection Law of the People’s Republic of China

Law of the People’s Republic of China on Evaluation of Environmental Effects

Law of the People’s Republic of China on Promotion of Cleaner Production

Law of the People’s Republic of China on Prevention and Control of Desertifi cation

Marine Environment Protection Law of the People’s Republic of China

Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution

Law of the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste

Law of the People’s Republic of China on Prevention and Control of Water Pollution

Law of the People’s Republic of China on Prevention and Control of Environmental Noise Pollution

Law of the People’s Republic of China on Prevention and Control of Radioactive Pollution

Frontier Health and Quarantine Law of the People’s Republic of China

Labour Law of the People’s Republic of China

Trade Union Law of the People’s Republic of China

Searching Website for the Related Laws

1. Searching System of Lawsand Regulations of China (website of National People’s Congress of China)

http://law.npc.gov.cn:87/home/begin1.cbs  

2. China Legislative Information Network System

http://www.chinalaw.gov.cn/jsp/jalor/ index.jsp

3. Ministry of Commerce

http://www.mofcom.gov.cn

The above-mentioned websites are for reference only.

 (ii)Catalogue of Encouraged Foreign Investment Industries

1. Venture prospecting and exploitation of petroleum, natural gas (only for cooperation)

2. Exploitation of oil and gas deposits (fields) with low osmosis (only for cooperation)

3. Development and application of new technologies that can increase the recovery factor of crude oil (only for cooperation)

4. Development and application of new technologies for exploitation of petroleum, such as geophysical prospecting, well drilling, well-logging and downhole operation, etc.

5. Manufacture of complete automobiles, motorbikes with proportion of foreign capital less than 50%

6. Scheduled and nonscheduled business of international maritime transport with the proportion of foreign capital less than 49%

7. In respect of international multi-modal transport of container with proportion of foreign capital less than 50% and in which the equity is allowed to be controlled by the foreign investors not later than December 11th, 2002 and the foreign investors could exclusively fund a company no later than December 11th, 2005.

8. As regarding highway transportation company of goods in which the equity is allowed to be controlled by the foreign investors not later than December 11th, 2002 and the foreign investors can exclusively fund a company no later than December 11th, 2004.

9. In aspect of wholesale, retail as well as distribution of ordinary commodities (Limited conditions referring to Limitation v)

10. In respect of accounting and audition (only for cooperation and partnership)

Management on Finance and Foreign Exchange

To execute in accordance with Foreign Exchange Management Regulations of People’s Republic of China, announced in the Decree 193 by the State Council of People’s Republic of China in January 29th, 1996 complying with the revision that the State Council decided to revise Foreign Exchange Management Regulations of People’s Republic of China in January 14th, 1997 as well as Interim Measures on Foreign Exchange Registration of the Foreign investment Enterprise, issued by the State Administration of Foreign Exchange in June 28th, 1996, with reference to the following policies and regulations:

1. Notice on current accounts of administration of foreign exchange account under adjustment on international projects

2. Administration of management in external debt of foreign bank in China

3. Notice on foreign exchange collection and payment of export credit insurance business by the State Administration of Foreign Exchange

4. Administration on foreign financial institutions investing and forming equity in domestic fi nancial institutions

5. Notice on further deepening the reform of management in foreign exchange of foreign investment issued by the State Administration of Foreign Exchange

6. Notice on further deepening the system of examining fund in foreigninvested enterprise as well as perfecting foreign investment and foreign exchange registration system issued by the State Administration of Foreign Exchange

7. Notice on adjustment writing off export receipt and administration of foreign exchange account issued by the State Administration of Foreign Exchange

8. Notice on loan business of trustee account of export tax rebates checked by the People’s Bank of China, Ministry of Foreign Trade and Economic Cooperation and the State Administration of Taxation

9. Implementation on developing new method in managing fund for middle and small sized enterprise in international market issued by Ministry of Foreign Trade and Economic Cooperation and Ministry of Finance

10. Additional notice on administration of strengthening technology and introducing contract as well as sales, collection and payment issued by Ministry of Foreign Trade and Economic Cooperation and the State Administration of Foreign Exchange

11. Notice on administration, which is in trial implementation, of middle and small sized enterprise in international market issued by Ministry of Finance and Ministry of Foreign Trade and Economic Cooperation

(iii)Any foreign-invested ente-rprise has to go through the foll-owing three procedures:

The general conditions

1. the general conditions for the foreign investor to an enterprise, as follows:

(1) the name of the foreign party in accordance with the regulations;

(2) the contract and chapter authorized by the examining and approving authorities;

(3) fixed place of business, indispensable facilities and staff numbers ;

(4) registered funds complying with Chinese regulations;

(5) business scope in accordance with the Chinese laws and regulations as well as policies;

(6) sound accounting system, being capable of independent accounting and compiling fund balance sheet and balance sheet.

2. the general conditions the foreign investment enterprise to set up a branch offi ce as follows:

(1) the name of the branch office in accordance with the regulations;

(2) fi xed place of business and facilities;

(3) relavant original administrative institutions and offi ces;

(4) fund and staff numbers needed for business activities ;

(5) business scope in accordance with the Chinese regulations;

(6) relavant financial accounting system (non-independent accounting ).

3. the general conditions the foreign investment enterprise to set up a bureau:

(1) the name of the branch office in accordance with the regulations;

(2) fi xed bureau and offi ces;

(3) the foreign investment enterprise not being allowed to be engaged in business activities.

Proceduces

Laws

Labor Law of the People’s Republic of China

PRC Law on the Management Method of land

The Law of the People s Republic of China for Countering Unfair Competition

Arbitration Law of the People’s Republic of China

Arbitration Rules of China International

Economic and Trade Arbitration Committee

Contract Law of the People s Republic of China

Law of the People s Republic of China on Partnership Enterprises

The Company Law of the People's Republic of China

Company Registration Management of the People's Republic of China

(iv)RESIDENTIAL ENVIRONMENT

Ecological Environment

Since the reform and opening up, the environmental protection in Zhejiang Province has achieved sustainable progress, people’s understanding of environment and environmental problems has improved greatly, the mechanism of coordinated development between economy ,population, resources and environment has initially came into being. The environmental quality of Zhejiang is quite good on the whole, City air is quite clean with its quality basically met the National Standard Class Ⅱ. According to the key province –control sections of surface water , about 82.6% has reached the ClassⅠ,Ⅱ, Ⅲ Standard of Surface Water Environmental Quality Standard.

Education

Being the places of celebrities, Zhejiang has the tradition of passing down the knowledge generation after generation, attaching great importance to education. Officials of Provincial Committee and Provincial People’s Government has decided that the top priority should be given to education with a strategic position. After many years’ arduous struggle, a complete educational system including basic education, vocational education,hidher education as well as adult education has been established in Zhejiang Province. In a word, both the education and the development has achieved great progress.

Health and Medical Care

In 2005,there were 12,549 health Institutions in Zhejiang, among which 2,896 were hospitals, 88 were maternal and child health care hospitals, 27 were specialized disease prevention and treatment institutions,where the number of beds in hospitals amounted to 131,000 and skilled health care staff added up to 198,000, including 87,700 licenced doctors and assistant doctors, 60,300 registered nurses as well. Within the province, there were 97 centers for disease control and prevention, where there were 3,800 skilled health care staff. 105 health care supervision and inspection institutions, where there existed 2,300 skilled health care staff. 2,162 township hospitals.

IV. Development Zones

 (i)State-level Economic Development Zone

　 (ii)Provincial-level Economic Development Zone

 (iii) Relavant Institution

Commercial Institutions

Investment Service Institutions

Foreign Affairs Ibstitutions

(iv)Relevant Website

Appendix

1. Major Hotel & Restaurant in Zhejiang

2. Emergency Telephones

Editor’s Notes

During the edition process of this series of books, the ministerial directors of Ministry of Commerce attached great importance to it by setting up a leading group to organize and guide the edition work.

The preparation work started in April 2006. After the editing staff took counsel with related departments and consulted abundant materials and through repeated discussion and adaptation on the structure, catalogue, content and style arrangement, the first manuscript was published in September 2006.

The books witnessed full support from the provincial and municipal governments and tremendous specific tasks done by staff of related departments of Ministry of Commerce, of the Economic and Commercial Counsellor’s Offi ces, of the departments of commercial administration in the provinces and cities, as well as groups of experts and translators.

Special thanks to the leaders and companions for their design, edition, typography and publicity of these books.