Beijing Investment Guide

Basic Facts About Beijing 1.The status of Beijing 2.Natural Environment 3.Climate 4.Tourist resources 5. Human resources 6.Infrastructure facilities 7.Social life 8.Administrative division 9.Beijing's twin cities Capital Economy 1.Brief history of Beijing's Economic development 2.Economic development 3.Foreign investmentt 4.Trans-century development targets Policies Encouraging Overseas Investment 1.Investment policies 2.Taxation preferential policies 3.Regulation Encouraging Foreign Investment in High and New Technological Industries 4.Regulations on Encouraging Multinational Companies to establish Regional Headquarters in Beijing 5.Interim Measures on Investing Domestic and Overseas Investment for the Establishment of Research and Development Organization In Beijing Forms of Cooperation and Procedures for Establishing Foreign-Funded Enterprises 1.Forms of investment 2.Procedures for Establishing Foreign-Funded Enterprises Administration Over Foreign-Funded Enterprises 1.Rules and Regulations Concerning Industry and Commerce Administration of Foreign-Funded Enterprises 2.Foreign Exchange Control Policy and Regulations for Foreign-Funded Enterprises 3.Policy and regulations regarding financial management 4.Policy and Regulations on Labor Management 5.Policy and stipulations regarding the inspection of import & export goods 6.Visa 7.Polocy and regulations on real estate investment Introduction to Areas of Foreign Investment 1.Zhongguancun High-Tech Zone 2.Beijigng Economic Technological Development Area (BDA) 3.Major industrial development zones Major Foreign Investment Service Organizations In Beijing 1.Beijing Investment Service Center 2.China Council for the Promotion of International Trade, Beijing Sub-Council, Beijing Chamber of Commerce 3.Beijing Pan-Asia Market Research Institute 4.Beijing Jingdu Certified Public Accountants 5.Beijing Taizhong Lar Firm

Basic Facts About Beijing 1.The status of Beijing 2. Natural Environment 3.Climate 4.Tourist resources 5. Human resources 6.Infrastructure facilities 7.Social life 8.Administrative division 9.Beijing's twin cities
1.The Status of Beijing Beijing is the capital of the People's Republic of China and a Municipality directly under the jurisdiction of the Central People's Government. While serving as the national political and cultural center and the center of financial decision-making and international exchanges, it is the best developed industrial and commercial city in north China. Under planning of the Central People's Government, Beijing, while continuing to enjoy the reputation as an ancient cultural city, is to develop into a modern international metropolis featured by booming economy and stable social order where public utilities, infrastructure facilities and ecological conditions all meet the best international standards.
2.Natural environment Beijing is located at 39� 56' N. and 116� 20' E. and covers an area of 16,808 square kilometers including a city proper of 1,040 square kilometers.The area joints the highlands of Shanxi Province and Inner Mongolia Autonomous Region in the northwest and the North China Plain in the south, while close to the coast of Bohai Sea in the east.
3. Climate Beijing has a warm temperate semi-humid climate, featured by clear-cut seasons with short spring and autumns and long summers and winters. The annual temperature averages 13�C, January is the coldest month, with the temperature averaging -3.7�C, In contrast, the temperature averages 25.2�C, in July, which is the hotest month. The annaul precipitation averages 506.7 mm and the annual frost-free period, 189 days.
4. Tourist resources Beijing has served as the national capital of China's Jin, Yuan, Ming and Qing dynasties from the 12th to early 20th century, hence the numerous ancient sites in its area are of great aesthetics, historic and cultural value. Sites open to tourists currently number exceed 200. A total of 7,309 cultural heritages are listed for protection.The most famous is the Forbidden City, the largest and the best preserved ancient palace complex in the world. Then come a number of others no less important tourist attractions, the Great Wall on the city's outskirts, the Summer Palace or the largest imperial garden in China, the Temple of Heaven where the Ming and Qing emperors offered sacrifices to the heaven, and so on and so forth.
5.. Human resources Some 10.60 million people are registered as permanent residents of the city, which also handles a floating population estimated at 3 million. there are 65 schools of higher learning in the city, with more than 200,000 students, including more than 40,000 students for master and doctor's degrees. Beijing is a home to 425 state-level reserach institutes. There are 1.14 million professionals in various fields, and 260,000 people are involved in technological works.
6. Infrastructure facilities The Capital Airport is the national center of civil aviation, which is linked by 69 flight routes with 56 cities in 36 countries. The Beijing West Railway Station is the largest and also one of the most modern in Aisa. The lengh of the city streets reached 3,800 kilometers. The Municipality is crisscrossed by 12,306 kilometers of modern roads, which average 0.79 kilometer per square kilometer of its land area. Beijing has become an international postal and telecommunications center, where direct dialing is possible to 240 countries and regions throughout the world. Domestic direct dialing long distance calls reach 2,290 cities. The local telephone services was upgraded from the 7- to 8- digit system, making Beijing the world's fifth metropolis using 8-digit telephone numbers.
7. Social life Environmental quality has constantly improved thanks to the city's greening program on-going year after year for decades. Some 32.8 % of the urban area, that is 4,1943.3 hectares, is now covered with green plants, averaging 7.18 square meters for each member of the local population. The average longevity expectancy is 74 years old. There are 6,577 medical and hygiene institutions, 1,069 cultural education facilities ( including theaters, libraries, cultural relics) in the city. Beijing is becoming a center for active international cultural exchanges activities.
8. Administrative division There are 18 districts and counties around Beijing city centrual area. 1.Xicheng District 2.Dongcheng District 3.Xuanwu District 4.Chaoyang District 5.Haidian District 6 Shijingshan District 7.Fengtai District 8.Fangshan District 9.Tongzhou District 10.Chongwen District 11.Mentougou District 12.Changping County 13.Yanqing County 14.Huairou County 15.Miyun County 16.Shunyi County 17.Pinggu County 18.Daxing County 9. Beijing's twin cities 1.Amsterdam 2.Ankara 3.Bangkok 4.Belgrade 5.Berlin 6.Brussel 7.Buenos- Aires 8.Cairo 9.Cologne 10.Hanoi 11.Islamaburg 12.Jakarta 13.Kiev 14.Lima 15.Moscow 16.Madrid 17.New York 18.Paris 19.Paris Major Zone 20.Rio de Janeiro 21.Rome 22.Seoul 23.Tokyo 24.Washington

Capital Economy 1.Brief history of Beijing's Economic development 2.Economic development 3.Foreign investmentt 4.Trans-century development targets 1. Brief history of Beijing's economic development On the liberation days, the total output value was only 100 million yuan. Beijing started to carry out the industrialization of Beijing's economy in the 1950s. Four industrial zones: cotton spinning industry zone in the east, radio industry zone in the northeast, machinery and chemical industry zone in the southeast and heavy-duty industry zone in the west, took share at the end of the decade.The total industrial output value reached 4.6 billion yuan. Industry-based economic structure was set up during that time. Beijing's metallurgical industry and heavy-chemistry developed in the following 20 years. The total output value of heavy industry in Beijing took up 63.7 percent of the total industrial output value, ranked the second in China by 1979. At a meeting of the 11th Beijing Municipal People's Congress in January 1998, the new Municipal Government of Beijing officially defined the focal task during its term of office to devote major efforts to develop the economy of the capital city. The " Capital Economy" was defined as follows: that it is an economy based in the capital city, intended to serve the whole nation and get to integrate with the overall economy of the whole world, that it is an economy which fully embodies the nature and functions of Beijing City, which brings the relative advantages of the capital city into full play, and which fully reflects the law of a socialist market economy in the city, that it is an economy which develops toward the orientations of optimizing its structure, rationalizing its layout, intensifying its technological contents, opening its wider to the outside world, economizing resources and cleaning the environment, that, in the sense of opening to the outside world, it is an economy which makes a full, effective use of both domestic and foreign resources as well as both the domestic and international markets for the benefit of the economic reconstruction of the capital city, that it is an export-oriented economy which Beijing-based Central Government institutions and the municipality form an integral part to jointly extend and the develop, that it is an economy which gives play to the scientific and technological advantages of the capital city, with the development of high and new technologies as a major content of the city's opening to the outside world, that it is an economy with a developed tertiary industry, and with foreign services and foreign trade as a major part of the city's opening to the outside world, and that it is an economy whose operation form is being brought in line with international standards.

2. Economic Development

Items	1990	1995	1998
GDP (billion yuan)	50,070	139,510	200,990
Fixed Assets Investment	11,790	57,610	73,230
Inflation Rate (%)	5,400	17,300	2,400
Financial Income (billion yuan)	7,454	11,526	22,730
Export (billion US$)	1,120	2,270	2,830
Import (billion US$)	1,029	3,038	3,676

Compositions of GDP (1998)

Industries	Production (B. yuan)	Percentage in total	Increase rate (%)
Agriculture	8.70	4.33	1.8
Manufacturing industry	61.00	30.35	9.1
Construction	17.68	8.80	12.4
Transportation	6.46	3.21	4.9
Posts & communications	9.20	4.58	22.0
Finance & insurance	27.19	13.53	8.6
Real estate	6.81	3.39	55.8
Domestic trade>	20.78	10.34	4.5

3.Foreign investment By the end of 1998, Beijing had approved 14,063 foreign-funded enterprises. These improved US$ 25.15 billion in contract investment.. The actual amount of direct foreign investment the city had been able to receive, however, amounted to US$ 15.2 billion. The approved foreign-funded enterprises broke into 9,961 Sino-foreign joint venture enterprises, 1,070 Sino-foreign cooperative enterprises, and 3,029 enterprises of sole foreign proprietorship. Of these, 10,869 were in the primary and secondary industries and 3,194 in the tertiary industry. Involved wrere companies from 96 countries and regions of the world, including 5,533 from Hong Kong, 2,265 from the United States, 1,592 from Taiwan, 1,204 from Japan, 688 from the European Union, 515 from the Republic of Korea and 494 from Singapore. In recent years, an increasing number of transnational groups have come to Beijing to start investment companies or set up regional headquarters. Of the world's 500 top transnationals, 151 have invested in Beijing. The number has grown to 7,135 for foreign companies' representative offices registered in Beijing, greater than that for any other Chinese city. These companies are based in some 80 countries and regions across the world. Generally speaking, foreign-funded enterprises already operational in Beijing are doing well in production and business operations. According to the survey of 5,419 such enterprises conducted at the end of 1998, these together employed 426,000 people, and generated 64,671 billion yuan in output value which were 110% and 100.5% greater than the corresponding figures of 1997, respectively. These earned US$ 1,263 billion through export, up to 109.1%.

4.Trans-century development targets According to municipal planning for social-economic development in the 1996-2000 period and through to 2010 ( passed on the 4th session of the 10th Beijing People's Congress in April 1996). Beijing set its goal for the future 15 years. Beijing shall oblige itself to perfect and improve the performance of its functions as the national political and cultural center. It shall strive to develop into a morden international metropolis rated as the best in China in the aspects of science and technology and the most successful in building up social ethic standards and democracy and rule by law. Wrok shall be done to develop a local economic system suited to the specific conditions of the Chinese capital, and economic system led by new and high-tech industries, based on a well developed third sector, and featured by a rational industrial structure and good economic performances. The people will first become well-to-do and, after that, their life will continue to improve. Social undertakings will develop in an all-round manner, and the quality of the local population will improve, and so will the order and general mood of society. The environment will be significantly better, and so will be the urban management. By the year 2000, the city should have attained all the targets set for the second phase of the city's modernization and achieved an initial success in building up a marked-oriented economy, with the GNP, quadrupling that of 1980. And by 2010, the city's GDP should have grown further to double that of 2000. The city should, by an large, complete the task of building up a market-oriented economy, and become as good in economy, science and technology as capitals of the countries with an average level of development. All this will prepare Beijing eventually become a morden international metropolis by the mid-21s century. On the basis of the above general goals, the specific targets are as folows: An annual average increase of 9% in GNP during the 9th Five-Year Plan period(1996-2000). By 2000, the city's tertiary industry should account for 60% of the local GDP. The municipal revenue shall increase at the same rate as the econimic growth. The investment in fixed assets shall grow at an annual average rate of 10% during the 1996-2000 period, the five-year total fixed assets at about 389.5 billion yuan( calculated at the 1995 constant price). By 2000, the annual retail sales of consumer goods should have reached 166 billion yuan, and the annual import and export , US$ 9 billion. Inflation will be reduced to below the economic growth rate. by 2000, technological progress will come to be responsible for 50% of the economic growth, and senior secondary education will be available to everybody. At least 40% of the city's land area will have been covered by trees, and 35% of the urban area, greened. The real incomes of urban and rural residents will increase at an annual average rate of 3-5%. Each member of the urban population will have 15 sqauer meters of living space.