Huai'an China Investment Investment Environment
Industrial Environment
Huai’an is an important base of commercial grains production, agricultural and sideline products supply, process and sale. Subordinate counties and districts are state advanced counties in green land area, commercial pigs supply bases, besides being famous for ecological agriculture, ample supply of lotus roots, and enormous birds’ eggs etc. Currently, we have 10 production bases: commercial grains, oil, lotus root, vegetables, Italian aspen, baby pigeons, nuts, pigs, aquatic products and peanuts. These bases joined together are main industries: vegetables, pigs, birds, aquatic products, forest & fruits. Vegetables and the production facilities have topped the province in scale. Products that are traditionally advantageous in market are Huai’an Yam, Xuyi Chinese chestnuts that have been enjoying reputation of King of Fruits, The Gulou Chasan (oil fried wheaten food of tea taste), the Tianfeigong common cattail, Lianshui chicken cake, Stir-fired eel, Pingqiao beancurd and the other local special products that have been reputable throughout China. Crabs of Hongze Lake, mallard and Huaiyin pigeon etc. have been sold to more than ten Asian and European countries and regions. 43 of our agricultural products have become national, provincial and municipal Best Quality products, Special food and products with Green Marks. We have built Subei Vegetables Science & Technology Development Center, Fresh Water Fishery Science and Technology Development Park and the cities and countries science and technology examples area such as Hongze city. In 2005, the countryside economy has fast developed. Farmer’s beneficial policies have been widely implemented; hence we could achieve harvest of grains. Agricultural industrialization standard has been greatly promoted: best quality rice, special aquatic products, special forest and other advantageous industries have come into form. Agricultural introduction of merchants and investments has also achieved harvest of double historic figures: fixed assets in Chinese accounts have reached RMB 2.08 billions. It had increased four Provincial leading enterprises and had fifty municipal leading enterprises, which have set new record in sales revenue and tax with increment by 19% and 20% respectively. Agricultural products quality and safety standard have kept being promoted. Currently area of best quality agricultural products covers 145,000 Mu (approx. 10,000 acres).
After years of cultivation and development, we have five main industries such as chemical industry, mechanical industry, textile industry, metallurgy industry and tobacco industry. All of these industries have large-scale, famous trademark and have certain output capability and quality to be competitive in the regional market. Particularly, the chemical industry have come to certain size, which is comprised of the chemical basic raw materials, agricultural chemicals, petrochemicals, salt chemicals, rubber products etc. These have formed a special industry system. The corresponding important enterprises are Qingjiang Petrochemical, Anbang Group, Huai’an Chemical Group, Hankook Tyre, and Hongze Chemicals etc. The crude oil processing capability is 1.1 million tons, caustic soda 100,000 tons, radial tyres 4 million sets, sulphate sodium 1.2 million tons, aqua fortis 80,000 tons, nitrotoluene 60,000 tons, refined salt one million tons, urea 100,000 tons and pesticide 200,000 tons. The nitrotoluene output capability is No.1 in Asia. The chemical industry sales revenue is more than RMB 7 billion. Mechanical industry is one of Huai’an traditional industries. Products covered five fields which are farm machines, electronics, basic parts, automobile and the parts, petrochemical and universal. It has about fifty mainly products such as motor, tractors, refit automobile, fuel supply pump, advancer, bearing, gear pump, Christmas tree, negative booster, gate pump, special cable and so on. After years’ of development, the machinery industry has developed Qingjiang Motor, Hydraulic Machinery, Jinhu Machinery, Qingtuo Group, No.1 Automobiles Refit and the other backbone enterprises. Generally, we have had a production system comprised of farm machines, electronics, and machinery basic parts. Production capability of the system can be described with main products: 1.5 million kW medium and small size motor, 1 million sets of gear pumps, 10 millions of bearings, 6000 medium size tractors. Textile industry is one of the traditional supporting industries in our city. All of the “Cotton, wool, hemp, silk, fiber” textiles can be produced. Yarn, thread, cloth and clothes manufacturers are also established accordingly. There are 29 textiles company, including 3 of big size, 6 in medium size. Description of production capability with main products is as following: the polyester filament 50,000 tons / year; the cotton spindles 130,000 units, wool spindles 10,772 units, ring spinning 4,000 units, cotton loom 3,127 units (including 311 units of shuttleless looms), printing and dyeing capability 80 million meters / year, clothes output is 10 million pieces / year. After more than 30 years development, the steel output has reached 2 millions tons, the rolled steel is 1.3 million tons, the iron is 1.2 million tons and the coke is 110,000 tons. The metallurgy industry has become one of the important industries in our city. The leading enterprise of the industry Huai’an Iron and Steel Group introduced a international advanced production line: the ultra power electric furnace--refined ladle furnace—continuous cast—hot transfer/ hot loading—continuous rolling, one production line made in china: sinter—furnace—turner—refiner—continuous cast. With these, the group has become the only modern iron and steel combined manufacturer. Tobacco industry is only supported by one company – Huai Yin Cigarette Factory, which has planned for an annual basic produce of 300,000 boxes, but actual capability is about 60 boxes. It is one of the 36 biggest tobacco companies in China. It also has 14 modern production lines and its famous products are “Yipinmei”, “Huaxicun”. Other industries are medicine, construction material, light industry and the food industry. The medicine industry is comprised by western medicine, traditional Chinese medicine, medical apparatuses, medicine packing materials and medical sanitary materials. The Huaxin Medicine, Lianshui Medicine, Huaiyin No.2 Medicine, Angle Medicine etc have all completed their rebuilding of GMP of different preparation workshop. Therefore the product capability has been improved: 2 billion bottles of water injection, 40 million big bottles of transfusion, 3 billion tablets (bags) of solid injection medicine. Main products of construction industry are cement and the products, bricks, tiles, construction stone materials, concavo-convex bar series products, plastic molded materials and the products, plastic pipes and the accessories, fly ash building blocks, light wallboard, inside and outside wall dope. Total sales revenue made by big companies in the industry is about RMB 1 billion; cement 1.2 million tons, wall-building materials 1 billion blocks, and 100,000 tons of concavo-convex bar powder series products. The national cement companies have invested in Huai’an, such as Hailuo cement, Xizhou cement and so on and the cement powder production line is under construction. After operation, the product capability will be 4 million tons. Light industry and the food industry mainly comprised of the following: food, beverages, paper, daily necessities and printing. After recent products development and brands construction, the industry has cultivated several mainly products such as: Jinshiyuan series of liquor, Kuailu dairy products, “84” series of products, Jinlian toilet paper etc. The food industry product capabilities are 40,000 tons of rice, 250,000 tons of wheat powder, 400,000 tons of feed, 50,000 tons of edible oils, 50,000 tons of meat product, 50,000 tons of beverage wine, 10,000 tons of dairy products. Examples of power supply industry is Jiangyin Huaneng (Huaiyin) Power Generation Co., Ltd. Its Phase I construction is 20,000 X 2 kW coal power units and Huaiyin Power Generation Co., Ltd. of 150,000 kW unit plus 8 cola power companies. Total installed capacity of the latter is 730,000 kW.
Huai’an service industry increased from RMB 8.65 billion in 2000 to RMB 15.33 billion in 2004. It’s estimated to reach RMB 17.9 billion in 2005, which would be 30.9% of gross local product. It’s estimated that during the 10th five year period, Huai’an service revenue could be raised by 15.6%, which should be faster than growth of gross local product. The service industry has become one of important growth power of Huai’an economy. Industry structure (ratio of three industries: industry, agriculture, service industry) has been adjusted from 30.3:40:29.7 in 2000 to 20.8:48.3:30.9 in 2005, in which we have further optimized the service industry. Looking into the service industry, trade & business, real estate, transportation & logistics, tourism & restaurants are 4 supporting industry of local economy and will be better. The four industries have contributed 63.4% of increment to the service industry in 2004. The new industries such as finance & insurance, information service, business service have also shown their great potential and contributed 10.3% of increment to the service industry. Trade, business, transportation etc, have been developed smoothly. Xinya Store, Qingjiang Store, Times Shopping Market, Huanghe Trade Center have become the representatives of big and medium size retailers. The integral function has been further completed. Franchising, supermarket, professional store, specialty shop etc have been improved time to time. We also have break-through in some representative transition market such as Huai’an International Business Center and Huitong Shopping market. The Real Estate industry has been developed in order. Being pushed by the urbanization strategy, this industry has fast development. Some elaborate districts such as Danguiyuan, Yixing Famous Garden etc have been appearing. The commercial housing and rent housing according to relevant policies issued by the administration have also been in smooth development. Floorage per capita has been kept growing. Real estate transaction market has been kept completing step by step, and commercial housing purchase, sale, rental market takes an optimistic look. Transportation and logistics industry develops steadily. The industry such as Jiaji, Huayu etc has been developing in fast speed. Door-to-door delivery center of postal transportation and logistics bureau has been promoting continuously. Road cargo transportation, waterway transportation businesses have increased faster. The Transportation capability has been reinforced. Tourism and restaurants have also been developed fast. Having activated the project of Establishing Excellent Tourism Cities of China, Zhou En Lai Museum (first prime minister of P.R.C.), Tieshan Temple and other scenery spots have good records. Xuyi Lobster Festival, Jinhu Lake Lotus Festival, Hongze Lake Marine Game, Huaiyang Cuisine Epicurean Culture Festival and so on have unveiled tourism, restaurant development. The New industries have step on. Business service industry has come to certain scales, and some industries such as accounting, laws, engineering consultation and the other service agencies have been increases. Finance and insurance are also developing healthily. There are more and more service institutions and the product also has been improved. Information service develops fast. IT service and added value service are expanding their business sphere continuously. Sub-public service quality is being continuously promoted. Big culture, science and technology service, community service and the other sub-public service industries are also developing the service quality. Current service quality and service standard has already been greatly promoted. Investment in service industry in 2004 has come to RMB 13, 89 billion, which is more than half of fixed assets investment to the entire society. Investment in service industry is 8% higher than other fixed assets investment to the province. Traffic infrastructure construction is stepping on. The highways such as Jing-Hu (Beijing - Shanghai), Xu-Su -Huai-Yan (Xuzhou – Suqian- Huai’an-Yancheng), Ning-Lian (Nanjing - Lianyungang) etc. have form a traffic network throughout all ways in the province. The Railroad is through the city, water routes are being renovated and upgraded; ports, stations, etc. As the traffic center which leads the Subei traffic network. With improvement of the service industry, traditional forms of the industry are being corrected and reformed continuously. With development of production service industry and fields improvement of new service industry, service has become a main channel of employment. Not only has it absorbed those for a first job, but those dropped out from the first and second industries (industry and agriculture). The employed population in 2003 was 538,000, which was more than the population in the second industry and takes 24% of total employed population. With the development of service industry, both urban and countryside citizens’ income has risen to a new standard. Being benefited from the industry growth, both the people’s living standard and the living quality have been promoted.