Huai'an Economic Development Zone, located in the eastern part of the city, was set up in 1992 and administers 3 townships and 5 neighborhood community offices, covering an area of 132 square kilometers and a permanent population of 200,000. It holds a variety of functional parks, such as the national export processing zone, the higher education park, the salt chemical industrial park, the national pioneering park for overseas Chinese scholars, the provincial-level Taiwan-base Enterprises Park, the storage logistics park, the Customs Inspection Point and the bonded warehouse. Due to its improved supporting infrastructure, functional facilities and industrial structure, Huai'an Economic Development Zone has attracted 2000companies from over 20 countries and regions including America, Japan, Korea, Belgium, Hong Kong and Taiwan, among which more than 200 companies are Foreign Direct Investment (FDI) ones. For instance, it holds the famous companies from Japan and Korea represented by Hankook Tire, the small and medium-sized enterprises (SMEs) from Europe and America represented by Stokota Special Vehicles, and the big companies from Hong Kong and Taiwan regions represented by Foxconn Technology, and the civilian-run enterprises from home represented by Welling Motors. Recently, in particular, Huai'an Economic Development Zone has successfully attracted the eyes of Fortune 500 companies, which is represented by a USD 2.2 billion project invested by Foxconn - Foxconn Huai'an Science and Technology City. Besides, BenQ, one of the Info Tech 100 Global companies from Taiwan, invested USD 500 million in the Darfon electronics' new plant; Hongsheng Leatherware Group Co., the Asian largest leatherware manufacturer from Taiwan, invested USD 130 million in a new plant; Tatung Electronics, the biggest producer of household appliances in Taiwan, also another Info Tech 100 Global company from Taiwan, invested in the hi-tech lithium battery project; and Hua'nan Glass Company Limited invested USD 1.5 billion in the calcined soda projects. Huai'an Economic Development Zone has been becoming a newly emerging cluster for foreign investment and for Taiwan investment in particular.
Working on the objective of growing up in North Jiangsu, exceeding the development level of Central Jiangsu, and approaching the development level of South Jiangsu, Huai'an Economic Development Zone is grasping the current great opportunity brought out by the industrial transfer from developed regions to developing regions, and is making vigorous efforts in catching up with and surpassing its counterparts in developed regions. Enjoying the harmony between man and nature, a sound ecosystem and a scenic environment, a new emerging city is taking shape in Huai'an.
Huai'an Economic Development Zone provides the investors with the following preferential polices:
■ No any construction fees of the industry project are charged except for fees charged by the agency services, which means that all charges (including funds) are waived except for the air defense fees that will be collected in two years later.
■ For the manufacturing enterprises of foreign investment, the income tax ratio is 15%. For he enterprises whose operation over 10 years, from the year beginning to make profit, they shall be exempted from income tax in the first two years and allowed a 50% reduction in the 3rd to 5th years.
■ For the export-oriented manufacturing enterprises, the income tax will be levied at the rate of 10% after the exemption period. And for the hi-tech enterprises, they shall be allowed a 50% reduction of income tax for another three years after the exemption period, and the tax will be levied at the rate of 10%.
■ The investors who invest on new projects or the expansion of existing production or the hi-tech enterprises with more than a 5 year operation period by using the profit gained from their existing enterprises can recover all the income tax paid for their previous investment.
■ The foreign investors of the Sino-foreign joint ventures should be allowed to remit abroad their profits that are lawfully earned from an enterprise with foreign capitals without paying the income tax.
China Huai'an Export Processing Zone
■ The state-level Huai'an Export Processing Zone was set up with the official approval from the State Council on March 22, 2008, and was jointly inspected and accepted by the nine Ministries and Commissions under the State Council, and thus was allowed to put into practice on July 11, 2008. Huai'an Export Processing Zone has therefore been the first state-level economic zone in Huai'an. According to the plan, Huai'an Export Processing Zone covers an area of 1.36 square kilometers, from the East Bank of Dagou in the east to Xuyang Central Road in the west, and from Haikou Road in the south to Shenzhen Road in the north.
■ Foxconn Huai'an Science and Technology City with a total investment of USD 2.2 Billion from Foxconn has been set up in Huai'an Export Processing Zone, among which 3 projects have been put into operation as of now. They are Fuzhun Precision Mould Components Co., Fuyu Electronic Technology Co. and Honghengsheng Electronic Technology Co., each of whose registered capital is over USD 98,000,000, and the aggregate investment of which is more than 600,000,000. The workshop of the three projects covers an area of 600,000 square meters which was put into service on November 8, 2007, and the second-phase workshop with an area of 900,000 square meters will be set up soon. An export processing base of high-technology industries with the core of the precision mould components, computer peripherals and PCBs is taking shape in Huai'an.
China Huai'an Pioneering Park for Overseas Chinese Scholars
■ China Huai'an Pioneering Park for Overseas Chinese Scholars (hereafter shortened as the Pioneering Park) established with the approval from the Department of Personnel of Jiangsu Province in February 2006, and designated by the Ministry of Personnel as a state-level pioneering park for overseas Chinese scholars in September 2007, is a well-developed incubator base for returned overseas Chinese talents to transform the high-tech achievements and embark on a startup.
■ The Pioneering Park covers a ground area of 70 mu (46,700 square meters) and has an incubator space of 42,000 square meters including one administration building and four multi-floor incubator buildings all with advanced functional facilities and full-range high quality service, such as the CAD design test center, the multi-functional exhibition hall, the one-stop service center, the Internet center, the conference rooms, and the entertainment and fitness rooms. And another 23-floor R&D building, several technical platforms such as the SMT Electronic Manufacture Service Platform and the second phase project of the Numerical Control Machining Center, 2 condos with the total area of 100,000 square meters specially built for returnees are also under construction and will be put into service soon. Besides, a new district with a total area of 300 mou (200,000 square meters) is currently under planning. The Pioneering Park is devoted to setting up an innovated digital home in convergence of R&D, production and processing, commercial service and life logistics for talents and entrepreneurs.
■ As of now, the Pioneering Park has attracted more than 70 startup companies, covering the new-and-hi-tech industries of new materials, new energy, biochemical & new medicines, electronics, mach-electronic, energy saving and environmental protection and so on. These enterprises have been incubated in the Pioneering Park under the umbrella of both the preferential policies made by the State and local governments and the more attractive preferential treatments made by the Pioneering Park, which are exceedingly favorable to the startups.
■ Huai'an Municipal People's Government has promulgated a policy and implementing measures on Encouraging the Establishment of the Firms' Headquarters or Regional Headquarters in Huai'an Pioneering Park, so as to encourage more talents of high quality to engage in the process of success with the Pioneering Park.
Huai'an Higher Education Park
■ Huai'an Higher Education park covers an area of 19 square kilometers and is located in the south bank of the Grand Canal, to the east of South Huaihai Road, and to the north of Ninglian Road. Up to now, Huaiyin Institute of Technology, Jiangsu Food Science College, Huai'an College of Information Technology, Jiangsu Vocational and Technical College of Finance & Economics, Huai'an College of Xi'an International Studies University, Huaiyin Business School, Huai'an Culture and Arts School have been present at the park, with over 60,000 total enrolled students. While the road systems have been fully completed, the construction of other infrastructure such as green zones and public and service facilities such as hospitals, secondary and primary schools, supermarkets and banks will be finished soon. A software park and a R&D center are also under construction. By 3-5 years, Huai'an Higher Education park will have a population of 200,000, among which students and teachers will hit 80,000 - 100,000, and it will become a producing and introducing base of advanced professionals, a science and technology park of higher institutions, a synergized industrial park of scientific research and practical training, an impetus to the local economic and social development, and a remarkable civilized community.
Huai'an Software Park
■ Huai'an Software Park covers an area of 400 mu (266,700 square meters), and is located to the east of South Chengde Road and to the south of Meigao Road. In the first phase, an area of 89 mou (59,340 square meters) has been constructed since August 2008 and will be completed in June 2009, among which there are 30,000-square-meter R&D buildings, experts building and service building.
■ Huai'an Software Park is constructed in line with the principle of planning and positioning with high standards, and developing and upgrading beyond normal conventions, and runs according to the pattern of being dominated by the government and collaborated with multiple parties, which will be representing the features of Huai'an, revealing the modern genres, and emphasizing the building of environment. After its fulfillment, Huai'an Software Park will have the capacity of holding 100 software companies, offering all kinds of advanced facilities and convenient services such as the accommodation, shopping, R&D, and relaxation and entertainment.
■ Huai'an Software Park will give full play to the advantages of Huai'an Higher Education Park in human resources, make efforts to attract and absorb investment, and introduce and invite gifted brains and software companies from home and abroad fit for the development of service outsourcing industry in Huai'an.
■ Huai'an Software Park will become an advanced modern software park with a complete industry chain of software R&D, technology support, information service and industry training, and with full life facilities and service functions. According to the position of building a base of software development and production, and a base of staffing and professional training for service outsourcing industry, Huai'an Software Park will take steady steps and make efforts to bring up a bright future.
Huai'an Salt Chemical Industrial Park
■ Huai'an has the largest explored rock salt mine in China, with its proven geological reserves of halite and mirabilite reaching 135 billion tons and 0.1 billion tons respectively.
■ Huai'an Salt Chemical Industrial Park is recently planed and located 20 kilometers away from the south of the urban area of Huai'an. It is uniformly planned and constructed section-individually in line with the principle of one park and three sections. The aim is to build a top-ranking salt chemical industrial park with full functional facilities and services including logistics, road systems, water, electricity, gas, telecommunication, environmental protection, and general administration.
■ Huai'an Salt Chemical Industrial Park will strive to develop three dominant industries, i.e., the industry of basic raw materials, the industry of caustic soda and calcined soda and its downstream industries, and the industry of fine chemicals and geosynthetics, forming a product framework of concentrating on the development of salt chemistry while stretching out to fine chemicals and geosynthetics. Huai'an Salt Chemical Industrial Park will reveal its features and advantages through large-scale production of calcined soda and chlor-alkali and other intensive-processing projects. Meanwhile, Huai'an Salt Chemical Industrial Park will take the advantage of the rapidly increasing market demands in the Yangtze river delta region, make efforts to attract and absorb more investment, and build a national top-notch salt chemical industrial park.
■ Key Investment Projects
1. Project of Middle Class Coal Gasification and Synthetic Ammonia/Alcohol 2. Project of Synthetic Ammonia Decarbonization 3. Project of Collecting, Conveying and Purifying Underground Bittern 4. Project of Vacuum Salt Production 5. Project of Chlor-alkali 6. Project of Combined Heat and Power Generation
Huai'an Taiwan-based Investment Park
■ In order to have more Taiwan-based investments, Huai'an Economic Development Zone, accordingly set up a Taiwan-based investment park, upon the approval of Jiangsu Foreign Economy and Cooperation Bureau, totally measuring 2.56 km2. The Park lies to the east of Jing-hu Expressway, which locates in Nan Machang. To its north there stands the Former Yellow Garden, and to its south is the exit of Jinghu Expressway, which is also the entry to Huai'an city. Additionally, the big bridge crossing Jinghu Expressway is under construction and will link the new area and finished one. It is only 5-minitues' drive to Foxconn, the State-level Export Processing Zone, the Customs & Inspection Bureau, 15-minitues' drive to Huai'an Airport.
■ The supporting enterprises to Foxconn and the transferring enterprises from south to north will be the focus, which will help constitute the electronic and information industry belt along Jinghu Expressway of Huai'an. And a complete industry chain will be made, thus helps to make “Kunshan in the south and Huai'an in the north” come true in the utilization of Taiwan-base investments. And all these will be done strictly in line with the principle 'industry accumulation, enterprises gathering, land saving and environment protection'.