Overview
One of the first four Special Economic Zones set up in China.One of China’s major ports for foreign trade and across-Straits trade.One of the most competitive cities in China.One of the most livable cities in China.
Situated on the southeast coast of China, Xiamen faces Kinmen Island and opposites Taiwan Island and Pescadores across the Taiwan Strait. Legend has it that white egrets inhabited this area in ancient times, hence its name Egret Island. Xiamen covers a land area of 1,565.1 square kilometers and a sea area of over 300 square kilometers. Its coastline stretches for 234 kilometers. By the end of 2005, the number of registered residents had reached 1.53 million and the number of permanent residents was 2.25 million. Being directly under state planning, Xiamen is one of China’s five Special Economic Zones. It enjoys provincial-level administrative authority on economy and local legislative power. There are six administrative districts in Xiamen, namely Siming, Huli, Jimei, Haicang, Tong’an and Xiang’an.
Xiamen is one of the best cities for living in China. With catching coast beauty it is frequently visited by international cruise ships. Xiamen owns numerous national and international honours such as City of Civility, International Nations in Bloom Award, UN-Habitat Scroll of Honor Award, National Sanitary City, National Garden City, National Model City for Environment Protection, China Excellent Tourist City and China Top Ten Livable Cities, etc.. Xiamen has well-developed education, culture, science and technology. Medical facilities and services here can satisfy the highest demands. Xiamen’s status as one of China’s ten major tourist resorts is proved by the 17 million tourist visits registered in 2005, of which 766 thousand came from abroad. Over a hundred hotels with 62 of them reaching star levels offer accommodation to the tourists who avail themselves of the sweet memory of such tourist attractions as Gulangyu Island, Wanshi Botanic Garden, Island-ring Road, Naputuo Temple, Jimei School Village, Dadeng Islands, Haicang Bridge and Huoshaoyu Ecologic Park, etc..
Xiamen boasts one of the most vibrant economies on the southeast coast of China and parallels with the most competitive cities in the country. It is among China’s top 50 cities when measured in comprehensive economic strength and top 40 when investment climate is taken into account. Since 1980, Xiamen’s GDP has been growing at an average annual rate of 18.0%. In 2005 its GDP reached RMB 102.96 billion, representing USD 8,531 for each registered citizen. By the year 2010, the GDP is expected to rise to RMB 200 billion, representing USD 14,000 per head. In 2005 the total foreign trade value was USD 28.58 billion, of which export contributed USD 17.27 billion, being 23.8% more than 2004. By the end of 2005, there had been 6,887 foreign-funded enterprises operating in Xiamen with the investment sourced from 65 countries and regions. The total committed capital amounted to USD 23.14 billion of which USD 14.67 billion had been paid up. Xiamen aims to establish itself as a thriving center for shipping, logistics, finance, commerce, tourism, convention, exhibition, culture and education on the southeast coast of China.
Marine Transportation
Xiamen Port is a hub seaport strategically located between Changjiang River Delta and Pearl River Delta. It is a National Class-A port, one of China’s Top 8 container ports and listed among the first 30 of Global Container Port 100 as well as China’s 4th port with the capacity to receive 6G container vessels. Xiamen Port has a coast line of 202.3km with 122 berths. Thr depth of water reaches up to 17.5 meters. Xiamen Port has opened 114 container shipping lines, dispatching 490 vessels per month, covering nearly all major ports around the world. As the first port authorized to open pilot cargo shipping services to Taiwan, its container throughput with Taiwan has exceeded 3 million TEUs.
Container Throughput of Xiamen Port (10k TEUs)
Aviation
Xiamen Airport is one of the Top 10 airports and the 4th busiest airport for entry & exit in China being linked to 77 locations round the world. It has become a regional air hub next only to Shanghai in East China. It has opened 25 international/regional air routes including flights to Tokyo, Osaka, Seoul, Singapore, Kula Lumpur, Penang, Manila, Bangkok, Yabi, Kuching, HK and Macao, as well as air cargo services to Chicago, Los Angles and Nagoya. Xiamen Airport has Grade I & II warehouse under customs inspection, providing integrating services of cargo delivery taking & making, customs brokering and inspection, and distribution.
Flight Time from Xiamen to some destinations
Beijing: 2.5hr. Manila: 1hr. and 40min.
Shanghai: 1hr. and 20min. Seoul: 2.5hr.
Guangzhou: 1hr. Tokyo: 3.5hr.
Hong Kong: 1hr. Singapore: 4hr.
Highway and Rialway
Xiamen is one of the 47 Highway Hubs verified by Chinese Ministry of Communications. It is linked to the national highway network through Fuzhou-Xiamen Expressway, Xiamen-Zhangzhou-Quanzhou Expressway and other high-class roads, leading to all major destinations round China. As one of the most important hubs on China’s Great Railway along the Coast, it has internally extended its rail lines to Dongdu and Haicang Port Areas, while externally connected to the National Rail Network through Yingtan-Xiamen Railway, covering North, Southwest, Mid and East China regions
Xiamen Seaport/Airport/FTZ Integrated Zone
Location: Strip area between Xiamen International Airport — Free Trade Zone — Dongdu Port Area
Land area: 9 km2
Features: Integration of Xiangyu FTZ, Dongdu Port Area and Northern Part of Gaoqi international Airport so as to extend FTZ incentives to the airport and seaport within the Zone and to complement FTZ services with port facilities. The final aim is to build the Asia—Pacific Purchasing Center as well as a Distribution Center for international cargos. The FTZ/port Integrated Area approved by the State Council is to bring the advantage of FTZ policies and the port location into a full play, specializing in warehousing and logistics industry.
Efficient Government
Xiamen Municipal Government is dedicated to creating safe, easy and stable investment atmosphere for investors by setting up specialized investment agencies, streamlining administrative procedures, improving efficiency and canceling various charges so as to lower the operational cost. Customs and Inspection & Quarantine Bureau are actively working together on the new EDI system. According to the Chinese Cities Competitiveness Report issued in 2005, Xiamen leads most of the Chinese cities in terms of government, institutions and openness.
Financial Services
Xiamen’s finance sector is well developed. Over 450 banking service offices provide a variety of fast and adequate financial services of high quality. In addition to 11 domestic commercial banks and a joint-venture Xiamen International Bank, 13 foreign banks have set up headquarters, branches or representative offices in Xiamen including Allied Commercial Bank (Philippines), Chiyu Banking Co., Ltd. (HK), The Hong Kong & Shanghai Banking Corporation, Ltd. (UK), United Overseas Bank Ltd (Singapore), Standard Chartered Bank (UK), Bank of the Orient (USA), Overseas-Chinese Banking Co., Ltd. (Singapore), Calyon Corporate and Investment Bank (France), The Bank of East Asia Ltd. (HK), Bangkok Bank (Thailand), Hengsheng Bank (HK), Citibank (USA), Mizuho Corporate Bank Ltd. (Japan).
Human Resources
Xiamen has an abundant reserve of human resources, pooling skilled workforce at various levels from 26 higher education institutions, 27 secondary vocational schools and 2 technical schools. The municipal Talents Databank has a collection of data on 120,000 professionals and the Talents Service Center sponsors 3 job fairs every week. The Government also provides various incentives to encourage skilled personnel and professionals to settle down in Xiamen
Commerce
In 2005, Xiamen’s Social Consumption Retail Sales value was RMB 27.19 billion. Famous retailers operating or to be opened in Xiamen include Walmart, Metro, Carrefour, Lotus Supercenter, Trust-Mart, Gome Electric Appliances, Yongle Elctric Appliances, Suning Electric Appliances, Printemps Department Store, Rainbow Department Store, Laiya Department Store, Watsons, B&Q, MacDonald, KFC and Pizza Hut, etc.
Foreign-funded enterprises pay the corporate income tax at a rate of 15% and are exempted from local income tax.
Productive enterprises with an operation period of no less than 10 years are entitled to a tax holiday for the first 2 profit-making years and a 50% tax reduction for the following 3 years.
Foreign-invested export-oriented enterprises, after the expiration of the tax incentives as stipulated in tax laws, may enjoy a privileged income tax rate at 10% for the year when over 70% of their products are exported and their foreign exchange account is in surplus.
Enterprises that have been recognized as advanced technology enterprises enjoy a preferential corporate income tax rate at 10% for three years following the expiration of the universal tax incentives as stipulated in tax laws.
Self-consumed equipments, technology and a reasonable amount of accessories and components imported there of in accordance with the Contract for productive projects, which fall into the category of the Encouraged Projects of the “Catalogue for the Guidance of Foreign-funded Industries”, are exempted from customs tariff and import VAT, except those listed in the “Catalogue of Non-duty-free”, Imported Commodities of Foreign- funded Projects.
Foreign Direct Investment
(By the end of Year 2005)
Number of FDI Projects: 6,887
Contractual Foreign Investment Value:
USD 23.14 billion
Actually Utilized Foreign Capital: USD 14.67 billion
Foreign-affiliated enterprises contribute over 81% of the total industrial output value of enterprises that yield over RMB 5 million annually.
Of Fortune global 500 companies, 38 have invested 65 projects in Xiamen with a total foreign investment of USD 1.82 billion.
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