Guangdong Market Opportunities - Urban Economies with Various Characteristics

Qingyuan City

Located in the bordering area of Pearl River Delta and the mountainous area of northern Guangdong, Qingyuan is the backyard garden of Pearl River Delta and the Pearl of Bei River. With a total area of 19,000 square kilometers and a population of 3.87 million, Qingyuan is a young and vigorous city.

1. General Survey of Economic Development

Qingyuan enjoys a rapid economic development. In 2003, its total export and import value reached US$ 620 million with an increase of 38.4% over the same period of 2002, of which, the total export value was US$ 310 million, up by 39.8%. Its contracted foreign investment in 2003 reached US$ 551 million, increased by 123.8%, and its actual use of foreign investment reached US$ 180 million with an increase of 58.7%.

2. Unique Advantages and Development Characteristics

(1) Prominent geographical advantages. It is only 200 kilometers from the urban district of Qingyuan to both Hong Kong and Macao, 50 kilometers to the downtown of Guangzhou. With (Bei)Jing-Guang(zhou) railway, (Bei)Jing-Zhu(hai) Expressway, Guang(zhou)-Qing(yuan) Expressway, National Highway106 and 107 run across the city, Dabei and Xiao Bei River form the multi-direction waterway. Guangzhou New International Airport is just 28 kilometers away. Qingyuan enjoys a completed transportation network of water, land and air.
(2) Low investment cost. Qingyuan implements the policy of “lower and lower hurdle for market-access, less and less cost”. On the aspect of land use, the price of land usage is under RMB 50 per square meter and the monthly rental of workshops is RMB 4-6 per square meter. On the aspect of tax and charges, except the national and provincial collections and payment for farmers, investors in Qingyuan enjoy more preferential tax policies. On water use, for newly established industrial companies, there is no charges for fees for installing water supply equipment, water resources and sewage treatment. On the aspect of power supply, fee for power installment is free for newly established industrial companies. On the aspect of labor force, the price of labor force is about 1/3 of that of Pearl River Delta.
(3) The orientation of industry development has fixed. In primary industry, the orientation is to propel industrialization of agriculture through developing characteristic agriculture on a large scale. In secondary industry, Qingyuan commits itself to develop high-tech and labor-intensive industries, such as biomedicine, energy, ceramics and porcelain, building materials, electronic apparatus and light industry. In tertiary industry, Qingyuan will concentrate on developing tourism and real estate. The industry matching ability in Qingyuan is improving steadily.