Baiyun Airport’s comprehensive bonded area reports 77.3% foreign trade growth in Q1

 Update:2020-05-22    Source: Newsgd.com

Guangzhou Baiyun Airport Comprehensive Bonded Zone Administration recently reported its foreign trade volume hit 3.92 billion yuan in Q1 with a 77.3 percent year-on-year growth. Cross-border export volume exceeded 1.6 billion yuan up about 85 percent year on year during the pandemic period.

As the spread of the virus has been controlled nationwide, Guangzhou Aerotropolis Development District has adopted a series of strategies to help enterprises back to work and boost economic growth.

The district has organized more than 50 inspection tours to enterprises and released policies to support them such as tax and rent reduction. All of the district’s enterprises and construction projects are now back up and running.

In addition, the district has been continually committed to fostering the cross-border e-commerce business and introduced 15 related projects in recent years. With a total investment of more than 15 billion yuan, the project will be put into operation over the coming 1 to 3 years.

According to its plan, the value of the cross-border e-commerce commodities circulating in the bonded area will exceed 100 billion yuan by 2022 and the main business income of its enterprises will be in excess of 20 billion yuan. Thus far, more than 1000 trade, customs clearance, logistics and cross-border e-commerce companies have settled in the comprehensive bonded area.

To better the business environment, Guangzhou Aerotropolis Development District has also been continuously compressing the time needed for customs clearance.

During the pandemic, the district put significant effort into guaranteeing the delivery of medical supplies and equipment, and coordinated 7 aircraft to send medical donations to 12 international sister cities of Guangzhou in Iran, South Korea, Italy, Japan and France. It’s presently working on the second and third batches of donations to European and African countries.

Nansha selected as demo zone on import promotion

 Update:2020-11-06    Source: chinadaily.com.cn

Guangzhou's Nansha district has been selected as one of 10 import trade promotion and innovation demonstration zones, authorities announced ahead of the opening of the third China International Import Expo on Nov 4.

From January to September, the total import and export value in Nansha reached 175.04 billion yuan ($26.32 billion), a year-on-year increase of 21.1 percent, ranking first in Guangzhou in terms of growth rate.

With such a good development momentum, Nansha will undertake the task of promoting trade and facilitating innovation in trade, the two major functions Nansha and other demonstration zones are required to have, according to Li Xingqian, director of the Department of Foreign Trade of the Ministry of Commerce.

Guangzhou's Nansha district has been selected as one of 10 import trade promotion and innovation demonstration zones.

Trade promotion will facilitate import, industries, and consumption while trade innovation will focus on the aspects of policies, related services, and models.

In the next three to five years, China will cultivate a number of import demonstration zones with innovative regulatory systems, complete service functions, and flexible transaction models, to steadily expand China's import scale and optimize its import structure.

In addition to Guangdong, the zones will be set up in Shanghai, Liaoning, Jiangsu, Zhejiang, Anhui, Fujian, Shandong, Sichuan and Shaanxi. They will cover the eastern, central and western regions as well as the old industrial bases of Northeast China, and include sea, land and air ports, reflecting the power and potential of China's import development.

Investment Guide of Nansha Area,Set Up Business,Company Registration,Corporate Formation in Guangzhou Free-trade Zone

How to get to GDFTZ (Nansha)? 
Within the radius of 100km in Nansha, there are: 
-- Five international and domestic airports: Hong Kong International Airport, Macau International Airport, Guangzhou International Airport, Shenzhen International Airport, Zhuhai Airport. 
-- Four deepwater ports: Hong Kong Victoria Harbour, Zhuhai Gaolan Port, Guangzhou Nansha Port, Shenzhen Yantian Port. 
-- Seventeen expressways: Beijing-Zhuhai Expressway, Nansha port Expressway, and other main national-level expressways converge in Guangzhou. 
-- Two rail transits: Guangzhou-Shenzhen High-speed Rail and Guangzhou metro line no.4. 

Brief introduction of of GDFTZ (Nansha) 
Located in the Pearl River Estuary at the southernmost of Guangzhou and the geographical center of the Great Pearl River Delta (PRD) region, Nansha is the city’s only gateway to the sea, with great strategic significance for the international trade. Nansha is also an important stop along the ancient Maritime Silk Road—a bridge connecting the western and oriental civilizations.

As a bridgehead for Guangzhou’s southward urbanization expansion, Nansha was selected to set up an independent district in 2005, ushering in a new chapter for Nansha’s economic, social and political development at a much accelerated speed. As a city with long-established trading history, Guangzhou was thus upgraded from a riverside city to a coastal city.

In September 2012, the State Council approved the Development Plan for Guangzhou Nansha New Zone, thus making the development of Nansha as part of the national development strategies. After Shanghai Pudong New Zone, Tianjin Binhai New Zone, Nansha New Zone became the third state-level new zone to accelerate the regional economic development.

In December 2014, as part of the key measures to promote the new round of reforms and opening up to the outside world, the State Council decided to set up three new pilot free trade zones in Guangdong, Tianjin and Fujian respectively, and Nansha New Zone was selected as an integral part of the China (Guangdong) Pilot Free Trade Zone. Nansha was therefore allowed to introduce favorable policies and real incentives as a state-level new zone and a pilot free trade zone, which was an unprecedented opportunity for Nansha to accelerate its development. 

Geographical advantage of GDFTZ (Nansha) 
Located in the southernmost of Guangzhou and the geographical center of the Great Pearl River Delta region, Nansha is 38 sea miles away from Hong Kong and 41 sea miles from Macao. 11 major cities in the Greater PRD region and 5 international airports are situated within the 100 radius of Nansha. In addition, Guangzhou-Shenzhen-Hong Kong high-speed railway, Beijing-Hong Kong-Macao highway, PRD south ring highway and Foshan-Dongguan highway are running through the entire Nansha. Ferries departing from the Nansha Passenger Port can reach the Hong Kong Central directly. Nansha is indeed the regional transportation hub in the PRD region.

As an important vehicle to promote closer economic cooperation among Guangdong, Hong Kong and Macao, the participation of Silk Road Economic Belt and the 21st Century Maritime Silk Road for provinces and cities in the Pan-PRD region and the development of the 21st Century Maritime Silk Road, Nansha has vast economic hinterland and unlimited development potential. 

Registration for foreign investments 
Negative List Management Mode：Negative list is a mode in which any sectors not banned on the list are open to investment. The New District adopts "negative list" approach to foreign investment, which is permitted in all sectors unless explicitly prohibited by the inclusion of a given sector on the negative list.

The advantages of adopting negative list administration are as the following: 
Firstly it facilitates the access to international-standard investment regulations. Implementing negative list administration is conducive to a new round of opening up, to the negotiation of investment protection protocol, and to the outbound investment and trans-national operation of domestic enterprises. Secondly, the negative list provides clear-cut and transparent industry access for investment. Thirdly, filing system is introduced to complement the traditional approval system so that a new administrative mode in which domestic and foreign investment enjoy equal opportunities are fostered.

For sectors not included in the negative list, the filing system takes the place of the traditional approval system for foreign investment projects (excluding those domestic investment projects stipulated by the State Council); Moreover, contract filing replaces contract approval for foreign-invested companies.

Foreign investment is allowed to access sectors included in the Special Administrative Regulations for Foreign Investment. However, it is prohibited to invest in industries banned by the state or by international treaties which China signed or participate in, in projects which endanger national and social security, or in business operation which undermines social and public interest.

Since Guangzhou Free-trade Zone ,Nansha New Area was established , Tommy China Business Consulting has been focusing on consulting services for our clients to set up business in Nansha New Area, we offer one stop services for Nansha New Area company formation.

To facilitate people who want to invest and set up business in Guangzhou Free-trade Zone,Nansha New Area, here is an introduction of Types of business presence in China: 

Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise(WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.

Wholly Foreign OwnedEnterprise (WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires no registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE.

Representative Office (RO) is aLiaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.

Joint Venture (JV) is a Limitedliability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.

Since March 1, 2010: Measures ofEstablishment of Foreign Invested Partnership Enterprises (FIPE) in China is taking effect. The regulation, which take effect since March 1, 2010, are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals. There's no required minimum registered capital for a Foreign Invested Partnership Enterprise (FIPE) in Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou and rest cities of China

Hong Kong Company usually been used as a Special Purpose vehicle (SPV) to invest Mainland China. Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in Mainland China (Mainland China and Hong Kong, See Wiki 1 country, 2 systems), lots foreign investors, especially investors from Europe and North America still chose to setting up a Hong Kong company as SPV to invest China.

After China's entry to WTO, most industries in China welcome foreign investment, WFOE setting up in Chinabecomes the first option of foreign investment's entity structures instead of Rep. Office setting up in China. At the mean time, for tax purpose, effective licensing system etc more and more investors use Hong Kong as the holding company to invest China mainland, using this offshore company to hold their operations in China.

Business set-up in Guangzhou is a big project by itself, which requires financial and time commitments, business management knowledge and China expertise. Identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls . Tommy China Business Consulting has direct connections in the local government

Since 2006, TCBC has been focusing on consulting services for our clients to invest in Guangzhou China. We are specialized in establishment of wholly foreign owned enterprises (WFOEs), setting up of offshore companies, trading services, tax minimization, Assist in obtaining government approvals and certificates for running business, negotiate and draft various legal documents provide legal advice, negotiate government officer for Land acquisition. Advising on formation of WOFE and business structures, managing and controlling WOFE in Guangzhou China, drafting privacy policies and structuring commercial transactions

TCBC will manage all aspects of incorporation to get you a business license in Guangzhou China. We offer a range of company formation services including helping you to set up:

-Wholly Foreign Owned Enterprises (WFOE )

-Representative Offices

-Joint Ventures (Equity/Co-operative)

-Foreign Invested Partnership Enterprises (FIPE)

-HongKong Holding Company.

Contact Tom Lee for business set up in Guangzhou Free-trade Zone,Nansha New Area now.

AAI Collaborates with Guangzhou Nansha Development Zone and Guangzhou Fund to Develop Nansha Free Trade Zone

To Build an International Education Base

HONG KONG, Apr 23, 2018 - (ACN Newswire) - Asia Allied Infrastructure Holdings Limited ("AAI" or the "Group") (stock code: 00711) has signed a letter of intent of strategic cooperation framework with Guangzhou Nansha Development Zone and Guangzhou Industrial Investment Fund Management Co., Ltd. ("Guangzhou Fund"). The three parties, reaching consensus on "bringing overseas resources to Nansha for setting up an industrial fund to promoting development of Nansha", will team up to develop education, medical and elderly services, as well as urban infrastructure in the Nansha Free Trade Zone, starting with building an education base.

Mr. Dominic Pang, Chairman of Board of AAI, said, "The strategic cooperation is the first joint development project after a Guangzhou Fund wholly-owned subsidiary, SFund International Investment Fund Management Limited (SFund International), became a strategic shareholder of the Group. Nansha, which is in the heart of the Guangdong-Hong Kong-Macao Big Bay Area, is a new state-level area and a pilot free trade zone, hence is eager to have urban infrastructure built and for plans to help it develop and pursue technological innovation. The Group will seize development opportunities and focus on promoting development of such areas as education, elderly services and housing. The cooperation will allow the Group to leverage the rich experiences and resources on the mainland of the Investment Promotion Bureau of Guangzhou Nansha Development Zone and Guangzhou Fund to gradually grow its business in mainland and also capture development opportunities in the Big Bay Area."

The three parties will combine strengths and, via setting up and using such financial tools as industrial fund, PE fund, M&A fund, etc., contribute to the construction and upgrade of including but not limited to projects in relation to education, healthcare, elderly services, urban infrastructure, planning and construction, technological innovation and start-up business in the Nansha New Area. The partners will start with setting up an education fund which purpose will be to promote modern and international education development that agrees with the education plan of the Nansha New Area. The Group intends to introduce world renowned education institutes into the area, and adopting advanced operational and management concepts, work together with its partners on studying and devising a relevant plan for building an international education base in Nansha. 

Mr. Cai Chaolin, Municipal Committee Member of Guangzhou and Secretary of Nansha District, said, "The report of the 19th National Congress of the Communist Party of China pointed out the need to grant greater autonomy in reform to free trade zones for exploring the feasibility of building free trade ports and developing the Guangzhou-Hong Kong-Macau Big Bay Area, and that will present Nansha with new historical development opportunities. Against this backdrop, Guangzhou Fund and AAI will embark on strategic cooperation on all aspects with Nansha, which is an important and timely move to take to greater depth the cooperation between Guangzhou and Hong Kong." 

Mr. Han Ying, Chairman of Guangzhou Fund, said, "Guangzhou Fund will use its ability in integrating core business and financial resources, attracting financial and social capital, utilizing varies financial tools, and marry them with its international operational experience and edges to establish a RMB10 to 30 billion industrial fund by its subsidiary SFund International and related companies for providing professional financial services to the cooperative project."

Guangzhou Industrial Investment Fund Management Co., Ltd.
Founded in 2013 and led and managed by the Guangzhou Municipal Government, Guangzhou Industrial Investment Fund Management Co., Ltd. is the first fund management company to obtain external AAA ranking in China, and also the first company in Guangdong Province to receive the highest ranking in the asset management category from Standard & Poor's and Fitch Group. It engages in such businesses as government fund management, private equity (PE) investment, venture capital (VC) and other finance platforms. Moreover, it has built a complete financial industrial chain that covers angel funds, VC investment, PRE-IPO, PIPE, M&A funds, urban development funds, government funds, Internet financing and fixed income, among other services. As at the end of 2017, it had contracted funds valued at RMB380 billion and actually managed funds worth RMB138 billion. SFUND International is the international investment and financing arm shrewd in innovation of Guangzhou Industrial Investment Fund Management Co., Ltd. and also a strategic shareholder holding 9.8% equity interests in AAI. 

Asia Allied Infrastructure Holdings Limited (stock code: 00711.HK)
Asia Allied Infrastructure Holdings Limited ("AAI") is listed on the Main Board of the Hong Kong Stock Exchange under stock code 00711. It is engaged in various businesses including construction engineering and management, property development, security services and property management. With Hong Kong as its business development base, AAI is also exploring development opportunities with Asia as the main focus, as well as in overseas markets. Its subsidiary "Chun Wo" is a renowned construction contractor and property developer in Hong Kong, which enables AAI to capitalise on that company's solid construction experience and professional capabilities to seize the opportunities for infrastructure development in countries along the "Belt and Road" initiative, and, ultimately, to increase overall profitability and create higher investment value. For details, please refer to the company website: http://www.asiaalliedgroup.com

For press enquiries:
Strategic Financial Relations Limited
Joanne Lam (852) 2864 4816 joanne.lam@sprg.com.hk
Cindy Lung (852) 2864 4867 cindy.lung@sprg.com.hk 
Isabel Kwok (852) 2864 4824 isabel.kwok@sprg.com.hk

Photo Caption:
(From left) Mr. Xie Xiaohui , Secretary of Investment and Trade Promotion Bureau of Guangzhou Nansha Development Zone; Mr. Shea Chun Lok, Chief Financial Officer of Asia Allied Infrastructure Holdings Limited; Ms. Ruan Xiaohong, Nansha District Government Deputy Governor; Mr. Dominic Pang, Chairman of the Board of Asia Allied Infrastructure Holdings Limited; Mr. Cai Chaolin, Municipal Committee Member of Guangzhou and Secretary of Nansha District; Mr. Han Ying, Chairman of Guangzhou Fund; Mr. Xie Ming, Deputy Chairman of the Management Committee of Nansha Development Zone (Free Trade Zone of Nansha District); Mr. Liu Zhijun , Deputy General Manager of Guangzhou Industrial Investment Fund Management Co., Ltd.

Brief Introduction To Nansha District Guangzhou,Incorporate Business,Company Registration,Corporate Formation In Nansha Guangzhou China

Nansha district was set up on April 28, 2005, and was duly approved by the State Council as a national new zone and free trade zone in 2012 and 2014. 

Located in the southern part of Guangzhou right at the geometric center of the Greater Pearl River Delta Economic Region and situated at the supporting position of the "A" shape formed by Guangzhou, Hong Kong and Macao, Nansha is the hub connecting the city groups on the banks of the Pearl River Estuary. 

Aerial view of Nansha district [Photo provided to chinadaily.com.cn]

Nansha district is the principal water thoroughfare of the Pearl River Estuary and the only passage from Guangzhou to the ocean. It has the advantages needed for the building of an international deepwater port and development of port-related industries, and as such is the perfect region for Guangzhou and Guangdong province to adjust and upgrade their industrial structures.

The district has the world's top 12 ports and shipping hubs and top three shipbuilding bases, as well as China's leading automobile and parts manufacturing and export bases and advanced equipment industry clusters. It also has a number of national-level scientific research innovation institutes and incubators such as the Chinese Academy of Sciences and Hong Kong University of Science and Technology (HKUST).

The Nansha deepwater port's cargo routes cover the world's major trade areas, such as Europe, the Americas, South East Asia, the Middle East, and Australia. With the completion of the second and third phases of the Nansha Port project, it has formed a new pattern for modernized international ports coupled with related industrial zones. The Nansha government plans to take advantage of the international port to develop an ancillary industrial zone which will include fundamental industries such as ship building, iron and steel processing, and petrol-chemicals, promoting the concerted development of Guangzhou's traditional industries, the high-tech industries located nearby and service industries.

Nansha New Area is the China (Guangdong) Pilot Free Trade Zone Nansha Area of Guangzhou. It is the country's sixth state-level zone, and boasts excellent geographical advantages and an abundance of natural resources. Its seven functional areas are committed to promoting the economic and technological development of the Nansha district and Guangzhou and to building a world-class integrated service hub based on all-round Guangdong-Hong Kong cooperation via focusing on the development of shipping logistics, international finance, international trade, science and technology innovation, marine economy and high-end manufacturing industries. 

Nansha Port [Photo provided to chinadaily.com.cn]

Nansha enjoys unique natural conditions with densely covered water networks and various lakes and ponds which are part of its beautiful natural environment and rich land resources. Most of the land in the north is farms and fields, while in the south the majority of the land has been reclaimed to its original natural ecology.

The properties of the estuary sedimentary plain have created large wetlands in Nansha New Area. Nansha built the first wetland forest park in China which is now called "the kidney of Guangzhou"; it consists of over 3,000 mu (200 hectares) of wetlands and 400 mu of mangrove forest, and is home to more than 20,000 migratory birds in both autumn and winter.

In 2017, the average temperature in Nansha was 23.6 C, 1.0 C higher than the annual average. The annual precipitation was 1611.2 mm, and the number of haze days was 59 days.

By the end of 2017, there were 725,000 permanent residents and 415,400 residents with household registration. In 2017, the district registered a household birth population of 11,809, a birth rate of 15.8 per thousand; the number of deaths reached 2,544, a death rate of 3.4 per thousand; and a natural increase of population reached 9,265, a natural growth rate of 12.4 per thousand.

Seafood Gourmet Street in Shijiuchong, Nansha district [Photo provided to chinadaily.com.cn]

Famous scenic spots in Nansha district include Nansha Puzhou Park, Nansha Tianhou Palace, Suzhou Watery Region Street, the Nansha Golf Course, Sunflower Garden, Sheraton Hotel and other tourism resorts and facilities. Nansha is also a port district with the largest number of cruise lines to Southeast Asia in China. It has become a leisure resort to attract tourists from both home and abroad. 

In accordance with its physical layout, Nansha district will be built into a modern industrial base integrating the logistics industry, port-related industries, high-tech industries, and a new modernized ecological urban area with reasonable industrial distribution, strong economic radiation capacity, and complete supporting infrastructure – all set in a beautiful natural environment.

To facilitate people who want to invest and set up business in Guangzhou Nansha, here is an introduction of Types of business presence in China: 

Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise(WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.

Wholly Foreign OwnedEnterprise (WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires no registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE.

Representative Office (RO) is aLiaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.

Joint Venture (JV) is a Limitedliability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.

Since March 1, 2010: Measures ofEstablishment of Foreign Invested Partnership Enterprises (FIPE) in China is taking effect. The regulation, which take effect since March 1, 2010, are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals. There's no required minimum registered capital for a Foreign Invested Partnership Enterprise (FIPE) in Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou and rest cities of China

Hong Kong Company usually been used as a Special Purpose vehicle (SPV) to invest Mainland China. Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in Mainland China (Mainland China and Hong Kong, See Wiki 1 country, 2 systems), lots foreign investors, especially investors from Europe and North America still chose to setting up a Hong Kong company as SPV to invest China.

After China's entry to WTO, most industries in China welcome foreign investment, WFOE setting up in Chinabecomes the first option of foreign investment's entity structures instead of Rep. Office setting up in China. At the mean time, for tax purpose, effective licensing system etc more and more investors use Hong Kong as the holding company to invest China mainland, using this offshore company to hold their operations in China.

Business set-up in Guangzhou is a big project by itself, which requires financial and time commitments, business management knowledge and China expertise. Identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls . Tommy China Business Consulting has direct connections in the local government

Since 2006, TCBC has been focusing on consulting services for our clients to invest in Guangzhou China. We are specialized in establishment of wholly foreign owned enterprises (WFOEs), setting up of offshore companies, trading services, tax minimization, Assist in obtaining government approvals and certificates for running business, negotiate and draft various legal documents provide legal advice, negotiate government officer for Land acquisition. Advising on formation of WOFE and business structures, managing and controlling WOFE in Guangzhou China, drafting privacy policies and structuring commercial transactions

TCBC will manage all aspects of incorporation to get you a business license in Guangzhou China. We offer a range of company formation services including helping you to set up:

-Wholly Foreign Owned Enterprises (WFOE )

-Representative Offices

-Joint Ventures (Equity/Co-operative)

-Foreign Invested Partnership Enterprises (FIPE)

-HongKong Holding Company.

Contact Tom Lee for business set up in Guangzhou Nansha now.

Brief Introduction To Guangzhou Nansha Economic and Technological Development Zone,Set Up Business,Company Registration,Corporate Formation In Guangzhou Nansha

Facts & Figures (2013)

Rating	AA
Year of Establishment	Guangzhou Nansha ETDZ: 1993  Guangzhou Nansha
Land Area	Guangzhou Nansha ETDZ: 27.6 km2 Guangzhou Nansha EPZ:1.4 km2
Location	Nansha District, Guangzhou
GDP	RMB 40.45 billion (Jan-Jun 2013)
FDI	N.A.
Utilized FDI	US$ 234 million (Jan-Jun 2013)
Major Investors	BASF, GM, Toyota, JFE, Mitsubishi, Meiko, Lonza, China State Shipbuilding Corp, China Erzhong, Dongfang Electric, Guangzhou Iron & Steel, Dongling Group, Liby, Idemitsu, Hitachi
Major Industries Encouraged	Guangzhou Nansha ETDZ: plastics, chemicals, electronics, food processing, shipbuilding  Guangzhou Nansha EPZ: Information Technology, optoelectronics, precision machinery, home appliances

Introduction

Guangzhou Nansha Economic and Technological Development Zone (Guangzhou Nansha ETDZ) was approved as a state-level development zone by the State Council in 1993. It covers an area of 27.6 sq km. Guangzhou Nansha Export Processing Zone (Guangzhou Nansha EPZ), located within Guangzhou Nansha ETDZ, won approval to be a state-level development zone in 2005. Covering an area of 1.4 sq km, the processing zone commenced official operations in 2007. Guangzhou Nansha EPZ is the second export processing zone that was founded in Guangzhou after the Guangzhou Export Processing Zone.

The Guangzhou Nansha ETDZ is located in Nansha District in the southern part of Guangzhou, the capital of Guangdong Province. Guangzhou's downtown area is 54 km away. Guangzhou is the center of the Pearl River Delta, and all the major cities of the delta are within a 1.5-hour drive. The zone is a mere 71 km from Hong Kong and 75 km from Macau.

Guangzhou Baiyun International Airport and Shenzhen Bao'an Airport are 54 km and 70 km from Guangzhou Nansha ETDZ. Nansha Port is an important part of Guangzhou Port, which is the fourth largest port in China and had handled over 10 million TEUs in 2013. The Guangzhou-Shenzhen-Zhuhai Expressway and the Humen Bridge, which connects Humen in Dongguan and Nansha in Guangzhou, are also close to the zone.

Investment Climate

In the first half of 2013, GDP of Guangzhou Nansha ETDZ reached US$40.45 billion, reflecting a year-on-year increase of 39.7%.

Guangzhou Nansha ETDZ encourages investment in plastics, chemicals, electronics, food processing, shipbuilding and other high-tech industries, while Guangzhou Nansha EPZ encourages investment in IT, optoelectronics, precision machinery and home appliances. In the first six months of 2013, the value-added industrial output of the zone amounted to RMB 30.07 billion, up 31.36% year on year.

The automobile industry is the strongest industry in the Nansha ETDZ. Japan-based Toyota is a major investor in the zone. Guangzhou Toyota Motor Co Ltd, a joint venture between Guangzhou Automobile and Toyota Motor Corp, was set up in 2004 in Guangzhou Nansha ETDZ with a registered capital of RMB 1.3 billion. The venture involved a total investment of RMB 3.8 billion.

In January to June 2013, the utilized FDI of the zone amounted to US$234 million, up 1.57% year on year. Over 40 Fortune 500 enterprises have commenced businesses in Nansha ETDZ. Besides Toyota, major investors in the zone include BASF, GM, JFE, Mitsubishi, Meiko, Lonza and large domestic firms such as China State Shipbuilding Corp, China Erzhong, Dongfang Electric, Guangzhou Iron & Steel, Dongling Group and Liby. In the first half of 2013, the export value rose 52.94% to US$3.02 billion.

Winning Edges

• The zone enjoys close proximity to Hong Kong, Macau and major cities in the Pearl River Delta.
• The transportation in the zone is convenient.
• The zone has a strong automobile and auto parts industry.
• Nansha Port is an important part of Guangzhou Port. There is also a dock specializing in the handling of chemicals and chemical products.

Limitations

• Operating costs are high.
• The zone has a smaller economy and industrial output than its largest competitor in Guangzhou, Guangzhou Development District.

The Administration Committee

Address: No. 1 Gangqian Avenue, Nansha, Guangzhou, P.R. China 511458
Tel: 86-20-84688220, 84986688
Fax: 86-20-84687763
Website: www.gzns.gov.cn

Source of Facts & Figures: Statistic Bureau of Guangzhou Nansha Economic and Technological Development Zone

To facilitate people who want to invest and set up business in  Guangzhou Nansha Economic and Technological Development Zone, here is an introduction of Types of business presence in China: 

Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise(WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.

Wholly Foreign OwnedEnterprise (WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires no registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE.

Representative Office (RO) is aLiaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.

Joint Venture (JV) is a Limitedliability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.

Since March 1, 2010: Measures ofEstablishment of Foreign Invested Partnership Enterprises (FIPE) in China is taking effect. The regulation, which take effect since March 1, 2010, are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals. There's no required minimum registered capital for a Foreign Invested Partnership Enterprise (FIPE) in Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou and rest cities of China

Hong Kong Company usually been used as a Special Purpose vehicle (SPV) to invest Mainland China. Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in Mainland China (Mainland China and Hong Kong, See Wiki 1 country, 2 systems), lots foreign investors, especially investors from Europe and North America still chose to setting up a Hong Kong company as SPV to invest China.

After China's entry to WTO, most industries in China welcome foreign investment, WFOE setting up in Chinabecomes the first option of foreign investment's entity structures instead of Rep. Office setting up in China. At the mean time, for tax purpose, effective licensing system etc more and more investors use Hong Kong as the holding company to invest China mainland, using this offshore company to hold their operations in China.

Business set-up in Guangzhou is a big project by itself, which requires financial and time commitments, business management knowledge and China expertise. Identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls . Tommy China Business Consulting has direct connections in the local government

Since 2006, TCBC has been focusing on consulting services for our clients to invest in Guangzhou China. We are specialized in establishment of wholly foreign owned enterprises (WFOEs), setting up of offshore companies, trading services, tax minimization, Assist in obtaining government approvals and certificates for running business, negotiate and draft various legal documents provide legal advice, negotiate government officer for Land acquisition. Advising on formation of WOFE and business structures, managing and controlling WOFE in Guangzhou China, drafting privacy policies and structuring commercial transactions

TCBC will manage all aspects of incorporation to get you a business license in Guangzhou China. We offer a range of company formation services including helping you to set up:

-Wholly Foreign Owned Enterprises (WFOE )

-Representative Offices

-Joint Ventures (Equity/Co-operative)

-Foreign Invested Partnership Enterprises (FIPE)

-HongKong Holding Company.

Contact Tom Lee for business set up in  Guangzhou Nansha Economic and Technological Development Zone now.

Nansha development zone in Guangzhou eyes Hong Kong tax rate, Key zone uses city as model after already adopting its laws on arbitration

First it adopted Hong Kong law in arbitration cases, now the Nansha development zone in Guangzhou wants to set its income tax at the same lower level.

Raymond Sun Lei, deputy chief of Nansha's district government, was speaking to a delegation of Hong Kong reporters on Wednesday when he revealed that the district had applied for such an initiative.

But it has still to be confirmed and approved by the provincial and central governments.

Most Hong Kong taxpayers pay no more than a 15 per cent salaries tax, but Hongkongers who work on the mainland for more than 183 days in a 12-month period pay individual income tax at a rate of up to 45 per cent.

Sun said this could change as Nansha strives to develop into a "new Guangzhou and new Hong Kong", learning from the experience of both cities.

"We chose Hong Kong to be the [model] of our individual income tax's design, and the policy is under consideration and formulation. We are trying to obtain the central government's approval before it can be implemented ... [and I hope] it will provide convenience for Hong Kong and Macau enterprises to develop and set up businesses here."

The Nansha New Area development zone is being built on a platform of co-operation with Hong Kong. Sixty square kilometres of Nansha have been earmarked for development under a closer economic partnership arrangement.

Ideas put forward to develop the area include turning it into a financial centre in which Hong Kong banks could be invited to establish regional headquarters, and building a film and television production base to help support Nansha's tourism industry.

The Qianhai special zone in Shenzhen has already proposed similar tax cuts to attract Hong Kong investors.

To ease worries about legal differences between Hong Kong and the mainland, Nansha set up an international arbitration centre in October, in which Hong Kong arbitrators could serve and mediate between firms.

"We encourage the use of Hong Kong law in arbitration," Sun said. "And some new contracts signed between enterprises here have already included the arbitration clauses, with reference to Hong Kong law."

The centre has not received any cases yet. According to China's 12th five-year plan, Nansha will develop into a commercial and service hub that serves both the mainland and Hong Kong. It is also a pilot development zone for co-operation between Guangdong and Hong Kong.

Qianhai in Shenzhen and Hengqin in Zhuhai were also written into the plan for 2011 to 2015 as testing grounds for new free-trade-zone concepts.

This article appeared in the South China Morning Post print edition as: Nansha eyes same rate of income tax as HK