Welcome to Tianjin Port Free Trade Zone & Tianjin Airport Industrial ParkInvestment Seminar

Introduction of

Tianjin Port Free Trade Zone

What’s Free Trade Zone? The specific operation module is “outside

customs & inside territory”, which combines

the preferential policies of national opening

development areas, and makes the FTZ a most

outstanding open area.

Survey It was founded on the 12th May, 1991, with the approval of the St

ate Council. It is located at the center of the Bohai Bay. It connects 13 provinc

es, municipalities of north China, facing toward north-east of Asia.

It is the largest free trade zone in northern China as well as the only free trade zone in northern China and north-western China.

The total acreage is 5 square kilometers, and composing two parts, as the FTZ of sea-port and FTZ of air-port.

The FDI in TPFTZ was 37.7% of total 13 FTZ in China, 27.1% of Tianjin.

Air-port FTZSea-port FTZ

Location — Sea-port FTZ

It is located at Tianjin Port, 40 kilometers away from downtown Tianjin, 1 kilometers away from Tianjin New Port, 140 kilometers away from Beijing and connected with main state railway system.

Investment Gathering Land More than 4,500 enterprises registered in TPFTZ and its e

xtension area. These investors come from 27 provinces, municipalities and more than 100 countries and regions throughout the world, including 49 companies from the Fortune 500 corporations, more than 700 companies was invested by US company, the most famous was Caterpillar, Caltex, John Deere, Dana, Ford, Esso, etc.

By the end of 2004, we have accumulated ￥ 42 billion of GDP; $57.6 billion of total amount of cargoes in-and-out of the zone; ￥ 16.8 billion of fixed assets investment; $8.7 billion of foreign investment and $4.1 billion of practical foreign capitals.

Introduction of

Tianjin Airport Industrial Park (The Expanded Area of TPFTZ)

TAIPTPFTZ

Free Trade Zone

Hi-tech Processing and Manufacturing

CBD Residential Area

Location — TAIP

Beside Tianjin Binhai Airport, it is 3km away from Tianjin, 30km away from Tianjin Port and 110km away from Beijing.

Why invest in

TPFTZ & TAIP ?

Six Advantage Locality Advantage Functional Advantage Policy Advantage System Advantage Cost Advantage Service Advantage

Locality Advantage Multi-transportation system Sea transportation: The Tianjin Port has had trade contacts with over 300 ports

from more than 160 countries and regions throughout the world. With nearly 70 container lines bringing in 300 liners each month, it has established friendly port relationships with more than 12 ports in United States, Japan, South Korea and other countries. 2 scheduled ships to America main port, 3 scheduled ships to Europe main port, 16 scheduled ships to Asia main port, 2 scheduled ships to Australia main port every week.

Locality Advantage Multi-transportation system Air transportation: It is the second largest international airport next to the

Capital airport in Beijing, and it has reached 4E-level. It has become a large modern international airport which owns 43 domestic and international air-lines, receives 400 flights each week, has an annual passenger handling of more than 1,000,000, and an annual cargo handling of about 100,000 ton.

Locality Advantage Multi-transportation system Railway transportation: Connects directly with the northern loop lines of the T

ianjin trunk. Highway transportation: 7 high way make the domestic transport convenient.

Air-port FTZSea-port FTZ

Functional Advantage

International Trade Logistic Processing Exhibition

Policy Advantage Preferential Policy Imported equipment, raw materials, parts and commodities

are exempt from duty and other import-linked taxes inside Free Trade Zone.

The control of foreign exchange is relaxed and flexible. Enterprises in the Zone can use foreign currency to settle their accounts, the form of the settlement of exchange is up to their choice.

Policy Advantage Preferential Policy There is no need to open guarantee account when doing pro

cessing trade. Customs clearance and inspection are quick and convenient. Goods are carried from zone to seaport or airport freely, vic

e versa.

System Advantage The Tianjin Port Free Trade Zone Administrative Com

mittee is in charge of the administration of TPFTZ & TAIP.

Organizations including the Customs House of the Free Trade Zone, Inspection and Quarantine, Foreign Exchange, National and local tax agencies, the public security organ, the procurator organ, the People’s Court, Fire Control and even Social Insurance have already entered the TPFTZ & TAIP.

Cost Advantage Land cost:

The infrastructure at the TPFTZ & TAIP which includes roads, feed water for a steam engine, sewage, electric power, combustion gas, central heating, and communication, has already been completed. The land is being sold to Multi-national corporations invested project at the reduced price about $10~15 per square meter.

Cost Advantage Human resources cost :

-￥

5, 000. 00￥

10, 000. 00￥

15, 000. 00￥

20, 000. 00￥

25, 000. 00￥

Shanghai Bei j i ng Guangzhou Ti anj i n Chongqi ng

The compai son between sal ary i ncomes per person of thefi ve bi ggest ci t i es

Cost Advantage

Traffic cost:

TPFTZ has good transportation facilities. The aero-amphibious transport is easy, which saves traffic costs.

Service Advantage Our Slogan is: investor priority, service priority and

efficiency priority.

For the business registration, the zone has developed a one-stop system. You can get all the approval assisting by our committee, such as business license, customs registration, foreign exchange registration, employment and so on.

What Can We Provide? Land (Electricity, Water and drainage, Heating and cooling,

Steam, Communication, Roads, Gas)

Available standard factory

Design and build the factory right for you according to your requirement, you can either lease or buy

You can lease land and build your own factory or lease the factory which was designed and built by the real estate companies right for you according to your requirement.

Free Trade Zone

Hi-tech Processing and Manufacturing

You can lease land and build your own factory or lease the factory which was designed and built by the real estate companies right for you according to your requirement.

What can you enjoyed

In

TPFTZ & TAIP ?

1, multi-functions benefits investors’ fully development

Research and development center High technology processing and manufacturing (including

electronics, information industry, automobiles & car-parts manufacturing, medicine, textiles, foodstuff, and mechanics)

Bonded storage, logistics and processing export

2, A large potential market

The economic hinterland of TPFTZ & TAIP covers 13 provinces and cities in North China, Northwest China and Northeast China.

The quickly development of Chinese market. it is just your

potential markets.

3, A mature raw material market

Since the 1980’s more than 150 modern industries has been formed in Tianjin, including the electronics, automobiles, metallurgy, medicine, textiles, chemicals, and mechanics. Tianjin is becoming an important integrated industrial base, powerful in manufacturing auxiliary items for industry, and capable of sustained rapid development. You can find raw materials in Tianjin easily.

4, Abundant Human Resources

Depending on the cities of Beijing and Tianjin, it has the rich human resources

We have 26 universities, 108 R&D centers and over 150 training institutes in Tianjin. It is very easily for you to employ all kinds of intelligence and workers.

5, the most preferential incentives

You can enjoy all the incentives granted by the state to foreign invested enterprises.

You can also enjoy the incentives granted by Tianjin Government.

TJFTZ Administrative Committee provide subsidy for foreign invested Hi-tech manufactory.

Welcome invest in

Tianjin Port Free Trade Zone&

Tianjin Airport Industrial Park