Download Shenzhen - North American Representative Office of Shenzhen, China

Shenzhen:
China’s City of Innovation
- Overview and Incentives for R&D
Andrew Pan & Grace Chen
For Zebra Technologies
September 25, 2009  California
Outline
• What’s Shenzhen?
• Why Shenzhen?
• What Does Shenzhen Offer?
What’s Shenzhen?
Shenzhen is in the seaboard area of South China neighboring Hong
Kong, and in the Pearl River Delta
Shenzhen in Greater China
Shenzhen
Shenzhen in 1985
Shenzhen Today
Shenzhen:
Facts and Figures
• China’s 1st and most successful
Special Economic Zone
• Population: 12 million; Area: 1,953
square kilometers
• China’s 4th largest city economy;
China’s manufacturing,
technology, trade and port city
• New city, high priority for
international trade and foreign
direct investment
• A clean, safe, recreational city
with mild weather and the best
living quality in China
Shenzhen:
Major Industries
• Consumer products manufacturing
• High-tech products manufacturing and R&D
– IT
– Biotech
– Clean-tech
• Logistics center in South China
– Port of Shenzhen is world 4th largest container
seaport
– Shenzhen Airport is China’s 4th busiest airport
– Shenzhen has an advanced and extensive
highway and railway system
• Regional financial center
– Shenzhen Stock Exchange is one of two stock
markets in mainland China
Why Shenzhen?
Element 1: Proximity to Hong Kong
Shenzhen was established
Talent Inflow
due to its proximity to Hong
Kong. This historically led to
Open
Economy
Immigration
& Migration
a great deal of crossfertilization due to a constant
exchange of people, ideas,
Financial
Services
Center
Proximity
to HK
Cultural
Adaptability
culture, business practices
and norms
Legal
Services
Center
Multilingual
Multicultural
Why Shenzhen?
Element 2: China’s 1st SEZ
Shenzhen was granted SEZ status in
Industry
knowledge
1980 established by leader Deng
Xiaoping to boost the country's
reform process, open up the economy
and commence China’s
modernization drive. This resulted in
the creation of a liberalized and
Mix of
Industry
Verticals
Mix of
Manufac
&Services
Industries
Investor
friendly
environment
China’s 1st
SEZ
Benefits
& SOPs
planned environment long before it
happened anywhere else in China
Domain
Skills
Talent
variety &
depth
Infrastructure
Combining these 3 elements gives Shenzhen unique
location advantages for the ITO/BPO Industry
Demographic Advantage
Elements
Shenzhen
Beijing
Shanghai
GDP Growth Rate (2003-2008)
12.30%
9.20%
10.60%
Population Growth Rate (2000- 2007)
28.60%
9.38%
10.07%
76%
49%
48%
7.95%
3.16%
2.88%
100
134
122
% of Employed Population
Growth in Employed Population (2003-2008)
Pay Difference Index
Element 1: Proximity to Hong Kong
Element 2: China’s 1st SEZ
Industry
knowledge
Talent
Inflow
Open
Economy
Financial
Services
Center
Legal
Services
Center
Immigration
& Migration
Proximity
to HK
Cultural
Adaptability
Multilingual
Multicultural
Mix of
Industry
Verticals
Mix of
Manufac
&Services
Industries
Investor
friendly
environment
China’s 1st
SEZ
Domain
Skills
Infrastructure
Benefits
& SOPs
Talent
variety &
depth
Human Capital
• Shenzhen population has an average age of 28 years
• Shenzhen area has 121 full time colleges and universities with
220,000 graduates every year
• Shenzhen also draws graduates from China and overseas because of
the dynamic economy and abundant opportunities
• Shenzhen has 791,000 skillful technical and engineering personnel,
mainly IT engineers
• The English level is higher than the average level of the country
• Labor cost is highly competitive
Infrastructure
•
Telecom
–
•
Shenzhen has 24.3 million phone lines, 5.8 million are land lines and
18.4 million are mobile
Internet Access
–
Dial-up networks, broadband networks, IP metropolitan area
networks, wireless data networks
–
10 GB/s backbone bandwidth and 2.5 GB/s transmission bandwidth
•
Power Supply
–
Shenzhen’s Municipal Power Authority provides an uninterrupted
source of electrical power to 4.16 million users
Infrastructure
SEAPORT
LAND PORT
21.10
Million
177.7
Million
20.62
Million
(passenger)
(passenger)
1st in China
4th in China
(TEU)
4th in the world
AIRPORT
2007 Figures
Hong Kong International Airport is 45 minutes from Shenzhen with nonstop flights to all major North American cities
0
What Does Shenzhen Offer?
• City Policies
– Shenzhen Municipal Government’s Provisions on Development
of High-tech Industries
– Shenzhen Municipal Government’s Provisions on Expediting
the Development of R&D and High-end Service Industries
What Does Shenzhen Offer?
• City Incentives
• Exemption and/or rebate of corporate income tax
• Exemption of tariffs and import value-added taxes for self-use imported
equipment
• Financial support for enterprises applying for international certification,
e.g. ISO, CMMI/CMM, etc.
• R&D expenditure subsidies and tax deduction
• Financial support for enterprises developing products with
independent intellectual property
• Loan interest subsidies
• Office space rental subsidies
What Does Shenzhen Offer?
• Shenzhen City Government attaches great importance to IPR
protection, with a strategic position to build the city as an
innovation-oriented city
• China’s State Intellectual Property Bureau and Shenzhen City
Government signed the "Protocol for Jointly Building a Strong
IPR City," making Shenzhen the first city in China to position
IPR as a priority (December 13, 2007)
Shenzhen Software Park
About Our Office
• Based in Los Angeles, CA
• Shenzhen’s only investment
and trade promotion office in
North America
• Our FREE services:
– Provide China/Shenzhen
general/business information
– Consult on China/Shenzhen
business policies and
incentives
– Facilitate business setup and
transaction
– Chinese government relations
– Support daily operation
Contact
Please contact us for more information:
Andrew Pan, Chief Representative
Grace Chen, Operations Manager
Tel: 213-628-9888 Fax: 213-628-8383
E-mail: [email protected] or
[email protected]
Web: www.shenzhenoffice.org