Why Choose Dalian for Investment

 

Why Choose Dalian
 
Fine natural harbor
Advantageous geographic location
Pleasant climate
Rich natural resources
Vast hinterland and market
Well-established infrastructures
Efficient and enlightened government
Strong scientific and technical capability
Internationalized metropolis culture
First class living environment
Low operation cost
Strong economic growth
Stable and safe economic environmentment
 
 
World Famous Enterprises that have Wisely Chosen Dalian 
 
GE, Goodyear, Pfizer, Dell, Accenture, Wal-Mart, Canon, Toshiba, Mabuchi, Sanyo, Matsushita
Hitachi,LG Industry, Hyundai, Posco, Carrefour, Total, Tyssen Krupp, Liebherr, Nokia, Ericsson
 
 
Industry
 
In 2005, rapid growth in industry was sustained. The total value of industry reached 249.19 billion Chinese Yuan, 
increased by 23.1%. The added value of industry was 64.86 billion Yuan, increased by 21.2% according to comparable 
price. The enterprises engaging in digital audio and video, fine chemical, machine tool, refined steel, bearing, 
pharmaceutical, port facility, new building material, furniture, garment and glassware industries also top the list 
in China in terms of scale.
 
 
Agriculture
 
Dalian is a famous fruits production base aquatic products from Dalian are well known both in China and abroad.
Annual production volume:
Grain: 875 thousand tons
Vegetables: 2.12 million tons
Fruits: 652 thousand tons
Aquatic products: 2.18 million tons
Meat: 319 thousand tons
Poultry and eggs: 158 thousand tons
Dairy products: 78 thousand tons
 
 
 
Finance
 
Eight overseas banks have set up operating branches, and Six foreign financial institutions have set up offices in Dalian.
U.F.J.Bank Ltd. Dalian Branch
The Yamaguchi Bank, Ltd. Dalian Branch
The Bank of Tokyo-Mitsubishi, Ltd. Dalian Branch
Mizuho Corporate Bank Dalian Branch
NANYANG Commercial Bank Dalian Branch
The Bank of East Asia, Ltd. Dalian Branch
HSBC Dalian Branch
Korea Exchange Bank Dalian Branch
Sumitomo Mitsui Banking Corporation Dalian Representative Office
Standard Chartered Bank Dalian Branch
BNP-Paribas international finance Dalian Representative Office
The Bank of Fukuoka, Ltd. Dalian Representative Office
The San-in Godo Bank, Ltd. Dalian Representative Office
JCB Internatinal Co., Ltd. Dalian Representative Office
 
 
Education and Talents
22 colleges and universities where there are 189 thousand students.
18 academicians from China Academy of Sciences and China Academy of Engineering.
 
 
Urban Construction
 
---Urban green coverage has reached 42%, per capita public green land is 10 square meters.
--- Dalian received United Nations Human Habitat Award in 1999.
--- Dalian received United Nation Environment Programs Global 500 Award in 2001.
 
 
Preferential Policies for Foreign Investors
State regulations provide that the income tax for enterprises with foreign investment is 30% of the taxable income, 
yet for those enterprises operating within the jurisdiction of Dalian municipality enjoys a favorable tax rate of 24%, 
and enterprises operating within those pilot zones enjoys an even more favorable rate of 15%.
Any enterprise with foreign investment of a production nature scheduled to operate for a period of not less than ten 
years shall, from the year beginning to make profit, be exempted from income tax in the first and second years and 
allowed a fifty percent reduction in the third to fifth years. These enterprises shall also be exempted from local 
income tax, which is 3% of the taxable income for seven years.
For those enterprises that export their products, after the above favorable treatment period expires, the rate of 
corporate income tax shall be 12% if 70% or more of their total product value in the year are exported, and this 
rate is 10% for enterprises in the Pilot Zones. 
Technically advanced enterprises can enjoy three more years of favorable corporate income tax rate of 12% after the 
above tax benefits period expires, and for the enterprises operating in the Pilot Zones can enjoy an even more favorable 
rate of 10%.
Foreign investors who reinvest their profits/dividends from their enterprises in China for a period of or over 5 years 
can be refunded 40% of the tax they have paid for the reinvested amount. For reinvestment that is injected into an 
export-oriented enterprise or enterprise with advanced technology, all the income tax that is already paid on the 
reinvested part will be refunded.
Equipment imported by overseas-funded projects for their own use is exempt from customs duties and import linkage 
value added taxes, provided these projects are listed in the Catalogue for the Guidance of Foreign Investment 
Industries as projects being encouraged, except those listed in the Catalogue of Commodities Imported by 
Overseas-funded Projects which Shall Not Be Entitled to Any Tax Exemption. 
If manufacturing enterprises with foreign investment can meet the following requirements, they are allowed to be 
engaged in purchase and export of the commodities which are not controlled with quota, permit or exclusive rights, 
and may participate in the export quota bidding for their self-manufactured products. 
1. Foreign-funded manufacturing enterprises with an annual export volume of over 10 million US Dollars.
2. No record of violation of laws or regulations concerning taxation, foreign currency and import and export for 
two consecutive years before applications.
3. With professionals in international trade.Foreign investors working in the joint venture companies will be 
exempted from personal income tax for the dividend and bonus they get from their joint venture companies.
For those overseas students pioneering in Dalian, if they are using high and new technology achievements for 
production, their salaries earned in Dalian will be regarded as income outside China and they can enjoy preferential 
personal income tax policies. 
Children of those foreign staffs working in the joint venture companies shall enjoy preferential tuition fees 
graduation certificate will be issued after they have finished all the courses and passed the exams.
Relaxing entry requirements for qualified personnel employed by foreign invested enterprises Lifting residence 
registration restrictions for technical staffs and senior management personnel needed by foreign invested enterprises.
 
 
 
 Infrastructure
 
The annual cargo handling capacity of Dalian port is 145.162 million tons, the container handling capacity is 
2.2112 million TEU.
The passenger volume of Dalian airport is 4.614 million person-time, the cargo and mail handling capacity is 
118 thousand tons, and it has opened over 88 air routes, among them 17 are international routes, including 
Dalian to Japan, Korea, Russia and Hong Kong.
The Dalians expressway which has linked Shenyang, Beijing, Changchun and Harbin has the mileage of 244 kilometers.
There are totally 600 million Cubic meters of water reserve in the over a dozen of reservoirs dispersed across 
Biliu River and Yingna River. The daily water supply capacity is 1.3 million tons with 900 thousand tons of water 
being actually utilized. With the increasing demand for the future development of the city, Dalian will divert 
water from Dayang River and Yalu River.
Sufficient supply of power and gas can meet the requirements of economic development.
 
 
Commerce
 
 
The turnover of social consumption goods in 2005 is 73.2 billion Yuan, which was increased by 13.5% than that of 
the past year. 
By the end of 2004, the trade volume in Dalian Commodities Exchange Center has surpassed 17900 million Yuan, it 
ranks the top in Asia and the second in the world, only next to Chicago, U.S. 
Dalian hosts nearly 60 domestic and international exhibitions each year including the Dalian International 
Garment Fair, which is one of the three largest garment fairs in China. It is also quite influential among 
the world fashion circle.
 
 
Tourism
 
Dalian is one of Chinas top ten tourism cities, major attractions include:
The Xinghai Plaza--Backed by mountains and facing the sea, it has a total area of 1.8 million square meters.
Lushun Snake Island- a marvelous world for animals
Golden Pebble Golf Course-rated the sixth among US Golf Club Member Courses in 1999, the 7th lane is the most 
challenging one and is praised as the demon lane.
Beach Road: It is a national level scenic spot with a total length of 35 kilometers. The road links through over 
a dozen tourism attractions including the Charm of the Sea Square, the Bangchui Island, the Tiger Beach Park, 
the Beida Bride, the Golden Sand Beach, the Bird Nest Ridge, the Fujia Villa and the Xinghai Plaza.
SunAsia Ocean World: Chinese first under-water tunnel aquarium with a length of 118 meters, it ranks the top in Asia.
Polar Ocean Animal Park: large ocean water park with various kinds of polar animals.
 
 

 
Documents Required for Establishing Foreign Invested Enterprises
 
Name Registration Form provided by the Industry and Commerce Bureau
Project Proposal (joint-ventures and cooperative enterprises)
Application for project (solely foreign owned enterprises)
Enterprise Application Form (solely foreign owned enterprises)
Contracts for lease or purchase of sites for production or offices of foreign-funded enterprises, or contracts 
for land use rights. (leasing agreement and duplicate copy of the owners property certificate should also be 
provided )
Feasibility study report
Contract (joint-ventures and cooperative enterprises)
Articles of Association for the company
Duplicate copies of the business licenses for both parties (duplicate copies of identity cards for investors 
investing in personal names).
Credit status certificates for both parties (original copy and duplicate copy)
Appointment Letters for members of the board of directors, name list of the board of directors and duplicate 
copies of the aforementioned persons ID cards.
Examining and approval comments of the administrative authorities of the industry. (special industries listed 
by the Central Government).
 
 
 
Procedure for Establishing Foreign Invested Enterprises
Investor
Locate office site
Pre-register companys name at the Industry and Commerce Bureau
Compile feasibility study report
Projects that are encouraged or allowed in Catalogue for the Guidance of Foreign Investment Industries 
and need not to be balanced by central government with a total investment volume of less than 30 million US 
Dollars.(1)
Projects that are encouraged or allowed in Catalogue for the Guidance of Foreign Investment Industries 
but need to be balanced by central government or projects listed as restricted ones with a total investment 
volume of less than 30 million US Dollars. (2)
Projects that are encouraged or allowed in Catalogue for the Guidance of Foreign Investment Industries 
and need not to be balanced by central government with a total investment volume of over 30 million US Dollars. (2)
Projects that are encouraged or allowed in Catalogue for the Guidance of Foreign Investment Industries 
but need to be balanced by central government or projects listed as restricted ones with a total investment 
volume of over than 30 million US Dollars.(3)
(1)Registered, examined and approved by local foreign trade and economic cooperation bureau, local business 
promotion bureau or other local organizations with examination and approval rights
(2)Registered by competent municipal authorities (or submit to superior authorities), examined and approved 
by Municipal Foreign Trade and Economic Cooperation Bureau
(3)Registered by competent national authorities, examined and approved by The Ministry of Commerce(issuance 
certificate of approval)
Receive organization code form the Municipal Technical Supervision Bureau
Issue certificate of approval by the Municipal Foreign Trade and Economic Cooperation Bureau
Registration at the Municipal Industry and Commerce Bureau
Registration at the State Administration for Industry and Commerce (only for projects examined and approved 
by The Ministry of Commerce)
Receive the organization code certificate at the Municipal Technical Supervision Bureau
Registration at the Foreign Exchange Administration Bureau for opening the account
Registration at the Municipal Taxation Bureau
Registration at the Customs
Development Blueprint of Building a Great Dalian
With the aim to construct a well-off society in an all-round way, CPC Dalian Committee and Dalian 
Municipality have put forward the development blueprint of building a Great Dalian. 
* To expand the space for urban development
The urbanized area will be enlarged to Two cities and three stars. Two cities are namely the main 
city and the new city. The main city will have districts of Zhongshan, Xigang, Shahekou, Ganjingzi and 
Lushun under its jurisdiction the new city will cover Jinzhou, Development Area, Golden Pebble Beach, 
Double D Port, Dayao Bay Harbor Area into its administration. Three stars refer to the three satellite 
cities of Zhuanghe, Wafangdian and Pulandian. In the year of 2020, the urbanized area is expected to reach 
1000 Sq. meters with the urbanization rate increased to 85%.
* To enlarge the general economic volume
By the year of 2007, GDP will be doubled to that of 2000 with the per-capita GDP amounting to US $ 5000. By 
2010, GDP will reach 342 billion Chinese Yuan with a per-capita GDP of US $ 7000.
* To elevate the comprehensive urban functions
Special efforts will be directed to instill an international flavor into the city. Endeavors will be taken 
to ensure Dalian the important kernel status in the region of Northeast of China and Bohai-rim economic area.
* To forge a better urban environment
The urban construction work will be undertaken in a spirit of pursuing high profile and high standard. The 
most business friendly and habitat-friendly urban environment will be brought into being.