2. Shenzhen – A City of Innovation Nov. 2nd, 2005 London, United Kingdom Wang Xuewei Director General Shenzhen Bureau of Trade & Industry

3. Summary Brief Introduction of Our City Our Competitive Advantage UK Links with Shenzhen Toward the Future and Beyond

4. Brief Introduction of Our City Key Factors Location History & Today Population Economy High-tech Industry Living Environment

5. Location China in the World

6. Shenzhen Location Shenzhen in China

7. Location Pearl River Delta

8. History Shenzhen in 1982

9. Shenzhen Today

12. In 1979, Shenzhen was still a small frontier town with a population of less than 30, 000. In 2004, the number of permanent residents in Shenzhen was 6 million. Population

13. GDP & GDP per capita Economy Between 1979 and 2004, the economy of Shenzhen witnessed an extraordinarily rapid growth.

14. GDP Growth Rate: 28% In 2004, Per Capita GDP Reached $7100, ranked No.1 in China. Industrial Output Growth Rate: 43.4% Foreign Trade Growth Rate: 37.9% Economy

15. Export: USD 77.85 billion in 2004 No.1 for 12 consecutive years among all major cities in China Import & Export: Annualized Increase 37.8% (1980-2004) Economy

16. Foreign Direct Investment (1979-2004) 26,881 foreign-invested projects From 80 countries and regions FDI : USD 27.53 billion Up 27.4% annually (1980-2004) Economy

17. High-tech Industry Developed manufacturing industry employing high technology: Electronics and Information technology Telecommunication equipment New materials, new energy Optical electromechanical integration Biological engineering

18. 8.32 Million Hard-disk Color TV 18.57 Million 9.90 Million Monitor Semi-conductor IC 2.56 Billion Outputs of Key High-tech Gear in 2004 7.35 Million PC Switching Boards 19.77 Million High-tech Industry

19. In 2004: IT Output Value: RMB 327.8 Billion 10% of the Nation’s Total Technology Patents: 15 Thousands Ranked No. 3 among Chinese Cities High-tech Industry

20. High-tech Enterprises in Shenzhen Huawei Technologies Huawei has been included into BT ’ s supplier short list High-tech Industry

21. High-tech Enterprises in Shenzhen

22. China High-tech Fair

23. One of The Most Livable Cities. Forest coverage rate is 44%. The average public green land per person is 14 square meters. Living Environment

24. Sound infrastructure A well-Developed financial services system Relatively low overall business cost Superior backup facilities for industries An immigrant culture Efficient Government Our Competitive Advantage Key Factors

25. Sound Infrastructure The only city in China that boasts international sea, land and air ports. The 4th largest container terminal in the world The largest land port of both goods and passengers The 4th largest airport in China

26. A Well-developed Financial Services System 102 financial institutions, over 40, 000 financial staffs 38 Foreign Banks One of the only two Stock exchanges in China 140 Venture Capital enterprises, half of the whole country’s total

27. Corporate income tax rate:15% Income tax exemption for the first 2 profit-making years and half reduction for the ensuing 3 years Hi-Tech firms:2 years tax holiday & 6 years half reduction Sound legal system, well-protected rights and interests for foreign investors Well-established market economy in line with international practice Relatively Low Overall Business Cost

28. Production base, R&D base, transaction base of hi-tech products, including: Computer & parts, Computer software, Communication equipment, Audio visual products, Biological engineering products etc. In a two-hour drive, you can secure: 90% electronic parts & components 80% machinery and moulding materials 60% auto-electronics, plastics and hardware components Superior Backup Facilities for Industries

29. The average age of the local residents is 30. High-caliber labor resources Favorable policies to absorb human resource Shenzhen Virtual University Park A city of innovation and entrepreneurship An Immigrant Culture

30. One-stop-straightforward government services E-government Simplified procedures Efficient and supportive 24-hours custom clearance, electronic inspection Power and water supply are better than others cities Efficient Government

31. Top 7 Investors in Shenzhen from 1979-2004 UK Ranking the 7 th UK Links with Shenzhen

32. Top 7 Countries & Regions Export to Shenzhen in 2004 UK Ranking the 16th UK Links with Shenzhen

33. Top 7 Countries & Regions Import from Shenzhen in 2004 UK Ranking 7th UK Links with Shenzhen

34. Year of 2004: Import from UK USD 381.14 Million Export to UKUSD 1.7 Billion Jan. - Sept., 2005: Import from UK USD 302.74 Million Export to UKUSD 1.48 Billion Export Import UK Links with Shenzhen

35. As of 2004: FDI from UK: USD 1.17 Billion 139 UK projects in Shenzhen Jan. - Sept., 2005: FDI from UK: USD 81.3 Million FDI UK Links with Shenzhen

36. Up to now: Established 2 companies and organizations in UK Total investment: USD 555.8 Thousand UK Links with Shenzhen FDI

37. Top Priority Industries Panel Display IC Front-end Working Procedure Biological Engineering New Material, New Energy Optical electromechanical integration Fine Chemicals Automobile & Spare parts Toward the Future and Beyond

38. Next Objective Comprehensive economic zone of national dimension Regional traffic hub Port city featuring container transport Regional central city in synergy with HK Regional manufacturing base buttressed by high-tech industry International metropolis with subtropical weather and coastal features Toward the Future and Beyond

39. Chief Representative: Zhang Yiping Add: Ostendstr. 100 D - 90334 N ü rnberg Germany Tel: (0049 911) 9533 9143 Fax: (0049 911) 9533 9142 European Representative Office of Shenzhen, China : Our Presence in Europe

40. Welcome to Shenzhen Thank you !