We are very pleased to invite you to the Briefing on Zhanjiang (Guangzhou) Investment Environment 2003, which is cosponsored by Guangdong Provincial Economic & Trade Commission and Zhanjiang Municipal People’s Government. Here I would like, on behalf of the CPC Zhanjiang Committee, Zhanjiang Municipal People’s Government and over 7 million Zhanjiang People, to extend our warm welcome to all the guest for being here, and express heartfelt thanks to all the friends who have being caring for and support Zhanjiang’s economic construction and social development.

The purpose of the Briefing is to promote Zhanjiang and strengthen the communication between Zhanjiang’s business and those conglomerates of Guangdong Province, and expand cooperation and exchange in economy and technologies. Next, I shall introduce you the investment environment of Zhanjiang and share with you the information about the forthcoming Zhanjiang Industrial Exposition 2003.

1) A Regional Transportation Hub. Zhanjiang is a regional central city in the West Guangdong and Beibu Gulf, one of the 14 coastal cities firstly open to the outside world, also among the list of top 50 cities in terms of comprehensive strength and that of the top 40 cities in terms of infrastructure. The city has perfect infrastructure, complete facilities and convenient sea, air and land transportation. The Li-Zhan Railway, San-Mao Railway and Yuehai Railway connect Zhanjiang with the national railway trunks. The Zhan-Hai line of Yuehai Railway runs across Leizhou Peninsula with train going directly to Hainan Province through the train ferry. Luo-Zhan Railway is under construction. There is national highways like No. 207 and 325 reaching out in all directions. Zhan-Mao Expressway has been open to traffic. Guangzhou-Zhanjiang and Chongqing-Zhanjiang Expressway will join together in Leizhou Peninsula. There are 31 airlines bound for Beijing, Shanghai, Guangzhou, Chengdu, Changsha and Hongkong as well as more than 100 flights per week.

2) A Port City. 2000 years ago, the “silk road over the sea” that is the earliest sea route for foreign trade, started from Xuwen harbor which is within today’s Zhanjiang. Zhanjiang Port is renowned for being large, top-quality and deep. It possesses over 20 berths allowing the passage of ships of 10,000-50,000 tonnage. The Port has the first oil terminal for 300,000 DWT tanker, a modernized iron ore terminal for 150,000 DWT vessel in China. It also has the deepest deepwater channel in the South China, which allows the anchorage of 150,000 DWT vessel. Currently, the dredging of 300,000-ton channel is under construction. Therefore, Zhanjiang is regarded as the national-level harbor and a key harbor in South China in terms of container transport for domestic trade. Superior port resource enable Zhanjiang to become a commodity, trade, labor service and information center and a main passage to the sea for the South-west China.

3) A Marine City. Zhanjiang teems with marine resource. The city faces the sea on three sides. It owns 30 islands and 1556km-long coastal line which makes up 46% of provincial total, per capita coastal line equal to that of Japan. The coast of Zhanjiang is featured by its tropicalization, diversification and richness, with abundant marine and mineral resource. The output of marine products stands first in the province for many years. The yield of sea pearl accounts for two-thirds of the country’s total. The salt output makes up a half of the province’s total. The Xiashan aquatic products wholesale market is the biggest prawn transaction market in China.

4) A Southern Subtropical City. Thanks to its unique geographical location and climate, Zhanjiang is in a good position to develop many tropical and subtropical crops. Today, Zhanjiang owns an important sugar production base and the largest plantation base for eucalyptus, sisal hemp and mangrove in China. Zhanjiang abounds with vegetables as well as tropical and subtropical fruits of many kinds.

The shortest sea voyages to Africa, Middle East, Europe, Southeast Asia and Oceania start from Zhanjiang port. The port has important strategic position in the Beibu Gulf regions, Southeast Asia Economic Rim and Asia Pacific Economic Rim as well. Zhanjiang will serve as the best “bridgehead” for Chinese cargoes waiting to export to the ASEAN markets.

Port Resource. Port resource is the most important advantage of Zhanjiang. Zhanjiang port is especially famous for its large areas, excellent conditions and deep water. Inner port’s coastline measures 241 kilometers, which is 4 times that of the world’s largest port – Rotterdam. Pool area of Zhanjiang port covers 2,400 square kilometers. The port has 97 kilometers deep water coastline available for berth construction, among which from Weilu in Donghai Island to Longteng, there are 6.5 kilometers coastline with depths ranging from 26 – 40 meters suitable for the construction of channel for over 300,000 tonnage vessels and the 5^th or 6^th stage’s container berth. Zhanjiang now consists 22 transportation ports and 174 berths. Annual throughputs are over 42.12 million tons. With Zhanjiang port now as the central, together with other medium or small – scale ports around Leizhou Peninsula, they form into a port group.

Sunshine Thermal Resource. Zhanjiang is located in the south of the tropic of Cancer, which belongs to tropical and subtropical marine climate. No extremity of temperature appear in winter or summer. Annual average temperature is 23°C. Sunshine length in one year range from 1864 ~ 2160 hours. Radiance per year is 102 ~ 118 therm /sq cm. Zhanjiang is one of the Chinese regions with abundant sunshine resource.

Agricultural Resource. Zhanjiang is a famous agricultural city with a great variety of agricultural, forestry, fish and livestock products; The city is one of the 4^th largest sugarcane bases of China, also the largest eucalyptus plantation base, the largest sisal and mangrove production base in China; The famous origin place for pineapple, mango and orange. The area of plantation, production volume and value of vegetables rank top among the five largest vegetable plantation bases in south China.

Marine Resource. Zhanjiang has 1,486 million mu of wetland, 8.36 mu of shallow sea area. 520 kinds of fish of commercial value and 547 kinds of seashell, 28 kinds of shrimp. The seafood production in Zhanjiang has ranked top in Guangdong Province for successive years. The yield of sea pearl of our city constitute 2/3 of the nation’s total volume. Shrimp products consist 40% of the province’s total.

Mineral Resource. At present, 33 kinds of minerals have been identified in Zhanjiang with 155 mineral deposits of exploration value. Large scale deposits are: 5.5 billion ton’s limestone, 30 million tons’ dolomite, 7.7 million tons’ quartzite. Reserves and quality grades of nonmetallic resource such as kaolin, diatomite, communalizebentonite, peat soil rank top of Guangdong Province. Zhanjiang’s kaolin reserve are of high quality, great deposits which show good potential for exploration. Daily flow of mineral water totaled about 4,000 cubic meters in Zhanjiang. The city’s underground hot springs can be planned for development.

Petroleum and Natural Gas Resources. The continental shelf in the northern part of the South China Sea is rich in deposits of crude oil and natural gas. It is one of the 4 largest petroleum and natural gas reservoirs of the world. It is predicted to have a petroleum production of 14.5 b tons and a natural gas production of 13,200 b cubic meters. The largest gas field 13 – 1 is located within the region, with a deposit of 100 b cubic meters. The headquarters of China Offshore Oil Nanhai West Corporation supplying gas for Hong Kong is set up in Zhanjiang. Through 20 years of exploration, the Corporation has found 5 gas fields, 13 gas filled formations, with identified gas reserves of over 350 b cubic meters; Also found 12 gas fields, 4 oil bearing formations, with identified and control crude oil deposit of over 0.24 b tons. Presently 3 oil fields and 1 gas field are under exploitation.

Tourism Resource. Three colors are used as a symbol of Zhanjiang tourism resources. Blue for its coastal scenery; Green for ecological agriculture; Red for the local traditional culture. Within this colorful city, there are tourist resorts such as Donghai Island, Jizhao Bay and Nansan Island, Wuyang Golden Beach, Xuwen White Sand Bay. Huguangyan – one of the 2 Maar lakes existed on the earth is located in Zhanjiang. Huguangyan is now assessed as a state level geological park.

Sci – tech Personnel Resource. Zhanjiang has 3 full Zhanjiang has 3 full – time higher education providers: Zhanjiang Ocean University, Guangdong Medical College and Zhanjiang Normal University. Zhanjiang city ranks second in Guangdong in numbers of college/university, only next to Guangzhou. At the same time, the city has over 90,000 professional technicians with different expertise, 48 scientific research institutions, 5 engineering technology development centers and 2 pilot scale experimental base. These personnel resource from higher education institution and scientific research centers would provide technology support and guarantee for investors who would like to come to Zhanjiang and start up new business.

Excellent Environment. Zhanjiang has established environment most suitable for investment, working, study and living. The city is one of the 40 excellent cities in China with complete infrastructure. Investors would find themselves under pleasant climate, enjoy the coastal scenery. The city’s environment quality is excellent. Zhanjiang is a state level ecological demonstration city while the Lianjiang County- level City and Xuwen County under its jurisdiction are also assessed as state-level ecological demonstration counties. In recent years, Zhanjiang puts more efforts to improve its environment. As we become more skillful with urban planning, great changes have taken place in the city and its features as a southern coastal city are more eminent than it used to be.

Industrial Advantages. Relying on its privileges in resources of ocean, port and abundant agricultural and seafood products, Zhanjiang has preliminarily established 8 feature mainstay industries and 4 bases. 8 industries include: Coastal Petro- Chemistry, Offshore Oil and Gas Exploration, Power Generation, Paper Making, Seafood and Agricultural Products’ Processing, Fodder, Textile, Electrical Appliance & Machine. 4 preliminary bases are: Southern Petro-Chemical Base, Seafood and Agricultural Products’ Processing Base, Specialize Paper Making Base and Household Electric Appliance Manufacturing Base. Large scale projects such as the 5 million ton refinery, 700,000 ton pulp processing plant and the Southern state Aquaculture and Seedling Base under the 863 National Plan are accelerating in construction.

Excellent Services. Zhanjiang insists on the strategy of simultaneous development of all industries. We are willing to provide full support to the expansion and growth of the Central or Provincial Control enterprises, local state own enterprises, joint ventures and private own enterprises. First step is to provide excellent services to the enterprises. Last year, Zhanjiang has established the Government Administration Service Center to provide one package services to investors who intend to bring key projects to Zhanjiang. Local governmental departments will help them to render all procedures of exam and approval. Working days for each procedure are respectively defined and published as regulations, which will help to increase the work efficiency; Regular meetings with the investors are arranged for suggestions. Onsite problem – solving and tracking services are provided in the Center in order to give top notch service to the investors.

Zhanjiang is going to hold the Industrial Exposition 2003 from November 26^th to December 1^st. Sponsors of the exposition are: Zhanjiang Municipal People’s Government and Guangdong Provincial Economic and Trade Commission. Planned participant of the exposition will be over 5000 persons. We set 550 standard berths for product demonstration and over 500 enterprises will be invited. Major programs for the exposition include: Industrial Products Demonstration, Investment Discussion, Business Discussion, Seminars, Lectures, Seafood Festival, Pearl Festival, Chinese Traditional Folk Art Lion Dance Invitational Tournament. During the festival, the state level Economic and Technological Development Zone will hold the Annual Investment-promotion Meeting and the International Investment & Cooperation Forum, the National Private owed Entrepreneur’s Seminar would also be held in Zhanjiang during the exposition. Construction startup and complete ceremonies of 12 large scale projects, such as the Southern State Aquaculture and Plantation Seedling Demonstration Base, Zhanjiang Orismulsion Power Generation Plant, etc. 20 projects with a total investment of RMB 15 b will also sign their contracts during the exposition.

The Industrial Exposition will provide good opportunities for entrepreneurs to investigate and look for cooperation & investment possibilities. We offer our warmest welcome for your distinguished guests’ participation. You are welcome to tour our city and establish businesses. CPC Zhanjiang Committee, Zhanjiang Municipal People’s Government promise to provide all investors with the best environment, high quality services and most preferential policies that would satisfied the investors.