| Rating | |
| Year of Establishment | September, 1984 |
| Land Area | 20 km2 |
| Location | Dalian, Liaoning |
| GDP | RMB 70.3 billion (US$9.3 billion), 24.9% up |
| FDI | N.A. |
| Utilized FDI | US$1.1 billion, 50.2% up |
| Major Investors | Intel, West Pacific, Toshiba, Canon, NIDEC, E-Roma, Angang, Pfizer, Sanyo, Haier, Mitsubishi, Panasonic |
| Major Industries Encouraged | Petrochemicals, electronics and communications equipment, electrical machinery, metallic products |
Source: Administration Committee of Dalian Economic and Technological Development Zone
Introduction
Located to the north-east of an area that was once Dalian’s downtown area, Dalian Economic and Technological Development Zone (Dalian ETDZ) is the nation’s earliest state-level development zone.
Dalian ETDZ has convenient transport conditions. It is 30 km away from Dalian Port, which is the nation’s seventh largest port in terms of throughput, and 10 km away from the Dayaowan Container Port. Dalian also utilizes trains for delivering bonded freight to Harbin or Shenyang. The rail distance from Dalian to Shenyang is 400 km; to Harbin, 950 km; and to Beijing, 1,070 km.
Dalian ETDZ is 7 km from the Shenyang-Dalian Highway. It is also 24 km from the Dalian International Airport, which is China’s thirteenth-largest airport, in terms of throughput in 2007.
Investment Climate
In 2007, the GDP of Dalian ETDZ grew by 24.9% over the previous year to RMB 70.3 billion, while its FDI jumped 50.2% to US$1.1 billion. It has established petrochemicals, electronics and communications equipment, electrical machinery, and metallic products as its pillar industries.
The petrochemical industry is the most important industry in Dalian ETDZ. The West Pacific Petrochemical Corp is the largest investor in this field. Its crude oil processing capacity is over ten-million tons per year.
Intel is the main investor in Dalian ETDZ’s electronics and communications equipment industry. The Intel factory made an investment of US$2.5 billion, and is Intel’s first chip-manufacturing facility in Asia. Its investment has also brought over a hundred related downstream companies into Dalian ETDZ. Toshiba plays another major role in this field, with transmitting equipment capable of broadcasting audio and video as the major product.
Toshiba is also a major investor in Dalian ETDZ’s electrical machinery industry. It has two factories; one produces television, and the other has an output of motors, medical devices, and drums for video-cassette recorders.
Dalian ETDZ has a clear industrial plan. It has experienced successful transition from traditional labor-intensive industries to advanced manufacturing and high-tech industries. At present, the industrial output in the high-tech sectors accounts for 57.5% of Dalian ETDZ’s total industrial output.
Investment Costs
Land Rent Costs
| Purpose of Usage | Land Cost (RMB/m2/year) |
| Industrial | 20 |
Source: Administration Committee of Dalian ETDZ
Facility Rent Costs
| Type | Purchasing Cost (RMB/ m2) | Rent Cost (RMB/m2/day) |
| Standard Workshop | 1700-2500 | 0.4-0.9 |
| Office Building | 2300-4500 | 0.6-1.0 |
| House | N.A. | 0.3-2.6 |
Source: Administration Committee of Dalian ETDZ
Utility cost
| Purpose of Usage | Gas (RMB/m3) | Water (RMB/m3) | Wastewater treatment (RMB/m3) | Electricity (1kv-10kv)(RMB/kwh) |
| Residential | 2 | 2.3 | 0.6 | 0.44 |
| Commercial | 3 | 4.4 | 0.6 | 0.816 |
| Industrial | 2.7 | 3.2 | 0.9 | 0.445 |
| Other | 3 | 19.0 | 1 | 0.692 |
Source: Administration Committee of Dalian ETDZ
Winning Edge and Limitations
Winning Edge
l Dalian has the advantage of transportation condition due to its geographic location.
l Dalian is the financial center of north-east China. It has the most foreign banks in the region.
l Dalian is close to Japan and Korea; the geographic advantage attracts more outsourcing opportunities.
l Dalian ETDZ is the first state-level development zone in China. Through development over many years, the infrastructure has developed well.
l Dalian ETDZ has clear industrial plans. It has experienced successful transition from traditional labor-intensive industries to advanced manufacturing and high-tech industries.
l Dalian facilitates good education in Engineering at the Dalian Maritime University, and the well-known Dalian University of Technology.
Limitations
l The investment cost in Dalian is relatively high when compared to the other cities of Liaoning, especially in labor costs.
l The surrounding area of Dalian is less developed than the other coastal areas of China in the east and south.
The Administration Committee
l Address 704 Jinma Road, Dalian, P.R. China
l Tel 86-411-87622666
l Website www.dda.gov.cn
