Wuxi Export Processing Zone (Wuxi EPC)

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Facts and Figures (2007)

Year of Establishment 2002
Land Area 2.98 km2
Location Wuxi New District, Jiangsu
FDI US$1.7 billion
Utilized FDI US$1.03 billion
Major Investors Hynix-ST, Jabil, Murata, Little Swan, Siemens
Major Industries Encouraged Electronic information, optical-mechanical- electronic-integration, precision machinery, new materials

Source: China Free Trade Export Association (CFEA)


The Wuxi Export Processing Zone (Wuxi EPZ) was entitled the status of state-level development zone by the State Council in 2002 and is located in the Wuxi New District in the Jiangsu Province. It covers an area of 2.98 km2, of which 1.7 km2 has been developed. Wuxi EPZ is only ten minutes from the city’s downtown area, and is a distance of 100 km to Shanghai in the east, and 147 km away from Nanjing to the west. The Wuxi Airport, only 3 km away, operates daily flights to Beijing, Guangzhou and other major Chinese cities. The Shanghai Pudong International Airport, the Shanghai Hongqiao Airport and the Nanjing Lukou Airport are all within a two-hour drive to Wuxi.

Wuxi EPZ enjoys convenient transport conditions. The Beijing-Shanghai Highway, the Tongjiang-Sanya Highway and the Shanghai-Chengdu Highway all intersect in its home city, while the Shanghai-Nanjing Expressway, the Zhejiang-Shanghai-Jiangsu Expressway, the No. 312 National Highway and the No. 104 National Highway run directly across the city. China’s largest port, Shanghai Port, is just 165 km away; Jiangyin Port, however, is even closer at a mere 38 km away.

Investment Climate

Wuxi EPZ, similarly to other export-processing zones in China, encourages the set-up of export-oriented manufacturing and processing enterprises in the zone. Major draw-cards for enterprises in the zone are favorable policies of permit exemption, tax exemption, protective tariffs and tax refunds for domestic materials and parts processed in the zone.

Wuxi EPZ formed industrial clusters in electronic information, optical-, mechanical- electronic integration, precision machinery and new materials. The Hynix-ST Semiconductor, with a total investment of US$2 billion, was the largest foreign-invested project in Wuxi. The firm was jointly invested by the Korea-based Hynix and Italy-based ST in 2004. The production of 8-inch and 12-inch ICs was commenced in 2007.

In 2007, Wuxi EPZ attracted US$1.7 billion foreign direct investment (FDI) and contractual registered capital of US$880 million. The utilized foreign investment has exceeded US$1 billion, accounting for 37% of Wuxi’s total. By the end of 2007, a total of thirty-eight enterprises had set up in the zone, twenty-four of which had commenced operation. The FDI had accumulated to US$4.4 billion and the utilized FDI had amounted to US$1.9 billion. The major investors in this sector are Hynix-ST, Jabil, Murata, Little Swan, Siemens, etc.

The foreign-trade value in the zone has reached US$10.8 billion, occupying more than 20% of the city’s total. The value-added industrial output has surpassed US$8 billion, accounting for more than 20.6% of that from all the state-level export zones in China, according to the China Free Trade Export Association (CFEA).

Investment Costs

Transportation Costs

Waterway Freight Costs (US$/20’GP/40’GP/40’HQ)

Istanbul Naples Durban Sydney Rotterdam Antwerp
Shanghai 850/1550/1550 575/1050/1050 1250/2400/2500 825/N.A./N.A. 400/650/750 400/650/750

Source: Shipping China (as of September 28, 2008)

Utilities Costs

Purpose of Usage Electricity (1kv-10kv)
Water (RMB/m3) Wastewater Treatment Fees (RMB/m3) Gas (RMB/m3)
Residential 0.52 1.21 1.1 2.2
Government N.A. N.A. N.A. N.A.
Commercial 0.899 1.81 1.1 N.A.
Industrial 0.698 1.51 1.1. N.A.
Others N.A. 2.01 1.1 N.A.

Source: Wuxi Municipal Government

Labor Costs

Title Average (RMB/month)
Managerial Staff 1,500-2,000 (plus 30-50% welfare)
Normal 600-800 (plus 30-50% welfare)

Source: Wuxi Municipal Government

Winning Edge

  1. Wuxi EPZ has a convenient traffic system, and good transportation infrastructure.
  2. There is a well-established industrial sector in the zone.
  3. Wuxi is the second-largest economy in Jiangsu, after Suzhou.


  1. There is a lack of high-end talents in Wuxi.
  2. Fierce competition from Suzhou and Shanghai.

The Administration Committee

  1. Address: Wuxi New District, Wuxi, Jiangsu
  2. Tel: 86-510- 85210690
  3. Fax: 86-510-85217641
  4. Website:

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