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1. Infrastructural Facilities

Transportation: There are 5 railways, that is, Hada, Binsui, Binzhou, Binbei and Labin, connecting Harbin to both home and abroad together and 7 major highways joining up in Harbin. Setting out from Harbin Taiping International Airport, passengers can fly to 44 cities through 58 domestic and international flight courses, of which there is a special administrative region course directly to Hong Kong. By domestic straight flights, passengers can fly directly to Beijing, Shanghai, Dalian, Guangzhou and Shenzhen etc. By international straight flights, passengers can fly directly to Seoul of R. O. Korea, Osaka and Niigata of Japan, Khabarovsk，Blagoveshchensk, Vladivostok and Yakutsk, Yuzhno-Sakhalinsk of Russia. By virtual flight courses, passengers can fly to London, Frankfurt, Paris, Sydney and Melbourne, New York, Los Angeles, San Francisco, Vancouver etc. Cargoes and passengers can be sent to over 200 airports of more than 100 countries and regions from Harbin Taiping International Airport by multimodal transport. Harbin Harbor is one of the eight largest inland harbors in China. Ships from here can sail directly to the cities situated along the borderline river between Russia and China. Ships can sail along the Songhua River, which is also called Golden Water Route, to Japan, Korean Peninsula and every harbor in Southeast Asia by multimodal transport. As a first class port, Harbin Inland Port, the first inland freight port of railway transportation in China, was founded in 1997, which can deal with import and export business directly.

Telecommunications: Harbin has been equipped with advanced telecommunications equipment such as program-controlled telephone switching equipment, automatic direction reversing equipment, long-distance direct dialing equipment and data transmission equipment etc. The total capacity of local telephone switching system is 3.707 millions by the end of 2006.

Power Supply: The electricity consumption in urban area of Harbin city is 9.02 billion KWH, of which 1.81 billion KWH has been consumed by urban residents.

Water Supply: Harbin has abundant and quality water resource. The annual water supply capacity is 209 million cubic meters. The daily water supply capacity is 720-760 thousand cubic meters.

Gas Supply: The total supply volume of pipeline gas is 407 million cubic meters, the sales volume is 318 million cubic meters.

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2. Resources Advantages

Harbin has distinct geographic location. Situated in the central place of the North-east Asia Economic Circle, Harbin is the biggest central city along the boundary belt of China opening to the outside world and also an important connection spot of the first Europe-Asian Continental Bridge. The city plays an important role in the strategy of economic cooperation with Russia, CIS (the Commonwealth of the Independent States) and East European countries.

Harbin has solid industrial foundation. Harbin is one of the old industrial bases in China. After more than 50 yeas of construction and development, an industrial structure, with relative complete range of fields and greater capacity of providing auxiliary items, has been formed, taking machine manufacture, high & new technology, green food and pharmaceutical as the mainstay industry. The technologies, such as power equipment, aircraft, medium and small sized bearing, measure and cutting tools, relay, aluminum and magnesium alloy, antibiotics, Chinese medicine powder and flax textile, are in the leading position

Harbin has excellent agricultural foundation. With its vast territory, fertile land, abundant rainfall and fresh air, Harbin has become an important commodity grain base in China and an ideal place for the development of foodstuff production and agricultural economy. Situated in one of three world-famous Black Soil Belts, which could also be the most fertile soil in China, it is suitable for people to plant various edible and textile-used agricultural crops in Harbin region.

Harbin has abundant natural resources. 63 kinds of different mineral products have been discovered, of which 25 kinds of mineral products can be used in industry, and the content of 8 kinds of mineral products rank first in Heilongjiang Province. There are various tree species of which the Korean pine is famous for the high quality home and abroad. Plants in Harbin are high condensed distributed and have high economic value. There are not only rare medicinal materials such as Mountain Ginseng, Schisandra chinensis, wilsonii, but also some edible fungus such as mushroom and agaric, and more than 20 kinds of ornamentals.

Harbin has strong scientific research strength. There are 36 colleges & universities, 5 national science & technology center of enterprises, and 19 provincial science & technology center of enterprises. Many institutions such as Harbin Institute of Technology (HIT), Harbin Engineering University and Welding Academe, have strong strength in the fields of scientific research and technological development. They reached the world level in the development of aviation & spaceship, bioengineering, robot, sensitive technology and coating for instrument and measures. As we’ve known, several scientific research institutions such as HIT have contributed to the successful launch of Chinese spaceship “Shenzhou V”.

Harbin has obvious talent and labor resources. There are 40,000 people engaging in scientific research, including 33,000 scientist and engineers. The quantity of Russian Language majored talent ranks the first in China. The high quality and abundant labor force not only provide sufficient labor resource for the future development of Harbin, but also lay a talent foundation for the domestic and foreign investment of Harbin.

Harbin has tremendous potential capacity in tourism resources. Those activities, such as the Harbin Summer Concert, the Ice-lantern Show, the Grand Ice and Snow Park, International Fair for Economy and Trade, not only show Harbin’s profound culture potentiality, but also become an important platform for economy and trade cooperation with outside world. Moreover, Harbin is also nicknamed “The Oriental Paris” or “The Oriental Moscow”, which increases its mystery. Harbin is particularly suitable for going sightseeing for there are more than 500 human-made and natural sceneries including the St. Sophia Church, the Central Street with Russian style, the Siberian Tiger Park etc. Cool in summer and ice in winter, this makes Harbin a hot place for traveling both in summer and winter. Harbin was chosen as one of the first Excellent Tourism Cities of China by the State Tourism Bureau in 1998.

3. Economic Overview

Harbin economic structure takes on the feature of whole ranged industry and agriculture.

Industrial

Machine Manufacture Harbin Power Equipment Group Company, Harbin Aircraft Industry Group Company, Northeast Light Alloy Company, Harbin Flax Group are all important enterprises in the same fields in China. The assembling capacity of Harbin Electric Machinery Company, Harbin Turbine Company and Harbin Boiler Company in producing equipments of thermal power station and hydro power station is one third of that in China. Harbin is also called the City of Power for that. The output and technology of lateral airplane, helicopter, precise instruments, appearance, cable, electric wire, insulating material and relay protector is in leading position in China. There are 83 enterprises in Harbin, among which 11 enterprises deal with automobile production & refit and 72 enterprises produce automobile accessories. All together, theses enterprises produce automobiles of more than 120 standards in 5 series i.e. subminiature automobile, light automobile, passenger automobile, refit automobile and agro-automobile, and automobile accessories of more than 600 kinds in 5 series i.e. subminiature engine, underpan driving system, electric appliance, inner automobile accouterment and current series.

High Technology Industry The high & new technology products includes new technology, new material and new equipment such as semiconductor, electric, computer, laser, fiber communication, infrared, micro-wave, macromolecule chemistry, bioengineering, nuclear energy robot, new material and soft science. In the period of Tenth Five-year Plan, the added value of large & medium scaled high & new technological enterprises is RMB 5.69 billion, covering 16.2 % of that of large & medium scaled industrial enterprises. In the same period, there are 34 projects chosen as National High & New Technological Industry Development Plan. The projects of integration of automatic welding system, automatic control in entire course of frozen and dry powder injection and module of electric power have been put into production. This speeds up the pace in high & new technology industrial projects development. In 2006, the production value of new products by large & medium sized enterprises is RMB 2.623 billion, and ratio of that is 20.4%.

Food Industry The food industry develops in large-scale and cluster, and is of great importance in industrial economic growing in Harbin. The pattern of three advantageous fields of dairy products, soybean production and brewage has been formed. The quality of dairy products, brewage and rice is in leading position in China, and some has reached the international advanced level. Several brands have gained the laurel of Chinese Famous Brand, such as Longdan Brand of dairy products, Wandashan Brand of milk powder, Harbin Brand of beer, and Wuchang Brand of rice. The green food industry has been greatly developed. There are more than 300 products have got the national authentication and sold to more than 30 countries and district.

Pharmaceutical Industry The gross quantity and assets of Harbin pharmaceutical industry is about 70%-80% of that in Heilongjiang Province. The technology, brands, species, benefit, and market share are all in leading position in China. There are more than 120 pharmaceutical enterprises in Harbin. Most of them have gotten GMP qualification. A pharmaceutical structure has been formed, taking Harbin Pharmaceutical Group as the leading enterprise, and the two medicine zones of Harbin Development Zone and Limin Development Zone as the flanks

Agriculture

Harbin is an important agricultural city in China and the important commodity grain base and main producing area of rice, soybean and corn. The total production value of farming, forestry, animal husbandry, side line production and fishery ranks first in the 15 deputy provincial level cities, and over one third of that in Heilongjiang Province. By structure adjustment, agricultural production has been changed from quantity-oriented to quality-oriented, agricultural structure has been changed from planting-dominated to husbandry-dominated, agricultural development has been changed from traditional operation to industrialized operation, and agricultural zoology environment has been changed from industrial type to ecotype.

4.Main Zones Introduction

There are 57 industrial zones in Harbin, with planning area of 557.5 square kilometers, accumulative total developed area of 155.17 square kilometers. These include 2 national level industrial zones. 26 provincial level zones, 13 municipal level zones and 12 district and county level zones, involving 25 industries, such as automobile, food, pharmaceutical, petrochemical, aviation & aircraft, grain process, building material and special equipement.

Harbin-Daqing-Qiqihar Industrial Corridor Harbin Section

Harbin-Daqing-Qiqihar Industrial Corridor (HA-DA-QI Industrial Corridor) is an economic area with Harbin as the beginning and Daqing & Qiqihar as the main part, including Zhaodong County, Anda County and other counties along the line. HA-DA-QI Industrial Corridor is of great importance in revitalization of Northeastern old industrial bases of Heilongjiang Province, and has been taken into Northeast Area Revitalization Planning. The Industrial Corridor covers an area of 21,180 km², 4.67% of the total provincial area. Harbin Section of HA-DA-QI Industrial Corridor covers an area of 252 km². Relying on comparative advantages such as industrial bases, science and techniques strength and resource gifts and labor resources, HA-DA-QI Industrial Corridor Harbin Section will lay an emphasis on development of four main industries including machine manufacture, high-technique, foodstuff and pharmaceutical industry as well as modern logistics, and has been planned to construct into five new zones including North Bank Industry New Zone, Pingfang Industry New Zone, Qunli New Zone, Taiping Airport Economic Zone and Xiangfang Industry New Zone, as well as Research & Development Service Zone and Logistics System at the same time.

North Bank Industrial New Zone: situated in both Songbei District and Hulan District, covers a planning area of 101.84 square kilometers. The zone emphasizes on green food, modern pharmaceutical, environment protection and information etc. There are 2 parts in the plan. Part A is Technology Cooperation Zone of Russia Oriented Economy & Trade, Part B is Hulan River Industrial Zone, includes Europe & American Science & Technology Zone, Northeast Science & Technology Zone and National Environment Protection Science & Technology Industrial Zone.

Pingfang Industry New Zone: situated in the boundary of Pingfang District and Xiangfang District, covering a planning area of 57.63 square kilometers, emphasizing on automobile, aviation & aircraft, mechanic electric, green food, modern pharmaceutical, electric information, carrying on international industry transfer and modern logistic. Three parts are in the planning. Part A is Industrial Zone of Harbin Development Zone, includes 5 industrial zones such as aviation & aircraft, metal material, green food, modern pharmaceutical and carrying on international industry transfer. Part B is Pingfang Industrial Zone, includes Automobile Industrial Zone and National Sino-Russia Information Industrial Zone. Part C is Xiangfang Industrial Zone, includes Mechanic Electric Accessory Zone and Russia Oriented Industrial Zone.

Qunli New Zone: situated in Daoli District, covering a planning area of 27.3 square kilometers, emphasizing on development of high & new technology research and headquarter economy. Its goal is to construct a new modern zoological downtown integrates research & development, commercial, business, financial and residence together, and to make this area having great territorial competitive and influential force. High & New Technology Zone, Headquarter Economy Service Center and Zoology Community are in the planning.

Taiping Airport Economic Zone: situated in both Daoli District and Shuangcheng City, covering a planning area of 33.38 square kilometers, emphasizing on airport logistic, finish machining, high added value green food, electric information and new type of building material. By airport advantage, Airport Logistic Zone, Korea Industrial Zone and Taiping Industrial Zone are in the planning.

Xiangfang Industry New Zone: situated in Xiangfang District, covering a planning area of 31.53 square kilometers, emphasizing on Russia oriented trade, food deep processing and fine chemistry. Rely on Harbin container central station planned by state and by the industrial base and geographic advantages, it is planned to construct Export Processing Zone, Agriculture Research & Science Zone, Beidahuang Industrial Zone, Food Industrial Zone, Korea Industrial Zone and Chemistry Industrial Zone.

Logistcs System: The plan includes Harbin Longyun Logistic Center emphasized on main road hinge, Harbin New Xiangfang Logistic Center emphasized on Railway Inland Port, Heilongjiang Province Post Yitong Logistic Center emphasized on Third Party logistic service, North Asia Logistic Center and Heilongjiang Province Logistic Public Information Platform emphasized on business and commerce.

Development Zone in Other District, Counties and Cities

Limin Development Zone: It is at provincial level. Situated in Hulan District and covering a planning area of 38.9 square kilometers, it takes modern medicine, green food, education and information as its main industry.

Acheng Economic Development Zone: It is at provincial level. Situated in Acheng District and covering a planning area of 9.66 square kilometers, it takes textile, machinery, medicine, food and metallurgy as its main industry.

Fangzheng Economic Development Zone: It is at provincial level. Situated in Fangzheng County and covering a planning area of 3.3 square kilometers, it takes rice paddy processing, medicine, wood processing as its main industry.

Shuangcheng Economic Development Zone: It is at provincial level. Situated in Suangcheng City and covering a planning area of 18 square kilometer, it takes food as its main industry.

Shangzhi Economic Development Zone: It is at provincial level. Situated in Shangzhi City and covering a planning area of 24 square kilometers, it takes food, medicine, wood processing and equipment manufacture as its main industry.

Binxi Development Zone: It is at provincial level. Situated in Bin County and covering a planning area of 18.56 square kilometers, it takes building material, equipment manufacture and side line Agriculture products processing as its main industry.

Xinglong Industrial Zone for Middle & Small Sized Enterprises: It is at provincial level. Situated in Bayan County and covering a planning area of 20.02 square kilometers, it takes deep processing of sideline agriculture products as its main industry.

Yilan Economic Development Zone: It is at provincial level. Situated in Yilan County and covering a planning area of 5.31 square kilometer, it takes coal chemistry as its main industry.

Science & Technology Industrial Zone in South Part of West Harbin: Situated in Nangang District and covering a planning area of 0.3 square kilometers, it takes hi-tech as its main industry.

Niujia Industrial Zone: Situated in Wuchang City and covering a planning area of 17.69 square kilometers, it is subdivided into Research & Development Base for Biological Medicine, Deep Processing Zone of Green Agriculture Food, and Export Processing Zone. It has been taken into Ha-Da-Qi Industrial Corridor.

Shanghai Fengxian Modern Agriculture Zone Harbin Mulan Subzone: Situated in Mulan County and covering a planning area of 12.4 square kilometers, it takes deep processing of agriculture products as its main industry.

Yanshou Industrial Zone: Situated in Yanshou County and covering a planning area of 11.17 square kilometers, it takes food deep processing, medicine, automobile parts producing and spinning weaving as its main industry.

3,267 foreign investment enterprises have been approved to register in Harbin since1984 to the end of September 2007.

Harbin’s good services and tremendous market potential make it the investment hotspot for Fortune 500 Enterprises and multinational enterprises to run business. Many Fortune 500 Enterprises has set up foreign funded enterprises, including Wal-Mart, Anheuser-Busch and Coca Cola from U.S.A, Nestle from Switzerland, Toyota, Hitachi from Japan, Carrefour from France.