CONFIDENTIAL
- 19.
54.
We were then given a briefing on the Dalian ETDZ. The zone, which was only 1 km away from the new port at Dayao Bay (), was set up 7 years ago with a total area of 20 sq. km. Half of the site had already been developed. Infrastructural developments included a 37-km highway linking the ETDZ with the old port district; a 50 000-tonne water treatment plant; 4 000 programme-controlled telephones; a 5 200-tonne LPG station; and a new shopping centre which contained a variety of amenities.
55.
There were at present 256 foreign-funded enterprises in the zone. Total
contracted investment was US$1.1 billion, of which US$690 million was of foreign origin.
90% of the foreign firms were engaged in electronics, machinery, food processing, building
materials textiles and other light industries, and mostly were exported-oriented. A total of
36 000 workers were employed in the ETDZ. Total 1990 industrial output was Rmb954
million, 103.4% higher than in 1989. Exports were valued at US$116 million, an increase
of 14.9% over 1989. Japan was the largest investor, with two-fifths of the total foreign
investment. Big Japanese firms having invested in the ETDZ included Canon, Mabuchi and
Toshiba. Mitsubishi, C. Itoh and Marubeni would also invest ¥20 billion to develop a
package of 2.1 sq. km of industrial area in the zone for 50 years. The State Council had also
approved the setting up of a 1.6 sq. km 'Free Trade Zone' (E) in the ETDZ, where
goods imported from or exported to overseas would be free from customs duties.
56.
We also observed that the Dalian authorities had become more sophisticated in handling foreign investment. They had, for example, set up a special office to advise foreign investors on the legal aspects of investing in China; another office would help simplify application procedures for foreign investments.
57.
Up to the end of September, there were a total of 705 direct foreign investments in Dalian, with a total contracted investment value of US$1.9 billion. 653 (or
Note 3: Other Free Trade Zones set up with specific State Council approval are located in
Shanghai, Shenzhen, Tianjin and Guangzhou.
1.