Jiangsu
Kunshan Free Trade Zone (Kunshan Export Processing Zone)



    Rating     AA
    Year of Establishment     2000 (Kunshan Export Processing Zone)
2009 (
    Land Area     5.86 km2 (Kunshan Free Trade Zone)
    Location     Kunshan, Suzhou, Jiangsu
    GDP     N.A.
    FDI     US$1 billion (Kunshan Free Trade Zone)
    Utilized FDI     N.A.
    Major Investors     Mitac, CLEVO, Compal, Altek Corp, Optoma, Makita
    Major Industies Encouraged     Electronic information, optical semiconductors, office machinery, auto parts
Source: Administrative Committee of Kunshan Free Trade Zone


Introduction
Kunshan Export Processing Zone (Kunshan EPZ), established in 2000, has an area of 10 sq km. Kunshan EPZ was the first state-level export processing zone to start operations in China. The zone is 50 km from Shanghai and 37 km from Suzhou. It is located inside Kunshan Economic and Technological Development Zone, east of Kunshan. It takes only half an hour to drive from the zone to Suzhou or Shanghai.

The zone is only 45 km from Shanghai Hongqiao Airport and 100 km from Shanghai Pudong International Airport. Shanghai Port, which was China’s largest port by container traffic in 2012, is 60 km from the zone, while Zhangjiagang Port and Taicang Port, two of the 25 major coastal ports in China, are only 100 km and 35 km away, respectively. With the Beijing-Shanghai Railway, the Shanghai-Nanjing Expressway and State Highway 312 going through the zone, it is easily accessible.

From 2007, Kunshan Export Processing Zone has been developing into Kunshan Free Trade Zone, which offer services in logistics, port services, free trading, and exhibitions, etc.

Investment Climate
In the first half of 2013, the foreign trade value of Kunshan FTZ exceeded US$25.39 billion, reflecting a year on year increase of 1.7%. Its export value hit US$16.74 billion, up 5.0% year on year.

Kunshan FTZ’s major industries are electronic information, optical semiconduc-tors, office machinery and auto parts manufacturing. In 2008, enterprises in the zone produced 37.9 million laptops and 14.2 million digital cameras, contributing over one-fourth and onetenth of the world’s total output, respectively. Meanwhile, the zone’s combined output of mobile phones and global positioning systems surpassed 10 million. The Shanghai- Nanjing Highway, which connects Kunshan and Shanghai, is called the "Information Technology Highway" in China.

By the end of 2012, there are 201 firms registered in the zone with a total registered capital of US$1.3 billion. Several Taiwan-based information technology manufacturers including Mitac, CLEVO, Compal, Altek Corp, Optoma and Makita have set up production lines in the zone. Altek, one of the four major digital camera makers in Taiwan, has invested US$36 million in Kunshan for a cell phone production line and 12 SMT assembly lines. Compal, the world’s second-largest laptop OEM firm, has invested a total of US$88.5 million in Kunshan to produce PDAs, laptops, DMCs and mobile phones.

To facilitate exports, the zone launched a pilot program for bonded logistics with the approval of the State Council. By the end of 2012, it had attracted 92 industrial enterprises, 34 logistics enterprises and 75 service companies with more than 120,000 employees.

Investment Cost
 
Winning Edge and Limitation
Winning Edge
  • The zone is strong in electronic information products.
  • It has a good strategic geographical location and a convenient transportation system.


Limitations
  • The zone faces competition from five other export processing zones in Jiangsu.
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