Wuhan Investment Zones

Tuesday, July 3, 2007 1:13

Wuhan has established itself as a city where large amounts of money from foreign companies can be invested. While few foreigners actually enjoy going to this city, Wuhan has a lot of heavy industrial complexes for steel, auto, and coal that require large amounts of investment. With the rapid growth of each of these industries, foreign investment has been put into Wuhan.

While other cities that are seeing a reduction in the number of contracts with and increase in contracted capital though, the number of contracts appears to be steadily increasing, which is a strong sign for Wuhan’s future. As many of the industries that were once restricted (automotive, logistics, and others) become open to wholly owned foreign enterprises, the level of investment will continue to increase.

Areas where the Government of Wuhan is encouraging investment include:

  • Automotive
  • Bioengineering and Pharmaceutical
  • Electronics

East Lake Development Zone, many enterprises are involved in developing and manufacturing optoelectronics & information products. East Lake Developing Zone enjoys wide choices from 100,000 highly educated experts and technicians of 23 universities and 56 research institutes.
Basic Stats: 2o minutes by car to downtown with over 8000 enterprises invested, nearly 2000 enterprises are considered hi-tech (NEC, IBM, Microsoft, etc), average purchase price is 3000RMB/ meter

Wuhan Economic & Technological Development Zone (WEDZ) is a national level development zone approved by the State Council of P.R.C. in April 1993. In April 2000, Export Processing Area was set up in WEDZ, designated by the State Council. WEDZ is located on the north bank of the Yangtze River and has advanced transport facilities. The strategy of WEDZ is to stress on auto industry and hi-tech industry, to develop machinery, electronic, food processing and beverage, building material processing, pharmaceutical and biology engineering as subsidy, and to promote coordinated development of tertiary industry.
Basic Stats: 10km from city center/ 6km from Yangtze container port, 2000+ FIEs (25 Fortune 500) have invested @ average of 100MM RMB,30+ universites nearby, basic labor between 400 – 600RM/ month

We hope you are enjoying our coverage on these zones, and will continue to comment. The next city of focus will be Nanjing

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3 Responses to “Wuhan Investment Zones”

  1. Chris Corkery says:

    July 3rd, 2007 at 7:54 am

    Keep your ears open on this one Rich. There are many rumors around Wuhan that the city government is hoping to expand their role in the region and in China. There are hopes of new development zones and of making Wuhan itself into a city-state such as Chongqing, Shanghai or Beijing. With many of the major automotive firms officially relocating to Hanyang district (Citroen built a new headquarters there, Dongfeng is officially moving there, bringing with them a large number of their suppliers), Wuhan is hoping to become Central China’s primary beneficiary of the rising costs on the coast. And by the way, I was shocked by Wuhan…I hadn’t been there in 8 years before last month. It is no longer the place where foreginers fear to tread. Wide avenues, nice parks, no traffic jams, good food…Wuhan is certainly not Shanghai by any means, but there are even a host of ‘foreigner bars’ where one can buy Belgian beer and neighborhoods dominated by the thousands of foreigners who live there.

  2. Rich says:

    July 3rd, 2007 at 7:58 am

    Hi chris,

    So I see you enjoyed your trip to the furnace.

    From a logistics standpoint alone, Wuhan is in my eyes one of the best spots in China. You have river, rail, road, and air capabilities … and all in one spot.

    We will be working on some more recent data next month through some interviews, and I am hoping we will get the real deal on the ground.

    I’ll let you know what we find out.

    anyone in Wuhan care to tell us your side of the story?

  3. Brad Luo says:

    July 5th, 2007 at 11:09 am

    Richard:

    I’m biased toward Wuhan. Even though I haven’t been back since 2000, I do keep up with its development. It is in the process of building a brand new train station in Wuchang, which is reportedly going to be a lot bigger than its predecessor.

    For authentic Amx coffee and pastry, go to Mr.Mai’s either in Hankou or Wuchang. http://www.mrmai.com

    If you need to, visit David McNabb who is the owner of Mr. Mai’s Coffee. He has lived in Wuhan for more than a decade. I bet he can tell you a thing or two about doing biz there.

    –Brad

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