City Report: Tianjin

Tuesday, April 17, 2007 12:22

With a population of 10 million, Tianjin has built a strong economy around the Tianjin Port, TEDA, and a strong consumer economy. Located 75 miles to the east of Beijing, Tianjin has a long history as a trading port for the north, and like Shanghai this has lead to a strong commercial infrastructure and business savvy population

Tianjin Macroeconomic

As can seen in the figure above, Tianjin’s macroeconomic indicators all show year on year increases, and for many manufacturers this is leading them to invest in multiple manufacturing facilities to service not only the export market but also the domestic market.

For Tianjin, IT, automobile, chemical, metallurgy, biotechnology/ pharmaceutical, new energy and environmental protection have all become areas that are considered “pillar”. However many of the large investments recently have been technology related, specifically consumer electronics, as the local governments look to move away from commodity products to good that require more technology.

In addition to trade and manufacturing, the city of Tianjin is also becoming known for having a strong service sector. In addition to a number of insurance companies locating in Tianjin, many international banks have opened their retail operations in the area. Australia New Zealand recently closed the largest bank acquisition deal with it purchased the Tianjin Development Bank.

Leveraging the Tianjin port and various economic zones, Tianjin has been able to successfully attract large amounts of foreign investment from companies looking to set up an export manufacturing platform, and there are now over 18,000 foreign invested companies within Tianjin

Tianjin FDI

To support the future knowledge base in Tianjin, the government has invested heavily in educational institutions:37 institutions of higher learning at all levels, 159 academy of sciences and research institutes, 7 key state-level labs, 10 key ministry-level labs, 10 state-level research centers for engineering technology, 27 state-level and ministry-level testing centers, and there were over 80,000 college graduates last year and an additional 30,000 graduates of other technical schools.

For many firms looking at Tianjin, it is an attractive location as it is near Beijing, one of China’s largest markets, it is near the largest Northern port, and the city has invested in both the physical infrastructure required to attract investment, but also the soft infrastructure required to ensure that factories can run efficiently

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11 Responses to “City Report: Tianjin”

  1. China Law Blog says:

    April 18th, 2007 at 8:06 am

    Rich —

    I really like your focus on cities post, but I would like them even more if you would give out some cost information each time. Things like office space rent and average factory wage would be really great stuff.

  2. rbrubaker says:

    April 18th, 2007 at 8:29 am

    Dan – glad you are enjoying the reads. I am currently writing an article for one of the business magazines laying out some of these costs and issues, and I will make sure to post here once written.

    Hope all is well

  3. China Law Blog says:

    April 19th, 2007 at 10:47 am

    Sounds good. That sort of stuff is hugely helpful as a starting point for businesses.

  4. rbrubaker says:

    April 19th, 2007 at 6:46 pm

    No doubt. I have recently been working with a couple of groups that are only looking for regional/ city reports for future decision making. Key areas… Salary levels, land costs, logistics costs, etc.

    The numbers will surely change, but as we look at the differential in salaries alone.. and then tie that into the ability to move containers up and down the Yangtze… the decision process is beginning to take on a whole new dynamic!

    Fortunately, I like to travel…

  5. Mike Hemstad says:

    May 3rd, 2007 at 7:24 am

    One of the things we need to move past the planning stage is construction information: building codes, local geotechnical and engineering expertise, information on permitting, local construction contractors — pretty much in that order.

    Where can we find these?

    Thanks for your help.

  6. rbrubaker says:

    May 3rd, 2007 at 7:42 am

    Hi Mike,

    Access to the information you seek will depend on whether or not you are in China, and more specifically whether or not you are in Tianjin.

    If you are external to China, then I suggest you contact a project management group (international better than local), real estate firms (JLL, CBRE, or Colliers), and perhaps even a law firm who specializes in real estate (Simon Black of Allen & Overy is a great resource).

    If you are in Tianjin, then I would suggest making a ministry marathon and meet with the various relevant departments.

    Send me an email with more specifics, and I will be happy to provide a few contacts of mine who would be able to help. Understand that we are in the middle of the May holiday, so it may be a week or so before you hear anything.

    Have a good week

  7. Tianjin’s New BinHai Plan | All Roads Lead To China says:

    June 15th, 2007 at 2:41 am

    […] histories in industry (Tianjin, Qingdao, and Shanghai have long histories of foreign investment), Tianjin has a number of advantages that make it an attractive place to invest. a large pool of skilled […]

  8. Learn Chinese says:

    July 2nd, 2007 at 8:58 am

    tianjian is becoming economic center of HuaBei

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    July 17th, 2007 at 8:40 pm

    […] addition to the below news clips sent to us, I encourage readers to view our profile of Tianjin and Tianjin’s Economic […]

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    July 18th, 2007 at 3:37 pm

    […] Up… Tianjin (Macro-profile here) Bookmark to: Stumble […]

  11. Tianjin Economic Development Area News - July | Top China Suppliers says:

    July 21st, 2007 at 4:49 am

    […] addition to the below news clips sent to us, I encourage readers to view our profile of Tianjin and Tianjin’s Economic […]