2004 Annual Report on the National Economy and Social Development

of Tianjin Economic-Technological Development Area

In the year 2004, led by the Tianjin Municipal Committee of the Communist Party of China and Municipal Government and guided by the Deng Xiaoping Theory and the important thought of Three Represents, Tianjin Economic-Technological Development Area (hereinafter abbreviated to TEDA, with “Taida” as its Chinese transliteration) abided by the requirement of the three-step strategy of Tianjin Municipality. Meanwhile, TEDA regarded development as its top priority and adhered to the scientific development concept of putting people first. In light of the requirement of “consolidating advantages, making active adjustments, accelerating reform and coordinating development,” TEDA people went all out and made innovation in a united and pioneering spirit. Vigorously adapting itself to the national situation of macro-adjustment and control, TEDA firmly seized development opportunities. It overcame the influence of various unfavorable factors and maintained the highly effective and fast economic development and made all-around progress in such social undertakings as science and technologies, education, culture, public health, sports, etc. TEDA’s role as a carrier of urban infrastructure was further reinforced. Both people’s living standard and social cultural level kept improving. Consequently TEDA sustained its leading position in overall strength among all development zones across the country, playing a new important role in the development of Tianjin Municipality and the New Coastal District.

I. General View

TEDA’s economy continued the momentum of rapid and healthy growth. In 2004, TEDA’s GDP amounted to 53.022 billion yuan, up by 25.3% over the previous year, based on comparable prices. The value added of the secondary industry was up to 44.037 billion yuan, a comparable increase of 32.2% while that of the tertiary industry, 8.985 billion yuan, a comparable decline of 3.7%. The ratio of the secondary industry to the tertiary industry was 83.1:16.9. TEDA’s per capita GDP reached 200,800 yuan, a comparable growth of 9.9%.

TEDA witnessed steady growth in its financial revenues, which amounted to 8.319 billion yuan, a comparable growth of 23% over the previous year. Among them taxation revenues reached 7.339 billion yuan, a comparable growth of 20.9% and local financial revenues, 3.845 billion yuan, an increase of 5.1%. In its local financial revenues value added tax totaled 596 million yuan, a comparable growth of 10.8% while business tax, 811 million yuan, up by 19%, and enterprise income tax, 993 million yuan, up by 44.2%. TEDA’s financial expenditures grew by 38.7% to 6.668 billion yuan, of which education and public health accounted for 139 million yuan, up by 15.7%.

Regional investment environment was further optimized. In 2004, TEDA publicized Guiding Opinions on the Improvement of Overall Investment Environment to further improve its Enterprise-Oriented Service System. It gave full play to such organizations as the International Chamber of Commerce and the Federation of Industry and Commerce, etc. with an aim to provide all-dimensional services to enterprises. By coordinating relations among all parties, it overcame the shortage of power supply and never switched off power to limit power consumption. In line with the principle of “gradually approaching the limited objectives,” 15 tasks for the improvement of investment environment were accomplished, effectively enhancing TEDA’s overall investment environment.

New breakthroughs were made in TEDA’s regional expansion. In 2004, TEDA exerted more efforts to wind up and rectify land use and uplifted the efficiency and intensification in this regard. The State Council formally approved the expansion plan of TEDA for a 4.97-km2 Phase I of its West Zone, offering space for its further development.

The reform of State-owned enterprises (SOE) continued advancing. In 2004, TEDA further clarified the property relations in SOEs and promoted the detachment of enterprises from the government. It continued to push forward the reform of the investing and financing system and multipolarize investors. The capacities of SOEs in urban operation, resources control and capital operation were further enhanced.

Remarkable progress was attained in foreign exchanges. In 2004, TEDA successfully hosted high-level big events such as the 2nd International Manufacturing (Cell Phone) Accessory Fair, the 4th Mobile Communications Industry (Mobile Application) Forum and Exhibition, the 2004 Summit Forum of China on the Development of the Auto Electronic Industry, China TEDA Bio-Forum 2004 (the 3rd annual meeting of TEDA Watson International Forum on Biotech and Biomedicine), the Conference on Beijing-TEDA 2004 Scanning Probe Microscopy, Sensors and Nanostructures, the 2004 Sino-Germany Economic Forum, the International Forum of University Science Park (2004, Tianjin-Beijing), etc. These events effectively advanced TEDA’s domestic and foreign exchanges and cooperation, enhanced its reputation, and set up its image.

II. The Secondary Industry

The year of 2004 saw a gathering of growth momentum of TEDA’s industrial economy at a record-high pace since 1997. In 2004, based on comparable prices, TEDA’s industrial value added grew by 32.4% over the previous year to 43.591 billion yuan. Its total industrial output value rose by 45.6% over the same period of the previous year to 182.214 billion yuan, of which enterprises funded by foreign, Hong Kong, Macao, and Taiwan investors contributed 177.499 billion yuan, a growth of 46% over the same period of the previous year.

Large and medium-sized enterprises gave more prominent impetus to TEDA’s economic development, and sources of growth increased. The number of enterprises with industrial output value over 100 million yuan each was 138, 30 more than the previous year. And their total industrial output value made up 94% of the total of TEDA. The number of enterprises with industrial output value exceeding one billion yuan each was 22, five more than the previous year. And their total industrial output value formed 73.1% of the total of TEDA. A group of companies preserved strong momentum of growth and quickly expanded their production scales, e.g. Motorola (China) Electronics Limited, Tianjin Samsung Telecom Technology Co., Ltd., Tianjin Faw Toyota Motor Co., Ltd., Tianjin LG Dagu Chemical Co., Ltd., Novo Nordisk (China) Pharmaceutical Co., Ltd., etc. In addition, many new companies displayed good trend of growth, e.g. Freescale Semiconductor (China) Limited, Semiconductor Manufacturing International (Tianjin) Corporation, Inventec Information (Tianjin) Co., Ltd., Kyocera (Tianjin) Solar Energy Co., Ltd., etc, assuring the further development of TEDA.

TEDA’s major industries developed at a high speed, stressing their leading roles. The four leading industries of TEDA, namely the electronics and telecommunications industry, the mechanical and manufacturing industry, the pharmaceutical and chemical industry, the food and beverage industry, attained a total industrial output value of 167.364 billion yuan (46.2% higher than the previous year), which held 91.9% of the total of TEDA (0.5% higher than the previous year) and formed 92.6% of the overall contribution to TEDA’s economy. The total industrial output value of the electronics and telecommunications industry which was dominated by mobile communications, new electronic elements and parts, video equipment, auto electronics and microelectronics increased by 49.8% over the previous year to 116.599 billion yuan, accounting for 64.0 % of the total of TEDA (1.8% higher than the previous year). The industrial output value of the mechanical industry centered on auto manufacturing grew by 53.6% over the previous year to 32.671 billion yuan, constituting 17.9% of the total of TEDA (0.9% higher than the previous year).

The product structure continued to be optimized and output of major products rose sharply. The output of mobile phones in 2004 grew by 58.1% to 48.806 million accompanied by the increase of base station channels by 74.8% to 3.4114 million. The figures of large-scale integrated circuits and sedan went up by 29% and 69% to 478 million and 84,000 respectively. The production scales of a group of products with advanced technologies and high value added such as liquid crystal displayers, digital video cameras, new electronics elements and parts, chips, auto electronics products, enzyme preparations, etc. expanded significantly, effectively promoting the upgrading and multipolarization of the industrial products of TEDA.

More prominence was given to the scale of TEDA’s high-tech industry. In 2004, the total industrial output value of high-tech enterprises in TEDA rose by 52.4% over the previous year to 109.693 billion yuan, taking 60.2% of the total of TEDA. The electronic information industry, the biopharmaceutical industry and the new energy industry developed rapidly, exerting more prominent impetus to the high-tech industry of TEDA.

The economic results generated by TEDA’s industries rose drastically. In 2004, the sales revenue of TEDA’s industrial enterprises rose by 47.9% over the previous year to 184.765 billion yuan, of which the sales revenue of enterprises funded by foreign, Hong Kong, Macao, and Taiwan investors grew by 48.2% to 179.984 billion yuan. Both production and marketing were well linked up. The sales rate of TEDA’s industrial products was up by 1.6% over the previous year to 101.4%. Industrial enterprises above the designated scope (with each of their annual sales revenues over five million yuan) saw a profit of 16.929 billion yuan, up by 2.1-fold. The composite indicator of the economic results of industrial enterprises was 298.7, up by 94.9% over the previous year. The ratio of total assets to industrial output value was 21.2%, up by 9.6% over the previous year. The profit rate on costs was 9.8%, up by 5.3%. The overall labor productivity comparably grew by 20.1% over the previous year to 256,200 yuan.

The industries of the three industrial parks outside TEDA made new progress in their development. In 2004, the total industrial output value of the Microelectronics Industrial Park, the Yat-sen Scientific and Industrial Park, and the Chemical Industrial Park reached 37.001 billion yuan, up by 45.2% over the previous year. And the industrial output value of the Microelectronics Industrial Park rose by 53.7% to 31.5 billion yuan, that of the Yat-sen Scientific and Industrial Park up by 8.9% to 5.376 billion yuan and that of the Chemical Industrial Park up by 1.5-fold to 125 million yuan.

The building industry maintained healthy growth. In 2004, the value added of the building industry comparably rose by 7.3% over the previous year to 445 million yuan, and the total output value grew by 19.4% over the same period of the previous year to 2,532 million yuan.

III. The Tertiary Industry

The tertiary industry of TEDA witnessed steady growth. In 2004, the value added of the tertiary industry of TEDA reached 8.985 billion yuan, of which the transportation, storage and post industry rendered 568 million yuan, the wholesale and retail industry 3.23 billion yuan, the lodging and catering industry 189 million yuan, the financial industry 1.588 billion yuan, and the real estate industry 1.346 billion yuan.

The transportation capacity was enhanced. By the end of 2004, TEDA had altogether 420 passenger and freight transportation units, of which 404 were freight transportation ones, and 3,917 vehicles in service, of which 3,332 were freight ones. In 2004, in terms of all modes of transportation, the freight traffic totaled 10.93 million tons, the turnover volume of freight traffic 1.842 billion ton-km, the passenger traffic 9.33 million person-times and that of Jinbin Light Rail 4.33 million person-times.

The post and telecommunications industry developed smoothly. In 2004, the revenue of TEDA’s post business amounted to 6 million yuan. 560,200 letters were delivered, of which there were 21,900 international express mails, an increase of 81% over the previous year. The revenue from telecommunication services grew by 20.2% over the previous year to 149 million yuan. 21 million distance calls were made via fixed telephones. By the end of year, the installed capacity of program-controlled telephones reached 151,300, and fixed telephone subscribers 51,000, which included 17,400 household subscribers.

The scale of the wholesale and retail industry kept expanding. In 2004, Hymall hypermarket opened its outlet in TEDA, further improving TEDA’s business facilities. Total retail sales of the consumer goods of TEDA’s enterprises rose to 2.883 billion yuan with a growth of 6.3% over the same period of previous year. TEDA’s automobile sales amounted to 3.922 billion yuan, and its automobile sales volume reached 15,600, which contained 12,500 sedans. Sales of metal materials reached 3.293 billion yuan, that of telecommunications products 2.357 billion yuan with the sales volume of mobile phones totaling 1.3142 million, and that of petroleum and petroleum products 2.294 billion yuan.

The lodging and catering industry made new breakthroughs. In 2004, TEDA International Club Tianjin and TEDA International Hotel & Club were rated with five stars. A batch of lodging and catering businesses, e.g. Renaissance Tianjin TEDA Hotel, Seaport Well-known Family Restaurant, etc. opened for business. All guesthouses in TEDA accommodated guests of 289,800 person-times, up by 62.2% over the same period of the previous year, of which guests from abroad reached 60,500 person-times, up by 42.3% over the same period of the previous year. The business income of the guesthouses totaled 323 million yuan, up by 65.8% over the same period of the previous year. The retail sales of the catering industry amounted to 205 million yuan, up by 29.9% over the same period of the previous year.

The financial industry maintained healthy growth and went on expanding its business scope. In 2004, TEDA made proactive adjustments to meet the requirements of the State micro-control policies on credit business, maintaining the sound development of the financial business. As the Coastal Financial Service Estate was formally put to use and financial institutions like Industrial Bank Co., Ltd., China Continent Property & Casualty Insurance Company Ltd., etc. settled in TEDA one after another, the financial industry of TEDA initially displayed its clustering. By the end of 2004, TEDA possessed 45 financial institutions of various categories which comprised 20 banking institutions, 89 banking outlets and 10 insurance institutions of various types, and five listed companies which included one listed overseas.

Deposit and loan business kept steady growth and insurance and securities business saw smooth development. By the end of 2004, the balance of RMB deposits in the banking institutions of TEDA increased by 7.214 billion yuan to 40.1 billion yuan, of which deposits of enterprises rose by 4.425 billion yuan to 29.963 billion yuan, deposits of urban and rural residents up by 2.716 billion yuan to 8.958 billion yuan, and the balance of foreign currency deposits up by US$765 million to US$1.321 billion. The balance of RMB loans of all financial institutions of TEDA grew by 6.947 billion yuan to 47.048 billion yuan, of which the balance of short-term loans was up by 4.028 billion yuan to 22.833 billion yuan, that of middle and long-term loans up by 1.177 billion yuan to 19.304 billion yuan, and that of foreign currency loans up by US$71 million to US$315 million. The cash revenue and cash expenditure of all financial institutions of TEDA reached 43.752 billion yuan and 46.752 billion yuan respectively, resulting in a net cash inflow of 3 billion yuan. In 2004, the income of insurance premium was 244 million yuan, including 208 million yuan from property insurance and 35 million yuan from life and accident insurance. Total insurance indemnities amounted to 104 million yuan, containing 99 million yuan for property insurance and six million yuan for life and accident insurance. The total transaction value of all kinds of securities added up to 148.173 billion yuan, with 91.291 billion yuan of stock turnover included.

The software industry carried on its good trend of growth. In 2004, the Software Mansion was put to use. Software outsourcing service providers, for instance, Affiliated Computer Services, Inc. of the United States, established their businesses in TEDA. On the basis of the National Computer Virus Emergency Response Center, a group of computer virus prevention companies like Trend Micro Incorporated, Fortinet Information Technology, etc. were introduced to TEDA, showing that the software industry of TEDA featured by software outsourcing and information security was growing rapidly.

With the newly built facilities like TEDA Convention and Exhibition Center and International Conference Center, substantial progress was yielded in the convention and exhibition industry of TEDA. In TEDA in 2004 altogether seven exhibitions were held, which accumulatively received 438,000 person-times of visitors.

IV. Investment Promotion

Facing fierce domestic and international competition, TEDA, with its persistent adherence to the ideas that “investors are kings” and “helping investors with profit-making,” continued to improve its investment absorption system and strengthen the advantages of its leading industries, further perfect its industrial chain and intensify its industrial clustering. In 2004, remarkable progress was made in investment absorption.

The scale of investment absorption kept expanding. In 2004, 165 investment projects funded by foreign, Hong Kong, Macao, and Taiwan investors were newly approved and 144 projects increased investment. The total investment in these projects (investment increase included) grew by 48.5% over the previous year to US$3.401 billion. The contracted overseas investment was up by 50.8% to US$1.922 billion and the actually utilized overseas investment up by 50.1% to US$949 million. In 2004, 1,445 domestic-funded enterprises were registered with their registered capital of 2.67 billion yuan, of which 1,225 private enterprises offered 1.91 billion yuan.

The quality of the projects with overseas investment continued improving. During the year there were 38 newly approved projects funded by foreign, Hong Kong, Macao, and Taiwan investors with investment over US$10 million each. The investment of newly approved projects averaged US$15.4599 million, up by 1.22-fold over the previous year. The number of newly approved multinational projects was 53, 18 more than the previous year and that of newly approved projects funded by multinational corporations from the Fortune global 500 list was 12, three more than the previous year. Investment made by such projects as Semiconductor Manufacturing International Corporation, Freescale Semiconductor, AW Automatic Transmission, Toyota FAW Dies, Cabot Chemical, Tokai Carbon, Mediking Pharmaceutical, etc. further reinforced TEDA’s leading industries like the electronics industry, the automotive industry, the chemical industry, and the pharmaceutical industry, etc.

The tendency of investment increase and production expansion was quite strong in TEDA. In 2004, the total investment increase of projects funded by foreign, Hong Kong, Macao, and Taiwan investors reached US$850 million, of which contracted overseas investment was US$372 million and average investment increase US$5.9046 million. 22 projects had each of their investment increase over US$10 million. The investment increase of a series of projects like Intex Auto Parts, Rohm Electronics Wako, SEW Industrial Products, Inventec, Kyocera Solar Energy, AVX Electronics, etc. showed investors’ confidence in TEDA.

TEDA’s industrial clustering was prominent and its industrial supply chain was getting ripe. In 2004, a series of auto accessory projects were launched one after another, involving Motorola Auto Electronics, Toyota Tsusho Steel, Toyotsu Automotive Equipment Manufacturing, NYK Zhenhua Logistics, Rainbow Hills Cast Iron, Futaba-SC Mechanical Co., Sanyei Auto Parts, South Korea’s Mando and Hyundai High-tech Electronics, Grammer Interior and so on, continuously improving TEDA’s auto industrial chain. There were altogether 75 auto accessory enterprises in TEDA. The entry of Samsung SDI Mobile Display and BSE from South Korea, Jurong Hi-Tech from Singapore, etc. into TEDA further strengthened the clustering of the mobile communications industry.

By the end of 2004, TEDA accumulatively approved 3,844 enterprises funded by investors from 74 countries and regions (Hong Kong, Macao, and Taiwan included), of which the total project investment was US$24.78 billion, contracted overseas investment US$20.289 billion, actually utilized overseas investment US$12.116 billion, and average investment US$6.4464 million. Among them there were 389 projects with investment over US$10 million each and 15 ones with investment over US$100 million each. 44 of the Fortune global 500 corporations from nine countries made investment in 94 enterprises of TEDA. The investor group of TEDA comprised a great number of world-famous multinational corporations, which included Motorola, IBM, Coca-Cola, Pepsi-Cola, Kodak Polychrome, Halliburton, Honeywell, United Technologies, Philip Morris, Deere and Owens Corning from the United States, Toyota Automobile, Toyota Tsusho, Yamaha, Sanyo Electric, Matsushita, Denso, Kyocera, Idemitsu Kosan, Itochu Corp., Marubeni Corp., Sumitomo Corp., Canon, Mitsubishi Corp., Mitsubishi Electric, Mitsui, Nisshoiwai Corp., Aisin, Sekisui, Nippon Yusen Kaisha (NYK) Line and Daiei from Japan, Samsung, Hyundai, Lucky Golden Star International and Puhang Iron from South Korea, Volks Wagen form Germany, Nestle form Switzerland, Alcatel, Accor and Lafarge from France, GlaxoSmithkline and BOC from the U.K., Akzo Nobel from the Netherlands as well as Tinghsin and Inventec from Taiwan. By the end of 2004, there were altogether 9,729 domestic-funded enterprises with their registered capital of 39.449 billion yuan, of which 7,276 private ones contributed 19.319 billion yuan, and 1,006 domestic-funded ones had each of their registered capital over 10 million yuan.

TEDA so far has established representative offices in the United States, Japan, Europe, Beijing, Shanghai, etc.

V. Trade Promotion

While making continuous efforts to develop a favorable macro-environment for customs clearance and insisted on providing better services for enterprise operations, TEDA accelerated the development of domestic and foreign trade and created conditions for its fast economic growth.

With the initiation of the Talkfest on Services for Enterprises and the Service Day for Enterprises as a pivot, TEDA regularized its services for enterprises with rules and regulations to better its investment environment. It actively encouraged export, established Export Development Fund, streamlined the approval procedures for application for import and export rights for self-operation purposes, and vigorously promoted an online network for processing and manufacturing business between enterprises and customs, through which over 90% of the business in TEDA was handled.

TEDA attained high-speed growth in import and export and set a record high in export. In 2004, TEDA’s total value of imports and exports jumped by 53.6% over the previous year to US$21.177 billion, of which enterprises funded by foreign, Hong Kong, Macao, and Taiwan investors possessed US$20.491 billion, up by 53.2%. TEDA’s total import value grew by 44.9% to US$10.002 billion, of which enterprises funded by foreign, Hong Kong, Macao, and Taiwan investors held US$9.536 billion, up by 43.2%. TEDA’s total value of exports grew by 62.3% to US$11.175 billion, of which enterprises funded by foreign, Hong Kong, Macao, and Taiwan investors boasted US$10.955 billion, up by 63%. In the year, the value of exports in processing trade, which was still a main form of export, maintained the momentum of speedy growth and went up by 67% to US$10.157 billion while that in general trade achieved US$1.016 billion, up by 26.8% over the previous year. And the export rate of TEDA’s industrial products reached 50.7%.

Key enterprises gave stronger impetus to export and increased sources of growth in this regard. 481 enterprises of TEDA exported their products in 2004. Among them the number of enterprises with each of their export value over US$10 million was 54, an increase of 11 over the previous year, and their total export value added up to US$10.557 billion, accounting for 94.5% of the total of TEDA. Among them the number of enterprises with each of their export value over US$100 million was 13, four more over the previous year, and their total export value amounted to US$9.281 billion, making up 83.1% of the total of TEDA.

TEDA also intensified relations with its major trade partners. In 2004, TEDA had trade relations with 152 countries and regions, of which 148 were related to TEDA’s product export. As TEDA’s exports to the US increased rapidly, the US remained TEDA’s largest export destination. The value of exports to the US grew by 48.3% to US$3.791 billion, which accounted for 33.9% of the total of TEDA while the values of exports to the European Union (EU) and Association of Southeast Asian Nations (ASEAN) surged by 91.2% and 1.31-fold over the previous year to US$2.344 billion and US$1.662 billion separately, each forming 21% and 14.9% of the total of TEDA. And TEDA’s export value to other major export destinations such as Japan, Hong Kong and South Korea constituted 9%, 6.1% and 5.4% respectively.

Major export products saw a speedy increase. Mobile phones, base stations, digital cameras, high frequency (HF) tuners, video cameras, etc. registered an increase of over one-fold in their respective export values. The export of high-tech products attained considerable growth. In 2004, the export value of these products totaled US$9.011 billion with an increase of 75.2% over the previous year and held 80.6% of the total of TEDA with an increase of 5.9% over the previous year. The export value of mechanical and electronics products reached US$10.469 billion, up by 67.2% over the previous year, and occupied 93.7% of the total of TEDA, 2.8% higher over the previous year.

TEDA actively encouraged trade promotion activities and organized its enterprises for the participation in a series of events such as the 6th China High-Tech Fair, the TEDA Time & Space Theme Exhibition of 20 Years’ Achievements of TEDA, the Keitai Forum in Kyoto of Japan, etc. By doing this, TEDA expanded markets, displayed its image, spread its influence and created a better environment for business operations.

VI. Investment in Fixed Assets and Urban Construction

The investment in fixed assets was on a steady increase. In 2004 TEDA adapted itself actively to the state’s macro-control and readjusted in due course the structure of investment in fixed assets so that its investment maintained a steady and sound increase. TEDA accomplished a total investment in fixed assets of 15.683 billion yuan in 2004, 20.1% more than that of the previous year. 9.585 billion yuan out of the total was investment in industrial projects, accounting for 61.1% of the total, the increase being 82.8%. In 2004 TEDA also accomplished investment of projects funded by foreign, Hong Kong, Macao, and Taiwan investors of 9.001 billion yuan with an increase of 91.4%, and investment in infrastructure of 2.371 billion yuan with a decrease of 40%. In 2004 TEDA started construction of buildings of 1.6887 million square meters and completed construction of buildings of 1.5577 million square meters. By the end of 2004, TEDA had accomplished an accumulative total investment in fixed assets of 101.670 billion yuan, out of which 20.234 billion yuan was investment in infrastructure. Accumulatively, TEDA had started construction of buildings of 12.2554 million square meters and had completed 8.1615 million square meters.

The investment in fixed assets of industrial projects was on a moderate increase. There were 117 industrial projects with investment of over 10 million yuan in fixed assets and 21 industrial projects with investment of over 100 million yuan in fixed assents in 2004. A number of projects that conform to the state’s industrial policy represented by the wafer capacity expansion of SMIC, Phase II of Toyota, automotive electronics of Motorola, Samsung Group, Freescale, Rohm Wako, Inventec, Intex Auto Parts, Tokai Carbon, SEW Eurodrive have strengthened its advantages of the leading industries of TEDA and laid a good foundation for further development.

The supporting facilities of infrastructure in terms of transport and energy continuously improved. In 2004 Jinbin Light Rail system officially went into operation. Projects such as the transformation of Xingang Bridge and the construction of neighboring roads of Small and Medium Enterprise Park were completed one after another. The project of Binhai Avenue was in good progress. The transportation system of TEDA was further improved. Projects such as the one supporting the gas piping network of the industrial estate were completed, and the construction of those infrastructure projects of energy resources such as Phase II of No. 5 Heat Source Plant, No.2 110KV Power Station, and Natural Gas Storage and Distribution Station was started. The supporting capacity of energy resources was further enhanced.

Construction of the West Zone was carried out vigorously. Completed one after another were a number of road and bridge projects such as the 9th Avenue across the west extension of Beijing-Shanhaiguan railway, the overpass of Zhong Xinzhuang Street across Beijing-Tianjin-Tanggu Expressway, the overpass of Zhong Xinzhuang Street across Jinbin Expressway, the overpass of Beida Street across Tangshan-Tianjin Expressway, and the primary and secondary highways in Phase I of the West Zone. The main transportation framework of the West Zone of TEDA began to take shape. The supporting facilities of energy resources began to be established, and land requisition and house demolition was carried out orderly. Through land development the West Zone was ready for investment promotion and project arrangement, and quite a number of enterprises began their construction there.

TEDA made good progress in construction projects of urban public facilities, and its urban functions further improved. Completed and put into use in 2004 were projects such as TEDA Soccer Stadium, TEDA International Conference Center, Phase I of TEDA Campus of Tianjin University of Science & Technology, and Phase I of the new campus of TEDA Polytechnic. Projects such as TEDA Citizen Square and TEDA Promenade were under intense construction. The image construction of new TEDA came to splendid results.

The overall service of urban public utilities continuously improved. In 2004 the tap-water consumed in TEDA was 29.8408 million cubic meters with an increase of 19.9% compare to that of last year. The reclaimed water consumed was 1.0573 million cubic meters with an increase of 84.1% compared to that of last year. The power consumed was 1,229.0967 million kwh with an increase of 24% compared to that of last year. The natural gas consumed was 29.8087 million cubic meters with an increase of 98.4% compared to that of last year.

In 2004 TEDA had newly constructed roads of 926,200 square meters, water distribution network of 89.34 kilometers, drainage network of 103.51 kilometers, and heat supply of 58.8 tons/hour. By the end of 2004, TEDA had accumulatively constructed roads of 6.6771 million square meters, water distribution network of 337.69 kilometers, drainage network of 852.64 kilometers, water supply capacity of 255,000 tons/day, heat supply capacity of 873.4 tons/hour, power supply capacity of 424 MVA, gas supply capacity of 1.206 million cubic meters/day, sewage treatment capacity of 130,000 tons/day, total rainwater drainage capacity of 120.24 cubic meters/second, and total sewage drainage capacity of 13.94 cubic meters/second. TEDA had accumulatively developed land of 39 square kilometers, out of which 29.2 square kilometers was in the industrial estate and 9.8 square kilometers in the living estate.

VII. Science, Technology and Informatization

In 2004, based on the principle of “improving the capacity and environment of scientific and technological innovation and considering both the industrialization of technologies and technicalization of industries”, TEDA further improved the environment for the development of scientific and technological undertakings, promoted informatization in an all-around way, and greatly strengthened the promotive power that science and technology have on regional development.

TEDA made great progress in scientific and technological promotion. In 2004 TEDA further deepened the policy of regulations on both the promotion of the development of high-tech industries and the attraction of senior talents to TEDA. It completed the Provisional Measures on the Management of Distribution of TEDA’s Special Fund for National and Tianjin Municipal Key Technological Projects. It established a team to promote the development of the biotechnological industry of TEDA. It formulated the Outline for the Development of the Biopharmaceutical Industry of TEDA. It invested 184 million yuan as scientific and technological development fund and scientific and technological venture fund. It introduced such 4 engineering research centers as the Traditional Chinese Medicine Modernization Engineering Center of Tianjin Zhongxin Pharmaceutical Group Corporation Ltd., the Enterprise Technology Center of Hualida, the Research Center of Zhongxin Pharmaceuticals, and Tianjin Optoelectronics Joint Scientific Research Center. It newly established 8 enterprise post-doctor work stations, and officially put into use the Kaitai enterprise incubator. By the end of 2004, TEDA had 14 engineering research centers, 6 enterprise technology centers, 6 R&D centers for multinational companies, 34 enterprise post-doctor work stations, 6 high-tech incubation bases, and 4 venture capital companies. TEDA had accumulatively invested 1.200 billion yuan of scientific and technological development fund and scientific and technological venture fund, which provided strong guarantee for the development of TEDA.

The scientific and technological innovation capacity continuously improved, and scientific and technological activities were prosperous. In 2004 TEDA had altogether 55 projects included in the technological innovation plan of Tianjin and the state. Those projects got 230 million yuan of financial support from the state and Tianjin municipality. Both the number of projects and the amount of total financial support were the highest over the years. Of those projects, 2 were listed in the National 863 Program, 26 in 2004 Tianjin Municipal Scientific and Technological Development Program, 14 in 2004 Tianjin Municipal Technological Innovation Program, and 2 won Tianjin Municipal Technological Progress Award. In 2004 7 projects in all got financial support from the Technological Innovation Fund of the Ministry of Science and Technology for Small and Medium Enterprises with a total amount of 5.3 million yuan to make 2004 the year in which TEDA got the greatest amount of this fund.

The high-tech industrialization was in good progress. In 2004 TEDA had 9 projects listed in the Key Pilot Projects of High-tech Industrialization of the National Development and Reform Commission with a total investment of 1.06 billion yuan. It had 11 projects listed in the Key High-tech Industrialization Projects of Tianjin Municipality with a total investment of approximately 2.6 billion yuan. 26 enterprises got identified as high-tech enterprises. In 2004 TEDA had a total amount of technological transaction of 40 million yuan, 46 registrations of contracts of technology, 13 registrations of scientific and technological achievement identification, and 152 applications for patent. With the first accomplishment in China of the design of 90-nanometer integrated circuit, the clinic trial of the research and development of biochips, and the commercial trial operation of electric automobile, TEDA made great achievements in high-tech industrialization to become the base of high-tech industrialization for Tianjin and even for China.

TEDA’s informatization leaped to a higher level. In 2004 the core node of the New Coastal District for the special network of Tianjin municipal e-government was installed in TEDA. The digitization and fiber transformation project of CATV network was completed in the main to make Fiber-to-the-Home available. TEDA worked out informatization solutions for its enterprises to help them improve the informatization of management. With the customs of TEDA actively constructing the port information platform, customs clearance now can be done much faster, and the efficiency of customs clearance of TEDA has been greatly improved. In 2004 the accumulative number of visits of the government service networks such as www.teda.gov.cn, www.tedaonline.com, www.investteda.org, www. tedahr.com, and www.tradeteda.org was 9.72 million, the number of hits of www.eglobalpurchase.com, 5.2 million, and the number of calls dealt with at the Call Center, 230,000. At the end of 2004, the length of optical fiber in TEDA was 24,600 line-kilometer, the length of communications cable, 2,668 hole-kilometers, the backbone bit rate of metropolitan area network, 36.72G, the outbound bandwidth, 35.62G, and the number of home users of broadband, 6,200.

VIII. Social Undertakings

TEDA kept improving the educational system, enlarging the educational scale, and raising the educational level. In 2004 the TEDA Campus of Tianjin University of Science & Technology was officially put into use. Beida Jadebird Software Institute and Tianjin Bioengineering Vocational & Technical Institute were under active preparation for construction. A comprehensive modern educational system with multi-functions and variety began to take shape in TEDA. By the end of 2004, TEDA had altogether 11 schools of all levels and types, with 3 of them being non-governmental schools, 17,581 students at school, with 546 of them being foreign students, 1,177 teachers, with 116 of them being foreign teachers, 8 educational and training institutions, and 5 kindergartens and nursery schools. In 2004 the nine-year compulsory educational enrollment ratio of children of TEDA residents and floating population was 100%, and high school enrollment ratio, 97%. Schools of all levels and types won altogether 7 national awards and 11 municipal awards in competitions of all disciplines.

TEDA made new progress in its medical undertakings and its medical service system began to take shape. In 2004 TEDA International Cardiovascular Hospital was in good operations. TEDA Branch of Tianjin Emergency Center started operations. The Binhai Central Blood Station, jointly constructed by TEDA and Tanggu, went into operation. Binhai Central Hospital of Tianjin Medical University was under active construction. The centralized collection and treatment rate of medical waste of TEDA was 100%. By the end of 2004, TEDA had altogether 1 general hospital, 1 specialized hospital, 6 socialized medical organizations, 42 enterprise health stations, 476 medical personnel of different types, with 77 of them having senior professional titles, and 700 sickbeds.

Cultural and sports undertakings got on a new level. In 2004 TEDA TV Station presented 45 sets of domestic and overseas programs. It produced 320 different types of specialized and news programs, and broadcast on the average 8 hours of self-produced programs, out of which one hour and 27 minutes being devoted to self-created programs every day. By the end of 2004, TEDA Library had 228,500 volumes of books in storage and an accumulative total of 500,000 readers. Focusing on the 20th anniversary of its foundation, TEDA held a series of cultural activities. It also held regularly professional and mass recreational and sports activities to constantly enrich the regional cultural life. In 2004 TEDA Soccer Stadium went into use and held a number of domestic and international matches as well as grand artistic performances, for instance, the football match between China and Malaysia of World Cup Asian qualifying match and the Opening Ceremony of 2004 China Football Association Super League. TEDA also held the China-Japan-Korea Super Weiqi Championship successfully.

TEDA made further progress in community construction. New communities of convenience, comfort, and harmony were taking shape. In 2004 TEDA had 3 newly constructed communities for migrant workers and 1 working department of institute community. By the end of 2004, 11 communities had been founded and 6 neighborhood committees set up. The community service system and functions were further improved. The comprehensive security administrative system of the communities was further strengthened. All public facilities in the communities were put into use one after another. The first civilian-run community center in TEDA was established. The construction of e-community being in active progress, all neighborhood committees were equipped with web office. With volunteer service of the communities vigorously carried out, Warner International Volunteer Association composed of foreign people in TEDA was established to provide volunteer in TEDA. By the end of 2004, 9 community volunteer service stations and 23 community volunteer organizations had been established in TEDA and they held 220 volunteer activities in which 6,952 person-times participated to provide over 45,000 hours of volunteer service in 2004.

IX. Population and Labor

By the end of 2004, the total permanent population of TEDA was 103,700, which was 20,500 more than that of last year, the increase being 24.6%. The registered population was 21,800, which was 3,300 more than that of last year, the increase being 18.0%. The birth rate of the population for 2004 was 2.1‰, the mortality, 0.2‰, and the natural growth rate, 1.9‰.

By the end of 2004, the total of employees in TEDA was 258,100, which was 26,100 more than that of last year, the increase being 11.3%. 179,700 out of the total were employees of enterprises funded by foreign, Hong Kong, Macao, and Taiwan investors. The labor compensation for all employees in TEDA in 2004 was 5.24 billion yuan, out of which 4.055 billion yuan was labor compensation for employees of enterprises funded by foreign, Hong Kong, Macao, and Taiwan investors. Employees’ monthly labor compensation per capita was 1,812 yuan.

New progress was made in talent introduction and cultivation. In 2004, 45 senior talents were introduced into TEDA, 3 of which were academicians and 14 were post-doctors. By the end of 2004, TEDA had accumulatively introduced 334 senior talents, 13 academicians, and 40 post-doctors at the stations. The 2004 Tianjin Professional Skill Competitions and the Second TEDA Professional Skill Competition was held successfully. In 2004 the number of working employees who received professional skill certification training reached 6,285 person-times, the number of graduating students who received certification training, 800 person-times, the number of people who received professional skill identification, 3,593 person-times, and the number of people who received training at other social organizations, 2,732 person-times.

Employment and re-employment were promoted actively. In 2004 TEDA held altogether 6 citywide talent fairs and 16 regional talent and labor fairs. 11 Tianjin Municipal Youth Professional Bases for Probation were established and 6 bases for nonlocal labor service were developed. 3 re-employment bases and 1 community employment organization were newly constructed to provide 6,973 posts for unemployed and laid-off people. By the end of 2004, there were altogether 9 job referral agencies in TEDA.

Social security undertakings were in steady progress. By the end of 2004, 2,493 organizations in TEDA applied for insurance. The number of people who paid for endowment insurance in 2004 was 147,500, which was 24,700 more than that of last year. Premium of such five types of social insurance as basic endowment insurance, basic medical insurance, unemployment insurance, industrial injury insurance, birth and offspring medical insurance totaled 1.091 billion yuan, of which 692 million yuan was premium of basic endowment insurance. In 2004 2,242 retirees in all received their pensions.

X. Environmental Protection and Resource Utilization

Environmental protection work was deepened and environmental indicators remained excellent. In 2004 there were 302 days when the ambient air quality of TEDA came up to or better than the National Air Quality Standard Level II, the qualification rate being 85.6%. The average of inhalable particulate matter, the main pollutant, decreased by 9.4% compared to that of last year. The regional environmental noise was 52.9 db, and the average of traffic noise, 66.8 db, both having met the requirements of the national Standard of Environmental Noise of Urban Area. At the end of 2004, the qualification rate of the water that the Sewage Treatment Plant of TEDA discharged was 94.9%, which met Grade II of the requirements of Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant. With online monitoring applied to major pollution sources, the rate of online monitoring on major water pollution sources was 95.7%, the rate of online monitoring on smoke, 100%, and the rate of online monitoring on water quality, 50%.

TEDA made new progress in the construction of its ecological environment. In 2004 TEDA obtained official approval from the State Environmental Protection Administration of China on founding a national ecological industrial model park. The promotion of ISO14001 environmental management system was in good progress. By the end of 2004, 41 enterprises had passed the ISO14001 identification. The construction of Waste Minimization Club was carried out in an all-around way. The First China (Tianjin) International Conference on Green Manufacturing Technology and Industry Development for Electronic Products and the Circular Economy Promotion Conference of the State Environmental Protection Administration of China were held to have promoted the construction of the ecological industrial park and the development of circular economy.

The urban ecological environment constantly improved. In 2004 the construction of the Ecological Garden in the Microelectronic Industrial Park of TEDA was completed. In 2004 TEDA had new green land of 2.0475 million square meters. By the end of 2004, TEDA had green space of 7.8505 million square meters, of which 2.8887 million square meters was public green land. The greening rate of completed area was 31.4%, the afforestation coverage rate, 35.0%, the per capita green space, 75.70 square meters/person.

The efficiency of resource utilization further improved. In 2004 the power consumption for each ten-thousand-yuan of the total industrial output value was equal to 94.04 kilograms of SCE, 13.9% lower than that of last year. The fresh water consumption for each ten-thousand-yuan of the total industrial output value was 2.06 cubic meters, 12.6% lower than that of last year.

XI. Legal System Building and Government Administration

The regional legal environment was further optimized. In 2004, adhering to the principle of being fair, open and just, TEDA continued to strengthen the building of its regional legal system and improve the regional legal environment on the basis of “administering TEDA according to law”. It issued the Provisional Regulations to Promote the Development of Domestic Property Management of TEDA. By the end of 2004 TEDA had altogether 84 administrative normative documents in force.

Law and order continued to be strengthened to maintain social security and stability. In 2004 all departments of the Public Security Bureau, the Procuratorate, the Court, and the Bureau of Justice made concerted efforts to effectively maintain TEDA’s stability and unity. In 2004, 113 legal aid cases and legal affairs in all were accepted, 9 of which were criminal cases with 600,000 yuan of economic loss retrieved. People’s mediation and instruction work were carried out in an all-around way, and 6 people’s mediation committees were established in TEDA. The pilot work of public defenders and corporation lawyers was carried out in a deep-going way to bring the functional advantage of the government’s legal advisers into full play. By the end of 2004, there were altogether 3 law offices in TEDA.

The functions of a service-oriented government were further improved and management of the government greatly enhanced. In 2004 TEDA implemented the Administrative Licensing Law in a deep-going way. It further promoted the reform of the system of examination and approval. It liquidated thoroughly the administrative licensing projects of all administrative organs in TEDA and established an administrative licensing center. The operations of the petition center that deals with both complaints and legal aid got on the right track. The Emergency and Incident Response Plan of Tianjin Economic-Technological Development Area and the Basic Procedure of Emergency Response Command were revised and completed. The soft and hard platforms of an incident command system of emergency response were constructed to further enhance TEDA’s emergency response capacity.