Overview of Wuhan

 

Wuhan, one of the mega-cities in China, is the economic, cultural, commercial and financial center of Central China. The Yangtze River, the world’s 3rd longest river, and its largest branch--the Han River join here, dividing Wuhan into three parts, namely, Wuchang, Hankou and Hanyang.

• A history of over 3,500 years and profound culture

• An urban area of 8,569.2km² and abundant fresh water

• A resident population of 10.7662 million, ensuring rich human resources

 

Robust economic vitality

In Mckinsey’s prediction of “600 Top Cities”, Wuhan’s economic growth will climb to the 11th place in the world by 2025.

 

In 2017, the GDP of Wuhan was 1.34 trillion yuan, ranking 8th among all domestic cities and 4th among sub-provincial cities in the country.

 

In 2017, Wuhan completed an industrial investment of 240.495 billion yuan, increased by 13.6%.

In 2017, the added value of Wuhan’s industrial enterprises above the designated size grew by 7.7%, up by 2.7 percentage points year on year, the growth was 1.1 percentage points higher than the national average.

In 2017, Wuhan achieved a general public budget revenue of 267.766 billion yuan.

In 2017, Wuhan’s total retail sales of consumer goods amounted to 619.63 billion yuan, up by 10.4%. Both the scale and the growth ranked 6th among sub-provincial cities in China. In April 2016, Wuhan ranked 1st on the CBRE list of  “The World’s Most Active Shopping Center Markets”.

1 billion people live and 90% of China’s economic aggregate is generated within the area of 1,000 square kilometers that around Wuhan.

 

Complete urban functions

Commerce: Wuhan is currently home to more than 10,000 commercial undertakings and 56 large shopping malls, with a per capita retail space of 3.1m².

Finance: The number of financial institutions ranks 1st in Central China while the number of financial back-office service institutions is the largest nationwide. The CDI CFCI (China Financial Center Index) indicates that Wuhan ranks 6th among sub-provincial cities in terms of comprehensive competence; There are now 272 companies listed in the New Over-the-Counter Market.

Exhibition: Wuhan is one of the birthplaces for exhibition industry in modern China. In total, it boasts 250,000m² of exhibition space and 150,000 m² of conference space. Wuhan has won the “Golden Dolphin Award” and the title of “Happiest Exhibition Host City 2016” in China.

 

Healthcare: The number of Grade III hospitals in Wuhan ranks 5th in China. There are 3.22 doctors and 6.92 hospital beds per thousand permanent residents. Wuhan Tongji Hospital and Wuhan Union Hospital are among the top 20 hospitals in China in terms of comprehensive strength.

Education: There are 1,391 kindergartens, including 373 public kindergartens in Wuhan; in 2018 Wuhan will renovate or build 40 public-interest kindergartens and add 10,000 desks, promote the construction of supporting facilities for 89 primary and middle schools, strive to complete that of 20 and add 22,000 desks.

Urban transportation: Eight rail transit lines are in operation, covering 237km. By 2020, the rail transit mileage in Wuhan will reach 405km.

Culture: Wuhan is a city of gastronomy and top snacks, gathering best foods from all over the country; it has the world’s top stage “Han Show Theatre”; it has hosted several high-level sports events, including Wuhan Tennis Open, Wuhan Marathon, Wuhan Speed Horse Racing Open, World Fly-in Expo, Wuhan Marathon Swimming and 24 Hours of Le Mans Wuhan.

 

Development opportunity

Important strategic position

Focus of multiple national strategies: Wuhan is becoming the core growth pole in the Rise of Central China and the backbone of the Yangtze River Economic Belt; it is building itself into the core area of China (Hubei) Pilot Free Trade Zone.

 “Belt and Road” Initiative

Yangtze River Economic Belt Strategy

Comprehensive Innovation Reform Pilot Zone

National Central City

National Innovative City

National Science and Technology Innovation Center

East Lake Independent Innovation Demonstration Zone

China (Hubei) Pilot Free Trade Zone Wuhan Area

Service Trade Innovation Development Pilot City

National Comprehensive Transportation Hub Demonstration City

National Cyber Security Talent and Innovation Base

National Pilot Sponge City

 

Grand development objectives

To build Wuhan into a modern, international and ecological metropolis

To build Wuhan into a historic, modern and futuristic city

 

·Framework of National Central City

·Economic Center

·Sci-tech Innovation Center

·Commerce & Logistics Center

·Cultural & Creative Industry Center

·Comprehensive Transportation Hub

 

Five Valleys, Four “Cities”, Three Ports

·Wuhan East Lake High-tech Development Zone--Five Valleys

Optical Valley, Intelligence Valley, Talent Valley, Finance Valley, Medicine Valley

 

·Airport-based Economic Development Zone--Three Ports

Airport-based Manufacturing Port, Cyber Security Industry Port, Modern Healthy Food Port

 

·Wuhan Economic & Technological Development Zone--Four “Cities”

City of Cars, City of Robots, City of Smart Home, City of General Aviation

 

Five Hubs

·International Land Transportation Hub

Wuhan plans to build a high-speed rail network that extends to 12 directions featuring “two verticals, two horizontals and two diagonals”, and to establish a China-Europe (Wuhan) Freight Train domestic and international hub

 

·International Airport Hub

Wuhan will build Tianhe Airport (Phase III) and S.F. Cargo Airport

 

·National Multimodal Transport Hub

Wuhan will build Yangluo Port “Waterway-Railway-Highway” Multimodal Transport Hub, Tianhe Airport “Airway-Railway-Highway” Multimodal Transport Hub, High-speed Railway Express Distribution Center, Railway Express Cargo Center, and fast roads that connect hubs like Tianhe Airport, Hankou North Marshalling Yard, Yangluo Port and Ezhou S.F. Express Airport

 

·Yangtze River Midstream Shipping Center

Wuhan will complete Yangluo Port Phase III and Phase IV and add offshore and near-sea shipping lines

 

·National Key Information Hub

Wuhan will build the Supercomputer Center, Big Data Center, 5G and other information infrastructures

 

Immense potential for development

Ranked 1st in China in terms of sustainable innovation ability

Ranked 6th on the 2017 List of Start-up Friendly Cities in Mainland China

Awarded 2017 Creative Cities Network “City of Design”

Ranked 10th among China’s domestic cities in terms of business environment

Took the 11th place on the List of “2017 Comprehensive Competitiveness Rankings of Chinese Cities” released by the China Institute of City Competitiveness

 

·Bestowed with abundant resources and strong carrying capacity, Wuhan has great potential for growth and sustainable development.

·Carrying capacity of land resources: The land area of Wuhan is larger than that of Shanghai, Nanjing and Guangzhou while its built-up area is much smaller than that of the three cities, indicating huge potential for growth. Wuhan also plans to build world-class urban highlights.

·Carrying capacity of water resources: The per capita water resources of Wuhan are 71 times those of Beijing, 19 times those of Shanghai and 5 times those of Guangzhou.

 

Five advantages

Superior transportation—a thoroughfare to nine provinces

 

A thoroughfare to nine provinces and the flyover of China

Wuhan is the largest inland hub for land, water and air transportation in China. It is also the center of national high speed rail network and the shipping center in the middle reaches of the Yangtze River.

·Airway: With an annual throughput of 35 million, Tianhe Airport (Phase III), the largest aviation hub in Central China, has been completed and put into service. Wuhan is serviced by 53 international and regional airlines and boasts a passenger throughput of 2.3 million, whose volume of passengers ranks 1st in Central China.

·Waterway: Wuhan has the largest inland river port of Yangtze River. The river-sea-through route is connected to international ocean liners, enabling it to reach every corner of the world. Wuhan, Chongqing and Shanghai are collectively referred to as three major shipping centers on the Yangtze River, and Wuhan New Port has a container throughput of more than 1 million TEUs.

·Railway: Wuhan is one of the four largest railway hubs in China and the “Heart of High-speed Rail”, with high-speed trains reaching 26 provincial capitals nationwide, thus forming a 4-hour economic ring; Wuhan has opened the Wuhan-Europe freight train which registers the second largest volume of shipments and the largest amount of return freight in China.

·  路:14条高速公路在武汉交汇

·Highway: 14 highways converge in Wuhan.

 

Strong education and science strength—rich human resources

 

Wuhan is one of the top 3 science and education bases in China. With a complete range of disciplines, it ranks 3rd in China in terms of comprehensive science and education strength.

Four “Talent Retaining” Projects

•One Million College Graduates Retaining Project

To make sure one million college graduates stay in Wuhan in the next five years

•One Million Alumni Returning Project

To promote talent and investment attraction at the same time

• Commercialization of Scientific Research Results of Higher Education Institutions

To strive to commercialize 80% of scientific research results of higher education institutions in Wuhan

•Overseas Science & Technology and Innovation Talent Development Project in Wuhan

To gather a number of Nobel-laureate, academician-level global strategy scientists and industry scientists

 

A global leader in high-tech industries

Optics communications, biological energy resources, bio-medicine, 3D printing, satellite navigation, laser

 

Ranked 12th on the Forbes List of Top 30 Innovative Cities in the World

·89 higher education institutions

·1.3 million undergraduates and postgraduates, ranking 1st in the world

·95 key research institutions

·63 academicians from the Chinese Academy of Sciences and the Chinese Academy of Engineering

·27 state-level key laboratories, state-level laboratories and state-level engineering laboratories

·27 state-level engineering (technology) research centers

·23 state-level enterprise technology centers

·China’s first state-level bio-safety laboratory with the highest domestic bio-safety level

·Ranked 7th in China in terms of the number of licensed invention patents

·465 “1,000 Talents Program” experts

·4 Nobel laureates

·392 domestic and international high-caliber talents

 

Solid industrial foundation--made in Wuhan

Based on its formation of three towns, namely Wuchang, Hankou and Hanyang, Wuhan will construct four industrial agglomeration areas: Greater Optical Valley Area, City of Cars, Airport Economic Development Zone and Port Economic Development Zone and form six industries with an output value of 100 billion yuan each.

·The national memorizer base with a total investment of 160 billion yuan, the single project with the largest investment in China, has settled in Wuhan.

·A national cyber safety talent and innovation base, Wuhan has created the unique “cyber safety academy + creative industry valley” model in China.

·A state-level aerospace industry base with an investment of 150 billion yuan has been established in Wuhan, which is the first commercial space technology innovation park in China.

·A new energy vehicle base worth over 10 billion yuan, one of the most important smart new energy vehicle bases in China, has settled in Wuhan.

 

Six industries with an output value of more than 100 billion yuan each

Auto & parts

Information technology manufacturing

Equipment manufacturing

Food & tobacco

Energy & environmental protection

Steel and deep processing

 

In the future, Wuhan will focus on three key industries, namely information technology, life & health and smart manufacturing, to build an organic, updated iterative industry system composed of “existing pillar industries, strategic emerging industries and future industries”.

 

·Existing pillar industries    ·Strategic emerging industries     ·Future-oriented industries

 

DNA of opening up—an international metropolis

· France, the United States, South Korea and the United Kingdom have set up consulates general in Wuhan. Besides, with 19 foreign trade and economic organizations setting up in Wuhan, the city ranks 1st in Central China in terms of the number of foreign organizations.

·Wuhan has 26 international sister cities and 81 international friendly exchange cities.

·256 out of the Fortune 500 companies have set up headquarters or offices in Wuhan.

· Wuhan utilized USD9.647 billion of foreign investment in 2017, up by 13.2% year on year.

·The imports and exports amounted to 193.62 billion yuan in 2017, up by 23.2%. With mechanical and electrical products and high-tech products growing rapidly, the export product structure continued to improve.

·The port freight volume reached 12 million tons in 2017, up by over 10% year on year. Wuhan has two Class I ports, one provisional open port,one Class II port and three areas under special customs supervision.

·In 2017 ,the turnover of overseas contracted projects and labor cooperation was USD3.915 billion, up by 18%. The amount of service outsourcing contracts doubled, for which Wuhan was awarded the title of Service Outsourcing Demonstration City of China.

 

Livable ecological environment—abundant water resources

Wuhan features a subtropical humid monsoon climate with abundant sunlight and rainfall and four distinct seasons.

 

Average temperature: 16.8℃

Maximum temperature: 36.4℃

Minimum temperature: -5.2℃

 

Average air humidity: 76%

Maximum air humidity: 81%

Minimum air humidity: 67%

 

Annual precipitation: 1,100 millimeters

 

Annual sunshine duration: 2,000 hours

 

Annual frost-free period: 240 days

 

Wuhan has an average altitude of 23.3m, with most areas below 50m

 

Air quality situation:

255 days of excellent air quality annually

No paint corroding substances in the air

• No acid rain

• Not a bird habitat

• No sandstorm, typhoon or tornado

• Seismic fortification intensity: VI

 

Days suitable for normal construction: 330

Plum rain days: 24

Snowy days: 11 days

Low temperature days: 46

High temperature days: 29

 

Wuhan is embraced by forests and dotted with lakes. The Yangtze River and the Han River join here. The greenery coverage in built-up areas is 38.19%. The city has 166 lakes and 165 rivers, altogether making up one quarter of its total area. Wuhan’s per capita fresh water resources rank 1st among large cities in China.

·With East Lake as the ecological green heart, Wuhan is a city of numerous beautiful lakes. East Lake, covering an area of 33km², is the largest downtown lake in the world. Wuhan has the world-class greenway “Wuhan East Lake Greenway”, with a total length of 102km.

·Wuhan regulates rivers and watercourses to ensure clean water. The city adopts measures to prevent floods and water-logging, treat polluted water and ensure water supply.

·Wuhan strives to build unique lakeside space through the “Large Lake Plus” strategy. Wuhan will construct an ecological water network that consists of “Greater East Lake”, “Six Lakes in Hanyang”, “Seven Lakes in Dongxihu District”, “Twenty-one Lakes in Zhuankou”, etc.

 

Investment environment

Remarkable cost advantage

 

The relatively low costs for business operation, logistics and living in Wuhan are strongly appealing for industries and talents.

 

Wuhan ranked 10th among Chinese cities in terms of business environment and 6th on the list of “ Most Favorable Cities For Entrepreneurship in Mainland China” in 2017.

 

One port

·Jiangnan International Logistics Port

 

Six parks

·Hankou North Comprehensive Logistics Park

·Airport Comprehensive Logistics Park

·Yangluo Port Comprehensive Logistics Park

·Dongxihu Comprehensive Logistics Park

·Zhengdian Comprehensive Logistics Park

·Huashan Port Comprehensive Logistics Park

 

Eight centers

·Yangluo Logistics Center

·Gulong Logistics Center

·East Lake Bonded Area Logistics Center

·North Lake Chemical Industry Area Logistics Center

·Jinkou Logistics Center

·Shamao Logistics Center

·Changfu Logistics Center

·Zhujiawan Logistics Center

 

Land cost: Wuhan has a relatively rational land market. Its premium rate in land auctions is lower than the national average.

Office building cost: The average monthly rent of Class A office buildings in core CBDs is 123.3 yuan per square meter, lower than that in counterpart cities.

Housing cost: The prices of commodity houses are lower than those in counterpart cities.

Logistics cost: With “one port, six parks and eight centers” and seamlessly connected railways, waterways, highways and airways, Wuhan is a pivot of multimodal transport in Central China. By 2020 Wuhan will strive to become the national logistics center.

 

Gas supply

For civil use: annual gas consumption of Tier 1

0-360 (included) Nm³ per household

2.53 yuan per Nm³

Annual gas consumption of Tier 2

360-600 (included) Nm³ per household

2.78 yuan per Nm³

Annual gas consumption of Tier 3

600 Nm³ per household

3.54 yuan per Nm³

For industrial use: 4.035 yuan per Nm³

For commercial and other uses: 4.385 yuan per Nm³

 

 

Item

Household consumption

Non-household

consumption

Consumplion by special industries

Tier 1 (0-25 m3)

Tier 2 (25-33 m3)

Tier 3 (33 m3 and above)

Water supply price

1.37

2.05

2.74

2.12

8.1

Charge for wastewater treatment

1.1

1.1

1.1

1.37

1.37

Total

2.47

3.15

3.84

3.49

9.47

 

 

Electricity:

Unit: RMB/kWh

Use of electricity

Electricity price by KWH

Basic electricity price

 

Less than 1 kV

1-10 kV

 

20-35 kV

35-110 kV

110 kV

2200 kV and above

 

Max. demand yuan/KW/m

Transformer capacity yuan/KVA/m

I. For household electricity

Urban and rural “one meter for one household” program

Annual electricity consumption

2160 kWh

0.5580

 

 

 

 

 

 

 

Annual electricity consumption 2161 ~ 4800 kWh

0.6080

 

 

 

 

 

 

 

Annual electricity consumption exceeds

4,800 kWh

0.8580

 

 

 

 

 

 

 

Combined resident electricity meter program

0.5800

0.5700

0.5700

0.5700

 

 

 

 

II. For general industrial and commercial use and other use

0.8700

0.8500

0.8450

0.8300

 

 

 

 

III. For large industrial use

 

0.6117

0.6069

0.5919

0.5738

0.5548

42

28

Where: for ionic membrane caustic soda production

 

0.5847

0.5799

0.5649

0.5468

0.5278

42

28

IV. For agricultural production

0.5587

0.5387

0.5337

0.5187

 

 

 

 

Where: for agricultural irrigation and drainage in poverty-stricken counties

0.3917

0.3717

0.3667

0.3517

 

 

 

 

VII. For  wholesale

Wholesale electricity price at county-level

Wholesale electricity price below county level

0.5327

0.5447

 

 

Effective policy support

 

Incentive Measures of Wuhan for Investment Promotion (Trial) (W.Z.G. (2017) No. 64)

 

·Enterprises that have reached a total of 200 million yuan or above in fixed assets within two years of industrial and commercial registration and have made outstanding contributions to the economic development of Wuhan will be given a one-time reward equivalent to 2% of its actual investment in fixed assets, with the maximum reward amounting to no more than 8 million yuan.

·Newly introduced manufacturing projects (enterprises) that have per mu fixed-asset investment of over 3.5 million yuan and per mu annual revenue of over 8 million yuan will be given a one-time settlement reward of 3 million yuan.

·For investing, financial, operating, marketing and other functional institutions that are set up in Wuhan by Fortune 500 companies, central enterprises, Top 500 Companies of China, Top 500 Private Companies of China and transnational companies with annual operating income in the previous year of over USD5 billion, have independent legal person qualifications, have paid-up registered capital of no less than USD10 million (or the equivalent value in yuan) and manage over 3 branches (including subsidiaries and offices) outside Wuhan and have made outstanding contributions to the economic development of Wuhan, a one-time settlement reward will be granted. For functional institutions set up by overseas Fortune 500 companies, a one-time settlement reward of 5 million yuan will be granted; for functional institutions set up by other enterprises, a one-time settlement reward of 4 million yuan will be granted.

·For institutions that are set up in Wuhan through cooperation between relevant enterprises and Fortune 500 companies, central enterprises, Top 500 Companies of China, Top 500 Private Companies of China, transnational companies with annual operating income in the previous year of over USD5 billion and domestic and overseas higher education institutions or renowned scientific research institutions, have independent legal person qualifications and are certified as industry R&D institutions, a one-time settlement reward of 3 million yuan will be granted.

·For enterprises that have achieved annual operating income of over 1 billion yuan in the city and have made outstanding contributions to the economic development of Wuhan, a reward equivalent to a certain proportion of their actual contributions shall be granted for two consecutive years starting from the year they make such contribution.

· For each enterprise executive (including board members, at most 10 persons from a single enterprise) whose contributions to the economic development of Wuhan meet a certain standard within 3 years of the enterprise’s first taxable year, a one-time reward of 400,000 yuan shall be granted.

 

 

 

 

 

List of investment attraction policies of Wuhan

·Notice of the Wuhan Municipal Committee of the Communist Party of China and the Wuhan Municipal People's Government on Issuing Policy Measures for Promoting Breakthrough Development of Private Economy (Trial) (W.W. (2017) No. 24)

 

·Notice of the Wuhan Municipal People's Government on Policy Measures on Promoting “Zero Land” Technological Upgrading of Industrial Enterprises (W.Z.G. (2017) No. 22)

 

·Suggestions of the Wuhan Municipal Committee of the Communist Party of China and the Wuhan Municipal People's Government on Promoting Innovation-oriented Development of Modern Industrial Parks and Scientific and Technological Innovation Small and Micro Enterprise Parks (October 10, 2017) (W.F. (2017) No. 14)

 

·Suggestions of the Wuhan Municipal People's Government on Further Reducing Enterprise Costs and Revitalizing Real Economy (W.Z.G. (2017) No. 26)

 

·Notice of the Wuhan Municipal People's Government on Building a Market Environment with Fair Competition and Promoting Healthy Development of Private Investment (W.Z.G. (2017) No. 19)

 

·Notice of the Wuhan Municipal People's Government on Policies on Accelerating Innovation-oriented Development of Cultural Industry (W.Z. (2017) No. 3)

 

·Notice of the Wuhan Municipal People's Government on Policies on Supporting Development of National Cyber Security Talent and Innovation Bases (W.Z.G. (2017) No. 4)

 

·Notice of the Wuhan Municipal People's Government on Policies for Accelerating Development of Tourism (W.Z.G. (2017) No. 60)

 

·Notice of the Offices of the Wuhan Municipal Committee of the Communist Party of China and the Wuhan Municipal People's Government on Issuing Policy Measures for Supporting One Million College Graduates to Seek Employment and Set up Start-ups in Wuhan (W.B.W. (2017) No. 53)

 

·Notice of the Wuhan Municipal People's Government on Announcing Scope of Investment Projects Approved by Government (W.Z. (2017) No. 27)

 

·Notice of the Wuhan Municipal People's Government on Issuing Suggestions for Supporting Enterprise Development and Policy Measures for Supporting Development of Industrial Economy (W.Z. (2015) No. 35)

 

·Notice of the Wuhan Municipal People's Government on Issuing Policy Measures for Further Supporting Development of Headquarters Economy (W.Z.G. (2016) No. 29)

 

·Ten Measures on Optimizing Approval Services and Promoting “Earlier Approval, Earlier Commencement and Earlier Operation” of Industrial Projects (W.Z.F. (2017) No. 28)

 

 

 

Efficient service mechanism

 

Fast approval mechanism: Wuhan adopts the “prompt, online and one-stop” examination and approval model to improve governmental departments’ working efficiency and service quality.

 

 

Procedures for establishment of a foreign-funded enterprise

 

Policy basis: Interim Measures for the Recordation Administration of the Formation and Modification of Foreign-funded Enterprises and Announcement No.26, 2006 of the National Development and Reform Commission and the Ministry of Commerce

 

Step 1

Determine the industry and scope of business your company will be engaged in.

·If the business scope falls into the permitted category or the encouraged category without special requirements, proceed with the recordation procedure.

·If the business scope falls into the restricted category or the encouraged category with equity requirements, follow the administrative approval procedures

·If the business scope falls into the category of prohibited industries, terminate the approval procedures.

 

Step 2

Recordation of establishment application procedures

·Pre-approval of company name at the Administration for Industry and Commerce

·Registration at the Administration for Industry and Commerce

·Recordation at the Ministry of Commerce

(website: wzzxbs.mofcom.gov.cn)

Examination of establishment application procedures

 (Contact the district commerce department or approval department for details)

 

 

 

Efficient service agencies

 

Wuhan Commerce Bureau (Investment Promotion Bureau)

 

Address: No. 27, Lihuangpi Road, Jiang’an District, Wuhan

Post Code: 430017

Website: www.wuhaninvest.com

 

 

Wuhan Investment Promotion Complaint Center

 

Address: No. 1 Xinyi Street, Houhu Avenue, Jiang’an District, Wuhan

邮编 Postcode430010

Post Code: 430010

Tel.: 027-12388  82624205

Website: http://www.whdi.gov.cn/jb/