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Investment Opportunity--Wuhan City

October 16, 2019

Overview of Wuhan

 

Wuhan, Hubei province is one of the mega-cities in China. Its 3,500 years of history has accumulated a vibrant cultural heritage. The city covers an area of 8569.2 square kilometers and has abundant freshwater resources. The residential population has reached 1108.1 million, guaranteeing rich human resources.

 

2 Mins Wuhan city promotion video:

(Source by YouTube)

 

 

Development Opportunity

 

Wuhan city continues attracting many investors to start their business because of its development opportunity. Three main development opportunities of Wuhan include its important strategic position, impressive development objectives, and its immense potential for development.

 

Wuhan city located in the Yangtze River, the world's third longest river, and its largest branch-the Han River-join here, dividing Wuhan into three parts. Therefore, Wuhan is becoming the core growth pole in the Rise of Central China and the back of the Yangtze River economic belt; it is building itself into the core area of China (Hubei) Pilot Free Trade Zone.

 

The long-term goals of Wuhan city government are building Wuhan into a modern, international, and ecological metropolis; a historic, modern, and futuristic city. The framework for a national central city combines with five parts, include the Economic Center, Science and Technological Innovation Center, Commerce & Creative Industry Center, Cultural & Creative Industry Center, and Comprehensive Transportation Hub.

 

Wuhan also has and immense potential for development. It has ranked 1st in China in terms of sustainable innovation ability; ranked 8th on the 2018 List of Start-up Friendly Cities in Mainland China; awarded Creative Cities network's "City of Design"; ranked 5th on the List of 2018 Comprehensive Competitiveness of Chinese Cities; ranked 10th among China's domestic cities in terms of business environment in 2018.

 

10 mins Wuhan city introduction video:

(Source by YouTube)

 

 

Five Advantages

 

Comparing to other mega-cities, Wuhan has five advantages. It has superior transportation, robust education and science strength, solid industrial foundation, DNA of opening up, and a livable ecological environment.

 

Wuhan city's great transportation system benefits those new investors and start-up companies to grow their business faster. The city is a thoroughfare to nine provinces, the largest inland hub for water, land, and air transportation in China, the center of the national high-speed rail network and the shipping center in the middle reaches of the Yangtze River.

 

This city is one of the top 3 science and education bases in China. Its four "Talent Retaining" projects determined Wuhan city is highly competitive among other cities. The four projects include One Million College Graduates Retaining Project, Commercialization of Scientific Results at Higher Education Institutions, Overseas Science & Technology, and Innovation Talent Development Project in Wuhan, One Million Alumni Retaining Project. Wuhan was ranked 12th on the Forbes List of Top 30 Innovative Cities in the World, which is a global leader in high-tech industries.

 

Wuhan is making every effort to build five bases, namely the National Memorizer Base, Wuhan National Aerospace Industry Base, National Cyber Security Professional and Innovation Base, National New Energy and Intelligent  Connection Vehicle Base, and Massive Health Industry Base, as well as three world-class industrial clusters, namely bio-medicine and medical equipment, optoelectronic information, and auto & parts, accelerate industrial transformation and upgrading, and strength support for high-quality industrial development.

 

Moreover, Wuhan is an international metropolis. Attracting France, the United States, South Korea, and the United Kingdom came to set up consulates general in Wuhan. There are 21 foreign trade and economic organizations settling in Wuhan. It has 28 international sister cities and 84 international friendly exchange cities. 277 out of the Fortune 500 companies have settled in Wuhan. In 2018, the actual utilization of foreign investment in Wuhan increased by 13.3% year-over-year. The imports and exports amounted to 214.6 billion yuan in 2018, up by 10.9%.

 

Wuhan features a monsoon climate with abundant rainfall and sunlight and four distinct reasons.

  • Average temperature: 16.8 °C

  • Maximum temperature: 36.4°C

  • Minimum temperature: -5.2°C

  • Average air humidity: 76%

  • Maximum air humidity: 81%

  • Minimum air humidity: 67%

 

Air quality situation:

255 days of excellent air quality annually. No paint corroding substances in the air, no acid rain and it is not a bird habitat. No sandstorms, typhoons, or tornadoes. Its seismic fortification intensity is VI.

 

Investment Environment

 

The relatively low costs for business operations, logistics, and living in Wuhan are extremely for industries and talents.

 

  • Land costs: Wuhan has a relatively rational land market. It's a premium rate in land auctions are lower than the China national average.

 

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

 

   -Gas:

   For industrial use

   4.035 RMB/Nm³

 

   For commercial or other use:

   4.385 RMB/Nm³

 

   -Water supply (lowest possible charge in Wuhan):

   Non-household consumption:

   -2.12 RMB/ton (Water supply price)

   -1.37 RMB/ton (Charge for wastewater treatment)

   -3.49 RMB/ton (Total)

 

   Consumption by special industries:

   -8.1 RMB/ton (Water supply price)

   -1.37 RMB/ton (Charge for wastewater treatment)

   -9.47 RMB/ton (Total)

 

   -Electricity

   For general industrial and commercial use and other use:

   -0.8700 RMB/kWh (Less than 1 kV)

   -0.8500 RMB/kWh (1-10 kV)

   -0.8450 RMB/kWh (20-35 kV)

   -0.8300 RMB/kWh (35-110 kV)

 

  • Logistics costs: 

With "One Port, Six Parks, and Eight Centers" and seamlessly connected railways, waterways, highways, and airways, Wuhan is a pivot for multi-modal transport in Central China. By 2020, Wuhan will strive to become the national logistics center.

 

  • Office building costs:

The average monthly rent for Class A office building in the core CBD is 123 yuan/sqm ($1.8/sqft), equals to $21.6/sqft annually, lower than that in counterpart cities.

 

The biggest advantage of investment in Wuhan is effective policy support by the government. Wuhan uses several measures for promoting high-quality economic development with the increased use of foreign capital. 

 

   Such as:

  • Enterprises that are recognized by authoritative institutions as "Unicorn" enterprises and have a total project investment of USD 100 million yuan and registered capital of more than USD 10 million will be given a one-time settlement reward of 5 million yuan.

 

  • Key state laboratories and national technology innovation centers initiated by foreign-invested enterprises will be given subsidies by local financial institutions in a 1:1 ratio of the provincial financial aid, with the one-time maximum subsidy amounting to no more than 2.5 million yuan for a single platform.

 

  • Independent entity R&D institutions that are established in comprehensive bonded zones and are in line with the one-time reward standard stipulated in the Incentive Measures of Wuhan for Investment Promotion (Trial) (W.Z.G (2017) No. 64) will be given an additional reward of 500,000 yuan.

 

Wuhan also has many incentives to measure 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 since 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 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 acre fixed-asset investment of over 3.5 million yuan and per acre annual revenue of over 8 million yuan will be given a one-time settlement reward of 3 million yuan.

 

Moreover, Wuhan has an efficient service mechanism. Wuhan adopts the "Prompt, Online, Nearby, and One-Stop" examination and approval model to improve governmental departments' working efficiency and service quality.

                                                                                                       

                                                                                                  (Article references by:Wuhan Investment Guide)

 

 

Contact us for more information

Tel: 312-291-9554

Email: info@brightpei.com

 

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