Surprising Harbin - Harbin-Russia Trade Sees Robust Growth
Did you know . . . Harbin has pledged to push business
ties with neighboring Russia to a new high with bilateral
trade volume predicted to increase by more than 30
percent year-on-year by the end of 2005. Over the
past decade, trade between the two sides had
remained stagnant, but last year, Harbin's annual import
and export trade volume with Russia hit $103 million
USD, breaking the $100 million USD barrier for the first
time since the mid-1990s. Furthermore, comparing the
province's yearly foreign trade volume of $3.82
billion USD, this clearly shows the massive potential of
Harbin.
Harbin, the capital of Northern China's Heilongjiang
Province, has committed itself to stepping up Harbin-
Russia trade through promoting their economic and
trade co-operation and broadening its international
market. In Harbin's Xiangfang District, an export-
processing zone will be established focusing on
agricultural and sideline products, textile products,
electronic products, mecha-electric product processing,
and stock management. Another strategic move is to
facilitate the construction of an economic corridor with
Russia.
The Harbin-Vladivostok international trade "green lane"
will be further developed, with Russia's Krasnoyarsk,
Habarovsk, Ekaterinburg and Vladivostok as the target
markets. In the next three years, Harbin will strive to
become an important production and processing base
for exports to Russia, with a target of taking the city's
trade volume with Russia to above $1 billion USD by
2010. In addition, Harbin's agricultural co-operation
with Russia is on a fast track. Taking advantage of
Russia's good ecological environment and potherb and
marine product resources, Harbin has co-developed
green rice, green soybean, and other refined
agricultural and sideline products with Russian partners.
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Dear Friends:
One of the most frequently asked questions regarding
investment in China is: "How do I get my money out of
China?" Simple: You take it out. If that answer seems
too simple, then you are basing your impressing on the
China of the past. As China has moved into the global
economy and the World Trade Organization, the
financial policies and practices of China have
progressed. Investors and foreign enterprises will find
that investments in China pose not much more risk that
investments anywhere else in the world, money can be
withdrawn rather easily, American companies can
establish wholly owned business without Chinese
partners, or branches of the domestic company.
Another question often asked: "Is this a good time to
invest in China?" In my judgment, there is not place on
earth that affords better investment opportunities.
Even though the growth potential diminishes as the
Chinese economy expands, there are many outstanding
opportunities. Of course, due diligence is critical.
Opportunity also depends on locale. While Hong Kong,
Shanghai, Guangzhou afford many opportunities, the
most exciting and profitable opportunities can be found
in the second tier cities, such as Harbin. Here the
growth projection is a steeper rise. -- Larry P. Horist
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| TJI International invests in Harbin - Sees Entertainment and Tourism as Hot Prospects. | | | After spending 3 years promoting investment in Harbin
through the Harbin Business Exchange, TJI International
is making its own commitment. The company has
formed a joint venture partnership with Brown's Chicken
and Pasta to open a new concept food establishment in
the prime location in Harbin. Located adjacent to an
8.screen Warner Bros Cineplex in a brand new shopping
mall on the city's central civic plaza on the shore of the
Songhua River, the new 500-plus Hollywood Food Court
will feature a movie land motif and a wide range of
American fast food menu items. The site is further
enhanced by the adjacent Wal-Mart. TJI recently
secured this exceptional space with a $21,000 lease
advance. Larry and Jill Horist are planning a trip to
Harbin in the near future to commence the on-the-
ground planning and implementation. TJI International
is also exploring other investments in the recreation,
entertainment, and accommodation sector, including an
upscale specialty restaurant in Harbin's new nightclub
district, and the acquisition of a 5-star boutique hotel.
For more information on these investment opportunities,
call 312/565-4499. | | |
| Institutional Reform Transforms Pharmaceutical Group | | | Harbin Pharmaceutical Group Co Ltd (Hayao Group),
based on a successful reorganization late last year,
registered a conspicuous record in production and
management terms in the first quarter of this year. It
notched up a business revenue of $283 million USD, up
17.7 percent year-on-year, and a total profit of $21.3
million USD, a 19 percent rise on a yearly basis. At the
beginning of the year, the group set a minimum yearly
sales income target of $988 million USD. By launching
an effective audit and monitoring system, the group
has slashed the raw material sourcing costs of its
affiliated industrial enterprises by 5 percent year-on-
year in the first three months, and that of its
commercial subsidiaries by 2 percent. In addition, by
exploiting the potential of production technologies and
process management, the cost of the Cephalosporin
series products, the group's mainstay variety, fell $48
USD per kilogram. Hayao Group Medical & Pharmaceutical Co Ltd, the
former medical & pharmaceutical company affiliated
with the Hayao Group, became an independent legal
entity following systematic reform. This resulted in
improved economic efficiency, with a business volume
of $65 million USD in the first quarter,
up 18.8 per cent over that of 2004. The management
board of the Hayao Group, which chalked up $882.7
million USD in sales revenue, said they are confident of
accomplishing the goal of $1.21 billion USD in 2005
through mergers and acquisitions, if this strong
momentum in sales continues for the rest of the year.
It aims to increase the sales scale of its Shiyitang and
fourth pharmaceutical plants to above $36 million USD,
its second and third traditional Chinese factories to
over $24 million USD each, and the profit of its
first bio-product factory and biological engineering
corp. to more than $1.2 million USD in 2005. | | |
| Group Powers up for Development | | | Harbin Electric Machinery Co Ltd (HEM), a subsidiary of
Harbin Power Station Equipment Group Corporation
(HPEC), clinched a contract in March with Taiwan
Jiexing Construction Co Ltd. It is HEM's first project in
co-operation with a Taiwan partner, marking a
milestone that the firm's power equipment has spread
to as many as 32 provinces, autonomous regions and
municipalities in China. HPEC, a group comprising HEM,
Harbin boiler Co Ltd and Harbin Turbine Co Ltd, is
regarded as one of the biggest power equipment
makers in China. Thanks to the group's growing
technological strength, HPEC has won bids from many
large-scale projects both at home and abroad over the
past several years, and the waiting lists for orders is
growing. The group's gross industrial output value
increased year-on-year 126% to reach $1.43 billion
USD, with its sales volume chalking up a record high of
$1.27 billion USD. According to the Harbin Branch of the People's Bank of
China, HPEC has accumulated a large amount of impress
because of the mounting orders transforming the group
from a large credit borrower to a large depositor. Also
last year, HPEC's five 700,000-kilowatt hydroelectric
generating sets started operating on schedule, easing
serious power supply shortages in China's southern
regions. HPEC has consequently won applause from
both domestic and foreign contractors and customers
for the outstanding performance of the five sets, all of
which meet international quality standards. Additionally,
HPEC won the bid for the hydroelectric generating sets
to be used in the right side of China's Three Gorges
Dam Project, the world's largest hydropower plant. As a
result, four out of the total 12 sets will be
manufactured by HEPC and are scheduled to be sent to
the construction site. | | |
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