International Economic Cooperation

One of the first provinces in the country to open up to the outside world, Zhejiang has established direct economic and trade relations of varied forms with more than 200 countries and regions in the world by the end of 2005. With diversification of foreign trade companies, export market, export products, and trade means, a new situation has emerged in which the state-owned and state-controlled enterprises, foreign invested enterprises and private enterprises are making joint effort to explore the international market. In 2006, the import and export volume totaled US $139.15 billion in which the export volume was US $100.9 billion, showing an increase of 31.4 percent over the previous year; the import volume was US $38.25, with an increase of 25.1 percent. The structure of export products was further optimized, with the preliminary establishment of a commodity system focusing on exporting of mechanical and electrical products as well as hi-tech products, and improving the added value of traditional products like light industrial textiles. The Zhejiang Investment & Trade Symposium, The Hangzhou West Lake Exposition, and The Yiwu International Commodities Fair, which take place respectively in June and October every year, constitute important platforms for promoting economic exchanges between Zhejiang Province and the rest of the world. Zhejiang is improving its skills and performance in utilizing overseas capital through putting more emphasizing on selecting proper partners and investments. In 2006, Zhejiang organized a series of economic and trade promotions in U.S.A. and Germany, and recommended a long list of programs for foreign investment, as a measure to speed up its pace to attract capitals on programs cooperated with "Global 500" corporations, with high and new technologies, and of large scale, while at the same time, expanded the utilization of foreign capitals in service industry. In 2006, an investment of US $8.89 billion was actually utilized, showing an increase of 15.1 percent. On average, each single contract introduced $5.53 million. The number has been growing continuously and stays in front rows among those of coastal provinces and municipalities in the country. Foreign capital utilized by manufacturing is in the leading, while that introduced by hi-tech industries and the tertiary industry occupies 32.2% of the provincial total. Foreign investors have started to invest in modern service facilities including hospitals and airports, and in areas such as direct sales, finance, and leasing. Now 77 corporations in the Global 500 have invested to set up 197 enterprises in the province.Zhejiang is implementing a strategy encouraging the enterprises to go abroad which further pushes forward the fast development of its outbound investment and economic cooperation with foreign countries. At the end of 2006, the scale of single outbound investment project expanded, while the general investment on projects of over US$1 million amounted to 86.4% of the total outbound investment of the province. The number of cases that increased investment and of buying and merging is growing. Nice Group of Lishui and Hangzhou Machine Tools Group have entered the major international market through purchasing foreign brand enterprises. The level of foreign economic performance is improving, the number of programs in the area of designing and consulting is increasing, and foreign aid projects have achieved breakthrough results.

Economic and Technological Development Zone

There are 13 national development zones and 57 provincial economic development zones. Development Zones above the province level completed an industrial added value of about 172.7 billion yuan, among which 40 percent was made by hi-tech industries. In 2006, the amount of foreign investment actually utilized in development zones was US $4.45 billion, about 50 percent of that of the whole province. In the zones, the industrial structure has become increasingly optimized. Besides the advanced manufacturing projects, the amount of projects of primary and tertiary industries increased with large margin in agriculture, traffics, transport, postal and telecommunication.

International Cultural Exchanges

International cultural exchanges are increasingly animated. The special characteristic culture and art from Zhejiang have also entered the international cultural market through multi-channels. Statistics of 2006 showed that the province conducted 410 cultural exchange projects going to Hong Kong and Macao as well as foreign countries and regions, which involved 5,498 person-times, and introduced 316 performance, exhibition or exchange projects and 4,617 person-times from abroad. The media in the province including the printed matters, radio and TV institutions have been active in the cooperation with their counterparts outside China. Meanwhile, exchanges in education and technology have been on the increase.

International Sister Cities

Since the sister-city relationship between Hangzhou and Gifu in Japan was concluded in February 1979, Zhejiang has established friendship ties with 189 provinces, states and cities in 47 countries, including the United States, Germany, France, Britain, Russia, Japan, South Korea, Thailand, Brazil, Cuba, Australia and South Africa, including 85 sister-city and 104 friendly-exchange relationships. Non-governmental organizations like Zhejiang Provincial People's Association for Friendship with Foreign Countries have set up friendly cooperative relationships with over 100 organizations in more than 30 countries and regions. All these friendly ties have greatly promoted the opening drive of the province and its exchange and cooperation with foreign countries. At the same time, they have contributed to the economic construction and social development in the province.

Famous Hometown of Overseas Chinese

With over 1.5 million people of Zhejiang origin residing in 129 countries and regions throughout the world, the great majority being in West Europe and North America, Zhejiang is widely known as a hometown of overseas Chinese. The overseas Chinese and their relatives amount to one million in the province. Overseas Chinese of Zhejiang origin have not only made remarkable contributions to the construction of the countries they reside in, but also done their special share for the economic and social development of Zhejiang Province.At present, the province maintains close ties with overseas Chinese societies and personages. In 2006, the provincial government issued Temporary Regulation of Zhejiang on Protecting Rights of Overseas Chinese, to protect the legal rights of overseas Chinese in the province. It also set up a Zhejiang Overseas Chinese Businessmen Association to serve and tighten the liaison with overseas Chinese. Ten Chinese Education Bases were set up in Hangzhou, Ningbo, Wenzhou, Lishui, Zhoushan, Jinhua, and Quzhou, serving the development of Chinese language education for overseas compatriots, communities and Chinese language schools. In 2006, over 100 teachers in overseas Chinese language schools were trained with knowledge of Chinese language and method of teaching, while over 400 offspring children of overseas Chinese from 26 countries and HKSAR were invited to take part in the programs of "Travel to China for Root Seeking-Happy Tour in Zhejiang" and various types of root-seeking summer camps in their hometowns.