Doing Business In Quanzhou,Xiamen,Fuzhou,Fujian,One Stop Foreign Investment Services In Quanzhou,Xiamen,Fuzhou,Fujian,Establishing China Operations In Quanzhou,Xiamen,Fuzhou,Fujian,Set Up Business,Company Registration,Accounting,Tax Planning,Tax Advisory,Legal,Product Sourcing,Chinese English Translation Services In Quanzhou,Xiamen,Fuzhou,Fujian China
XIAMEN HAS ALWAYS BEEN a little bit different. Although dozens of Chinese cities outrank it in terms of population and economic might, Xiamen eclipses most of them in reputation and importance.
Here the economic emphasis has always been on trade and finance. With less reliance on factories and heavy industry, one of the things that sets Xiamen apart is immediately clear. Literally. There is no pall of acrid smog. Looking across from the mainland, the skyline is sharply visible, in stark contrast to many other Chinese cities where pollution is sometimes so dense you struggle to see across the street.
Another thing that sets the city apart, again literally, is geographic: It’s an island, situated in a bay and linked to the mainland by causeways, bridges and tunnels. Its sheltered waters and natural defenses, together with its strategic location on the coast of the southeast province of Fujian between Hong Kong and Shanghai, made Xiamen (then known as Amoy) a favored base for early foreign traders, and in the 19th century it became the leading port for exporting Chinese tea.
The foreign traders left their mark in the architecture. Unusually for China, Xiamen has largely preserved the colonial districts, especially around the downtown waterfront and on the small adjacent island of Gulangyu, providing this city with a unique character that incorporates Portuguese, British, Dutch and French influences.
Locals speak the Hokkien dialect of Chinese, widespread in Taiwan, Singapore, Indonesia and Malaysia but not so common in China itself. Xiamen remains the country’s largest Hokkien-speaking city. It is from the Hokkien dialect we acquired words such as ketchup, tea and typhoon.
The waterfront district makes the ideal place to start a day in Xiamen, and the historic Lujiang Harbourview Hotel provides one of the best options for accommodation. This colonial-style hotel, dating back to the 1950s, was once the tallest building in Xiamen. Although the island has since sprouted clusters of skyscrapers, none rival this venerable hotel for location.
The hotel’s top-floor (seventh-floor) Ocean-Observation Hall, with restaurant seating inside and out on the terrace, offers an excellent venue for business breakfasts. For a breakfast on the run, you’ll find plenty of coffee shops and cafés dotted around downtown, including branches of Starbucks.
The high-end address of choice is the Kempinski Hotel Xiamen (also a former holder of the city’s tallest-building mantle), located on the shore of Yundang Lake yet within easy distance of the main downtown venues. If you have local business contacts you need to impress, this is the place to do it.
The early foreign settlers based themselves in an enclave on the one-square-mile island of Gulangyu, today undoubtedly Xiamen’s top attraction. For locals, a small ferry from downtown makes the crossing in just five minutes. All non-locals (including Chinese tourists) must use the ferry service from the Dongdu International Terminal; the crossing from there takes 20 minutes.
While the main island of Xiamen provides a relatively calm retreat from mainland China, Gulangyu takes it to extremes. The island’s cobbled streets and alleys are traffic-free: Cars — and even bicycles — are banned. The low-rise architecture is predominantly Victorian: stately brick residences with red-tiled roofs. This little island is widely regarded as the most scenic district in all of China.
Plenty of no-frills restaurants and cafés offer great Chinese food on Gulangyu. But if you’re playing host to business contacts, head to Ludwig Restaurant in the Miryam Boutique Hotel at the foot of the island’s famous Sunlight Rock (offering breathtaking views across to Xiamen). California chef Tomer Biran oversees the international fusion menu.
Back on the main island, the Marco Polo Xiamen Hotel has a long-established reputation as a venue for formal and informal business meetings. The Lobby Lounge makes an ideal setting for afternoon tea or early evening drinks. Seaview Resort, set within the greenery of the beautiful southern coast of Xiamen Island, offers a laid-back option for afternoon meetings. Take tea on the terrace overlooking the Taiwan Strait, or start the evening in the Jazz Bar.
For a wider range of options for business entertaining, head back downtown. The Fat Fat Beer Horse craft brewery sports a fun atmosphere — a good place to get things rolling. As for restaurants, it’s probably best to let your Chinese associates pick the venue if you’re eating local cuisine. For a refined international choice, you can’t go wrong with the Portofino Italian Restaurant at the Millennium Harbourview Hotel.
It’s not hard to appreciate why Xiamen often features at the top of lists of China’s most livable cities. This is China made easy: less frenetic, less polluted, more open, more relaxed. The pioneering foreign traders of the colonial age discovered it to be an excellent place in which to live and do business. It still is.
Located on the west of the Taiwan Strait, Xiamen is a sub-provincial city of the Fujian Province and a city specifically designated in the state plan. The city covers an area of 1,699.39 square kilometres with a population of 4.11 million people. It was one of the first four Special Economic Zones that pioneered the reform and opening-up policies in Mainland China.
Dynamic development
Four decades of reform and opening-up have seen GDP in Xiamen grow at an average annual rate of 15.4 per cent, while that of government revenue is registered at 18.5 per cent. With much promise in innovation and entrepreneurship, Xiamen ranks top of the nation in terms of aggregate revenue, per capita GDP, per capita government revenue, and foreign trade competitiveness. High- and new- technology emerged as a core industry in the city, with nearly 70 per cent of industrial added value of above-scale enterprises coming from companies in this category. Xiamen is a top-tier international transport hub and one of the four international shipping centres in Mainland China. It is no wonder that it is considered one of the best cities in the country for entrepreneurship, ranking second among the pilot cities in Mainland China in ease of doing business.
Pioneering endeavours
Facing the ocean, Xiamen is naturally one of the points of departure of the 21st Century Maritime Silk Road. It boasts an outward facing economy brimming with bright prospects. As a national-level Special Economic Zone, Xiamen has a talented pool of professionals and advanced technology well-prepared to quickly grow its economy. The municipal government also makes great effort to create a first-class market-oriented economy and level playing field for enterprises to prosper.
Advantageous location
Xiamen faces the Taiwan Strait on the east and is connected to the Pearl River Delta and the Yangtze River Delta on the south and north, both of which are essential to the country’s economy.
The Beijing-Kowloon Railway links Xiamen to the vast hinterlands of inland provinces such as Jiangxi, Hunan and Hubei.
Xiamen is a hub that seamlessly connects different cities and regions along the Maritime and Land Silk Road. It plays an important role in strengthening exchanges in economic, cultural and human resources.
Xiamen is the only special economic zone in Mainland China “established especially for Taiwan”. It looks to encourage cross-strait co-operation and stands as the gateway to the mainland for Taiwanese businesses.
The Port of Xiamen connects to international shipping routes that cover 129 ports in 48 countries and regions.
Regional and international transportation hub
Xiamen’s geographical advantages and sound infrastructure guarantee swift transportation from the city to surrounding areas and far beyond.
Convenient air traffic: As one of the six major airports in Mainland China, Xiamen Airport now operates 171 air routes, including 35 international routes and six intercontinental routes, providing access to Australia, Canada, the Netherlands, the US and 28 international cities including Hong Kong, Macao, Taipei and Kaohsiung. Xiamen offers “144-hour visa-free transit” for travellers from designated countries.
Developed shipping hub: Xiamen is one of Mainland China’s four major international shipping centres and is also a logistics centre in the southeastern part of the country. There are 146 container lines, including 92 international lines, of which 57 link up nations along the Maritime Silk Road. The Port of Xiamen has 165 berths, of which 76 have a capacity above ten thousand tonnes.
Efficient transportation hub: Expressway and highway networks link Xiamen seamlessly with other transportation networks in the central and western parts of Mainland China. Augmented by railway networks, transportation time to Shanghai, Shenzhen and Fuzhou is shortened to five, three and two hours,
China (Xiamen) – Europe train: Xiamen is the only land and sea transportation hub that connects “the Belt” and “the Road”. International freight trains to 12 countries and 34 cities in Europe, Central Asia and Russia are in operation.
Key industries
Based on local resources and designated functions, Xiamen focuses on developing five industrial clusters, including electronic information, equipment manufacturing, tourism, modern logistics and financial services. In order to improve comprehensive industrial competitiveness, the city strives to nourish more than 10 industrial clusters that are each worth RMB100bn. These include panel displays, computer and communication equipment, semiconductor and integrated circuits, machinery equipment, biopharmaceutics and healthcare, new materials, tourism, conventions and exhibitions, modern logistics, software and information services, financial services, cultural creativity and modern urban agriculture.
Trade performance
In 2019, Xiamen recorded a total trade value of RMB641.29bn, representing a growth of 6.9 per cent and 48.2 per cent of Fujian Province’s total trade value, placing the city at the forefront of the province in terms of trade performance. While exports grew 5.7 per cent to RMB352.87bn, imports grew 8.3 per cent to RMB288.42bn.
Xiamen’s imports from and exports to countries along the Belt and Road Initiative are also growing well. Imports and exports totalled RMB202.19bn, representing an increase of 14.4 per cent and accounting for 31.5 per cent of Xiamen’s total trade over the same period. The pace of market diversification is steadily advancing.
The Philippines, Vietnam and Indonesia are Xiamen’s top three export partners, while the top three import partners are Indonesia, Malaysia and Vietnam. Imports from and exports to certain countries have recorded exceptionally strong growth, as seen in both imports from and exports to Oman that increased by 7.8 times, to Ukraine by double, and to Uzbekistan by 92.5 per cent.
ASEAN, the EU and the US are the top three trading partners of Xiamen. In 2019, Xiamen’s imports from and exports to these three regions amounted to RMB109.47bn, RMB89.24bn and RMB85.26bn, respectively. During the same period, imports from and exports to these regions accounted for 44.3 per cent of Xiamen’s total trade value.
Xiamen exported RMB169.25bn of mechanical and electrical products in 2019—an increase of 3.9 per cent—which accounted for nearly half of the export value. Exports of labour-intensive products remained robust. The city exported RMB119bn worth of textiles, clothing, footwear, toys, plastic products, bags and furniture, representing an increase of 12.2 per cent and accounting for 33.7 per cent of the city’s exports. In terms of imports, iron ore, coal, copper ore and other natural resources accounted for a relatively large proportion.
An aerial view of the Xiamen Area of the China (Fujian) Pilot Free Trade Zone.
Since its establishment on April 21, 2015, the Xiamen Area of the China (Fujian) Pilot Free Trade Zone has been boosting its high-quality development through reform and opening-up.
Over the past six years, the regional GDP has increased by 13.5 percent, the total import and export has increased by 11.4 percent, and the fiscal revenue has increased by 10.6 percent.
Xiamen FTZ has launched 498 innovative practices, including 111 national initiatives. Thirty innovations have been promoted nationwide, accounting for one-fifth of the national total.
Xiamen FTZ is committed to creating a world-class business environment.
It has deepened the reform of the commercial system and administrative system as well as explored new ways to protect intellectual property rights. It also took the lead in reducing costs and improving import and export efficiency, and built a transparent and efficient legal system.
"Forty years of reform and opening-up in Xiamen Special Economic Zone laid the foundation for our business environment," said Dai Bin, a Xiamen FTZ official. "Since the establishment of the Xiamen Area of Fujian FTZ, we have established international rules and regulations as well as benchmarked the highest international standards to liberalize and facilitate investment and trade."
A total of 46,000 newly registered enterprises have been added in the zone since 2015, with registered capital exceeding 680 billion yuan ($106.82 billion). The number of enterprises in the zone has grown six times since the zone was established.
In order to build itself into the "first home" for Taiwan compatriots and Taiwan enterprises, the Xiamen FTZ has stepped up the cross-Straits integrated development by building a cross-Straits youth innovation and entrepreneurship base and has set up cross-Straits maritime express pilot areas. To date, 1,036 Taiwan-based enterprises have become operational in the zone.
The zone has also continued to expand opening-up to the outside world. It has worked on building a cooperation mechanism with countries and regions along the Maritime Silk Road to form a wider and deeper relationship with them.
To boost the digital economy, the Xiamen FTZ has promoted the construction of a digital free trade zone and trade digitization.
It has also ramped up efforts to bolster its 14 key platforms including aviation maintenance, financial leasing, and cross-border e-commerce to generate an industrial agglomeration effect and spur economic growth.
Siming district in Xiamen, East China’s Fujian province boasts thriving businesses and is home to the city's busiest business area. [Photo/WeChat account: fjrbwx]
Siming district in the coastal city of Xiamen, East China's Fujian province has seen profound and transformative change over the past 40 years since the establishment of the Xiamen Special Economic Zone.
The district, which is situated in the central urban area of Xiamen, boasts thriving businesses and is home to the city's busiest business area.
Xiamen Hualian Commercial Building, which is located on Zhongshan Road in Siming, used to be considered the largest comprehensive retail mall in Fujian province in the 80s and 90s. The commercial building opened to the public in 1987, and was regarded as a "shopping paradise" by local residents.
Standing at the most prominent position on Zhongshan Road, Xiamen Hualian Commercial Building has witnessed major development of Xiamen's commerce and trade over the past decades.
In recent years, Siming has explored new ways to foster new business models and tactics with a number of new commercial complexes springing up, and efforts have also been made in the transformating and upgrading old business districts.
At the same time, new industrial parks with leading industries and superior enterprises have been set up thanks to the local government's efforts.
Xiamen Software Park in Siming has boosted its development opportunities over the years and has become an industrial landmark of Xiamen with a slew of high-tech businesses and innovation incubators.
The park is home to a group of renowned companies across a range of fields such as the information safety company Meiya Pico, the facial recognition enterprise Meitu, healthcare tech company YLZ Information Technology, and animation giant Migu. The total business revenue of Siming's software industry amounted to 29.3 billion yuan ($4.6 billion) in 2020, and four enterprises in the park made China's top 100 internet companies list.
Wang Huibin, vice-president of Meitu, spoke highly of Siming's business environment and said that Siming offers fertile soil for innovation and entrepreneurship for high-tech, high-growth, and high-added value enterprises.
Taking up five percent of Xiamen's land and a quarter of its population, Siming recorded one-third of the city's total GDP. Currently, the district has cultivated four industrial chains valued at 100 billion yuan, which are finance, commerce and trade, software and information, and tourism and MICE (meetings, incentives, conferencing and exhibitions).
At the same time, Siming has been ramping up efforts to accelerate the development of emerging industries, and aims to inject new vitality into the district's development.
Xiamen’s marine economy is expected to embrace high-quality development during the 14th Five-Year Plan period (2021-25) as it has recently been guaranteed a leading city status in developing marine sectors in East China’s Fujian province.
The municipal government released two development plans, which noted that efforts should be made to enhance its role in bolstering the province's marine economy.
According to the plans, Xiamen will set up strategic emerging marine industrial clusters by promoting the commercialization of scientific and technological achievements.
Efforts will be made to speed up the construction of a national demonstration zone for the marine economy. Marine biological industries will also be cultivated, and build global supply bases for marine products.
Xiamen will foster new drivers of growth for marine economy, such as building itself into a Southeast International Shipping Center and improving the efficiency of the ocean shipping transportation system.
The plan noted that as of 2023, Xiamen will set up a modern marine industrial system supported by emerging marine industries, modern fisheries, port logistics, and high-end coastal tourism.
The local government has also stepped up efforts to improve basic research capability, and build a batch of marine scientific research institution. A wide range of supportive measures have been rolled out to further stimulate the vitality of scientific and technological innovation.
A high-tech industrial park for marine industry is expected to be built in Xiamen, which will push forward the development of high-end marine industries.
Supported by strong scientific and technological prowess, the output value of Xiamen’s marine industry will reach 300 billion yuan by 2025, which is estimated to account for 30 percent of the city's total GDP.
As a key port city of the 21st Century Maritime Silk Road, Xiamen will beef up efforts to attract world-class marine enterprises and core technologies, encourage Xiamen enterprises to go abroad, and deepen opening-up and cooperation in the marine economy.
The city will develop itself into a world-class port, an international coastal tourism city, an ocean cultural exchange center for countries and regions involved in the Belt and Road Initiative, as well as a global model for marine ecological governance.
XIAMEN, China,April 29, 2021/PRNewswire/ --This is a news report from China Daily:
A global investment promotion conference marking the 100th anniversary of the founding of Xiamen University was held in Xiamen, East China's Fujian province, on April 7.
Agreements for 32 major industrial projects were inked, involving a combined investment of 43.9 billion yuan ($6.7 billion). Eleven of the projects are worth more than 1 billion yuan each and cover various fields such as semiconductors, bio-medicine, hotels, and modern logistics.
A program to encourage XMU's alumni to invest in Xiamen was also launched at the conference, aiming to attract the alumni to contribute to the city's high-quality development by bringing in more resources.
Since the program was initiated in September 2020, 511 projects led by XMU's alumni had signed up for the program by April 5, involving a combined investment of 164.72 billion yuan.
"Xiamen boasts a favorable environment for living and starting businesses," said Zhao Haiying, an alumna of XMU and chairwoman of Femisci, a beauty and healthcare company.
Zhao, cooperating with SignalChem Lifesciences Co, a Canada-based clinical-stage company, signed an agreement to set up the company's China headquarters in Xiamen's Haicang district. It will include research and development platforms for protein engineering technology, and targeted therapies.
"Considering the strong scientific research capacity of XMU and the solid foundation of Xiamen's biomedicine industry, I have full confidence in the future development of our project," Zhao added.
A pioneer in attracting investment
As one of the country's first four special economic zones and a key hub along the 21st Century Maritime Silk Road, Xiamen has led China in reform and opening-up, becoming a pioneer in attracting investment and innovating its economy.
The city signed 8,411 projects with a combined investment of 1.6 trillion yuan in 2020. It also led Fujian province in the actual use of foreign capital, which accounted for 47.7 percent of the province's total.
Chinese startup Lixiang, also known as CHJ Automotive, and Tencent Cloud, the cloud computing unit of Chinese tech giant Tencent, also set up subsidiaries in Xiamen recently.
"We have eyed the high-end and new economy industries due to limited land (Xiamen covers an area of some 1,700 square kilometers)," said Huang Heming, director of the city's commerce bureau, in an interview with ThePaper, a Shanghai-based online news portal.
To attract investment, the local government has spared 1,335 hectares of land for industrial use and 2.96 million square meters of office buildings for the modern service industry. The city also offers tailored solutions for industrial companies in terms of land use and leads the country in speeding up related administrative procedures.
A city of the new economy
Behind Xiamen's economic growth are mainly 12 industrial chains, each with a value of at least 100 billion yuan.
"We are building a city of the new economy," said Huang.
The city has seen increasing capacity for independent innovation in high-end manufacturing industries, such as flat-panel displays, semiconductors, and integrated circuits, as well as new materials, as projects like MicroLED R&D center sponsored by TCL China Star Optoelectronics Technology Co and the Cross-Strait Tsinghua Research Institute signed or started operating.
As one of the cradles of China's internet and games, Xiamen's software industry generated 197.2 billion yuan in revenue last year, accounting for nearly 58 percent of the provincial total. Among its 10 listed companies, five are among the top 100 internet companies in China.
In addition, booming strategic emerging industries have also become a highlight of Xiamen's growth. Taking the biomedicine sector as an example, the city currently has a dozen national laboratories, 297 national high-tech companies, and 10 listed companies, with a combined revenue of nearly 100 billion yuan.
Breakthroughs have also been made in attracting investment in the film, television, and culture industries, as industrial leaders like news portal Toutiao, podcast app Himalaya FM and box office tracker Maoyan have set up operations in Xiamen.
The new economy characterized by the digital economy is taking shape, with 79 projects worth 27.6 billion yuan settling in the city.
Xiamen has adhered to the concept of "creating a market for investment" to accelerate the growth of its new economy.
The local government has encouraged the information technology, education, health, urban management, transportation, and public security departments to offer abundant application scenarios and policy support to new business models focusing on big data, artificial intelligence, and the sharing economy.
The city has also seized development opportunities in the post-pandemic era, with several infrastructure projects involving 5G technology, big data, AI, and online medical treatment being signed or starting operations.
With three and a half million citizens in the city proper and roughly four million in the built-up area of the city, Xiamen is only the thirtieth most populated city in China. However, the city had a GDP of 600 billion yuan and a GDP per capita of 142,000 yuan in 2019. This makes Xiamen one of the most prosperous and wealthy cities within China. What’s more, with a GDP growth rate of 7.9% in 2019, the city is outperforming most other Chinese cities. Let’s find out why Xiamen’s economy is outpacing the growth of other prosperous Chinese cities.
Located in southeast China across the strait from Taiwan, Xiamen is about halfway between Hong Kong and Hangzhou. Even though it is not the capital nor most populous city in Fujian province, it is arguably one of the most important. With a reputation for doing business, Fujian has been one of the best performers economically in China’s history. With an economy the size of Sweden or Thailand and a population comparable to the US state of California, or the entire nation of Canada, the province of Fujian is an important asset to China. Furthermore, Fujian’s economy is one of the fastest growing in China, overtaking that of Taiwan in size this year, a meaningful milestone in Cross Straits affairs.
The location of Xiamen in the southeast of Fujian Province between Quanzhou and Zhangzhou, two other economically successful coastal Chinese cities. Fujian’s desirable location along the coast and across the strait from Taiwan have helped Xiamen’s economy and that of the province as a whole. Source – China Highlights.
The Legacy of Xiamen’s SEZ Status continues to benefit the city
Setup as a Special Economic Zone in 1980, Xiamen enjoyed early access to international markets and as such has built up a strong business standing among other Chinese cities. In recent years, Xiamen has emerged as one of the most competitive markets in China, ranked eight nationally in terms of intellectual capital and innovation in 2018 by the China Development Research Foundation. In 2019, the city was ranked as one of the top ten best performing cities in China by Milken Institute. The city’s history of being a city of business has no doubt contributed to it being the birthplace of national champions such as Luckin Coffee and Meitu, a photo beautification app.
To best understand the economy of Xiamen, foreign companies will need to be aware of Xiamen’s special role in Fujian’s economy and how the economics of urbanization have helped the city achieve such rapid economic success. In addition, companies will need to be aware of how Xiamen’s aviation industry and tourism in Xiamen have played a role in the city’s economic growth. Finally, foreign companies will need to look to Xiamen’s Cross Straits Business to understand what is driving outside funding to the city.
Animation of urbanization of Xiamen Island and surrounding regions between 1984 and 2012. Not only is the rapid construction of infrastructure and urban amenities during this period visible, but it is also clear how much Xiamen’s economy was transformed by land-reclamation projects. Source – Business Insider
How the Economics of Urbanization are positively affecting Xiamen’s Economy
In the last 40 years, Xiamen’s economy has exploded in growth as the city enjoyed the effects of urbanization. China’s opening up reforms and the city’s designation at a special economic zone. However, some of the city’s most rapid economic growth has occurred within the last fifteen years, with the city’s urban development spreading from Xiamen Island across to the mainland coastal area.
With the construction of numerous expressways and high-speed rail lines crisscrossing Fujian in recent years, Xiamen has become increasingly connected to nearby cities in recent years. Zhangzhou, a city of nearly 5 million people is located merely 40 kilometers from Xiamen Island. A high-speed rail now connects the two cities in 20 minutes. Quanzhou, which has more than 8 million citizens, is located 55 kilometers from Xiamen Island. A thirty minute high-speed rail trip connects the two cities. These three cities make up a metropolitan area of more than 10 million people.
A glittery night skyline reflects the prosperity of Xiamen’s economy, which has become one of the most competitive and innovative cities in China in recent years. Source – China Daily
Specialization has significantly increased as Xiamen grows outward
The urbanization in Xiamen have not only contributed to a larger population and higher economic growth, but it has also helped the city further specialize its markets. The development of numerous industrial zones across the Greater Xiamen area has given the city a leading edge over others in terms of competition. This leading edge has given the city another economic boost.
Map of Xiamen Metro, with completed and under construction lines. The rapid expansion of metro construction has added not only to the effects of urbanization in Xiamen, but also to the growth of the economy of Xiamen. Source – Wikipedia.
The city’s internal transport connections have also developed quickly as the city expands outwards. The Xiamen Metro opened in 2017 with one line that connected communities on the island to the city’s northern train station. In 2019, a cross-island metro line opened, connecting business districts on the island. In the coming years however, multiple lines will open that will connect the island with businesses and industries on the mainland coastal area. Two of these new lines will connect the network to Xiamen’s new airport, which will open in late 2020. These connections will provide quicker transport around the city and will also increase land values near metro corridors. These benefits will further benefit Xiamen’s economy.
Companies examining Xiamen would do well to keep in mind how the economics of urbanization are creating a healthy business environment in the city. This is happening as urbanization creates a large metropolitan market, increases specialization and improves transport around the city.
Founded in 1984, XiamenAir has become one of the largest airlines in China, with over 70 domestic and international destinations. With Xiamen’s Gaoqi Airport serving as the airline’s hub, XiamenAir has greatly contributed to Xiamen’s economy over the years. Source – China Daily
How Xiamen’s Aviation Industry and Role as Logistics Hub propel its economy
With more than thirty years in service, XiamenAir has put Xiamen on the map. With more than twenty international destinations, the airline has connected Xiamen to multiple foreign markets. This has in turn led to a decrease in the amount of time it takes to travel to Xiamen, which increases the economy’s competitiveness. In addition, the growth of passenger throughput at the city’s airport has led officials to call for the construction of a new airport. The new airport is expected to cost more than 7 billion yuan and provide double the flight capacity of the current airport. In addition, it will undoubtedly give a growth boost to the economy of Xiamen.
Xiamen’s Aviation Industry coupled with the city’s booming logistics industry are fueling each other’s growth. Promoted by the central government in Beijing, Xiamen’s logistics industry is one of nine important logistics hubs in China. As such, the city enjoys increased support for the development in this sector. In recent years, the city has opened new logistics parks across the city, such as Haicang Logistics Park and Xinlin Logistics Park.
A historical connection with foreign merchants
Called Amoy by European merchants for hundreds of years, Xiamen has a long history as an entrepot with foreign merchants. With a long history as a major seaport, it is no surprise that shipping still takes up a large portion of the city’s economy. Xiamen’s seaport is the 8th largest container port in China and the 17th largest in the world. The port of Xiamen handled 217 million tons of cargo in 2018, which was a 3% increase on 2017.
Foreign companies would do well to realize that Xiamen punches way above its weight when it comes to aviation, logistics and shipping. Due to historical and geographic reasons, the city will likely continue to attract a large amount of cargo and passenger throughput.
An advanced innovation and manufacturing hub that opened in 2018. Complexes like these in and around the city are propelling Xiamen’s economy as one of the most advanced manufacturing markets in China. Source – ABB
How high-tech manufacturing in Xiamen has boosted the city’s economic standing
Xiamen’s high-tech manufacturing industry has High-tech components: LCD displays, communications equipment and semiconductors. In addition, the city government has established multiple high-tech industrial zones across the city. These include the Xiamen Torch Hi-Tech Industrial Zone and
High-tech manufacturing in Fujian’s economy has had a huge impact on the economy of Xiamen, adding a reported $61 billion to the city’s economy in 2018. The graphene and tungsten metals industries have shown strong potential in recent. What makes high-tech manufacturing in Xiamen so successful however is the city’s treatment towards the industry. With countless incentives and subsidies, it is no wonder many high-tech manufacturers are flocking to the city.
Foreign companies can benefit from Xiamen and Fujian’s high-tech manufacturing industry by observing how state policies are favoring certain productions in Xiamen. It is worth noting how the development of high-tech manufacturing has had such a huge impact on the city’s economic growth over the past few decades.
Tourists flock to the tropical beaches of Gulangyu, a historic island destination adjacent to Xiamen Island. Tourism is one of the main pillars of the economy of Xiamen. Source – CFP
How Tourism in Xiamen is helping boost the economy
Gulangyu Island is one of the most popular domestic tourist attractions in Mainland China. Once a colonial entrepôt off the coast of Amoy, the island developed a strong heritage of global refinement during the heyday of Xiamen’s maritime boom. Nowadays, the island is still full of colonial architecture, trendy shops and sweeping vistas of the city across the bay. In recent years, Gulangyu has become a couples destination, especially among younger Chinese tourists. All in all, the island attracts more than 10 million tourists each year, bringing a boost to Xiamen’s tourism industry.
Besides Gulangyu and other attractions within the urban area, Xiamen is also a base for tourists going to other nearby destinations. Tourists flock to Xiamen as a starting point when visiting the Tulou circular houses in rural Fujian province. In addition, many tourists visiting nearby Kinmen Island transit via Xiamen. The city welcomed 96 cruise ships in 2018, with many ships bringing international tourists. It is estimated that tourists visiting the city add nearly $20.6 billion to Xiamen’s Tourism Industry every year.
Photo of tourist replicating internet celebrity poses in Xiamen. Photos like these are appearing all over social media and tourism websites. Source: Douguo Meishi
Xiamen is filled with photo-opportunities for tourists
In addition to the obvious attractions, Xiamen attracts a large amount of tourists looking to replicate photos taken by internet celebrities. Tourists and millennials alike flock to cafés and boutiques in the city, especially those where a Chinese celebrity once appeared on social media. These otherwise un-noteworthy locales have are appearing all over the city, from Xiamen University to Gulangyu to the city center. These wanghongdian, as they are called by trendy Chinese youth, are a boon to Xiamen’s economy.
89 million number of tourists visit Xiamen each year, with most of those tourists coming from other parts of China. This number has increased by more than 13% from the previous year, as Xiamen becomes an increasingly popular destination. Foreign companies looking to benefit from tourism in Xiamen would do well to keep in mind that tourists go not only to Gulangyu Island, but also to other places in the city and greater Fujian. Foreign companies would do well to note that young tourists are also visiting quaint corners of the city popularized by internet celebrities.
A view of Taiwan’s Shi Islet with the skyline of Xiamen’s skyline in the background. Due to the geographical and cultural proximity of Xiamen to Taiwan, Cross Straits business has been a boon to Xiamen’s economy. Source – Reuters
How Xiamen’s Cross-Straits Business drives economic growth
Visible from Taiwan, Xiamen has long had strong ties with the island of Taiwan. Xiamen has had continuous maritime trade with Taiwan and also witnessed a diaspora of Fujianese to the territory. In addition, Xiamen’s proximity with Kinmen and Lieyu Islands, which are a part of Taiwan, adds to Xiamen’s Cross-Straits Business. The strong connection between the city and Taiwan have had a lasting impact on the economy of Xiamen.
Established in 2015, the China-Taiwan IC Free Trade Zone became a new free-trade business zone with the goal of increasing business between Xiamen and Taiwan. The zone. Companies that set up in the zone have access to a wide range of incentives. A year before in 2014, there were a reported 4,300 companies started by Taiwanese entrepreneurs in Xiamen. Besides the free-trade zone, Xiamen also holds a yearly business conference that specifically targets Taiwanese entrepreneurs. In 2018, the Straits Forum attracted more than 10,000 people, the largest number in many years.
A connection to Taiwan
In addition, the city of Xiamen as well as the province of Fujian offer special incentives to Taiwanese entrepreneurs looking to set up shop in the city. These range from recognition of vocational certificates to living stipends. In addition, subsidies have been offered to Taiwanese entrepreneurs with higher education. These range from subsidies for those with masters degrees to subsidies for on-site job training.
Foreign companies can get a slice of the pie by paying attention to what kinds of Taiwanese businesses are lured in by Xiamen’s generous policies. In addition, foreign companies would do well to watch trends in the movement of Xiamen’s diaspora in Taiwan, some of whom have returned to the island.
Container ships being unloaded in the port of Xiamen, which has grown significantly in recent years to become one of the busiest in the world. The economy of Xiamen has benefitted from the city’s role as an international shipping port throughout the city’s history. Source – China Daily
Takeaways for Foreign Companies watching Xiamen’s Economy
Cities along China’s southeast seaboard provide many opportunities for foreign companies, but few offer as many advantages as Xiamen. From its long history as an international seaport to its strategic location on the southeast coast of China, Xiamen’s economy has a lot to offer foreign companies.
When considering Xiamen as a possible city of business, foreign companies should keep in mind Xiamen’s pivotal place within Fujian’s Economy as well as how the economics of urbanization have created a large metropolitan region surrounding Xiamen. In addition, companies should remember how Xiamen’s Aviation Industry, Xiamen’s Logistics Industry and Xiamen’s High-tech Manufacturing Industry are regional leaders in their respective fields. Companies also must not underestimate the domestic power of tourism in Xiamen and how it is boosting profits across the city and region. Finally, foreign companies must understand how cross-straits business ties and the Fujian Diaspora in Taiwan continue to benefit the economy of Xiamen.
