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Major Cities

Tai’an City

I. Facts about Tai’an
Tai’an is a famous cultural tourist city in the central part of Shandong Province in China. Mt. Tai, which lies in the boundary of Taian, is the national key place of interest. Tai’an was among the first tourist cities open to foreigners designated by the State Council in 1982. The city occupies an area of 7,762 square kilometers with a population of 5.46 million. It has Taishan District, Daiyue District, Xintai City, Feicheng City, Ningyang County and Dongping County.

Tai'an is a historic and cultural city. The Dawenkou Culture flourished in Tai'an around 5,000 years ago. In 200 BC (early Western Han Dynasty), the Taishan Prefecture was established and in 1136, the Tai'an Prefecture was set up. The word Tai'an comes from the adage "If Mount Tai is stable, so is the entire country" with both "tai" and "an" implying peace and stable. Mt. Tai, or East Mount in another name, is located in the city. It covers a total area of 426 sq km, and the main peak, the Jade Emperor Peak, rising as high as 1,545 meters above sea level. Rising to the sky with great momentum, Mt. Tai is the most famed of the five famous mountains in China: East Tai Shan, West Hua Shan, South Heng Shan, North Huan Shan and Central Song Shan, hence the name “The No. 1 Mountain in the World”. In China’s history of 5000 years, many emperors ascended Mt.Tai to hold memorial ceremonies as an expression of their gratefulness for appointing them go govern the people below and to report to heaven on their success in establishing a new dynasty. Besides, many people also went up to worship. Those all left Mt. Tai rich resources of humanism and made it the epitome of Chinese culture. Mt. Tai was listed as one of the key places of interest by the State Council in 1984, the world’s (natural and cultural) heritage by UNESCO in 1987, the top 40 tourist spots of China in 1991 and the demonstrating place of the national first civilized scenic spots in 1998. With its extensive and profound history and majestic and splendid natural sights, Mt. Tai attracts over 5 million domestic and international tourists each year.
Tai’an is a city open to the outside world in all aspects. It has made friendly cities and good relationships with many cities in Japan, ROK, Italy, Germany, Australia and Brazil.

After China implemented reforms and opened to the outside world, Tai’an saw rapid development in national economy, prosperity in social utilities and peace and contentment in people’s living and working. The comprehensive economic framework has been set up with harmony of industry, agriculture and tertiary industry. Year 2002 accomplished GNP of RMB 51.52 billion yuan, 13.9% over the last year. It has established foreign economic and trade cooperation with 91 countries and regions , with over 400 kinds of import and export commodities. There are guests and merchants from more than 30 countries and regions investing in Tai’an to establish enterprises.

II. Infrastructure
Transport and communication lines link up all parts of Taian City. The road open to traffic is 4350.5 km long with the density of 56.1 km/100 sq. km, which reaches the national advanced level. The expressway open to traffic is 208.4 km, which ranks the first of the province. The Beijing-Shanghai Expressway and the Beijing-Fuzhou Expressway run through the city. The expressway net connects Taian to the provincial coastal cities such as Qingdao, Yantai, Weihai and Rizhao. The Beijing-Shanghai Railroad Line passes through the boundary of Taian. The city is also connected to the railway artery of Beijing-Jiujiang Railroad Line. There are 47 retuned trains setting off and arriving at Taishan Railway Station, from which the main cities and ports of China are directly connected. The station is capable of over 5 million tons cargo each year. It is only one-hour bus trip from the station to Jinan International Airport and five-hour bus trip to Beijing and Nanjing respectively.

The capacity of program-controlled converters in Tai’an reaches 800,000 switches. Telephone popularization rate in the city is 49.8%. The long-distance telephone allows Tai’an connected to over 230 countries and regions throughout the world. The modernized local telephone net, mobile telecommunication net and digital data net have been established. Apart from the traditional businesses of letter, parcel, telephone and telegram, there are also businesses like public DDN, group converters, Internet, E-mail and public multi-media telecommunication net, N-ISDN, video order program, EMS and the called charge 800. The public telephones and IC card telephones are scattered in the city, hence convenient telecommunication.

There is one systematic power-net plant with the capacity of 1200 megawatt. Taian Dahe Reservoir Hydraulic Power Station under construction is to merge into the provincial power net with its capacity of 2.17 million kw. It has the first-class capacity of power supply and facilities. Users can apply for in the power industry bureau. The plant is responsible for the need of industrial and living electricity.

The city’s freshwater resource is 2.55 billion m3/y, among which 1.349 billion m3/y is surface water and 1.171 billion m3/y is underground water. There are 14 reservoirs with a perennial reserve of 510 million m3. The city’s daily water supply is 301,000 m3 with 339 km long water pipe. The natural gas equipment can provide 16.4 billion m3 of natural gas.

There are 4 thermoelectricity plants with 4 sets heat producing and supplying equipments. The plant can cover 8.64 million m3 of heat supply.

Water Supply:
Idustry use 2.46 yuan / m3
Living use 1.86 yuan/ m3
Commeracial use 3.11 yuan / m3
Special use 3.65 yuan/ m3
Unit use 2.25 yuan/ m3
Big industry use 0.47 yuan/ degree
Power Supply:
Common industry use 0.56 yuan/ degree
Lighting use 0.63 yuan/ degree
Living use 0.42 yuan/ degree
Gas Supply:
Industry use 80 yuan/ton
Heating use 75 yuan/ton
Industry use 2.00 yuan/m3
Commercial use 2.00 yuan/m3
Living use 2.00 yuan/m3

III. Natural Resources
Mineral Resources
Tai’an abounds in mineral resources with over 50 kinds underground, over half the solid mineral reserve of Shandong Province. There are 35 billion tons of plaster reserve (the top in Asia) in Tai’an. Taian has the reserve of halite of 7.5 billion tons, one of the biggest halite mines. With 2.46 billion tons coal reserve, Taian has an output of raw coal of over 20 million tons, one third of the province’s production. Taishan has 5 billion m3 granite, characterized by hard quality and colorful texture and thus is regarded as “The King of Stones”.

Tourist Resources
Sharing a long history and abundant historic scenic spots, Taian has 6 nation-level and 18 province-level cultural relic preservation units besides the world famous Mt. Tai. There are seven scenic zones, namely, Hinder Stone Castle, Peach Blossom Land, Jade Spring Temple, Sky Candle Peak, Culai Mountain, Lotus Mountain and Liangshan Lake. A group of new and original tourist spots crop up such as Heaven and Earth Square, Mt. Tai Square, Taishan Institute and the pump power reserve plant under construction.

Human Resources
There are 37.88 million agricultural population and non-agricultural one 16.76 million. The citizens have a high literacy. The city has skilled technicians in all majors of 158,000. The local high schools can provide 6,750 undergraduates. A total of 9,615 students graduated from technical secondary schools and technical schools, and 33,100 from secondary schools and vocational schools.

IV. Economic Development.
Agriculture
With rich soil, Taian is historically known that “The civilized land has rich soil and Wenyang (Tai’an) has the richest land in Qilu (Shandong).” It teems with high-quality wheat, corn, peanut, vegetables, fried and dry fruits, animal husbandry products, aquatic products, cocoon and flowers. Recently, Tai’an develops high economic agriculture in enthusiastically and pushes forward the industrialization in agricultural management. There are more than 10,000 processing enterprises for agricultural and by-products.

Industry
Tai’an is forming an industrial structure through further reform, adjusting structure and strengthening management.
1. Machine-making Industry
Diesel engine, agricultural machines and automobile fittings represent the dominance of machinery industry in Taian. The exports of diesel engine top the first in China. It is the nation’s major producer of complete automobile fittings such as tire hub, pump, water tank, brake lever, crossbar and radiator.
2. New Materials
The new material industry is prospering with the representatives like glass fiber, paper-covered plaster plank and carbon fiber. Taian is the glass fiber production base of the biggest scale in China with an annual productivity of 80,000 tons. Shandong Taihe Group, the biggest paper-covered plaster plank producer in China, has an annual productivity of 100 million m3. Shandong Tiantai Carbon Fiber Co., Ltd. with its annual productivity of 40 tons is the nation’s No.1 producer.
3. Chemical Industry
Taian is an important base for refined chemical industry, organic chemical industrial material and biological organic pesticides. Taian has special dominance in formic acid and polyamine cyanide; it is the biggest base for formic acid with an annual output of 26,000 tons. Shandong Haihua Kuixing Chemical Industry Co., Ltd., with an annual output of 28,000 tons, is the biggest producer of polyamine cyanide in China.
4. Textile Industry
The textile industry is based on cotton spinning, wool spinning and hemp spinning, having shaped a complete production system from spinning, dying, cloth and ready-made clothes. Hemp spinning is a feature of Tai’an. It takes natural jute as material and adopts biologic glue stripping technic. The products are characterized with naturalness, free breath, comfort and strong health protection.
5. Food Industry
The agricultural and sideline products of a large variety and high quality, especially dried and fresh fruits, are all come from the mountain city of Taishan. They are free of pesticides, healthy to the environment and natural organic food, which assures the development of food processing industry with sufficient materials. Taian is the nation’s biggest production base for deepfrozen organic vegetables with an annual output of 10,000 tons.
6. Tourism
There are 250 hotels and restaurants of different levels in Taian, with 32,000 berths. Among these is one 4-star hotel and 13 three-star hotels. There are 150 tourist agencies. In 2002, tourism contributed 3.49 billion yuan to Taian’s GNP, thus being a new economic prospect.

V. Opening to the World
All the foreign invested enterprises in Taian are entitled not only the national and provincial preferential policies, but also the following preferential policies:
A. The following conditions are granted or supported by the municipal government:
1. If the domestic or international business is engaged in production projects, the
local financial department will give it the financial rewards which are equal to 30% of the incremental tax received by the local government (joint venture and joint cooperation enterprises according to their stocks and investment proportion) in the first five years, and 20% in the later five years.
2. Those invest in agriculture, high and new technological projects (top 3 awards in
preferential-level) and projects having great contribution to the municipal economy are rewarded another 10% in addition to Item 1).
3. The high and new technological projects that need loans for the enterprises’
auxiliary assets, the local finance will deduct the interests of the loans.
4. The production and management projects that were set up before the
implementation of this policy, from now on, are rewarded 30% from 2001 to 2005 and 20% from 2006 to 2010 of the last year’s tax plus the incremental tax received by the local government (joint venture and joint cooperation enterprises according to their stocks and investment proportion).

The local finance bureau can deal with those projects that have enjoyed the priority granted by the city before the implementation of this policy accordingly.
B. The following conditions are granted or supported by the municipal government’s land income:
1. To the domestic or international business that gets the land access by buying or lease, if the fixed asset is under 10 million yuan (Assets in foreign exchange form is counted to the exchange rate at that time. It also applies to the following terms.), the enterprise will get 80% of the land income received by the local government. If it is above 10 million yuan or the asset is invested in high and new technological projects, the enterprise will be exempted from contributing to the local land income.
2. If the government takes land assets as its share, it cannot receive dividends in the first 5 years.
3. Those invest to develop breeding, fruit forest and animal husbandry in the poor mountains, waste slope, waste beach, waste land and sunk land by means of buying or lease to get the land access will be exempted from contributing to the local land income.
4. Those invest in education,cultural courses, public health, sports and other commonweal courses can get land by the government’s allocation. The enterprises enjoying the government’s land priority cannot change the use of the land. If the enterprise transfers or lease its land before the use period is due, it should make up its duty to the local land income.
If the enterprise uses the land access as a mortgage, the loan must be used in the projects in the land. Once using the mortgage, the enterprise should turn in the land income that has been exempted by the local government.

To the new established projects invested by domestic and foreign tradesmen (except from real estate projects), the municipal government will reduce the administration fees in the process of construction according to the particular projects and investments until “zero administration fee”. The local government will take greatest consideration in the enterprises for their administration fees in production and management process.

The invested projects that have a great contribution to the city’s economy, high-tech projects and the ones invested by the famous groups or enterprises outside the city will be given more preferential policies in aspects like financial rewards and land assistance by the means of “particular solution to particular business” adopted by the municipal government.

The rewards and interests deduction policies stipulated in this chapter are to be accounted in financial year. Investors apply in the local finance bureau in the January next year. After the municipal finance bureau and the related departments’ censor, the municipal investment promotion working commission’s affirmation, and the city government’s approval, the application can be put into practice at the end of February.

Encouraged Foreign Invest Industries during “The Tenth Five-year Plan”
1. Agricultural Comprehensive Development
Taian will import choice species and technology and sets up the production base for high-quality fruits, livestock products, aquatic products and flowers. It will also develop comprehensive processing for agricultural products, high and new technological agricultural industry, agricultural info consultation and agricultural sightseeing tourism. Besides, the brand famous, good and special products like chestnut and walnut of Taishan, Chinese date of Ningyang, peanut of Dawenkou and Buddha peach of Feicheng are to be further developed.

2. Mechanical and Electrical Industry
Mechanical Engineering: automobile crane and the similar products, special technical automobile, automobile for special use, airport and port facilities, special automobile and equipment for oilfield and airport, forklift and small-scale transport machine.
Transmit and transform power facilities: heat-resistant aluminium alloy wire, 220kv, 500kv exchange interflow polyethene insulation cable, SF6 closed down set electric appliances, electricity-controlled distributive diesel gushing equipment, 220kv insulation switch, new electric power engine line.
Dynamic machine making: single-vat gushing diesel engine, large-scale generating set.
Agricultural machine making: tri-bicycle in agricultural use, large-scale quadri-wheel tractor
Basic equipment machine making: forging machine, axletree, oil pump test-bed


3. Chemical industry
Refine chemical industry: dyestuff intermediary, food additive, rubber & plastic assistant, surface actives and palette.
Organic chemical industry materials: formic acid, anhydride, methane oxide.
Pesticide: emphasis on cyanogens, chrysanthemum grease, two-fluorin cyanogens chrysanthemum grease, formic ammonia chrysanthemum grease, amine, bromine bebzene ammonia,
Rubber: big tire, tire for program, tire used in agriculture, tire without inner tube, new material tire.

4. Building Material Industry
New dry cement, cement products, alkali-free glass and its products and new building materials are being developed.

5. Textile industry
Hemp, garment, cotton yarn, cashmere, camel’s hair, rabbit’s hair, yarn-dye and knit goods

6. Light industry
Paper making, refined oil and grease, highly distilled spirit, beer, fruit wine, fresh preserve, plastic civil engineering latticed rails and leather processing.

7. Resource development
Coal deep processing, coal underground gasification, direct liquefaction, fuel oil technique application, waste rock generating, plasterboard processing, granite (stone material) exploitation, halite, limestone and kalium stone exploitation will be the stress of resource development and deep processing.

8. Rising industry
The development and application of e-info, computer and network products, software development, new material, bio-engine technology, fiber enzyme, glossy ganoderma products, aloe, methyl fiber and spiral algae polysaccharide protein.

9. Tourism
Develop and construct Pan River, Nai River, Taiping Lake, New Times development line, Three-dimensional Cultural Tourist line and Around Mountain line, Times Square, Taishan Institute, riverside sights at Dongping Lake, admiring flowers at Feicheng Peachblossom Garden and Shengtong Mountain folk sightseeing tourist items. Construct Tainshan International Exhibition Center, Taishan Museum, Taishan Entertainment Town, Taishan Catering Town, Huaxia Cultural Tourist Town, Taishan Huaxia Celebrity Garden, Taishan Lubo Park and Taishan Speed Turf. Develop city tourist sightseeing, agriculture sightseeing and ecological tourist items.

10. Real estate industry
Old city reconstruction, business building, residential area development

11. City public utilities
City road construction, reconstruction of water, electricity, gas and heat supply, drainage project, city afforestation

12. Service industry
Consultation industry, network service industry, communication and transportation, business and trade circulation, community service and intermediary service industry, social welfare work

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