Outsourcing industry in TEDA

   ---Geographically
   • Key channel and largest port city in Northern China
   • Close to Beijing, an important entry point

   ---Resource Share with Beijing
   • HR
   • Technology
   • Information

   ---Easy communication between the two cities
   • one high-speed rail and three expressways
   • Tianjin International Airport and Tianjin Port
   • 30 min'transportation between Beijing and Tianjin by 2008

   ---Electricity
   • Supply capacity: 320,000 KW.
   • Supply available at: 35KV, 10KV, 380V
   • Two charging models: Meter charge and Peak, valley, off-peak charge
   • Double circuit, Dual-loop, Special line is available for stable and non-stop power supply.

---Telecom Environment
   • Wholly-covered by broadband network, with varied connection including optical fiber, LAN, ADSL & W-LAN;
   • Multiple choices for professional Tel-com operators: China Telecom, China Mobile, China Unicom, China CNC;
   • Bandwidth of Internet exit: 40.62Gbps;

---Abundant HR Supply
   • Population: 10.43 million in Tianjin with 3.10 million working population; 1.40 million in Binhai; 105,000 residential population in TEDA with 288,300 working population.
   • TEDA has been ranked top among all the national level development areas for investment environment, including the HR supply, for the past successive 9 years.
   • Education: 59 universities/colleges with 335,000 on-campus students including 28,500 on-campus post-graduates.
   • In Tianjin, there are 183 professional schools with 180,000 on-campus students, and there are over 40,000 graduates each year.
   • In the year 2006, university and college graduates totalled over 4.13 million including 154,408 graduates majored in IT. Graduates in TEDA was about 95,700 and the graduates majored in IT was 19116 in Tianjin.

Higher Education establishments in Beijing-Tianjin-Hebei, Circum Bohai and TEDA

	0 – 2 Year	2 – 3 Year	Over 5 Year
Java	1K – 2K	2.5K – 3.5K	3.5K – 5K
C/C++/C#	1K – 2K	2.5K – 3.5K	3.5K – 5K
Testing	1K – 1.5K	2K – 2.5K	2.5K – 3K
R&D	1K – 2K	2.5K – 3.5K	5K +

100 million RMB specialized for “Development Fund for TEDA Outsourcing Industry” ，Our incentives mainly cover the following Aspects:

1)Infrastructure
• Subsidy for Office
For the outsourcing enterprises constructing or leasing office buildings in TEDA, TEDA will grant a certain amount of financial subsidy for the construction or rental cost.

• Communication Subsidy
The international special communication line released by the outsourcing company will be subsidized by TEDA.

2)HR Support
• Resident Registration:
The TEDA Administrative Commission shall open a green passage of resident registration for senior technological and managerial HR employed by service outsourcing enterprises.

• Financial Support for Quality HR:
TEDA shall offer technological and managerial HR of outsourcing company financial aid for not less than five years, according to their contribution to TEDA through paying personal income tax.

TEDA shall offer more support to the technological and managerial HR if they purchase residential buildings within TEDA.

• College Student Internship Base:
TEDA encourages outsourcing companies to apply for College Student Internship Base, by offering each student subsidy per month.

• Training Subsidy：
Outsourcing enterprises can be subsidized for the training of employees at key positions inside China once their training plans are approved by TEDA.

?White-collar apartment &Housing Subsidy
TEDA shall offer white-collar apartments or housing subsidies to outsourcing companies employees who meet the relevant regulations.

3)Financial Subsidy
• Taxation Support:
According to existing policies, the Company shall enjoy the financial support for taxation regulated in certain preferential policies of National, local and TEDA for software development, high-tech industry and modern service industry etc.

4)Other Supports
• Software Export Subsidy：
The company shall enjoy 0.1 RMB subsidy for each USD export, based on the related statistics of Customs or the foreign exchange declaration by Foreign exchange authority.

• Certification Subsidy:
For the companies gaining certification such as CMMI, CMM, PCMM, ISO27001/BS7799, ISO20000, SAS70, TEDA shall grant certain percentage of the total certification expenses as subsidy.

• Intellectual Property Protection:
For the expenditure in respect of intellectual property protection and IPR infringement, TEDA will grant a certain amount of financial support.

Interim Provisions of Tianjin Economic-Technological Development Area on Encouraging Service Outsourcing

Master Plan for Outsourcing Development in TEDA

---Goal for development:
   • Within the 5 years until 2010, the sales of TEDA key outsourcing companies will reach 5 - 6 billion RMB;
   • TEDA will support and locate 6-8 large enterprises with more than 500 million RMB sales volume;
   • Support more than 10 companies gaining CMM/CMMI certification;
   • By 2010, the total number of employees in outsourcing and trading industry will reach 50,000 to 60,000.

---Opportunity for development:
   • As the Area chosen by Central Government for China Comprehensive Reform, Tianjin Binhai New Area is privileged to enjoy multi-preferential policies, including:
   • Financial reform and Innovation: constructing Finance & Outsourcing Industry Park
   • Financial & Taxation support system: within Tianjin Binhai New Area, the qualified high-tech companies, shall enjoy 15% Corporate Income Tax.

TEDA Outsourcing Park