Tianjin Investment Promotion Centre An Eye on Tianjin Tianjin Investment Promotion Centre March 10, 2009

History Gordon Hall build in 1889 Astor Hotel built in 1863 Tianjin: founded in 1404 The former British Concession was established in 1860. - Located on the west bank of Haihe River - The largest concession in Tianjin Gordon Hall build in 1889 Astor Hotel built in 1863

Tianjin – New Locomotive of China’s Economy 1980’s – “Pearl River Delta” – Shenzhen 1990’s – “Yangtze River Delta” – Shanghai Pudong 21st century – “Bohai Bay Rim Area” – Tianjin

Foreign Direct Investment in Tianjin An Engine of Growth Tianjin 2008 GDP Growth Rate: 16% 2008 Foreign Investment: US$7.4 Billion Growth Rate: 40% GDP Growth Rate for China was 9% in 2008 (2007: 11.9%). Foreign Direct Investment in Tianjin 2006 to 2009 (forecast) Leader of China’s future economy

UK Enterprises in Tianjin Until January 2009, there are 240 UK-invested enterprises in Tianjin and the accumulated investment value is 1.33 billion USD.

With the Capacity for Further Success Economic Center of Northern China One of the Four Municipal Cities in China Cradle of China Modern Industry High Speed Railway connected to China’s capital 30 minutes with speed of 350 Km/h Beijing Tianjin Metro-politan Tianjin (population of 11.15 million) Political and Cultural Center Economic and Financial Center Total Population of 27 Million Largest Air Cargo Hub in Northern China Tianjin Binhai International Airport Annual throughput: 10 million person-time 500,000 tons air cargo Tianjin has been honored as: The city with the best improvement in its business environment The city with the most potential in China Source: FORTUNE China Magazine Sept. 2008 6th Largest Harbor in the world Annual throughput: 300 million tons 6

Recent Investment Highlights Industries with major recent investments in Tianjin: Automotive Bio Pharmaceu-tical New energy and Environment Protection Petro Chemical Electronics Aerospace & Aviation 7

Tianjin Binhai New Area (“TBNA”) Area: 2,270 square km Population: 1.4 million Coastline: 153 km Seaport-Based Industrial Zone 8

TBNA – On China’s Cutting Edge Financial Innovation Foreign exchange reform First OTC market in China National experimental zone for insurance reforms Various kinds of funds Land Reform Pilot Area Reform of land use approval system Reform of land use right transfer system Modern Manufacture Base Ecology City Energy efficient Emission reductions Lifestyle-oriented city Tianjin Dongjiang Free Trade Port Zone • Will be the largest bonded port zone in China • Area: 30 sq. km • To be completed in 2012

Tianjin – Promoting Sustainable Development The Tianjin Government has adopted a Sustainable Development strategy. One example of that strategy in action: Sino-Singapore Tianjin Eco-city A strategic cooperation project between China and Singapore to improve the living environment and build an eco-culture. Total area: 31.23 sq km Planned population: 350,000 Development Goals of the Eco-city (1) Efficient Economy (2) Ecological Environment (3) Harmonious Society (4) Culture Building (5) Regional Balance 10

Future Opportunities RMB4 trillion (US$586 billion) financial stimulus package in China RMB400 billion (US$59 billion) planned investment for Tianjin in 2009 ● Manufacturing Industry ● Modern Service Industry ● Recycling Economy ● Social Benefit Housing ● Key Infrastructure The increase of total investment in social fixed assets will be over 25% in 2009. ● New Rural Construction ● Independent Innovation ● Ecology Environment ● Sea Reclamation ● Social Undertakings Key Transportation and Infrastructure Projects High speed railway to Shanghai and nearby cities Regional Highways Second Runway for the Tianjin Binhai International Airport Dongjiang Free Trade Port Zone Railway stations transportation system 5 Metro lines Eco-city development CBD development of TBNA There are 863 projects on going and total investment will reach 1.4 trillion RMB. 11

Future Opportunities Aerospace & Modern Service Industry Premier Wen Jiabao at WEF, Tianjin 2008 Vice-President Xi Jinping at Asia Society’s 18th Asian Corporate Conference, Tianjin 2008 Real Estate Financial Services Logistics Retail and Distribution Entertainment & Tourism Aerospace & Aviation Automotive IT Wind Power Solar Power Infrastructure Petro Chemical Advanced Equipment Manufacturing Independent Innovation Modern Service Industry Claus Schwab at 2008 Summer Davos Forum. “Tianjin is the place where next wave of economic growth will occur.”