Investment

Why Changsha

Investment

Foreign Investment

Investment Guidance

Operating Costs

Land, factories and office buildings

Enterprise Address Selection

Living Service

Industrial Zones

Case Studies

Travel Agency

Changsha Civil Aviation Booking Office

Train Ticket
Commission Agent

Service Telephones of Changsha

Highway Passenger Transport

List of useful contacts in Changsha

Changsha Municipal
Bureau of Commerce

Other Government Contacts

Useful Internet Links

　Operating costs

Operating costs are key concerns for selecting plant or office locations. Compared with coastal cities in the east, Changsha has maintained its operating cost advantages.

There is an obvious economic location advantage with Changsha. It is a hinge to connect the inland to Guangdong & Guangxi Provinces, coastal areas in the east and the southwest boarder areas and it is also the joint part of the Yangtze economic belt and south China economic ring, enjoying the unique qualifications of conducting close economic and trading cooperation with two major economic regions. In recent years, Changsha has developed into a base to support developed regions along the coast and the Yangtze and a pilot city to promote development of inland and the west. It has become one of the major distributing centers for export of production factors including capital, product, technology, information and talents to the province, adjacent provinces in the southwest, Guangdong and Hong Kong and is playing a key role of connecting the east to the west and the south to the north in the national arrangement of economic strategy.

　Utilities

There are several telecommunication options in Changsha
·Telephone options include fixed line, mobile phone and Internet Protocol services

·Various forms of internet access are available in Changsha
—the annual rent for a digital data network (DDN) with 2 mbps provided by China Telecom is USD 845 for local connection (Changsha only) and USD 1,691 for national connection

—broadband network access services such as local area network (LAN) and Asymmetrical Digital Subscriber Loop (ADSL) are also widely available

Telephone charges (USD / minute)
Local call		National call	International call
Fixed line	0.03 USD for the first 3 minutes and 0.01 thereafter	0.09	HK, Macau, Taiwan	0.26
			Other countries	1.03
Mobile	0.05	0.13	HK, Macau, Taiwan	0.26
			Other countries	1.02
IP phone	N/A	0.04 per minute plus l ocal call charge	HK, Macau,Taiwan	0.19
			US, Canada	0.31
			Japan, Southeast Asia	0.46
			Other countries	0.60

Notes:
”Local call” refers to the calls within the city; “national call” refers to calls from Changsha
to any places within China; international call refers to calls to Hong Kong, Macau, Taiwan and other countries and regions. Off-peak discounts of 40 percent are granted for calls to 15 countries, including Japan, U.S., Singapore, Australia, Britain, Canada and Germany. Costs are rounded to the nearest cent

Source:
China Telecom, Hunan

Changsha has been investing heavily on energy infrastructure
·For ordinary industrial consumers, the cost of electricity is about USD 0.08 / kWh. For commercial consumers, the cost of electricity is about USD 0.14 / kWh

·For large-scale industrial consumers (i.e. operations using more than the 350 KVA transformer capacity, such as electro-plating factories), there are two charges for electricity:
—a basic monthly charge, payable regardless of the volume of power consumed, at roughly USD 2.8 / KVA of the transformer capacity
—an additional consumption charge of about USD 0.07 / kWh

A national gas pipeline has been developed, connecting Changsha’s industrial areas to China’s gas resources in western China
·Natural gas is piped to Changsha from western China at a current price of USD 0.38 / m3

Changsha is surrounded by several rivers and has considerable water resources
·Changsha has seven waterworks with a water supply capacity of 1.7 million tons a day
·The cost of industrial water is currently USD 0.31 / ton, inclusive of a waste water discharge fee of USD 0.11 / ton

Compared with other cities,
the cost of electricity and industrial water in Changsha is quite low

Comparison of cost of electricity and industrial water among selected cities
City	Cost of electricity		Cost of industrial water? (USD / ton)
City	Basic (USD / KVA)	Additional(USD / 100 kWh)	Cost of industrial water? (USD / ton)
Changsha	2.8	7.2	0.20
Hangzhou	2.8	7.8	0.28
Guangzhou	2.5	8.7	0.26
Shenzhen	3.4	8.7	0.32
Shanghai	4.6	8.5	0.18

Source: KPMG analysis