Quick Facts

• Population: 8.7 Million (2015)
• GDP: £460 Billion (2016)
• 3rd largest economy in the Yangtze River Delta region
• 10% average economic growth rate over past 21 years
• 1 hour to Shanghai by high-speed train
• Capital of Zhejiang Province

Hangzhou is located in the southern part of Yangtze River Delta near Ningbo and Shanghai. Hangzhou is the political and cultural capital of Zhejiang Province. The city has 30 universities and key industrial areas including the Hangzhou Economic & Technological Development Area (HEDA). Hangzhou is keen to develop its Service Outsourcing Industry, especially on BPO (Business Process Outsourcing) and ITO (Information Technology Outsourcing).

Hangzhou is connected to surrounding cities such as Shanghai through several key transportation links including a high-speed train network. An urban metro network is currently under construction which will help inner-city transport, and a bike-rental scheme is already widely used in many areas. Hangzhou is a city of great significance for tourism in China. The West Lake became a UNESCO world heritage site in 2011, and can be seen on the back side of a 1 Yuan (RMB) note.

Key Industries

• Automotive Components
• Food & Drink Processing
• Textile & Garments
• Medicine and Chemical Engineering

Key Businesses

• Alibaba Group is one of the most famous Chinese companies and is based in Hangzhou. It is a family-based business which covers international B2B and B2C online marketplace platforms, payment platforms for businesses and individuals, the China Yahoo! search engine and a data-centric cloud computing service. It is the largest E-commerce company in China and had 25,000 employees in 2012.

• Hangzhou East China Pharmaceutical Group was established in 1952. It gives priority to the development of high-tech products whilst upgrading the scale and management level of its production and business through R&D and marketing. The company is the largest antibiotics producing enterprise in Zhejiang Province, and is a State Owned Enterprise (SOE)

• Hangzhou Wahaha Group is China’s leading beverage producer. One third of all Wahaha’s production takes place in Hangzhou, where the company’s headquarters are located. They produce 30 varieties of milk and yoghurt, carbonated soft drinks, fruit and vegetable juices, sports drinks, congee, canned foods and health products. They also produce children’s clothing and personal care products. Wahaha has a network that stretches across China, with 70 subsidiary companies and manufacturing facilities.

• Geely is a Chinese automotive manufacturing company with headquarters and production in Hangzhou. Its principle products include automobiles, motorcycles, engines and transmissions. Geely sells passenger cars under five brands including Volvo. Geely bought Volvo cars in 2010 from Ford for £1.2 billion.

Economic Highlights

• Industry production of high energy consumption declines, the contribution rate of service industry to GDP irises.
• The information economy develops rapidly, cross-border electricity commerce has become a new growth point.
• Hangzhou is China’s new generation of Internet booming base

Useful Online Resources

Hangzhou Municipal Commission of Commerce
The Official Website of Hangzhou Government
China Council for The Promotion of International Trade, Zhejiang Sub-council
Department of Commerce of Zhejiang Province