Business environment of Hebei province

Overview of Hebei province

Hebei province, which surrounds the capital city of Beijing and adjoins Tianjin municipality in the east, is an important part of the Beijing-Tianjin-Hebei Collaborative Development Strategy and the Bohai Rim Economic Circle. It enjoys a large variety of natural resources, including fresh water, biological diversity, wetlands, minerals and geothermal reserves. In 2018, Hebei's GDP reached 3.6 trillion yuan ($523.5 billion), an increase of 6.6 percent over the previous year.

Location

Because of its location on the North China Plain, Hebei province has been designated by the Chinese government as the heartland of the Bohai Rim Economic Circle. Surrounding Beijing and adjoining Tianjin, Hebei enjoys strong economic connections and is part of the Beijing-Tianjin-Hebei metropolitan area. This advantageous geographical location makes Hebei uniquely attractive to foreign investment.

Strategy and Plan

Under the guidance of the Beijing-Tianjin-Hebei Collaborative Development Strategy and the Xiongan New Area Plan, Hebei now stands at a new starting point. The development of Hebei has become a part of the country’s strategic development, which is a golden opportunity for Hebei, as well as a great chance for foreign investors.

Policy

Hebei has issued a number of supporting policies to attract foreign investment. In 2017, Hebei provincial government issued the Opinions on Implementing the State Council’s Measures to Expand Foreign Opening and Active Use of Foreign Capital, which focuses on five aspects: encouraging foreign investment in key areas, reducing the costs incurred by foreign invested enterprises, creating a fair market environment for competition, building a platform for foreign cooperation, and ensuring the implementation of foreign investment policies.

Hebei also encourages foreign investors and enterprises to set up regional headquarters and functional institutions. For multinational corporations that set up regional headquarters, financial centers, procurement centers and other functional institutions in Hebei, it will provide subsidies for their office, business facilities and start-up costs. Meanwhile, special funds will be awarded to major foreign-funded projects.

Resources

Rich natural resources add to Hebei's appeal to foreign investors. It has a large amount of mineral resources. There are three major oil fields: Huabei, Dagang and Jidong. It also has abundant coal resources. Hebei has made full use of its resources and actively introduced foreign investment to large enterprises and large projects form key industrial chains and industrial circles in the province.