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Overseas Ningboese Economy Expanding

This year more and more Ningbo companies are making investments abroad. Information from the economic and trade bureau shows that during the first seven months of the year the city has newly approved 110 overseas investments and agencies, with the investment amount of 795 million USD, higher than last year's total (521 million USD), which set a historical high.

Encouraged by the city government, more Ningbo companies are going global. They are seeking to develop both domestic and international markets in a higher level, through merger or investing on mines to obtain raw materials, talents, technology and brand.

Developed countries like Germany are the priority destinations for Ningbo companies to make investments. In early June, Ningbo SHIP Group successfully procurement 66.67% shares of the German Vivanco company with 10 million euros. Another Germany company, Pury, a supplier of auto parts based in Bayern, was purchased by Ningbo Joyson Group. After the procurement, the Joyson Group owns a majority of equities and core technologies. The two parties would jointly run a transnational that generates over seven billion yuan per year.

Ningbo companies also made a breakthrough in making investments of service industry overseas. In April this year, an unknown company Shenbo Transport established a Ningbo Yiman Catering Co., Ltd. With 100,000 USD, which was the first overseas investment of the kind of Ningbo. Some time later, the XYYG Group opened its ISQUARE plaza in TST(Tsim Sha Tsui) of HK. It has a floor space of 500 M2. For the next step, XYYG plans to open restaurants in Tokyo and Singapore.

Top 100 companies represented by Youngor and FIRS have claimed the leading role in Going Global drive. Two years ago, FIRS signed a framework agreement with Australian Heron Resources Limited to conduct cooperation in a Ni Co project. A number of private companies such as the Yinyi Group and the Chunhe Group are engaged in mine development in Canada, Brazil and the Philippines, making them their backbone industry. The Top 100 Chart released shortly before indicates that 36 of them have investments overseas, with the assets overseas reaching 5.16 billion yuan, employing over 30,000 people.

By the end of July, Ningbo has got 1353 companies and agencies invested overseas, with the Chinese investment totaling 2.38 billion USD. The business scope keeps expanding, from the original export of labor services to procurement of brands, research and development, development of overseas resources, high sea fishing, etc. "Globalized economy is economy of transnationals. During the 12th Five-Year Plan period, we will encourage more companies to make investments overseas and to foster more transnationals of our own", said Mr. Yu Danhua, chief director of the foreign economic and trade bureau.

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