Population: 3 million.

Nearest Port: Dalian is the third largest port in China, processing 10 million TEUs in 2007.

International Airport: Yes, well-connected to Japan, Korea and Hong Kong.

2007 GDP: US$44.7 billion.

Notable Foreign Investors: Intel, IBM, Genpact, Thyssen Krupp, Total.

Description: Dalian is developing both as a destination for IT with the new US$2.5 billion investment by Intel in a new semiconductor plant, and the expansion of the High-Tech Zone. It is also a major export port for heavy industry manufactured elsewhere in China’s northeast. Japanese and Korean investors have long championed Dalian as their main overseas manufacturing home. Its proximity to the large industrial heartland of China’s northeast makes it strategically vital to the region. About 30 percent of foreign investment in the city comes from Japan. Additionally, the city is a popular tourist destination and has been voted the city with the best living environment in China on multiple occasions.

Weather: Winter: cold, snow, low -5℃; Summer: warm, pleasant.

Fast Facts

1. Dalian’s port was the country’s eighth busiest port by volume in 2010, with throughput of 5.26 million TEU.
2. The majority of products manufactured in Liaoning, Jilin and Heilongjiang provinces are exported through Dalian’s ports.
3. Due to their proximity, Korea and Japan have traditionally been responsible for the majority of FDI in Dalian, but this has also been changing recently with many western companies entering the city.

Historically, Dalian has been strongly linked to heavy manufacturing and is currently in the process of transforming itself into a high tech and business process outsourcing (BPO) hub of China.

Dalian continues to attract high numbers of foreign investors for a number of reasons: the location is a good base from which to reach the northeast China market and connect to Japan and Korea, the local workforce (for which competition is not as intense as other cities) is well educated and has good foreign language skills, and costs are approximately 30 percent lower than many first tier cities. Furthermore, Dalian is a popular tourist destination and has on multiple occasions been ranked as one of the best cities in China to live in.

Although the population of Dalian is estimated to be over six million, this definition includes a large chunk of southern Liaoning Province. Wafangdian, Pulandian, Jinzhou, and Zhuanghe are large cities in their own right with around 3.5 million inhabitants – they are up to an hour’s drive through the countryside out of Dalian city, but are still defined as part of Dalian. In fact, the urban population of Dalian city is around two million.

Infrastructure

Road
The total road length in the city is 4,451 kilometers. The 244 -kilometer Dalian Expressway links Shenyang, Beijing, Changchun, and Harbin. Another expressway runs to Dandong in the east.

Railways
Dalian provides bonded, tariff-free trains to Harbin, Shenyang, and Yanji. The Yantai-Dalian train ferry takes trains directly across the Bohai Sea, saving around 1,000 kilometers on north-south journeys. A high-speed rail link between Dalian, Shenyang, Changchun, and Harbin is currently being put in place and will be operational by the end of 2012, at which time it will be possible to reach Shenyang in 90 minutes. A light-rail system is already in place connecting downtown with the northern development areas, and an underground metro system is scheduled to open in 2012.

Air
Dalian Zhoushuizi Airport services the area with domestic flights to all major cities and international flights to Japan, Korea, Russia, Hong Kong, and Taiwan.

Ports and waterways
Dalian Port is the largest port operator in Northeast China, with shipping links to more than 300 ports in over 160 countries and regions worldwide. It handles 70 percent of the sea-borne trade and 90 percent of container transport in the northern region. The majority of products manufactured in Liaoning, Jilin, and Heilongjiang provinces are exported through Dalian’s ports. Dalian is connected by passenger ship service to neighboring coastal cities, such as Weihai and Yantai, as well as Incheon, South Korea. In particular, Dalian Port has developed a specialized terminal for the imports and exports of vehicles and has become an attractive destination for many of the high-end component manufacturers.

Other major ports include Dayao Bay Port, the largest container port in Northern China, Be Liang Port, a specialist grain port, and Catfish Bay Port, the largest oil port in China.

Economy and investment climate
The city has enjoyed a continuous double-digit increase in GDP since 1992. In 2010, the city’s GDP registered a 15.2 percent increase, reaching RMB515.81 billion, while per capita GDP hit RMB77,102.

The city’s main industries include machine manufacturing, petrochemicals and oil refining, and electronics. 17 enterprises in shipbuilding, internal-combustion engines, and finished oil and bearings are the largest firms of their kind in the country.  

Due to their proximity, Korea and Japan have traditionally been responsible for the majority of FDI in Dalian, but this has also been changing recently with many western companies such as Intel and Volkswagen making significant investment in the city. In 2010, the utilized foreign direct investment increased by 66.6 percent and reached US$10.03 billion. The government approved 472 new foreign invested enterprises. In 2010, imports reached US$24.72 billion and exports stood at US$27.39 billion.

Resources
Government Organizations
Dalian Government Website: www.dl.gov.cn