Modern Service Industry
Port Processing Logistics and Port Joint Inspection Zone Project of Yanbian Prefecture
1. Introduction to the Project
1.1 Project background
1.1.1 Project introduction
This project is located in Kaishantun Town, Longjing City, and aims to rebuild the Kaishantun Port area. Mainly focusing on the production and processing of light industrial products, textile products, traditional Chinese medicine, and characteristic agricultural products, exporting to neighboring countries in Northeast Asia, forming characteristic border trade industrial parks, and driving industrial development. As an old industrial hub in Longjing, Kaishantun Town has a relatively complete urban foundation and inherent advantages in developing processing and trade. As a window for trade between China and North Korea in Longjing, Kaishantun Port regards the construction of the processing and logistics zone as the foundation for cultivating and developing an open economy. At the same time, it focuses on gradient transfer and labor-intensive industries, and makes efforts in interconnection, comprehensive tourism, rural revitalization, and economic and trade cooperation to further improve processing and logistics supporting facilities, port supervision, and service functions, thereby accelerating the construction process of the “intersection” of cargo logistics, information flow, and capital flow, laying the foundation for the revitalization of Longjing Kaishantun.
1.1.2 Market prospect
(1) Current status of cross-border trade development in Yanbian Prefecture
In 2024, Yanbian Prefecture was committed to promoting the development of foreign trade. Through multidimensional measures such as accumulating the momentum of emerging business models, stimulating the vitality of foreign trade entities, optimizing the level of foreign trade facilitation, and enhancing the ability of trade services, the stable growth of foreign trade import and export volume from January to August has been achieved, injecting new vitality into Yanbian Prefecture’s economic development.
During the period of January to August, the import and export volume of foreign trade in the whole prefecture reached 18.24 billion yuan, a year-on-year increase of 12.6%. It successfully held China-South Korea Cross-border E-commerce Product Exhibition and Trade Negotiation Conference 2024, continuously promoting the construction of the Yanji and Hunchun National Cross-border E-commerce Comprehensive Pilot Zones. Among them, Hunchun Changda E-commerce has signed a logistics channel and investment agency agreement with WB (Wild Berry) platform, and continues to carry out trial orders; Yanji has successfully launched the project of Douyin Yanji Digital Industrial Park, signed a strategic cooperation framework agreement with Ningbo Quanmao Information Technology Co., Ltd., established the Northeast Asia Trade Center for Global Trade, and assisted 13 enterprises including Yanbian Jingangshan Food Co., Ltd. and Yanbian Alali Food Co., Ltd. to establish multilingual international marketing websites. In the assessment of the National Cross-border E-commerce Comprehensive Pilot Zones in 2023, Yanji and Hunchun both ranked second in the country. From January to August, the import and export volume of cross-border e-commerce reached 3.8 billion yuan, a year-on-year increase of 84%, and the driving effect on the import and export of foreign trade in the whole state reached 10.7 percentage points.
Special funds from the central, provincial, and prefecture governments have been utilized to strengthen subsidies for foreign trade enterprises participating in exhibitions, border warehouse construction, and foreign economic and trade exchange activities. A total of 133 projects have been subsidized, and 1.608 million yuan of funds have been allocated. Taking advantage of the advantages of foreign exchange settlement with Russia, it has increased our efforts to attract trade enterprises of Russia, formed a special investment promotion team, and it went to Beijing, Shanghai, Ningbo and other places to connect with trade enterprises of Russia, cultivating and expanding foreign trade entities. This year, the number of newly registered and account opening trade enterprises with Russia in the whole prefecture has reached more than 170.
It has continued to strengthen the construction of port infrastructure, and used the second batch of ultra long term treasury bond of 770 million yuan approved by seven port projects to comprehensively upgrade all ports and improve the level of customs clearance convenience. At the same time, nine port projects have been planned and packaged for the third batch of ultra long term treasury bond, and the declaration work has been completed. The implementation of a 7 × 12 hour work system at Hunchun Port has been piloted since early September. As of September 20, the average daily import and export volume of goods at the port was about 961.3 tons, a year-on-year increase of 20.6%.
It has organized enterprises to participate in large-scale multilateral foreign trade activities at home and abroad, such as the Yanbian, China-Russia Primorsky Krai Economic and Trade Tourism Negotiation and Yanbian Famous and Characteristic Product Exhibition and the 8th China-Russia Expo”, and signed a total of 45 million yuan of intention contracts, promoting the improvement of trade quality and quantity. It has organized 100 foreign trade enterprises to participate in policy training activities such as the Import and Export Policy and Overseas Market Explanation Conference and theJilin Province Foreign Trade Business and International Market Development Training Course 2024, further strengthening the ability of foreign trade enterprises to prevent risks in overseas markets.
(2) Analysis of the prospects of the cross-border trade market in Yanbian Prefecture
Yanbian Korean Autonomous Prefecture, as the eastern pearl of Jilin Province, China, has laid a solid foundation for the prosperous development of cross-border trade with its unique geographical location bordering the Democratic People’s Republic of Korea and profound cultural heritage.
Yanbian Prefecture is located in the core area of Northeast Asia, directly bordering areas such as Rason and North Hamgyong in North Korea, and has a unique land route. At the same time, through the cooperation and development of the Tumen River region, Yanbian Prefecture also has a sea passage connecting the Far East of Russia and Northeast Asian countries such as Japan and South Korea. This unique geographical location provides great convenience for Yanbian Prefecture to carry out cross-border trade.
The in-depth implementation of the revitalization strategy of Northeast China and the “Belt and Road” Initiative has injected new vitality into the cross-border trade of Yanbian Prefecture. Meanwhile, North Korea’s open policy, such as the establishment of the Rason Special Economic Zone, has provided new market opportunities for enterprises in Yanbian Prefecture. In addition, Yanbian Prefecture actively participates in regional economic cooperation in Northeast Asia, carrying out extensive economic and trade cooperation with neighboring countries, further expanding the development space of cross-border trade.
Yanbian Prefecture and North Korea share the same cultural background, which provides a good basis for exchanges and cooperation between the two peoples. At the same time, economic and cultural exchanges between Yanbian Prefecture and South Korea are becoming increasingly frequent, and South Korean companies are investing more in Yanbian Prefecture, injecting new impetus into the development of cross-border trade. In addition, Yanbian Prefecture has also attracted more foreign tourists and businessmen by holding cultural exchange activities and festival events, creating more business opportunities for cross-border trade.
Yanbian Prefecture continues to strengthen the infrastructure construction of border ports, improve customs clearance efficiency, and promote trade facilitation. At the same time, the continuous improvement of transportation networks, such as the construction of highways, railways, and ports, provides strong guarantees for the rapid transportation of goods. The improvement of these infrastructures provides solid support for the development of cross-border trade in Yanbian Prefecture.
Although cross-border trade in Yanbian Prefecture has broad development prospects, it also faces some challenges. The economic situation and political environment in North Korea may have an impact on the stability of cross-border trade. At the same time, the trade settlement system and logistics system between China and North Korea are not yet perfect, which may affect the trade efficiency. However, these challenges also provide opportunities for Yanbian Prefecture to further promote the development of cross-border trade through strengthening cooperation, optimizing the policy environment, and other means.
In summary, the cross-border trade market in Yanbian Prefecture has great potentials for development. By fully utilizing its geographical advantages, deepening regional cooperation, strengthening infrastructure construction, optimizing policy environment, and promoting cultural exchanges, Yanbian Prefecture can better grasp the development opportunities of cross-border trade and achieve sustained economic prosperity and development.
1.1.3 Advantageous conditions of project construction
(1) Policy advantages
In 2024, the Ministry of Commerce issued the Policy Measures to Promote Stable Growth of Foreign Trade, proposing to expand the export of characteristic agricultural products and other commodities. Expand the export of advantageous and characteristic agricultural products, increase support for promotion, and cultivate high-quality development entities. Guide and assist enterprises in actively responding to unreasonable foreign trade restrictions and creating a favorable external environment for exports.
Promote the innovative development of green trade, cross-border trade, and bonded maintenance. Strengthen the connection between third-party service agencies and foreign trade enterprises. Actively develop border trade and promote the landing and processing of imported goods in border trade. Research and introduce a new batch of comprehensive bonded zone maintenance product catalogs, the second batch of bonded maintenance product catalogs for free trade pilot zones with “material purchase from outside and product sales to outside”, and innovate to support the implementation of a batch of bonded maintenance pilot projects for comprehensive bonded zones and free trade pilot zones with “material purchase from outside and product sales to outside”, as well as bonded remanufacturing pilot projects within comprehensive bonded zones with “material purchase from outside and product sales to outside”.
(2) Location and transportation advantages
Longjing City is located in the eastern part of Jilin Province, southeast of Yanbian Korean Autonomous Prefecture, at the eastern foot of Changbai Mountain. It is the forefront of the Changchun-Jilin-Tumen Development and Opening-up Pilot Zone, the core of international cooperation in the Tumen River region, and the integrated construction of Yanji-Longjin-Tumen. It is 18 kilometers away from the capital of the autonomous prefecture, Yanji City, and 13.5 kilometers away from the important international airport Yanji Airport in eastern Jilin Province. It is also 110 kilometers away from Hunchun City, the starting point of the new route from Hunchun to Zarubino. The Longjing border is 142.5 kilometers long and has two national land ports, Sanhe and Kaishantun.
(3) Project advantages
Longjing City is located in the eastern part of Jilin Province, southeast of Yanbian Korean Autonomous Prefecture, at the eastern foot of Changbai Mountain. It is the forefront of the Changchun-Jilin-Tumen Development and Opening Pilot Zone, an important component of international cooperation in the Tumen River region, and the integration of Yanji-Longjing-Tumen.
The city covers an area of 2208 square kilometers, with a forest coverage rate of 71.5% and a total population of 167000, including 110800 Koreans, accounting for 66.4% of the total population. It has jurisdiction over 5 towns, 2 townships, and 1 community management committee.
With the steady advancement of the integrated strategy of “Yanji-Longjing-Tumen” and the in-depth implementation of the “Changchun-Jilin-Tumen Plan Outline”, Longjing City’s economic and social development has shown vigorous vitality. Its potential advantages such as ecological livability, characteristic folk customs, port location, and resources and products are increasingly prominent, and its development prospects are broad.
1.2 Contents and scale of project construction
The project covers an area of 150000 square meters and involves the reconstruction of the Kaishantun Port area. It includes the construction of a new port cargo inspection center, a travel inspection center, a logistics center, a customs comprehensive supervision area, a cargo inspection and testing field and platform, an imported edible aquatic animal detention and testing field, a cold storage, a supporting inspection warehouse, roads to site road connection lines, power transformers, weak current engineering, site hardening, site water supply and drainage, site leveling, greening and lighting, and ancillary facilities.
1.3 Total investment of the project and capital raising
The total investment of the project is 400 million yuan, including the construction investment of 320 million yuan.
1.4 Financial analysis and social evaluation
1.4.1 Main financial indexes
After the project reaches the production capacity, its annual sales revenue will be 218.58 million yuan, its profit will be 65.57 million yuan, its investment payback period will be 8.1 years (after the tax, including the construction period of 2 years) and its return on investment will be 16.39%.
Note: “10 thousand yuan” in the table is in RMB.
1.4.2 Social evaluation
The project has been well evaluated in terms of economy, society, and international trade. In terms of economy, the project has created employment, attracted investment, and promoted regional economic development; in terms of society, the project has received widespread praise from residents and environmental organizations; in terms of international trade, the project has optimized port facilities, improved logistics efficiency, and promoted international trade facilitation. In summary, the Kaishantun Port Project in Longjing City has performed well in social evaluation and has received widespread praise and recognition from multiple perspectives.
1.5 Cooperative way
Joint venture or cooperation, and other methods can be discussed face-to-face.
1.6 What to be invested by the foreign party
Equipment or technology
1.7 Construction site of the project
Kaishantun Town, Longjing City
1.8 Progress of the project
The project cooperation plan has been prepared.
2. Introduction to the Partner
2.1 Basic information
Name: Longjing Bureau of Commerce
Address: 626 Dongshan Street, Longjing City
2.2 Overview
Longjing City is a county-level city under the jurisdiction of Yanbian Korean Autonomous Prefecture in Jilin Province, with a total area of 2208 square kilometers and a total population of 167000. Among them, the Korean population is 110800, accounting for 66.4%. Longjing is an ethnic minority and border area, as well as a gathering place for multiple national policies. Its characteristics can be summarized as “one profound and four excellent characteristics”, namely, profound cultural heritage, superior location, favorable policies, high-quality resources, and excellent environment.
Longjing is relatively rich in coal, metal, and non-metal minerals, with Sanfeng Stone, known as the “world’s first acid resistant stone”, as well as abundant oil and natural gas resources. 33 types of mineral resources have been discovered, including coal, natural asphalt, copper, lead, zinc, gold, cadmium, iron, molybdenum, acid resistant andesite, wollastonite, limestone, diabase, and mineral water; there are a wide variety of specialty resources, with 1072 species of wild economic plants growing in 124 families, including 186 precious medicinal plants. Wild economic animals include black bears, wild boars, roe deer, forest frogs, etc. Longjing City is a production base for Chinese apple pears, green rice, red sun cured tobacco, and yellow cattle. It has the world's largest contiguous apple pear orchard, the largest artificial bear breeding base in Jilin Province, and the national-level Tianfozhi Mountain Matsutake Nature Reserve, enjoying the reputation of “the hometown of Chinese apple pears” and “the hometown of Matsutake mushrooms”.
Longjing belongs to the mid temperate semi humid monsoon climate zone, with distinct four seasons, green mountains and clear water. The forest coverage rate reaches 70.6%, and the green coverage rate reaches 46.3%. “There is no severe cold in winter and no scorching heat in summer in Longjing.” It has a good ecological environment and is a livable city. Longjing has a high content of negative oxygen ions in its air, and its air quality remains at the national level 2 standard throughout the year, earning it the title of a natural oxygen bar; the water quality of the entry and exit sections meets the requirements of Class 3 and Class 4 water bodies, respectively, and the surface water quality of the city meets the requirements of Class 4 water bodies. It has successively won the titles of provincial-level “Garden City” and provincial-level “Ecological City”. All 7 townships have passed the ecological township construction planning demonstration. Sanhe Town and Dexin Township have passed the national ecological township acceptance, and 55 villages have passed the state-level ecological village acceptance.
In recent years, Longjing City has adhered to the guidance of the Scientific Outlook on Development, led cadres and masses of all ethnic groups in the city to liberate their minds, worked hard, and maintained stable and rapid economic and social development. In 2008, it entered the top 200 soft power companies in counties and cities across the country; in 2009, it won the second prize of the “Weak County (City) Striving for Excellence and Leapfrogging Award” in the provincial county-level work evaluation; in 2010, it was rated as one of the first batch of “advanced counties and cities” for national rule of law construction, and ranked first in the satisfaction evaluation of residents’ sense of security in the province. It has been awarded the title of “Dual Support Model City” in the province for seven consecutive times.
2.3 Contact method
2.3.1 Contact method of the partner
Contact unit: Longjing Bureau of Commerce
Address: 626 Dongshan Street, Longjing City
Contact person: Yang Rui
Tel: +86-433-3258116 +86-15584632868
2.3.2 Contact method of the city (prefecture) where the project is located
Contact unit: Yanbian Bureau of Commerce
Contact person: Li Jingyu
Tel: +86-13596515933