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Border Trade Industrial Park Project of Yanbian Prefecture

Information Source: Jilin Provincial Commercial Information Center
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1. Introduction to the Project

1.1 Project background

1.1.1 Project introduction

The country continuously strengthens the construction of port infrastructure and provides good support for foreign trade. Over the past 30 years of reform and opening up, the rapid development of ports has had a wide-ranging and profound impact on Chinas reform, opening up, and modernization construction.

This project is located in Longjing City, Yanbian Prefecture, mainly focusing on the production and processing of light industrial products, textile products, Chinese medicinal materials, and characteristic agricultural products. It is exported to neighboring countries in Northeast Asia, forming a characteristic border trade industrial park and driving industrial development.

1.1.2 Market prospect

(1) Current Status of cross-border e-commerce development

The regional distribution of cross-border e-commerce in China is extensive, with 165 comprehensive pilot zones for cross-border e-commerce across the country. These pilot zones combine local industrial endowments and location advantages to promote the entry of local specialty products into the international market. These regions not only optimize the service platform functions and provide one-clock-access and one-stop” comprehensive services, but also promote the improvement of product quality and service level, establishing a good reputation for China’s products worldwide.

Cross-border e-commerce logistics has always been one of the bottlenecks restricting the development of the industry, but with the continuous improvement of global logistics infrastructure and innovation in logistics technology, cross-border e-commerce logistics has become more efficient and convenient. The logistics delivery time has significantly shortened, logistics costs have decreased, and logistics services have become more diversified. In addition, technologies such as digital payments, artificial intelligence, and machine learning are playing an increasingly important role in cross-border e-commerce, providing more possibilities for financial services.

In recent years, the Chinese government has introduced a series of policy measures to support the development of cross-border e-commerce, such as the Notice on Accelerating the High-quality Development of Cross-border E-commerce and the Implementation Plan for Cross-border E-commerce Comprehensive Pilot Zones, which have created a favorable policy environment for the industrys development. These policies not only promote the rapid growth of the cross-border e-commerce market, but also drive the surge in the number of small and medium-sized sellers, making them an important channel for small and medium-sized enterprises to participate in global market competition.

According to the statistics from the General Administration of Customs, the import and export volume of cross-border e-commerce in China reached 2.38 trillion yuan in 2023, a year-on-year increase of 15.6%, and is expected to have exceeded 3 trillion yuan by 2025. This growth is attributed to the steady recovery of the global economy, strong consumer shopping demand, and the continuous improvement of product quality in China. At the same time, overseas consumers awareness of China’s products continues to increase, and their demand for product quality, personalization, and differentiation is also more vigorous.

In summary, Chinas cross-border e-commerce has shown a thriving trend in terms of regional distribution, logistics and financial services, policies and regulations, as well as market size and consumer demand. In the future, with continuous technological innovation and policy support, Chinas cross-border e-commerce will usher in a broader development space.

(2) Market prospect analysis of border trade

In the past few years, we have witnessed the rapid development and significant growth of cross-border e-commerce in Northeast Asia. By 2023, the transaction volume of cross-border e-commerce in Northeast Asia has successfully surpassed the $100 billion mark, and Chinas position in this market is becoming increasingly important, with its leading role becoming increasingly prominent. With the rapid development of the digital economy, the global cross-border e-commerce market is expected to expand significantly in the coming years, reaching a market size of trillions of dollars. What is particularly noted is that the trade volume between China and Russia continues to grow. According to statistics from January to September, 2024, the trade volume between China and Russia has reached 180.357 billion US dollars, a significant increase compared to the same period last year.

Northeast Asia not only has abundant natural resources, but also a high-level manufacturing foundation. If the countries in the region can cooperate and promote together, the region is expected to develop into a developed economic zone similar to the European Union and North America. However, the complex political and security situation, as well as territorial disputes, pose obstacles to further development of regional cooperation. Despite these challenges, the border trade market in Northeast Asia still shows enormous development potential and growth space by strengthening regional economic integration and actively exploring international markets.

In summary, the border trade market in Northeast Asia has demonstrated significant advantages in policy support, logistics infrastructure construction, technological innovation, and market demand. These advantages have laid a solid foundation for the future development of the region, indicating broad prospects and potential for growth. The countries in Northeast Asia have implemented a series of policies and measures to promote the development of the border trade market, including optimizing trade structure, improving customs clearance efficiency, and reducing trade barriers, which provide strong support for the further development of the border trade market. At the same time, with the advancement of technology and the promotion of innovation, the border trade market in Northeast Asia is ushering in new development opportunities, especially in the fields of e-commerce, intelligent logistics, big data analysis, etc., showing enormous potentials and prospects.

1.1.3 Advantageous conditions of project construction

(1) Policy advantages

On December 11, 2023, the General Office of the State Council issued a notice on the Measures to Accelerate the Integrated Development of Domestic and Foreign Trade. Among them, it is proposed to improve logistics convenience. Strengthen cross-border transportation cooperation with overseas ports and encourage shipping companies to expand the scope of cross-border transportation of domestic and foreign goods based on market-oriented principles. Accelerate the development of intermodal transportation between coastal and inland ports, expand the radiation range of domestic and international routes and transportation services in major ports. Support eligible enterprises to carry out domestic and foreign trade container transportation on the same ship, and promote a two-way operation mode of container foreign trade domestic and branch line import and export. Accelerate the construction of cross-border logistics infrastructure and support the construction of global and regional international postal and express delivery hubs in key cities.

In June, 2023, Jilin Provincial Government issued the Implementation Plan for China (Yanji) Cross-border E-commerce Comprehensive Pilot Zone (hereinafter referred to as the Plan), which provided policy support for express delivery going globally”. The Plan requires the vigorous development of cross-border e-commerce express export and direct purchase import business, attracting the gathering of mail express business in Yanji City and surrounding countries, promoting the coordinated development of Yanji Airport International Express Supervision Center and airport, and vigorously developing cross-border e-commerce air mail express import and export business. Accelerate the expansion and upgrading of Yanji Airport International Express Supervision Center and Yanji Airport Cross border Direct Mail Clearance Platform, continue to expand overseas warehouse layout, utilize international mail express channels, overseas warehouses, cross-border e-commerce information systems and other resources, establish a comprehensive and intelligent cross-border e-commerce logistics warehousing, clearance, transportation, distribution and information management system, and create a modern comprehensive cross-border e-commerce logistics platform.

The plan emphasizes the need to promote the opening of more international routes at Yanji Airport, with a focus on developing cargo charter flights to South Korea. Make full use of existing postal routes to Russia and South Korea, and promote the normalized operation of cross-border postal routes. Relying on cross-border e-commerce industrial parks and logistics parks, accelerate the construction and improvement of the cold chain logistics system. Construct an international cargo terminal and Yanji Airport International Express Supervision Center at Yanji Airport, coordinate the construction of air land intermodal transportation, and actively create cross-border e-commerce trade channels.

(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) Resource advantages

As the birthplace of Chinese Korean culture and the cradle of Yanbian culture and education, Longjing City has a strong historical and cultural heritage, and is known as the hometown of education, hometown of singing and dancing”, hometown of apple pears, hometown of matsutake mushrooms, and hometown of culture. There are various types of specialty resources, including Chinese apple pears, red sun cured tobacco, yellow cattle, and fine wool sheep production bases, as well as Jilin Provinces commodity grain production base and agricultural comprehensive development experimental base; there are the largest orchard in Asia, the Ten-Thousand-Acre Orchard, the largest artificial bear breeding base in China, the Oriental Bear Paradise, and the Jilin Tianfozhi Mountain National Nature Reserve aimed at protecting matsutake mushrooms and their ecosystems. These natural resources provide the fundamental advantages and raw material sources for this project.

1.2 Contents and scale of project construction 

This project covers an area of 65000 square meters and mainly includes the construction of 4 light industry processing and packaging workshops, 4 textile processing and packaging workshops, 4 traditional Chinese medicine processing and packaging workshops, 3 agricultural specialty processing and packaging workshops, 2 IT industry cooperation centers, 2 cross-border e-commerce service centers, 1 equipment room, 1 sewage treatment plant, 1 comprehensive designated regulatory site, 6 ambient temperature warehouses, 4 cold storage facilities, and supporting infrastructure.

1.3 Total investment of the project and capital raising

The total investment of the project is 500 million yuan, including the construction investment of 400 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 282.49 million yuan, its profit will be 84.75 million yuan, its investment payback period will be 7.9 years (after the tax, including the construction period of 2 years) and its return on investment will be 16.95%.

Note: “10 thousand yuan” in the table is in RMB.

1.4.2 Social evaluation

The Longjing Border Trade Industrial Park Project has a significant driving effect on local economic development, promoting employment and infrastructure construction. The project promotes cultural exchange and requires attention to environmental impact and improvement of residents quality of life. The project should ensure regional security and stability, adapt to local customs and habits, and focus on sustainable development. The project has a radiation effect on the development of the surrounding area, and various factors need to be comprehensively considered to ensure smooth implementation and long-term development.

1.5 Cooperative way

Joint venture or cooperation, and other methods can be discussed faced-to-face.

1.6 What to be invested by the foreign party

Equipment or technology

1.7 Construction site of the project

Sanhe 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 worlds 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

Contact person: Yang Rui

Tel: +86-433-3258116  +86-15584632868

E-mail: lj_zhaoshang@163.com

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

(责任编辑:李光辉)
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