The Investment Environment

14. What is the standard of minimum wage determined in Shenzhen?
15. What are the basic welfares that employees in an enterprise can enjoy in Shenzhen?
16. Shall Trade Union be founded in foreign-invested enterprises?
17. How many international routes and airlines are opened for traffic in Shenzhen?
18. What¡¯s the characteristics of the climate in Shenzhen?

14. What is the standard of minimum wage determined in Shenzhen?
The minimum wage standard is set by Shenzhen Labor & Social Security Bureau jointly with Department of State Asset Administration, Shenzhen Trade Union and Shenzhen Chamber of Commerce, and approved for implementation by Shenzhen Municipal People¡¯s Government.
The minimum wage standard is set on comprehensive consideration over the lowest living expense of the staff and the average support population, the average wage, the productivity level, economic development level, the social security standard and the employment status, which shall be adjusted annually with the executing duration from May 1 of the current year to April 30 of the next year.
In 2004, the minimum wage in the Special Economic Zone is: 3.65 yuan/hour; 610 yuan/month; the minimum wage in Bao¡¯an District and Longgang District outside the Special Economic Zone is: 2.87 yuan/hour; 480 yuan/month, which was executed from May 1, 2004 to April 30, 2005.

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15. What are the basic welfares employees in an enterprise can enjoy in Shenzhen?
Main welfares extracted as follows:
Vocation
A. About 10 days off for New Year, other festivals and holidays every year, which, if in coincidence with Saturday or Sunday, shall be compensated on working days.
B. 5-day annual leave for employees with a working time between 1 year and 5 years; 7-day leave for those between 5 years and 10 years; 10-day leave for those between 10 years and 20 years; 14-day leave for those over 20 years;
C. Woman employees shall enjoy 90-day maternity leave with 15-day pre-maternity leave thereof. Those of dystocia shall be given additional 30 days of maternity leave. Husbands shall be given 10 days of nursing leave during the maternity leave of their wives.
Employees getting sick or injured for non-working causes, when receiving medical cares, shall be given medical leave of 3 months to 2 years as per their working time total and that in the present unit.
Insurance

    Enterprise payment Individual payment Note
Social endowment insurance endowment insurance 9% 5% Shenzhen permanent residence
8% 5% Shenzhen temporary residence
Basic medical insurance Comprehensive medical insurance 7% 2% Shenzhen permanent residence
Comprehensive medical insurance 6.5% 2% Shenzhen permanent residence
residence medical insurance - 1%  
compo insurance 5-15 Yuan - Yuan/per person monthly

There are also other insurances such as unemployment insurance and housing accumulation fund, etc.

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16. Shall Trade Union be founded in foreign-invested enterprises?
According to Trade Union Law of the People¡¯s Republic of China, physical workers and brainworkers mainly supported by salaries in enterprises, public institutions or governmental departments in China, regardless of the nationality, race, gender, occupation, religious belief and education background, shall have the right of legally joining and organizing the trade union. The trade union in an enterprise shall help guide workers to sign labor contracts with the corporate administration. The trade Union can sign collective contract with the enterprise on the behalf of workers. The collective contract draft shall be submitted to the workers' congress or discussed by all employees for approval. The trade union shall assist the corporate administration in aspects concerning welfares, salaries, labor protection and labor insurance. The trade union, together with the corporate administration, shall organize workers to develop leisure-time entertainment, technical study and vocational training, so as to improve workers¡¯ quality in culture, business, entertainment and sports.
Workers in foreign-invested enterprises shall legally establish the trade union to protect their legal rights. Foreign-invested enterprises shall provide necessary conditions for the activities of the trade union.

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17. How many international routes and airlines are opened for traffic in Shenzhen?
International Freight Routes
Shenzhen¡¯s ports consist of Yantian International, Chiwan Container, Shekou Container, Investment Port Affairs and Haixing Port, etc. with 123 international routes reaching almost all the globally-renowned ports.
By December 31, 2004, Shenzhen¡¯s ports had handled a total of 135.371 million tons of goods, a twenty and seven percent (20.7%) increase over the previous year; container transport had amounted to 13.659 million TEUs, 3.007 million more TEUs than in 2003, i.e. a twenty-eight and two percent (28.2%) year-on-year increase.
International Airlines
In 2004, passenger traffic through Shenzhen Airport exceeded 14 million, ascending up to the global top 50. Plane traffic at Shenzhen Airport surpassed 380 per day on average and 460 at maximum with one flight every two minutes.
Airline companies as the Federal Express, South Airline and Macao Airline have established 9 international (regional) cargo airlines to the USA, Japan, South Korea, Belgium, Singapore, Malaysia, Thailand, Philippines, Taiwan and Macao with planes entering or leaving China exceeding 150 every week.

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18. What¡¯s the characteristics of the climate in Shenzhen?
Shenzhen has a mild, subtropical maritime climate with plenty of rain and sunshine. The annual average temperature is 22.40C, with the highest temperature reaching 34¡æ and the lowest 110C. The hot season lasts from May to September with an average temperature of 27.50C while the average temperature in the rest months is 19.00C. The annual average relative humidity is 77%, with the highest humidity reaching 100% and the lowest 4%. The annual leading wind directs at east to southeast with the sub-leading wind towards east to northeast. The annual average rainfall is 1, 966.3 mm, with the heaviest rainfall in a day reaching 353.4 mm and that in an hour 99.4 mm.
The tropical cyclone influencing Shenzhen generally appears in August and September, with 4-5 times every year on average and 0.4 time for that of direct landing. Under the influence of strong rainstorm, there might be temporary flood in some areas. In the history of Shenzhen, there never appeared sand storm or snowfall, except for 4 times of hail.

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Questions Frequently Raised by Foreign Investors in Shenzhen
Relevant Privileged Policies
The Investment Environment
Industry Admittance and Business Examination and Approval
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