Model Cities




Xiamen City is one of the five economic special regions in China. The establishment of Xiamen City as an administration unit can be traced back to the Song Dynasty. In Chinese history, Xiamen had always been an important trading port on the southeast coast of China.

Xiamen is situated on the southeast coast of Fujian province, southeast of China across Taiwan Straits facing Quemoy Island and Taiwan midpoint between Hong Kong and Shanghai. 695 nautical miles away from Shanghai, 170 nautical miles from Kaoshiung, 287 nautical miles from Hong Kong, 816 nautical miles from Nagasaki, 1,650 nautical miles from Singapore and 677 nautical miles from Manila.

Known as "China's coziest city" Xiamen has a pleasant climate, scenic views, and clean environment. As testimony to this, Xiamen has received several foreign and domestic awards which include: 2004 UN Habitat Award; Gold Medal at the "International Nations in Bloom" competition in Stuttgart, Germany; "National Sanitary City"; "National Garden City"; "National Model City for Environmental Protection"; "National Excellence in Tourism"; "National Top 10 Most Livable Cities"; and "National Habitat Award".

Xiamen has several foreign sister cities such as: Cardiff (UK), Sasebo (Japan), Cebu (Philippines), Baltimore (USA), Wellington (New Zealand), Penang (Malaysia), Maroochy Shire (Australia), Kaunas (Lithuania), and Guadarazala (Mexico).

Economic Background

Xiamen was one of the first five special economic zones (SEZ) in China and one of the few municipalities enjoying independent status in state economic planning. It enjoys provincial level autonomy and local legislative power in economic administration.

Xiamen has become one of the most important ports in China for international trade and cross-Straits trade. Two nationwide investment promotion events are annually held in Xiamen, "China International Fair for Investment and Trade" and "China Xiamen Machinery and Electronics Exhibition".

At present, Xiamen is building four major logistics parks, namely Dongdu-Xiangyu-Airport Logistics Park, Haicang Logistics Park, Xinlin Logistics Park and Liuwudian Logistics Park.

2007 Amount (100 million) Percent Increase
GDP US$ 196.47 million +16.1%
Total Fixed Assets Investment US$927.7 million +20.1%
Total Revenue US$348.6 million +30.4%
Total Exports US$255.5 million +24.6
Total Imports US$142.3 million +15.8
Total Foreign Trade US$397.8 million +21.3%

Source: Philippine Consulate General

In 2008, Xiamen's GDP amounted to RMB¥156 billion with a growth rate of 11.1%, RMB¥70.5 billion or 45% of which came from the Industrial Added Value. Its total fiscal revenue reached RMB¥41 billion with a growth rate of 17.7%. The Gross Industrial Output of Xiamen City totaled RMB¥304.2 billion, up by 10% over the previous year.

Xiamen Service Outsourcing Industry Development


Xiamen has recently been approved to be one of China's service outsourcing demonstration cities by the State Council of P.R.C.

Outsourcing is subcontracting a service, such as product design or manufacturing, to a third-party company elsewhere. Nowadays, outsourcing services have sprouted up in the world.

Currently, following the manufacturing industry migration, global transnational corporations are gradually transferring their non-core business to China and India through internet. Facing global opportunities, Xiamen has geared up amid the global industrial migration.

Data shows that Xiamen's software and information service companies earned 18.4 billion yuan in 2009, a year-on-year increase of about 33%. Today, there are 106 companies that are engaging in offshore outsourcing services, earning 60 million US dollars.

Among the 106 companies, Xiamen Software Park is Xiamen's core demonstration site of outsourcing services, and China's largest software park in terms of size. At present, Xiamen Software Park has 436 companies of over 30,000 employees. Its revenue reached 10.1 billion yuan in 2009. It has become the National Cartoon & Animation Industry Base and National Software and Integrated Circuit Talent Training Base.

Xiamen has lots of companies that lead in receiving outsourcing orders, including Longtop Group, YAMAHA, Fujitsu's IT services, America's Dell Call Center, financial settlement and personnel management of Belgium AB InBev and financial settlement of Swiss ABB.

It's a new opportunity for Xiamen to win the award of "China's Service Outsourcing Demonstration City". Xiamen has set a goal to achieve a year-on-year increase of 30% in receiving outsourcing orders, and boost the primary industry and tertiary industry.

What's worth mentioning is that the Xiamen government encourages Xiamen and Taiwan companies to receive more outsourcing orders from Japan, Europe and the U.S.

Recently, Xiamen Info-Invest and Taiwan Chunghwa Telecom have cooperated to establish a joint venture in the Xiamen Software Park to jointly manage call center services across the Taiwan Strait. The call center is expected to have 1300 operators within 3 years and receive more outsourcing orders for the companies across the Taiwan Straits.

Political Support

The State Council announced Xiamen an outsourcing model city of China on 25th Feb, 2010. Aiming to developing the outsourcing industry, the city will adopt a variety of measures. In 2009, Xiamen's software and information service industry achieved RMB18.4 billion and contributed RMB490 million to the city's tax revenue. There have been a total of 106 service providers in the city which reaped a USD60 million worth of revenue from offshore outsourcing business in 2009.

Being an outsourcing base city will help Xiamen to accelerate its development. On the one hand, the top talents can enjoy a variety of policy supports, such as tax, communication, financing, etc. On the other hand, the outsourcing will promote Xiamen- Taiwan industry gearing and the outsourcing investment services, and the goal of win-win relations will be achieved.

Devott Publications
The Selection of the TOP Global Outsourcing Destinations – China TOP 15 (TGOD China TOP 15) Ended and Its Rankings and Research Reports are Now Available Worldwide