Attracting investment
The scale of utilizing foreign funds continued to be enlarged and the quality of them was enhanced continuously. In 2006, there were 747 new foreign direct-funded projects signed with the total value of 10.806 billion US dollars in the year. The contractual value of foreign investment totaled 5.38 billion US dollars, up by 34.3 percent over the previous year and the foreign investment actually utilized reached 2.255 billion US dollars, up by 31.7 percent. in the  new established foreign-funded projects, the projects of total contractual investment over 10 million US dollars amounted to 327. The contractual value in these projects totaled 4.535 billion US dollars, sharing 84.3 percent of the total foreign investment. The contractual value of foreign investment in the tertiary industry was 2.584 billion US dollars, up by 36.8 percent and the investment actually utilized was 996 million US dollars, up by 49.7 percent, which accounted for 48.0 percent and 44.2 percent of the whole city. By the end of 2006, there were 87 enterprises built in Hangzhou funded by 53 companies of the World Top 500 Companies. During the year, 4,780 items of domestic investment were imported. The contractual value of the domestic investment was 76.389 billion yuan, up by 37.3 percent and the actually utilized investment was 32.489 billion yuan, up by 21 percent.

International Trade
The import and export continued to keep rapid growth. The annual value of import and export totaled 38.909 billion US dollars, up by 30.3 percent over the previous year. Of the total, the total value of import reached 12.681 billion US dollars, up by 26 percent and that of export amounted to 26.228 billion US dollars, up by 32.4 percent. The annual export value of High-Tech products reached 6.794 billion yuan, up by 84.6 percent and that of electromechanical products was 12.069 billion US dollars, up by 51.0 percent, which accounted for 25.9 percent and 46.0 percent of total export value compared with 18.6 percent and 40.4 percent of the previous year respectively. The export to USA, EU and ASEAN increased 51.3 percent, 23.5 percent and 40.1 percent

Proportions of foreign countries (regions) invested in Hangzhou  (in 2006)

International Cooperation
The international cooperation received new achievement. By the end of 2006, the number of newly approred enterprises (or institutions) with foreign investment accumulated 61, up by 19.6 percent over the previous year. The contractual value of the foreign investment reached 41.4395 million US dollars , up by 24.2 percent. The sales amount of international economic and technology cooperation numbered 331 million US dollars, up by 28.2 percent.

International Sister Cities
By the end of 2006, Hangzhou twined with the following 14 cities of 15 countries: Gifu and Fukui, Japan; Boston, USA; Baguio, the Philippines; Leeds, UK; Yousu, Korea; Nice, France; Paramaribo, Suriname; Budapest, Hungary; Beit Shemesh, Israel; Agadir, Morocco; Curitiba, Brazil and Kazan, Russia; Cape Town, South Africa and Oviedo, Spain.

State-level Development Zones

Development Zone Construction
The achievement of constructing development zones was obvious. In 2006, the contractual value of the foreign investment reached 1.801 billion US dollars and the actually utilized investment was 927 million US dollars, up by 16.8 percent and 19.9 percent over the previous year respectively in 4 state-level development zones, such as Hangzhou Economic and Technological Development Zone, Hangzhou High-Tech Development Zone, Xiaoshan Economic & Technological Development Zone and Hangzhou Zhijiang National Holiday Resort Zone. The total revenue of technology, industry and trade from the 4 development zones achieved 261.844 billion yuan in the year, up by 41.2 percent; profits and taxes 17.307 billion yuan, up by 24.0 percent and the foreign currency earned from the exported products 14.635 billion US dollars, up by 87.3 percent. The zones had become the main platform of leading Hangzhou economic growth.

Hangzhou Economic & Technological Development Zone
Established in April of 1993, Hangzhou Economic & Technological Development Zone covers an administrative area of 104.7 square kilometers. So far there were 34 square kilometers built in the zone. In the built region, the systems were formed, of perfect infrastructure, exquisite environment, convenient living facilities as well as efficient and regular government. 4 dominant industries were established, such as electron and information industry, biology and medicine industry, machinery and manufacturing industry as well as foods and beverage industry. Xiasha High Education Park, the largest scale in Zhejiang province, and the first experimental units in China, Hangzhou Export Processing Zone, were constructed.

Zhejiang Hangzhou Export Processing Zone
Located in Hangzhou Economic and Technological Development Zone, Zhejiang Hangzhou Export Processing Zone was the first experimental units of state-level export processing zones and covers a planned area of 2.92 square kilometers, of which 2.01 square kilometers has been on operation, with such a series of national preferential policies as “Inside the Country and Outside the Customs”
. The closed management is executed by the Customs. According to the management of passing custom by internet and directly arrival from ports, there were 31 enterprises established in the area.

Hangzhou State-Level High & New Technology Industry  Development  Zone
Establish in 1990, it covers a planned area of 85.64 square kilometers with the three main parts, including 3 plots of River North, River South and Xiasha. The zone focuses on developing the high-tech industry group with characteristics of Two Power (telecommunication and software industry), Two Outstanding (integrated circuit and digital television industry) and Two New (animation and network game industry). It owns 8 state-level bases  and state-level career & service center, such as the Software Industry Base, the Integrated Circuit designating Base, the Returned-student Careering Park, the Telecommunication Industry Base, the National Export Software Creation Base, the Export Service City Base (Exemplary District) and the Experimental Base of Software Engineering Export to Europe & America. Now,it is the most impressive base of the transformation of scientific and technological achievements, demonstration of technical innovation and export of high & new technology products within Zhejiang province.

Hangzhou Zhijiang National Tourist and Holiday Resort (Please refer to the chapter on Tourism.)

Xiaoshan Economic and Technological Development Zone
Established in 1993, Xiaoshan Economic and Technological Development Zone covers a planned area of 18.8 square kilometers. There were Japan Sizuoka Industry Park, Taiwan Mechanical Industry Park, Province-level High-Tech Industry Park and Chinese Woman’s Dress Industry Park. Pillar industries had currently been formed in textile and clothing, machinery and hardware, architecture and building materials, electronic and chemical engineeringetc.