Minutes - Council Work Session - 03/08/2005

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cities govern counties. Loudi is 8,000 square kilometers and has four million people in its .jurisdiction. The GDP about 2 billion U.S. dollars, but per capita it is only 500 U.S. dollars per person. Loudi governs two townships, two counties, a city seat, and a special economic development zone. The city seat is about the same population as St. Paul, with close to 300,000 people. The major industries of the city of Loudi include steel manufacturing and a coal mine. I~oudi also produces construction materials and agriculture. 'l'he Communist Party manages the election of the congressmen or congresswomen. The congress representatives elect the mayor and deputy mayors, as well as all of the important other offices in one slate. Under the deputy mayors are the department heads, which are in charge of everything from kindergarten to funeral houses. lJoudi has one university, a dozen technical schools, and 120 to 130 high schools. There are five major hospitals, township hospitals, and hundreds of clinics. There is no health insurance in the system. Government employees have a type of service where they pay a certain amount each year. Mayors make wages of approximately $200 per month, while the janitors make about $100 per month. There is not much of a difference in these wages, but mayors receive bonuses if their {;ity's budget is under control or if the city's revenue increases by 20 percent. There is starting to be more control over conflict of interest associated with businesses that are owned by mayors and the work they can do. Nature ora Sister City The State of Minnesota has quite a few sister city relationships with China. The challenge for most of these sister cities relate to funding, distance, language and culture. China has been developing quickly in the past decade. Benefits of having a relationship with a smaller inland city is that the relationship has a higher priority on the agenda, the city has a potential for faster growth, and the city has special needs. Councilmember Elvig asked how the infrastructure is funded. Mr. Pan replied over the last 15 years China has built a bit more than 10,000 miles of super high. way. These are usually sponsored by government agencies or government run corporations, and are all toll roads. These roads are actually becoming profitable businesses that are financed to be paid within 7 to 10 years, and are quite expensive to drive on. Councilmember Cook asked if Loudi is in a free trade zone. Mr. Pan responded in the affirmative. He explained right now most of China is a free trade zone. 1.;ach city can set off another piece of land that is zoned and in that zone tax benefits are received. Strategic Alliance A high impact sister city relationship is one that brings the people and business of both cities together. Manufacturing is very important in China and there is flexibility in offering tax incentives. Loans and government subsidies are accessible. Chinese investment could be City Council Work Session/March 8, 2005 Page 4 of 5