Laws of the People's Republic of China

Circular of Ministry of Commerce on Implementing "the Project of Encouraging Investment in Central-Western Region"

Shang Zi Fa [2006] No. 530 September 30, 2006

The competent departments of commerce in all provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan and Xinjiang Production and Construction Corps, state-level economic and technological development zones, Haicang Taiwan Businessmen Investment Zone of Xiamen, Jinqiao Export-Oriented Processing Zone of Shanghai, Yangpu Economic Development Zone of Hainan, Daxie Development Zone and Suzhou Indutrial Park of Ningbo:

For the purpose of implementing the strategic plan of the CPC Central Committee and the State Council for balanced development among different regions and promoting the gradient transfer of international and eastern China open industries to the Central-Western region, the Ministry of Commerce decides to implement "the Project of Encouraging Investment in Central-Western Region".

The main tasks of "the Project of Encouraging Investment in Central-Western Region" are: to take effective measures to support the geographically preponderant cities in the Central-Western region to create conditions for the gradient transfer of processing trade from Eastern China; on the basis of state-level economic and technological development zones and advanced provincial ones in Eastern China as well as in the Central-Western Region, to enhance the mutually beneficial cooperation, promote the industrial optimization and upgrading of the East and support the provincial development zones in Central-Western Region to undertake the gradient transfer of international and eastern China open industries; to strengthen the cooperation for promoting investment among the eastern, central and western regions and give full play to the role of the state-level economic and technological development zones as demonstrator, radiator and driver in the process of the industrial transfer.

The specific policies and measures of "the Project of Encouraging Investment in Central-Western Region" are as follows:

I.

Support the State-Level Economic and Technological Development Zones in Central-Western Region to enhance the infrastructure construction.

1.

The central government will continue to provide financial subsidies to the infrastructure projects in the state-level economic and technological development zones, enlarge the scale of financial subsidies on the basis of the 2005 figure and include the development of distribution facilities, public information platform of distribution, monitoring facilities for export-oriented processing and online monitoring system of administration of processing trading into the scope of subsidizing interest payment of infrastructure loans.

2.

Provide policy-based loans for the infrastructure construction of state-level economic and technological development zones in the Central-Western region and some provincial development zones. China Development Bank will cooperate with Ministry of Commerce in granting policy-based loans of 15 billion yuan respectively for the infrastructure construction, development planning, environment improvement, energy conservation and key topic research of the state-level economic and technological development zones in the Central-Western region and some provincial development zones with good potential and distinctive geographical advantage.

II.

Support "the Project of Encouraging Investment in Central-Western Region" by Special Fund for Foreign Trade Promoting

Include "the Project of Encouraging Investment in Central-Western Region" into the scope of National Foreign Trade Development Foundation and enlarge the scale of special fund for foreign trade promoting in the Central-Western region correspondingly. Encourage the competent departments of commerce in the Central-Western region to use the special fund for foreign trade promoting and that for international market development of the small and medium-sized enterprises and enhance the support for "the Project of Encouraging Investment in Central-Western Region".

III.

Carry out Personnel Training for the Gradient Transfer of Industries of the Central-Western Region

1.

Support the state-level economic and technological development zones in the Central-Western region to annually train about 100 thousand qualified technicians (50000 ones for Central China and Western China respectively), in accordance with the Interim Measures for the Administration of Special Fund of Business Personnel Training (Shang Cai Fa [2006] No.281) distributed by Ministry of Commerce and Ministry of Finance and based on the actual needs of the reception of gradient transfer of industries in the Central-Western region. State-level economic and technological development zones in the Central-Western region shall work out annual technician training plans according to the practical needs, and those which meet the requirements of national financial subsidies, will be subsidized.

2.

For the purpose of strengthening the cooperation among the eastern, central and western regions, the Ministry of Commerce will organize the state-level economic and technological development zones in Eastern China to train management personnel and professionals for those in the Central-Western region, as well as for some export-oriented processing zones and provincial development zones, and provide financial support for the training, which will involve administration of state-owned assets, social security fund management, finance and taxation management, investment attraction, land planning, environment protection, energy conservation and the development and management of the service industry, etc.

3.

The Ministry of Commerce will organize various business personnel training courses and train talents that are much needed in the Central-Western region.

IV.

Make the Central China Trade and Investment Expo a Success

The relevant ministries and commissions including the Ministry of Commerce will enhance cooperation with the six provinces in Central China, i.e. Shanxi Province, Henan Province, Anhui Province, Hubei Province, Hunan Province and Jiangxi Province, and, by accentuating their distinctive features, strengthen investment attraction, jointly build a cooperation platform of investment and trade for "the Project of Encouraging Investment in Central-Western Region" and make it a grand gathering of displaying the investment environment of the six provinces, promoting the gradient transfer of industries, expanding domestic and foreign trade and cultivating tourism as the pillar industry.

V.

Carry out Various Investment Attraction Activities and Promote the Gradient Transfer of Industries

1.

Make full use of the bilateral and multilateral investment promotion mechanism and create more international exchanges of the Central-Western region; promote the cooperation of the investment attraction organizations among the eastern, central and western regions and support them to jointly carry out various investment attraction activities.

2.

Promote the state-level economic and technological development zones of the eastern, central and western regions to sign contracts of gradient transfer of industries for investment promoting and of industrial parks for mutual benefit and cooperation and take various measures to facilitate their implementation; provide financial support for the investment attraction activities and overseas publicity work of the Central-Western region in Eastern China, which are organized by China Council for International Investment Promotion and Investment Promotion Agency of Ministry of Commerce.

3.

Build a public information service platform of investment promoting for the "Project of Encouraging Investment in Central-Western Region" to provide information service for the interactive cooperation among the eastern, central and western regions.

VI.

Promote Cooperation among the Eastern, Central and Western Regions and Build a Fast Channel of Distribution for the "Project of Encouraging Investment in Central-Western Region"

1.

Support the Central-Western region to improve port infrastructure and complete the construction of e-port and promote the optimized allocation of port resources; encourage coastal cities including Shanghai, Guangzhou, Xiamen and Tianjin to strengthen cooperation in customs clearing through EDI.

2.

Take effective measures to promote the cooperation between the six provinces in Central China and economic development zones in Yangtze River Delta, Pearl River Delta, Pan-Bohai Region and Southern Fujian, build fast channels of distribution, expedite customs clearance and promote the construction of modern distribution system that connects east and west, north and south with a view to giving full scope to the central status of Central China in transportation and distribution.

VII.

Elevate the Capacity of the Central-Western region of Developing High-End Service Industry

Support the Central-Western region to create conditions to accept the offshore outsourcing business of multinational corporations. Establish service outsourcing bases in cities in the Central-Western region which meet the requirements of outsourcing.

VIII.

Promote the Central-Western Region to Undertake Overseas Contracted Projects and Labour Service Cooperation

1.

Combine the advantage of East China in developing international market and that of the Central-Western region in human resources and promote cooperation between the Eastern and Central-Western regions in international labour service cooperation and overseas project contracting.

2.

Encourage the establishment of labour export bases in the central-western areas which are rich in human resources and provide guidance and financial support for the training of the exported labour.

IX.

Support Energy Conservation in the Central-Western Region

Conduct pilot work of building renewable resource recycling system in key cities of the six provinces in Central China and some western provinces and, in accordance with relevant regulations, provide financial support for the state-level economic and technological development zones in the Central-Western region.

X.

Strengthen the free flow of goods and trade in the countryside of the Central-Western region and its informationalization and promote the building of New Socialist Countryside in the Central-Western region.

1.

Take the tasks as follows in the Central-Western region as priority: to establish countryside business information service centre, employ part-time township business information assistant, cultivate the ability of core households in the countryside to apply basic business information and establish business information service system of farm and sideline produce market.

2.

In terms of building and transforming national and interregional wholesale farm produce market and cultivating large enterprises of farm produce distribution, adopt a policy favourable to the Central-Western region, moderately relax the control of market access, increase the number of pilot markets and enterprises and raise the standards of financial support.