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Opinions of The People's Government of Yunnan Province On the Improvement of Investment Climate

Opinions of The People's Government of Yunnan Province On the Improvement of Investment Climate

2006-11-14 11:26:45

Yun-Zheng-Fa [2003] No 180 Opinions of The People's Government of Yunnan Province
On the Improvement of Investment Climate

To: People's Governments of All Ethnic Autonomous Prefectures and Municipalities, Administrative Offices of All Prefectures, All Commissions, Offices, Departments and Bureaus Directly under the Provincial Government

We hereby issue opinions on the improvement of the investment climate in Yunnan Province based on the proposal of Yunnan Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC) in order to put the important thought of Three Represents into full practice, to carry out the spirit of the Sixteenth National Congress of the Communist Party of China (CPC) and the Third Plenary Session of the CPC's Sixteenth Central Committee, and to further transform government functions, create a favorable environment for investors from outside the province, accelerate the introduction and expand the size of external investments into the province as well as drive rapid economic growth through massive introduction of inward investment towards the realization of the great goal of building a well-off society in the province in tandem with all other parts of China. Your careful study and earnest execution of the opinions are hence expected.

I.Improve the awareness and sense of urgency and responsibility for attracting more investments into the province.
(I) Remarkable achievements made in attracting external investment. Since China's adoption of the reform and opening-up policy, all regions and sectors across the province have been proactive in opening up to the outside world and taken every possible measure to attract business and investments into the province, and these efforts have led to hard-won achievements in that field.
As of the end of 2002, approval had been granted to the establishment of 2277 foreign-funded enterprises in the province with US$1.49 billion foreign capital put into actual utilization.
As to the attraction of investment from other parts of China, 13595 cooperation projects had been implemented, with an amount of RMB£¤31.26 billion originating from outside the province. The external investment has played a positive role conducive to the reform and development of the province in that it has not only driven the development of some industrial sectors, but more importantly, has broken the enclosed and outdated mindset, brought advanced technologies and management into the province, and therefore generated major and far-reaching impacts on the acceleration of the province's reform and development.

(II) Problems existing in the attraction of external investments & their underlying causes. Compared with the national level and the situation in the more advanced provinces and regions, Yunnan province is faced with problems including low gross and small size of the external investment utilized, low registration level of contractual capital and low survival rate of foreign-invested enterprises. In 2002, the total amount of foreign investment utilized in the province only accounted for 0.33% of the nation's total and 2% of the province's total fixed asset investment, the foreign-funded enterprises in the province showed a low survival rate, and the province ranked the second from the last out of the six provinces in southwest China in terms of the total external investment. The key reasons underlying the limited external capital are outmoded mindset, slow government function transformation, red tape in administrative licensing, low efficiency and poor policy implementation, and so on. Therefore, it has become a must to solve the existing problems and further improve the investment climate.

(III) Significance of attracting external investment & opportunities facing the province. Improvement of the investment climate is of critical and profound significance to the province in terms of expanding the scale of external investment, stimulating the growth of the non-public sector economy, optimizating and upgrading industry structure and enhancing the international competitiveness of the province's economy, and sustaining its rapid growth. At present, the province is faced with major opportunities for further opening up to the outside world. The new round of international and interregional capital and industry transfer, China's implementation of the western development strategy and accession to WTO, the establishment of China-ASEAN (Association of Southeast Asian Nations) Free Trade Area and the nation's participation in economic cooperation in the Greater Mekong Sub-region have created rare opportunities for the province in promoting its cooperation with the outside world and attracting more external investments. We must firmly establish the awareness of grasping every opportunity, strengthen the sense of urgency and responsibility in our work, and take effective measures to create a good climate for attracting external investments on a massive scale.

II. Deepen the administrative licensing system reform and improve efficiency and service.
(IV) Sorting out and publicizing all external investment-related issues requiring administrative licensing. All external investment-related issues that require administrative licensing should be sorted out in accordance with the requirements of the administrative licensing system reform, and all those that do not conform to WTO rules and contradict to market opening and fair competition should be abolished. Issues subject to administrative licensing shall be amalgamated to the greatest extent, made known to the public and implemented.

(V) Fully reforming the external investment licensing system. Among all external investment projects, governments and other competent authorities shall only exercise review and approval formalities over those major ones that are related to economic security, possible impacts on environmental resources and the overall economic layout, and those of government investment nature or those falling under the category as restricted projects or industries; while all other projects shall be subject to registration only instead of the original review and approval procedure. The authorities in charge shall no longer review and approve project proposals, feasibility study reports, charters of contracts, and the investors can directly apply to the duly-authorized administrations for industry and commerce for registration of the projects, and go through formalities with appropriate authorities for permissions regarding land use, resources, environmental protection and safety, etc.
(VI) Continuously enhancing efficiency. The working style of "coordination in an integrated fashion" and the provision of "one-stop-shop" service should be further improved. The review and approval of external investment-related issues shall, in principle, be handled in the external investment service center. All competent authorities shall respectively appoint personnel in charge to work in the said service center, and all review and approval formalities are concluded in a "one-stop-shop" fashion. A public affairs transparency system shall be introduced, whereas the criteria, procedures, authority, responsibilities and time limits regarding review and approval of external investment projects shall be publicized in order to receive the supervision of all investors.
A case-by-case review and approval system shall be implemented for major projects. For each major project involving an investment amount of or above RMB£¤50million, the "joint-conference review system" may be exercised to define all issues subject to review and approval at only one such conference, and with all the review and approval formalities concluded within 15 working days.
In the event of disagreement during the joint review, the government leaders at the same level shall be responsible for coordination and shall sign and release the review comments for approval. A major investment project may be approved first depending on the credibility of the investor and the needs of industry steering, with other pertinent formalities to be fulfilled later.
An agent system shall be implemented. Agencies may be set up under government authorities in charge of external investment affairs to handle formalities on behalf of investors for permits of the construction projects they invest in the province, but the agencies shall not operate for profit-making. The said authorities shall work out specific measures and report the same to the government at the same level for approval for defining time limits for the handling of relevant formalities by such government organizations or agencies as environmental protection, land control, planning, city construction, fire prevention, and power, water and gas supply, etc.
The process for e-government should be expedited. An online network among relevant government authorities should be built as quickly as possible to bring greater convenience to external investors in the handling of matters like online application, registration, inquiry, annual inspection and complaints, etc.

(VII) Providing "full-process" services. The provision of follow-up services to key investing enterprises should be strengthened; endeavors should be made to offer good services before, during and after the introduction of investment into the province, and coordination for solving problems encountered by enterprises during their project establishment, construction, production and operation should be reinforced. For major investment projects, a service responsibility system should be introduced where government leaders are personally involved in facilitating such projects.

(VIII) Promoting professional intermediary service. Widely-known Chinese or foreign intermediary agencies should be introduced into the province and a number of intermediary institutions that comply with the international rules should be set up, the service in the fields of law, accounting, auditing, architectural design, finance, insurance, industry consultation and human resources should be upgraded so as to provide external investors with professional and high-quality services.

(IX) Instituting an accountability system over administrative nonperformance and malpractice. Staff in governments at all levels and in all government authorities shall work and handle relevant formalities in compliance with law. In the event of any administrative malpractice, investors shall have the right to lodge complaints thereagainst. Any government employee who is found of administrative nonperformance, procrastination, violation of regulations, dereliction of duty, abuse of power for personal benefits and bribery in different forms shall be subject to investigation and punishment by the disciplinary inspection authority at the same level, or be held liable for criminal charges if he or she is involved in a criminal case.

III.Strengthen the steering of industries and investment projects, and speed up the building of the carriers of external investment.
(X) Opening as many sectors as possible to external investors. The provincial government shall instruct the related authorities to release on a regular basis the industry directory and investment guide for external investment. Except for those expressly banned by the State, all industries and domains shall be opened to external capital provided that they do not violate any industry policy. The opening-up of sectors including scientific research, culture, education, health, tourism, telecommunications, retail, wholesale and intermediary service shall be accelerated; and endeavors made to have more foreign-funded banks and insurance companies established in Kunming city. External investment should be guided to fields such as energy, transportation, water conservancy, power supply, metallurgical industry, chemical industry, tourism, environmental protection, municipal infrastructure construction, new and high-tech sectors, and agricultural development. Investors shall be encouraged to participate in the reform of state-owned enterprises by means of merger, acquisition or shareholding. Domestic or foreign R&D institutions shall be attracted to the province, and allowed to become shareholders by virtue of their independent intellectual property rights, particularly their proprietorship of new and high technologies. Open as many domains as possible to external investors and bring into practice the relevant requirements in accordance with the State's Closer Economic Partnership Arrangement with Hong Kong and Macau Special Administrative Regions.

(XI) Turning all development parks and zones in the province into important platforms attracting foreign investment. In compliance with the requirements for high-standard planning, construction and management, emphasis should be placed on the construction and improvement of the existing national and provincial new and high-tech development zones, economic and technological development zones, border trade areas, tourist resorts, industrial parks, private economic parks, modern agricultural technological parks, and enterprise parks for returned students. Every effort should be made to attract enterprises from outside the province to settle down in the said zones or parks. Administrations of the said zones and parks shall fully assume their responsibility for providing coordination and guidance. Customs, inspection and quarantine, foreign exchange control, banking, planning and construction administrations shall take effective measures to support the development of the above-mentioned zones and parks.
(XII) Giving full play to the role of major infrastructure projects in attracting external investment. City planning and construction should be strengthened and stress placed on the attraction of investment for major projects in that field. Efforts should be made to speed up the planning of infrastructure construction projects covering transportation, water conservancy, power supply and telecommunications in accordance with the medium and long-term development plan of the province, and a group of construction projects yielding high returns should be launched to attract investors from outside the province. The adoption of the BOT (Building-Operation-Transfer) model is encouraged to attract investments from foreign countries and other parts of China. Select a number of road, power plant, power station and feeder airport projects that have been completed with good economic benefits to attract external investment by means of TOT (Transfer-Operation-Transfer).

(XIII) Encouraging and supporting the province's local enterprises to become the main bodies in attracting business and investments from outside the province. Speed up the share- holding system reform of large and medium-sized state-owned enterprises, and establish standardized modern enterprise system in line with international rules. Increase the input in the technical renovation of backbone enterprises in traditional industries, improve all social security systems, further remove social functions from enterprises and ease their burdens, enhance their innate impetus to sustained growth, and create favorable conditions for the injection of external capital into the enterprises.

(XIV) Making full front-end preparations for investment projects. Led by the competent authorities in charge of external investment affairs, all related authorities shall provide proposed investment projects to be listed the province's pool of projects for attracting external investments, and shall earnestly contribute to such an undertaking. All projects to be listed shall have passed scientific appraisal and screening. Only those that boast feasibilities and mature conditions for implementation can be listed. Those failing such requirements should not be put into the pool. As to any major external investment-attracting project planned by a government organization or by a large state-owned enterprise, the owner and the legal person of the project must be determined, a sound work team established and all necessary front-end preparations made in order to achieve a higher success rate of the proposed project.

IV.Reinforce the implementation of all preferential policies and endeavor to lower the investment and operating costs of enterprises.
(XV) Fully implementing all preferential policies. All enterprises investing in the province shall enjoy the preferential policies offered by the State and the provincial government for such programs as the Western Development, the Deepening of Reform to State-owned Enterprises, the Promotion of Non-public Economy and New and High-tech Sectors, the Acceleration of Industrial Development and the Expansion of Opening up to the Outside World, as well as for those applicable to minority autonomous regions and localities. The competent authorities at all levels shall work hard to fully implement the preferential policies and make improvements or supplements to them at appropriate times so that non-local enterprises and their operators will be able to enjoy a more preferential treatment together with the province's local enterprises.

(XVI) Improving financial service. All state-owned commercial banks, policy-oriented banks and joint-stock banking corporations in the province shall provide national treatment to non-local enterprises investing in the province without discrimination. Credit services suitable for foreign-funded enterprises and non-local enterprises shall be promoted, and financing services like bonded warehouse loans, export tax rebate trusteeship loans, movable pledge loans, non-full-amount secured loans, extended bill services, etc., shall be provided to the enterprises.
Small and medium-sized non-local enterprises shall enjoy the same treatment as the province's local non-public enterprises and small and medium-sized businesses when applying to financing guarantee institutions at various levels for financing guarantee service. They are encouraged to use diverse forms of mutual financing guarantee.
Companies run by overseas Chinese should be supported and encouraged to set up investment firms in the province in order to attract investments from overseas Chinese to the province and to provide financing services to other non-local enterprises investing in the province. Registration of such an investment company will be permitted when its capital reaches US$30million. Support should be given to foreign-invested enterprises and non-local enterprises investing in the province, if their conditions permit, to raise growth funds through public listing. They shall enjoy the same treatment as the province's local enterprises when applying for listing.

(XVII) Ensuring water, power, gas supply and transportation and telecommunication service. All authorities in charge of or operating such public utilities must incorporate into their planning and ensure outside investors of their needs for water, power, gas supply and telecommunication and transportation service, and enter into contracts with them based on market rules and charge rates prevailing in the industry or in the city. In the event when a public utility operator requires a stoppage of water or power supply for the purpose of equipment or pipeline overhaul, it shall inform all enterprises concerned one week in advance, otherwise it shall compensate the losses, if any, that the enterprises suffer due to the stoppage. Railway, road, water navigation and airline operators shall arrange cargo transportation in accordance with the applications of outside investment enterprises and should not refuse any such application. The operators shall publicize the charge rates and freights and shall neither raise the rates or freights, nor charge any extra fees at will.

(XVIII) Other special preferential treatments. For infrastructure projects involving huge investment and long period of investment returns, the project owner may provide comprehensive compensation and reasonable return in various forms to the investor. In the event that such a project is operated under the TOT pattern, it may enjoy relevant preferential treatments applicable to manufacturing enterprises. A "case-by-case" preferential policy may be devised upon major projects that have positive impacts on the province's economy so that such projects can enjoy special preferential treatments.

V.Establish and improve the market system and enhance the customs clearance ability of all ports in the province.
(XIX) Further rectifying and regulating the market economic order. Effect both temporary and permanent measures to solve all existing problems and rigorously fight against illegal activities such as manufacturing and distribution of fake or inferior products, smuggling, tax evasion, frauds, etc., in a bid to create an open, fair, just and transparent market.
Strengthen the building of the creditability system. Establish as quickly as possible a scientific enterprise creditability evaluation index system in line with international practice, assess the credit rating of sizable enterprises in the province, regardless of their ownership nature, and build an enterprise credit rating system and warning system. Provide enterprise creditability information service and publicize such information on the Internet so as to help enterprises establish a credible image.
Take resolute measures to break regional and industry-wide blockades. Abolish all local regulations and barriers restricting free circulation of commodities throughout the province. Treat all non-local products equally without discrimination.
Standardize the operation of intermediary agencies. The intermediary agencies should be required to run independently and to adhere to the principle of objectivity and equity and business ethics. Their charge rates should be strictly audited. Bring into full play the role of such agencies in regulating the market in terms of law, accounting, auditing, appraisal and consultation services.
Actively promote the application of e-commerce. Earnest endeavors should be made to solve matters pertaining to e-commerce in aspects like certification, trading, clearance, distribution and delivery as well as related legal issues; and to create a sound and reliable e-trading platform for enterprises so as to lower their trading costs.

(XX) Strengthening the construction and administration of ports in the province. Establish the "general customs clearance" mechanism and consolidate the unified management and coordination of operations of all ports in the province. Set up an online network among foreign trade, customs, taxation, foreign exchange, inspection and quarantine and industry and commerce administrations so as to provide a unified province-wide electronic network for administration of all import and export businesses. Enhance the construction and improvement of ports, infrastructures and auxiliary inspection facilities and further lower charges and fees levied at the ports with an objective to improve the modern management of ports.
Streamline the inspection and clearance formalities at the ports. Adopt the Three Online Data Processing modes for inspection and quarantine purposes, namely, the online processing of declaration, certificate of origin and data transfer regarding import & export items; and promote the modes of classified and dynamic management. Reduce spot inspections upon enterprises exporting products with stable quality provided that the quality of such products is guaranteed. Provide inspection exemption to enterprises that have sound quality assurance system and export famous-brand products provided that they meet the qualification requirements for such exemption. Consolidate the safety and quality licensing system and the quarantine and sanitation registration system for imports and exports. Actively carry out international certification involving quality and environmental protection, etc. Assistance should be offered to enterprises in breaking the technical barriers in international trade and expanding export resorting to the generalized system of preference (GSP).
Institute convenient customs clearance procedures. Exercise electronic registration, EDI declaration, quick customs transit and regular reporting and review upon processing trade enterprises in the province that involve huge amounts of import or export and meet relevant qualification requirements.
Implement such convenient customs clearance procedures for exported products as advance reporting, online declaration, "door-to-door" inspection and discharge, expedite clearance and clearance on guarantee, and so on. Improve the cooperation between the province's ports and their counterparts in Vietnam, Laos and Myanmar, and promote the application of the new "one-station" inspection pattern, where clearance from one port is automatically accepted by its counterpart in the other side of the border.

VI.Create a good social climate and protect the legitimate rights and interests of investors.
(XXI) Improving the legal system governing inward investments. Further review, amend and formulate local laws, regulations, rules and policies regarding inward investments. Ensure that the investment climate in the province is open, free of discrimination and protects the legitimate rights and interests of investors. Fully make use of the Internet to publicize the province's local laws, regulations and policies so as to enhance their transparency. Strengthen the WTO rules training to the law enforcement, regulate and standardize their behavior in law execution, and enhance the quality of law enforcement. "Yunnan Province Law Service Center for External Investors" should be established to provide consultation and other services to investors from outside the province.

(XXII) Adhering to just judicial administration. Further deepen the reform of the judicial system and adhere to just law execution and judicial administration. Exercise proper arbitration of disputes involving external investments.

(XXIII) Perseverely eradicating the "Four Misbehaviors", namely, arbitrary charges, excessive inspections, indiscriminate penalties and coerced donations. Regulate and standardize the administration of charging, thoroughly review and sort out the charging upon external investment enterprises, and nullify all unreasonable charges and those stipulated below the provincial level. Implement an open charge system where the charge items, the charge rates and the ways of collection of the charges are all made public. Simplify the charging process and further improve the Charging Permit system and the Charging Registration Card system. Strictly stick to separate accounting of the charges collected and the expenditures therefrom. Put into trial implementation the method of "One-window Collection & Separate Accounting and Management". When levying any charge, the charging authority must present its Charging Permit; otherwise the enterprise shall have the right to refuse payment of the charge. Enterprises are entitled to lodge complaints against charges levied upon them without official sanction. Strengthen the supervision and inspection of charges upon non-local enterprises investing in the province and impose rigorous punishment according to law against those committing arbitrary charging or retaliating upon the complaining enterprises.
Put inspections and checks under strict control. Prohibit any and all inspections and checks not required by laws or regulations. Carry out the "Joint Annual Inspection" during the statutory annual inspection of foreign-funded enterprises and non-local enterprises investing in the province, and have the annual inspection organized by the competent administration in charge of external investment affairs.
Bring penalties under strict control. All penalties imposed by law enforcement authorities on foreign-invested enterprises or non-local enterprises in the province must be based on relevant laws, regulations, rules and statutory procedures; unified invoices formulated by the State and the province's finance department must be issued for the penalties; the system of "penalty invoiced by the enforcing authority and collection made by banks" shall be implemented, and all the penalties must be handed over to the finance department without any part being retained, shared or awarded to the penalty imposing authority.
Coerced donations shall be strictly prohibited. All departments and employees in government authorities are banned from making use of their authority to reimburse expenses from or promote products to foreign-funded enterprises or non-local enterprises investing in the province, neither should they require any enterprise to purchase any products or subscribe any newspapers or magazines appointed by them, to participate on an involuntary basis in any standard compliance inspections, appraisals, contests, academic research symposiums or paid training, or to provide financial support or advertisement sponsorship on an involuntary basis. All forms of tied charges are strictly prohibited.

(XXIV) Strengthening public security control. People's governments and public security bureaus at all levels shall strengthen the public security control in the places of production or operating sites of foreign-funded enterprises and non-local enterprises. Law offenses and crimes disturbing enterprises' normal production or operation or infringing upon their legal property or the personal safety of their staff shall be severely punished. Cases involving huge amount of money and having grave consequences shall be handled under the supervision of appointed authorities. Political and law authorities at all levels shall provide priority protection to large foreign-funded enterprises, non-local businesses or major projects, but such protection should not effect any extra burden on the enterprises.
(XXV) Improving the human environment. All foreign or non-local investors and their children shall enjoy the local treatment in terms of health care and schooling. Favorable terms shall be provided for the construction of international schools and hospitals. Schools are banned from collecting sponsorship fees from the investors for their children's admission. Non-local investors running companies in the province and their spouses and children are permitted to obtain registered permanent local residence. Foreign investors can apply for local residence permits in accordance with relevant regulations. Foreign or non-local investors' applications for passports or visas necessary to the conduct of business shall be processed timely except for those restricted circumstances defined by law. Community service functions shall be constantly improved in all kinds of industrial and economic zones and parks where non-local enterprises are comparatively concentrated.

(XXVI) Introducing a mechanism of accountability for mishandled cases or the " Four Misbehaviors". In the event that any staff in the administrative or law enforcement authorities causes any mishandled case due to noncompliance with law or unjust law enforcement, or effects arbitrary charges, excessive inspections, indiscriminate penalties or coerced donations, he or she shall be severely dealt with, or the case shall be submitted to supervisory or judicial authorities for further investigation and ruling if it has constituted a crime or violated disciplines. Chief leaders of law enforcement authorities which cause mishandled cases or the "Four Misbehaviors" must submit written self-criticism, or shall receive due punishment if the case is deemed serious.

VII.Attach importance to the cultivation and introduction of talented people and stimulate rational flow of human resources.
(XXVII) Paying great attention to the cultivation and import of talented people. Efforts should be made to provide professional training on a phase-by-phase and group-by-group basis to the backbone staff in the competent authorities at province and prefecture levels that are responsible for attracting investments into the province and to select key personnel and send them abroad to receive training. Self-teaching should be encouraged. Strengthen the forecast of human resource demands of foreign-funded enterprises and non-local enterprises. Guide the universities, colleges and technical schools in the province to readjust the majors they offer accordingly and to expedite the training of talents under urgent demand at different levels. Importance shall be attached to the training of not only senior and intermediate-level talents, but also technicians, so that the province's general labor quality can be improved. With emphasis on making best use of rather than trying to own talents, the work on the import of talented people into the province should be strengthened.

(XXVIII) Providing unified guarantee to talented people and stimulating rational flow of human resources. The human resource needs of both domestic and foreign-funded enterprises shall be guaranteed and put under the province's talent training and development planning and talent import schedule. Talents introduced in the province, if meeting relevant qualification requirements of the province, can enjoy the preferential treatment the province provides to senior talented people. Professional and technical personnel in non-local enterprises shall enjoy the same treatment as those in state-owned enterprises in terms of scientific research projects and patents application and assessment of technical titles. Those who have made outstanding contributions should be handsomely rewarded. The barriers against human resource flow among state-owned, domestic and foreign-funded enterprises in the province shall be removed and full play shall be given to the role of market in human resource allocation. State-owned, domestic and foreign-funded enterprises shall be treated equally when it comes to recruiting talents from universities, colleges, and technical schools or labor markets. As far as the flow of professional personnel between enterprises is concerned the original employer of the personnel shall handle related formalities promptly without setting any obstacles. Non-local enterprises are encouraged to make good use of backbone technical staff and skilled workers from state-owned enterprises when conducting merger, restructuring or ownership reform of the state-owned enterprises.

(XXIX) Establishing a human resource exchange service center for non-local enterprises. The personnel authority shall take charge of the provision of human resource exchange service to non-local enterprises, handle matters including personnel recruiting, recommendation, examination and evaluation, and administration of staff archives and files on behalf of foreign-invested enterprises and non-local businesses; and offer personnel services including technical title assessment or involving pension and social insurances and registered permanent residence.

VIII.Strengthen organization functionality and leadership and improve the supervision mechanism.
(XXX) Consolidating the functions of the authorities in charge of attracting investments into the province. Further improve the functions of the province's Economic Cooperation Office as the authority in charge of inward investment affairs in organizing, managing and guiding of investment attraction in the province.

(XXXI) Strengthening the leadership and coordinating all investment introduction activities. Governments at all levels shall take effective measures to ensure the implementation of all policies backing introduction of investments to the province. The related authorities shall support and collaborate with each other to fulfill all investment attraction undertakings in a coordinated manner.

(XXXII) Improving supervision and inspection. Governments at all levels shall strengthen the supervision and inspection of all investment introduction efforts, and establish a system for the reporting of developments of such work to the Provincial People's Congress and the Provincial Committee of the Chinese People's Political Consultative Conference. Members of the said bodies shall be invited on a regular basis to inspect such developments and the enforcement of laws concerned.

(XXXIII) Improving the handling of complaints. The province's Foreign Investor Complaint Center shall further strengthen its work and be responsible for organizing and coordinating relevant authorities to investigate and deal with complaints from non-local investors. Each of such complaints shall be addressed and settled.
(XXXIV) Establishing an investment climate evaluation system whereby democratic evaluation of government authorities shall be conducted. An evaluation index system shall be built, which shall comprise factors including administrative efficiency, regulations and policies, social service, charging climate, public security and personnel quality; and the external investment administration shall engage senior managerial personnel from non-local enterprises to act as advisors in the monitoring of the province's investment climate, who will evaluate the investment climate in the province and its various prefectures and cities on a regular basis. Problems found should be solved within the specified time limits. In addition, non-local enterprises investing in the province shall be organized to conduct an annual democratic appraisal of all related government authorities, with the results thereof announced to the public.

(XXXV) Strengthening the promotion of the province to other parts of China and to foreign countries. Make greater efforts to promote the province's new image in further opening up to the outside world, highlighting the abundant resources, preferential policies and good investment climate the province provides. All news media shall report more about typical successful and unsuccessful stories in the province's introduction of external investments, and shall endeavor to create a sound atmosphere for public opinions.

(XXXVI) Introducing the performance summarization and commendation system. Regular province-wide performance summarization and commendation meetings should be held in the name of the provincial government to review the development of the investment attraction work, to summarize experiences therefrom, and to make commendations. Institutions, groups or individuals having made remarkable contribution to the introduction of major investment projects into the province shall be significantly rewarded.

Date: December 4, 2003