The investment environment in Chongqing

Chongqing, as an investment destination of highest potential in West China, has the following five advantages:  Location Chongqing is located at the core of the economic belt of the upper Yangtze, connecting China's vast west and eastern coast. It is the key region for implementing China's Go West Policy.  Infrastructure  Chongqing is the only transportation hub in West China that integrates water, land, and air transportation. Several trunk railways and artery expressways meet in Chongqing. Fleets of three thousand-ton ships can reach Chongqing port along the Yangtze. Chongqing Jiangbei Airport is one of China's major airports. Chongqing is one of the load centers of the State Grid in West China. Chongqing has a highly reliable energy supply thanks to the abundant local output of coal and natural gas.  Industrial sectors  Chongqing has diverse and competitive industrial sectors as well as a good supplier network. Chongqing was one of China's industrial bases and now is strengthening its five backbone industries: automobile & motorcycle, chemical & pharmaceutical, construction & building material, food, and tourism. Chongqing is also expediting the development of the high-tech industries: IT, bioengineering and environmental protection.  R&D and Education  Chongqing has a large pool of R&D talents in 1,000 more institutions and 34 universities and colleges. Over 600,000 people are engaged in R&D or technical work.  Market potential  Chongqing has enormous demands for consumption and investment. This attributes to its large population, the improvement of people's living standards (from just having adequate food and clothing to the well-being), the emigration of residents and relocation of factories and towns from the Three Gorges Reservoir Area, large-scale infrastructure projects, protection of ecological environment and the treatment of pollution, and the upgrading of the old industrial bases.  At the new momentum of implementing the Go West strategy, Chongqing has its ambition. It plans to accelerate economic and social development, become the window of China to the world, exert its influence to surrounding areas, and back the development of the Southwest China and the upper Yangtze, based on the CENHUB strategic framework (to make Chongqing the centers of business and trade, finance and science, education, information and culture, the hubs of transportation and telecommunication, and a high-tech based modern industrial base).

The investment environment in Shaanxi Province

1.  LocationShaanxi is located at the geometric center of China’s territory. The geodetic origin, China’s geographical identification, just lies in Yongle Town, Jingyang County of Shaanxi. Covering a total area of 205,800 square kilometers, Shaanxi Province is an important hub connecting the eastern, central, northwestern and southwestern parts of China across the two basins of the Yellow River and the Yangtze River.Shaanxi has a massive market with a permanent resident population of 38.13 million within its own territory and a population of 400 million in its surrounding provinces.Because of its location at the geometric center of China, Shaanxi has the shortest distances from every corners of the country compared with other regions. 2-hour flight from the Xi’an Xianyang International Airport can cover 70% of China’s territory.Shaanxi used to be the starting point of the ancient Silk Road and now it is the core area of "Belt and Road" development. The new Eurasian Land Bridge International Economic Cooperation Corridor under construction connects the world’s most rapidly growing economy- East Asia with Europe.2. InfrastructureIn recent years, Shaanxi has witnessed supernormal development of its infrastructure. Modern comprehensive transportation network has been formed, which makes a new strength for Shaanxi’s opening up and development.- High Speed Railway: The "Union Jack"-shaped high speed railway network has been extended rapidly. The high speed railway from Datong to Xi’an has been opened; the Zhengzhou-Xi’an high speed railway has been connected with Beijing-Guangzhou high-speed railway; the Xi'an-Chengdu and Xi'an-Lanzhou high-speed railways will be opened soon. These high speed railways greatly shorten the distances between Xi’an and other major cities and form a one-day circle connected by high-speed railways.- Highways: The Shaanxi sections of the 6 national highways including Beijing-Kunming Highway, Lianyungang-Khorgos Highway and Baotou-Maoming Highway have been completed. The provincial total in-use highway mileage reached 5180 km and under-construction highway mileage 1000-odd km.- Modern Aviation Network: There are 42 international airlines from Xi'an to Paris, Rome, Frankfurt, Los Angeles, Tokyo, Moscow and other major cities in the world. The Xi'an Xianyang International Airport is one of China’s eight biggest airports. It achieved a passenger throughput of 36.99 million person times in 2016.- Metro: According to the “Big Xi’an” metro plan, the city will have 23 metro lines, of which Line 1, Line 2 and Line 3 have been fully put into operation. Now, Shaanxi metro has an operating mileage of 85.8 km and under-construction mileage of 94.5 km.- Trans-Border Railway: The "Chang'an" freight train has been included into national “Sino-Europe Express”, with a frequency of 2 to 3 times every week. Sources of goods cover the surrounding eight provinces and regions of Shaanxi as well as coastal areas like Jiangsu, Zhejiang and Shanghai.3. Mineral ResourcesShaanxi is rich in natural resources especially mineral resources.- Total Resource Reserves: The mineral reserves which have been recorded on the mineral resource reserves list are evaluated at over RMB 42 trillion, ranked top nationwide.- Energy Resources: The recoverable deposit of coal, oil and natural gas is respectively ranked fourth, fifth and fourth nationwide.- Other Resources: Shaanxi has considerable reserves of iron, copper, lead, aluminum, molybdenum, gold, silver, etc. Its reserves of salt and phosphorus are respectively ranked first and seventh in the country.

The investment environment in Hubei Province

1.  Location Hubei Province lies in the middle reach of the Yangtze River with an area of 186,000 square kilometers. Situated 108'21"-116'07" east longitude and 29'05"-33'20" north latitude, it got its name from being in the north of the Dongting Lake. The terrain of Hubei Province is high in the west and low in the east and wide open to the south, the Jianghan Plain. The province is surrounded on three sides (east, west and north) by mountains. Its low and flat middle part is a piece of incomplete basin slightly open towards south. Of the gross area, there are 56% mountains, 24% hills and 20% lowland lake area. As to mountains, they are divided into four parts in the province. Northwestern mountains are area extending to the east by Qinling and east section of Daba Mountain. Area extending to the east by Qinling is called Wudang mountain chain, going from northwest to southeast, with lots of mountains. Altitude of ridge of mountains is generally above 1000m, and the highest is Tianzhu Peak of Wudang Mountain with altitude of 1621m. East section of Daba Mountain consists of Shennongjia, Jingshan Mountain and Wushan Mountain, with thick forests and deep river valleys. Peak of Shennongjia is Shennongding with altitude of 3105m, always known as “The First Peak in Central China”. 2. Industry Hubei, the birthplace of modern industry in China, is one of the important old industrial bases and one of the three largest steel bases in our country. It is also the largest production base of medium, heavy, sheet plates and special steel, the second largest production base of automobiles and the largest production base of medium trucks, the largest production base of heavy machine tools and packaging machinery, the biggest hydraulic power base, and the largest production base of Join-alkali, agricultural chemicals, phosphorus, salt chemical industry and striate gypsum. It is also a national photoelectron information industrial base in China and one of modernized traditional Chinese medicine bases and important textile bases. It has established a distinctive industrial system, forming a pattern with automobile, steel and photoelectron information as advantaged industry. (I) Automobile Industry With the construction and development over 50 years, the mechanism and automobile industry in Hubei province has established the industrial foundation with “one leading industry and two belts”. “One leading industry” refers to take the automobile industry as the leading role, building a wide range of 13 industries with rich strength such as machine tools, electrical appliances, instruments and meters, general petrochemical machinery, heavy mining machinery, food packaging machinery, general basic parts, engineering machinery, agricultural machinery, internal combustion engine, cultural office equipment, civil machinery and so on. “Two belts” refers to the two centralized belts, including an automobile industry belts based on the Dongfeng Motor Company in Shiyan, Xiangfan and Wuhan and a large technical equipment belt based on Yichang, Jinzhou, Wuhan and Huangshi, which brought about an industry pattern supported by a large number of big corporations and companies such as Dongfeng Motor Corporation, Dongfeng Peugeot Automobile Company, Tri-ring Group Corporation, Wuhan Kaidi Electric Power Co., Ltd, Wuhan Boiler Co., Ltd, China Chang Jiang Energy Corp.(Group), China Shipbuilding Industry Corporation Wuchang Shipyard and so on. Dongfeng Motor Corporation has realized multinational reorganization with Nissan Motor Co.，Ltd, enhanced operation with PSA Peugeot Citroen and expanded operation with Honda, which marked that Dongfeng Motor Corporation has stepped into the queue of international big companies; after reorganization with the automobile corporations in Hubei province, Tri-ring Group Corporation has further enhanced its strength. As one of the three big production bases for manufacturing automobile components and parts, Hubei Province has achieved a productivity of 800,000 entire vehicles. On the whole, it has formed a product structure which pays equal attention to “limousine, heavy, medium, light and special” and the wide range of vehicle type. Due to the rapid development of entire vehicles, the components and parts industry in Hubei has strengthened day by day. At present, there are more than 700 components and parts enterprises in Hubei (of which there are more than 310 enterprises above the scale), and the annual capacity to provide the auxiliary items exceeds 600,000 vehicles. The industrial output accomplished by the top 10 big companies in this industry take up more than 60% of the total industrial output accomplished by the mechanism and automobile industry in Hubei. (II) Information Industry The information industry in Hubei Province maintained comprehensive, rapid and effective development. The scale of manufacturing industry grew in duplication. The government affairs, enterprises and social informatization have been push forward in an all round way. The informatization level has improved remarkably, and the wireless infrastructure construction is highly effective. Supervision competence is strengthened time and again. The function and status of information industry in the national economy and social development has been reinforced at large, which lays a solid foundation for the sustainable development of “10th Five-year Plan”. As a result of the construction and development, the information industry in Hubei Province has formed a development pattern featuring optical communication, mobile communication, laser, display, chemosynthetic foil electronic material and software industry. The scale of optical fibers and cables industry is in the first place at home and the third place in the world, and the research and development as well as the production scale of the optical communication come out at the top in China; the output of micro-midi broadcasting station and mobile base station antenna system is on top at home, the same with the production scale of laser; production of mobile phone, display and air condition respectively has formed a scale of 10,000,000 sets; the production scale of chemosynthetic foil electronic material is also on top at home with an output of 50,000,000 square meters; by the same token, the software industry provided with domestic considerable foundation and strength is in full flourish. As to the industry structure of the information industry in Hubei Province, it has changed from the single manufacturing industry in the past to the modern information industry integrated by manufacturing industry, software industry and information service industry. The product structure with dominant investment class products in the past has entered into an amenable environment in which the products of investment class, consumption class and foundation class are developed side by side. By means of developing the photoelectron information and organizing and optimizing some essential elements including industry, qualified personnel and resources, Optical Valley of China (Wuhan) has rapidly developed into the biggest photoelectron information industry base in China. (III) Light Industry Hubei Province, one of the largest provinces in China in respect of light industry, has established a self-contained light industry system with a wide range of products, including 22 categories and more than 40 industries such as subsidiary foodstuff processing, foodstuff manufacturing, drink, crude salt, leather, cabinetmaking, paper making and paper products, stationery and sporting goods, chemical industry concerned with products for daily use, plastics, household electrical appliances, illuminating electrical appliances, articles of artistic industry and so on. The major light industries in Hubei Province, including foodstuff and drink, household electrical appliances, paper making, plastics, crude salt and so on, which is playing an important role at home and provided with relatively strong comparative advantage. The subsidiary foodstuff processing industry ranks the 10th place in China the foodstuff manufacturing industry ranks 12th, drink manufacturing ranks 8th, paper making and paper products industry ranks 10th, plastics industry ranks 11th, and household electrical appliances manufacturing industry ranks 10th. Moreover, there are many national renowned native enterprises concerning light industry in Hubei, such as Jingshan Light Machinery Group Co., Ltd., Angel Yeast Co., Ltd., Kaile Science and Technology Co., Ltd., Hubei Yuli Abrasive Belt Co., Ltd., Hubei Baiyunbian Wine Co. Ltd., Zhijiang Wine Co., Ltd, Jing Brand Co. Ltd. and so on. Meanwhile, Hubei Province is provided with a large number of Chinese well-known brand products, including “Kinglong” Beer, “SLEK” cosmetics, “Dongbei” refrigerator compressor, “President” juice, “Jinhuang” jewelry, “Lianle” mattress, “Daqiao” chicken essence, “Jinchen” toothbrush, “Jinlan” jewelry and so on. With more open up to the outside world and improvement on the investment environment, a large number of national and international renowned enterprises concerning light industry have settled in Hubei, including Coca-Cola, Pepsi, Philips, Budweiser, Red Bull Drink, Hair, Little Swan, China Resources Power, Tsingtao Brewery, Wahaha, Huiyuan, TCL, Nongfu-shanquan and so on, which have further strengthened the Hubei light industry. 3. Technology National key laboratories Hubei has more than 10 national key laboratories and more than 1,200 scientific research and development institutions. 7 years ago, they have achieved outstanding academic accomplishments with 750 provincial and ministerial level scientific and technological achievement and 28 national high-tech industrial development projects with total investment of 3.0 billion RMB Yuan. Human Resource Hubei province is abundant in labour resources with 36.2 million employees. It ranks the first among all the cities in the number of college students on campus. The 3551 Talent Project of the East Lake National High-tech Innovation Demonstration Zone has an annual investment of no less than 150 million RMB yuan. There were 64 academicians and 118 persons from “One Thousand Talent Program” in Hubei province, coming out top in China. The scientific research level and production capacity in the hi-tech fields such as photo-electronic information, new-type materials, bio-engineering and new medicine, aviation, laser, digital control technology and computer software development is superior all over the country.

Guangdong Province promulgated relevant policies to attract Foreign-Funds Enterprises

Recently, Guangdong Province promulgated a policy document that specifically aimed at attracting foreign investment, namely, "foreign 10". It mainly focused on some key issues which will be considered by foreign capital enterprises, especially the entering policy, land policy, tax policy and so on. Which is particularly noteworthy are the following: 1. To further expand the market access. It is to gradually push forward the opening up to the outside world in the manufacturing, service and financial sectors. 30% Restrictions on Foreign Investment has been opened. In Manufacturing Industries: will open the limitation about Special Vehicles, and expand foreign enterprises' shares on New Energy Vehicles Industry. In Service Sector: the limitation of foreign enterprises' shares on Ship Design, Branch Lines and General Aircraft Maintenance has been cancelled. In financial industry: will widen the restrictions the foreign enterprises' shares and business scope on foreign investment bank and Securities Company. 2. Financial incentives. In 2017-2022, the new projects (excluding real estate, financial and financial industry projects, the same below) the actual amount of foreign investment (excluding foreign shareholder loans) has more than $50 million; the capital increase projects which exceeded $30 million and the multinational corporations headquarters and regional headquarters which exceeded $10 million, the Guangdong province finance department will give awards that not less than 2% according to the actual amount of foreign capital on that year to the enterprise, the highest award is ?100 million.

Tanikawa （Sichuan）Technology Co., Ltd. was established

Recently, Tanikawa （Sichuan）Technology Co. Ltd. was officially established in Sichuan, located at ChuFeng International Center in Chengdu City and became another milestone after Horgos. It marked that we pay attention to the investment promotion for the western region. Only half a month, Tanikawa has established branches in Hubei and Sichuan. Faced with the rapid growth of investment demand in central and western regions, Tanikawa will provide high-quality and efficient overall investment solution planning for local governments and industrial parks, and provide assistance for the development of local industrial real estate through the establishment of information services. At the same time, with the arrangement of the Tanikawa in the Yangtze River Delta, Pearl River Delta and Beijing-Tianjin-Hebei region, more high-quality projects will be delivered to the western region to provide new impetus to the regional economic development in the western region.

Overview of Henan Pilot Free Trade Zone

Overview of Henan Pilot Free Trade Zone (1)Strategic positioning Taking the institutional innovation as core and the adaptable and propagable approaches as basic requirements,advancing the building of a modern multimodal traffic and logistics network linking up the north and the south and connecting the east and the west,building Henan Pilot Free Trade Zone into a modern comprehensive transportation hub,an all-round reform and opening-up pilot area and an inland open economy demonstration zone to serve“The Belt and Road”initiative. (2)Development goal In 3-5 years,we will make great efforts to establish an innovative system meeting international general rules for investment and trade,shape a law-based,international,convenient business environment,and build a high-level and high-standard free trade zone which enjoys facilitated investment and trade,agglomerated high-end industries,convenient transportation and logistics,efficient supervision and remarkable radiation and driving effects,advancing the transformation and development of inland economy,as well as the building of new opening-up pattern in all aspects. (3)Location and layout Zhengzhou Area focuses on the development of modern manufacturing,such as intelligent terminal,advanced equipment,automobile making and bio-pharmaceuticals,and modern services,such as modern logistics,international business,cross-border e-commerce,modern finance,service outsourcing,creative design,commerce exhibition and cartoon&game.Meanwhile,Zhengzhou Area will push forward system and mechanism reform to promote the coordinated development of transportation and logistics and make investment and trade here more convenient,build an international multimodal transport and logistics center,and play its role of modern comprehensive transportation hub serving“the Belt and Road”Initiative; Kaifeng Area gives priority to the development of service outsourcing,medical tourism,creative design,cultural media,cultural finance,artwork trading and modern logistics.Meanwhile,Kaifeng Area will deepen the international cooperation and trade in equipment manufacturing and agricultural and sideline products processing,build a platform for international cultural trade and tourism,and create a service&trade innovation area and a cultural opening pilot area to promote the integrated development of international culture and tourism. Luoyang Area concentrates on the development of advanced manufacturing,such as equipment manufacturing,robots and new materials,and modern services,such as R&D and design,e-commerce,service outsourcing,international cultural tourism,cultural creativity,cultural trade and cultural presentation.Meanwhile,Luoyang Area will increase the abilities in transformation and upgrading of equipment manufacturing and in international capacity cooperation,build an international intelligent manufacturing demonstration area,and push forward the building of inheritance area of Huaxia(Chinese)Civilization. (4)Main pilot tasks and measures As for main tasks and measures,five aspects such as transformation of government functions,investment,trade,finance and transportation&logistics hub serving“the Belt and Road”Initiative are put forward. Firstly,speed up the transformation of government functions.Deepen the reform of the administrative system to streamline administration,delegate more powers,improve regulation,and provide better services;improve the market supervision mechanism,and promote the management focus from prior approval to operational and post-operational oversight over business.Increase the efficiency of administrative service,release the lists of all powers and responsibilities of administrative departments,and create law-based,international and convenient business environment. Secondly,deepen the opening in investment.Make better use of overseas investment,put into force across the board the management system for pre-establishment national treatment plus a negative list,and build the operational and post-operational oversight over business that are compatible with the negative list management.Further reduce or cancel the admission restriction on foreign investment to increase the openness and transparency.Build a platform for cooperation in foreign investment,reform the management mode of investment abroad,and support investment of enterprises in foreign countries. Thirdly,promote trade transformation and upgrading.Pursue the integrated development of domestic and foreign trade,advance the transformation and upgrading of trade modes,and shape a standardized and efficient trade facilitation environment.Improve the carrier of foreign trade development,create new trade modes and actively cultivate new forms and functions of business to form a new competitive advantage which takes technology,standard,brand,quality and service as the core.Create new supervision and management mechanism of customs clearance to improve the efficiency of customs clearance and inspection clearance and to avoid the quality and safety risks. Fourthly,deepen the opening and innovation in the finance.Enlarge the opening up in the finance both internally and externally,expand functions of financial service,promote the innovation of cross-border financing and investment,and establish and improve the financial risk prevention and control system.Learn from the experience of the existing free trade zones based on the development needs of cross-border e-commerce and multimodal transport.Place priority on the reform and innovation in the introduction of foreign financial institutions and expansion of cross-border investment and financing. Fifthly,enhance functions of the transportation&logistics hub serving“the Belt and Road”Initiative.Improve the transportation&logistics system,advance the development of multimodal transport,and carry out key procedures to serve“the Belt and Road”Initiative.Smooth the international transportation and logistics channels,improve the domestic land and air cluster network,pilot the multimodal transport,expand the openness of aviation service,promote economic innovation and development of inland ports,and promote the integrative development of international medical and tourism industry.Establish and improve the cooperation mechanism with key countries along the“the Belt and Road”routes,and create new strengths for cooperation and exchange.