China Daily: Apart from urbanization, a chance for development in areas all around China, what other opportunities have been given to Ningxia?

Wang Heshan: Let me introduce the "Inland opening-up pilot economic zone" in Ningxia. Vice premier Li Keqiang announced the approval of an "Inland opening-up pilot economic zone" in Ningxia and a "Comprehensive duty-free zone" in Yinchuan at the third China-Arab States Economic and Trade Forum in September 2012. It is the most important opportunity Ningxia has ever gained, and Ningxia's biggest opportunity bestowed by the central government's incentive policies. This is a golden opportunity, an opportunity that Ningxia should hold tight.

The central government has granted Ningxia the right to try something new first. Managing economic pilot zones in inland areas is different from managing those in coastal areas. Coastal economic pilot zones were established since the beginning of China's reform and opening-up. China has gained rich experience in opening-up. While following coastal areas' success in opening-up is necessary, how can inland areas promote its openness to the outside world? I found the central government's decision to make Ningxia the pilot zone wise and sound. Ningxia is a small region with a small population. It is inhabited by ethnic groups, and it is a backward economy. If Ningxia succeeds in building itself into an inland opening-up economic zone, the measures it adopts could serve as examples for other inland areas around China. Its success will encourage more cities to adopt an opening-up model if even such a poor, ethnic group-inhabited region can achieve it.

Of course, Ningxia has some advantages in transforming into an opening-up zone. Ningxia has come a long way in urbanization. It has beautiful sceneries. Irrigated by the Yellow River, Ningxia won its name "The abundant place outside the Great Wall". Ningxia has rich tourism resources. Tourist attractions scattered along its 500 kilometre range from north to south. All of them offer beautiful sightseeing. Liu Pan Mountain lies in the southernmost sector of Ningxia. It is the last mountain that the Red Army climbed over during the Long March. We call it the "Mountain of success". Way up north, there is Lao Longtan, Xumi Mountain, the grand gorge and dam along the Yellow River, and the Helan Mountain, the mountain that the Chinese ancient warrior Yue Fei mentioned in his heroic poem. These tourism sites scattered from south to north just like a string of pearls. These are all Ningxia's advantages.

In order to make Ningxia a good exchange platform, the local government needs to make great efforts, but we also need support from the central government. According to the blueprint approved by the State Council, favorable fiscal, taxation and land policies will be rolled out to support Ningxia. Ningxia, including its governments at all levels and its people, is busy groping for good ways to promote the trial zone. For example, what kind of fiscal and taxation policies should Ningxia adopt? In what way can the fiscal and taxation policies drive the development of the pilot zone? Are the policies effective? Great efforts are needed to resolve these issues.

We invited professionals from the Research Institute for Fiscal Science, Ministry of Finance for suggestions. They are more experienced in the field than myself. We consulted them for advice. Professionals from the research institute conducted research in Ningxia for more than a week. They also held some discussion meetings. Now we are discussing with the institute to formulate fiscal and taxation policies for our pilot zone. Other policies, including land policies, are still under research.

What's more, we are stepping up the construction of the comprehensive tax-free zone in Yinchuan. Zhang Yi, secretary of the Communist Party Committee in Ningxia, said that the construction work will be finished, and the zone will start providing bonded services by September 2013, one year after Vice Premier Li Keqiang announced the approval of the region as the pilot zone.

In sum, in order to build the inland opening-up pilot economic zone, first, the Ningxia local government has been formulating related policies. Second, we followed the up-to-date progress and further improved our work, including the construction of a comprehensive duty-free zone in Yinchuan. Third, we have carried out some work, including the construction of Binhe New District and Ningdong Coal Base in Yinchuan.