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Ningxia's resources boost development

By Yang Wanli (China Daily)
Updated: 2009-05-19 07:43

The Ningxia Hui autonomous region is counting on its energy, agriculture and tourism resources to boost its future development prospects.

Ningxia is already one of the country's leading sources of coal with proven reserves of up to 31 billion tons. In terms of ore deposits, it ranks fifth in the Chinese mainland .

With 12 large and medium-sized power plants in the region, its installed electric power capacity has now reached 8.15-million kW. In terms of per capita coal production capacity, it ranks first in the country.

The region is also rich in agricultural resources. With the Yellow River running through the region, there is abundant water available for irrigation. This allows for the cultivation of more than 400,000 hectares of land.

The area's combination of fertile soil, water and sunshine has proved highly favorable for the cultivation of fruit and grain, as well as for animal husbandry. Grapes, wolfberries, potatoes, rice, corn and wheat are produced in large quantities and with very high quality. Throughout the region, sheep and cattle abound.

As one of the 10 largest pasturelands in China, Ningxia has about 210 hectares of grassland. It has also gained a reputation as the "homeland of the medlar fruit" and the "homeland of the potato".

Ningxia is also well-known for its tourism resources. The region boasts the idyllic scenery of both the Yellow River and the Helan Mountain area. Its rich cultural history is also highlighted in a number of unique monuments, including the Mausoleum of the Western Xia Dynasty (1038-1227).

As well as celebrating its heritage, the region prides itself on its forward-looking approach to business and commerce. Its innovative policies for attracting foreign investment has already seen it secure business from 40 countries and regions, including Japan, Singapore, India, Poland and Malaysia.

A number of global businesses - notably Alcan, Yamazaki Mazak, FAG and Samsung - also operate in the area. Elkem, the Norwegian metal producer, has also announced plans to establish a plant in the region.

The local government has identified a number of factors that have led to the regions success in securing overseas investment.

Investment appeal

Location: Located on the east front of western China, Ningxia is expected to be a vanguard in the process of the nation's strategy of the development of the West China.

Energy resources: Coal is Ningxia's largest energy resource. The region is also wealthy in mineral and water resources, which enables the region to develop coal and chemical industries rapidly.

Infrastructure: There is a 1,000-km highway running through the region. It connects all of its main cities and counties.

Road, rail and air links form an integrated traffic network. Telephone and mobile communication networks cover both urban and rural areas, and fixed phone ownership in the region ranks second in West China.

City environment: Thanks to a construction of its infrastructure, Ningxia has now been upgraded and given a thoroughly modern appearance. Its capital, Yinchuan, is now on the road to develop itself to be the most livable city and paradise for business startups in western China.

Overall economic environment: The region, China's only Hui autonomous region, enjoys not only the benefits of national policies, but also policies of national infrastructure development in the western region, foreign income tax relief, the establishment of economic and technological zones, as well as ecological protection and construction policies.

Unique culture: Ningxia is a place where Muslim culture thrives. This attracts business from Islamic countries and also the Hui Muslim entrepreneurs of the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan province.

Excellent services: The Yinchuan government has streamlined its work procedures to increase work efficiency and regulate charging and administrative inspection, as well as law enforcement systems. The government has also strengthened its investment guidance in order to lower potential risks.

In the future, the government will continue to promote the process of industrialization, urbanization, rural construction and the provision of information technology.

It will also accelerate the development of the energy and coal-chemical industries, new materials, equipment manufacturing, as well as new technology.