News

Guangxi: New opportunities for investors

By Huang Feifei and Feng Lili (China Daily)
Updated: 2010-12-13 07:59

Representatives from China and ASEAN members talking about transportation development at the 7th China-ASEAN Expo. Chen Feng / for China Daily

Panoramic view of Nanning, capital of Guangxi and a winner of a UN habitat award. Photos Provided to China Daily

Editor's note: During a recent China Daily interview, Yang Jinghua, head of Guangxi Investment Promotion Agency, talked about the opportunities that the autonomous region has to offer investors.

Q: Could you describe some of Guangxi's advantages?

A: Among its many advantages are the location, resources, environment and low operational costs.

Guangxi is on a crossroads between the rest of China and Southeast Asia.

It's rich in marine, mineral, tourism and forest resources and is especially well-known for its nonferrous metal production.

In the area of environmental protection, it has 22 national and provincial nature reserves and 57 percent of its land is forested. Nanning, the capital, is a winner of the UN habitat award.

In addition, labor, land and production costs in Guangxi are only two-thirds those in the eastern parts of China.

Q: What investment incentives does Guangxi offer?

A: This is a southwestern region, enjoying the nation's preferential policies for western development, including financial support, low land-use costs, and lower taxes. The corporate income tax rate, for instance, is as low as 15 percent.

Guangxi is a national pilot in using the renminbi for cross-border trade.

It also has autonomy in its tax incentives for investment in the Beibu Gulf Economic Zone, where the corporate income tax can be as low as 9 percent.

And the China-ASEAN Free Trade Area went operational this year, and most of the goods moving between China and ASEAN countries enjoy zero tariffs.

Q: Are there any new opportunities in Guangxi?

A: One of the biggest opportunities for investors is the Beibu Gulf Economic Zone, one of the fastest-growing of all of China's major economic zones.

There are a number of large projects in the zone, like PetroChina's 10-million-ton oil refinery, and the huge steel-making and nuclear power projects in Fangchenggang. All of these need other projects to expand the industrial chain.

In the next three to five years, we expect a total of 1,390 projects in the zone, with more than 1.5 trillion yuan in investment.

The China-ASEAN Free Trade Area is another place with unprecedented opportunities, which will greatly boost trade and investment with ASEAN countries.

The Ministry of Commerce has said that two-way investment is expected to increase by 48 percent annually in the next few years. Guangxi is a bridgehead to ASEAN and will be one of the greatest beneficiaries of the trade and investment boom.

(China Daily 12/13/2010 page7)