China is set to adopt more preferential policies for the development of its western region in the next decade, according to a circular released Wednesday by the State Council.
The incentives cover increased government input, fiscal support, tax cuts and policies to attract investors.
The beneficiaries will be the 12 provinces, municipalities and autonomous regions of Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Ningxia, Qinghai, Xinjiang, Inner Mongolia and Guangxi, says the circular.
In the next five to ten years, China will step up infrastructure construction, improve environmental protection, readjust the industrial structure and develop tourism in the western areas, it says.
The government will allocate more fund to the region, give priority to construction of infrastructure projects in water conservancy, transport and energy sectors there.
According to the circular, work will be done to create a better environment to attract investment, both domestic and overseas, to push forward the reform of state-owned enterprises in the western areas and promote the development of the private sector.
The government will cut the rate of enterprise income tax to 15 percent for both domestic and overseas-funded companies engaged in industries encouraged by the state for a certain period of time. Preferential tax rates will also be available for projects concerning transport, electricity, water control, postal, broadcasting and TV services, as well as environmental protection.
The country will also give investors incentive policies toward the use of land and mineral resources in the region, says the circular.
More sectors will be opened to foreign investors and measures including BOT and TOT will be introduced to expand the source of foreign capital.
To expand foreign trade in the western areas, more industrial enterprises will be given import and export autonomy, and more preferential policies will be provided to encourage border trade, according to the circular.
The government will encourage the economically developed eastern coastal areas to give more support to the west.
Measures will be taken to attract more talented professionals to work in the western region and boost the development of education, science and technology there.
The new polices will be effective as of January 1, 2001 and through the next ten years.
(Xinhua 12/28/2000)
