Competitive power for attracting overseas investment rising in Jiangxi

East China’s Jiangxi Province has over recent years accelerated the pace of attracting investment from Hong Kong, Macao and Southeast Asian countries by developing an open economy along the route of the “One Belt, One Road”. It will set up liaison and investment promotion centers in the United States, Australia and South Korea.

During the 13th five-year plan period, Jiangxi began to develop an open economy to the countries and regions and major Chinese economic zones along the routes of “One Belt, One Road” aimed at building a two-way opening, trading and investment pattern. Industry insiders say that the comprehensive competitive power for attracting overseas investment is rising.

Higher investment efficiency and multiplied structure

In 2015, the province used 9.473 billion U.S. dollars of overseas investment, 12.1 percent more than in the previous year, including 2.111 billion U.S. dollars in foreign exchange cash, ranking 14th in the country and the 5th in the central and western parts of the country, according to the ranking by the Ministry of Commerce. The province newly approved 640 foreign invested enterprises, 22.14 percent less than in the previous year. The contracted investment was 7.367 billion U.S. dollars, 31.32 percent less. But the quality and efficiency of overseas investment rose.

1.    Good result in attracting big and strong investors. The average size of overseas investment projects was 9.28 million U.S. dollars. The total number of newly approved investment was 168, each with at least 10 million U.S. dollars, with a total investment amounting to 6.902 billion U.S. dollars. Of this, 14 each had an investment of 100 million U.S. dollars. The newly attracted included 3 world top 500, bringing the total world top 500 to the province up to 65.
2.    Regional use of overseas capital speeded up. Nanchang, Jiujiang, Ganzhou and Ji’an approved 378 overseas investment projects, accounting for 59.06 percent of the whole province. The added contract investment was 4.648 billion U.S. dollars, accounting for 63.09 percent of the province. The amount of overseas capital used was 6.5 billion U.S. dollars, accounting for 68.62 percent of the provincial total.
3.    Overseas investment structure optimized. The manufacturing used 6.559 billion U.S. dollars of overseas capital, accounting for 69.24 percent of the provincial total. The service trade used 2.348 billion U.S. dollars, accounting for 24.79 percent of the provincial total. The province approved two foreign capital financing leasing projects.
4.    Overseas investment diversified in ways and channels. 18 enterprises were acquired by overseas capital, with a total investment of 536 million U.S. dollars. One domestic enterprise was listed abroad for financing. 51 enterprises attracted investment from overseas in the Chinese currency, amounting to 2.936 billion yuan. The province also tried to increase investment by borrowing 910 million U.S. dollars abroad.
5.    More overseas investment enterprises added capital. 175 overseas capital enterprises increased investment and expanded the number of stocks, with a contracted capital of 1.856 billion U.S. dollars, accounting for 25.2 percent of the provincial total. The number of projects each adding 10 million U.S. dollars reached 54, with an added contract investment reaching 1.2 billion U.S. dollars.
6.    Strategic emerging industries advanced steadily in using foreign capital. The province approved 212 foreign capital projects in ten major emerging industries, with the additional contract investment and the amount used reaching 2.674 billion U.S. dollars and 3 billion U.S. dollars, accounting for 36.3 percent and 31.67 percent, respectively.
7.    Industrial parks and zones went fast in using overseas capital. The province’s industrial parks and zones used 6.786 billion U.S. dollars of overseas capital, accounting for 71.63 percent of the provincial total. The 17 state class development zones used 2.811 billion U.S. dollars of overseas capital, accounting for 41.42 percent of all industrial parks and zones or 29.67 percent of the provincial total.

Investment environment optimized

The province has in recent years made great efforts to create a good environment in market, law and transparency and open administration, highly efficient and fast work, and honesty and integrity and comfortable and beautiful living.

1. Optimizing soft environment. Starting from 2,000, the provincial government has for years launched consecutive campaigns to improve the investment environment. It has come down sharply on such law violating acts as infringing upon the rights and interests of overseas investors, harming their interests and ditching overseas investors. The whole province is brimming with the atmosphere of “everyone means an investment environment and everything concerns attracting overseas investors”.

Besides, the province has made administrative affairs open, introducing the responsibility system of the person first asked and service commitment system, one-time notification system and time-limit finishing system, creating a responsible government and a service government. All the cities and counties of the province have set up unified service centers to unify the case acceptance, associate operations and time-limit finishing and streamlined service.

The province has made great efforts to create an “integrity Jiangxi”, optimizing work procedures to raise work efficiency, honoring the government commitments according to law, intensifying follow-up services and resolving complaints from overseas investors, maintaining policy continuity and stability. All the provincial, city and country level governments have set up complaint centers to offer round-the-clock service of receiving and handling complaints from overseas investors.

2. Intensify infrastructure construction. One is to build a road network. In 2015, the length of express highways in the province reached 5,000 kilometers, ranking 10th in the country. All the provincial outlets and cities with district setups have expressed highways. In May 2004, the Nanchang Changbei airport was approved by the state as an international airport and the province went on to apply for international air routes to Hong Kong, Southeast Asian countries, the United States, South Korea and Western Europe. In 2009, the airport was designated by the State Council as an airport with direct air route to Taiwan. On January 29, 2016, Jiangxi Airline began official operation.

Another is to make through ports. The province has set up 12 customs and 9 inspection and quarantine offices in Nanchang, Jiujiang, Jingdezhen, Xinyu, Ganzhou, Shangrao, Ji’an, Yingtan and Longnan and liaison offices in cities that do not have customs and in counties where there are more import and export enterprises.

The third is to build specialty industrial parks and zones. The province boasts 17 state class development zones, 73 provincial level development zones and 4 zones with special customs management and supervision. Since the beginning of 2006, the province has set up 4 state class export processing areas in Jiujiang, Nanchang, Ganzhou and Jinggangshan. In 2014, the Ganzhou integrated bonded zone was set up and in 2016, the Nanchang integrated bonded zone opened.

Recommendations for overseas investors

Jiangxi is a province neighboring on Zhejiang and Fujian in the east and Guangdong in the south. It is the only province in the middle region of the country adjacent to the Yangtze River Delta, the Zhujiang (Pearl) River Delta and Southeast Fujian Delta. Since reform and opening up, especially since the turn of the century, Jiangxi has made leaps and bounds progress in social and economic development and its industry has achieved sustained and healthy development.

By the end of 2015, the primary industry had 6.84 percent of the total FDI in the province; the secondary industry had 71.81 percent, and the tertiary industry had 21.35 percent. This shows that FDI were concentrated in the secondary and tertiary industries, playing a big role in scale expansion and structural upgrading of these industries. The rankings of the three industries has changed from “primary, secondary and tertiary” at the beginning of reform and opening up into “secondary, tertiary and primary”. A number of emerging industries has taken shape.

In January 2016, the province re-classified the industries into advantageous industry, growth industry and cultivation industry according to the different stages of development and their characteristics. The advantageous industry covers electronics and information, biomedicine, non-ferrous metals and aviation manufacturing. The growth industry covers photovoltaic, auto and parts, energy conservation and environment protection and special types of shipbuilding. The cultivation industry covers new energy automobiles, smart equipment and integrated circuits.

 Now taking shape are the auto, aviation and precision manufacturing represented by Jiangling and Canghe auto works, the specialty metallurgy and medal products represented by Jiangtong, Toshiba electronics, Shitai Science and Jingci, the patented Chinese medicine and biomedicine represented by Meiliya, shuangfeiren pharmaceuticals, Jimin Kexin, Xinglin Baima, the electronics information and modern home appliances represented by Bosuo Science and Technology, Hong ban Science and Technology, Foxconn, Suizhi Precision and Ruizhan Dynamics, the food processing represented by Coca Cola, President, Huiyuan, Chinagrain Rice and Wangwang, and the precision chemical engineering and new types of building materials represented by Xinghuo Organic silicon, Purecircle Biomedicine, Yadong and Hongtai.

Industries that are developing with great momentum thanks to the access of overseas capital include photovoltaic represented by Jingke Energy and Saiwei, the LED industry represented by Jingneng Photoelectric, the high precision copper materials represented by Jiangxi Copper-Yates Foil Inco., Jiangxi Copper –Copper Belt, the shipbuilding represented by Jiangzhou Union, the machine-building industry represented by ABB and Dongyuan Motor, the home appliances industry represented by Haili, Aux and Chigo, the footwear and headgear industry represented by Ganzhou Huajian, Shanghao Yusheng, Guangyou Shoes and Peak Industries, the logistics represented by Walmart, Metro and Darunfa, the financial industry represented by HSBC Bank(China), Chartered Bank, Dah Sing Bank and the East Asia Bank.

By re-classifying the industries, Jiangxi has clarified the major areas, major enterprises and major technologies so as to quicken the transformation of innovative results. The province has set the goal of bringing the manufacturing industry up to the upper middle level in the country and a number of major industries and areas to the advanced domestic level and even advanced world level. The Jiangxi provincial department of commerce recommended that overseas investors may consult the industry classification to make investment options among these advantageous industries.

Besides, enterprises all wish to lower logistics cost and the enterprises share of old-aged insurance, medical insurance, unemployment insurance, work injury insurance and birth insurance and housing fund and expect policies on improving the local matching abilities so as to lower burdens on enterprises.   (Contributed by reporters Chen Yushan and Chengdi)  
East China’s Jiangxi Province has over recent years accelerated the pace of attracting investment from Hong Kong, Macao and Southeast Asian countries by developing an open economy along the route of the “One Belt, One Road”. It will set up liaison and investment promotion centers in the United States, Australia and South Korea.

During the 13th five-year plan period, Jiangxi began to develop an open economy to the countries and regions and major Chinese economic zones along the routes of “One Belt, One Road” aimed at building a two-way opening, trading and investment pattern. Industry insiders say that the comprehensive competitive power for attracting overseas investment is rising.

Higher investment efficiency and multiplied structure

In 2015, the province used 9.473 billion U.S. dollars of overseas investment, 12.1 percent more than in the previous year, including 2.111 billion U.S. dollars in foreign exchange cash, ranking 14th in the country and the 5th in the central and western parts of the country, according to the ranking by the Ministry of Commerce. The province newly approved 640 foreign invested enterprises, 22.14 percent less than in the previous year. The contracted investment was 7.367 billion U.S. dollars, 31.32 percent less. But the quality and efficiency of overseas investment rose.

1.    Good result in attracting big and strong investors. The average size of overseas investment projects was 9.28 million U.S. dollars. The total number of newly approved investment was 168, each with at least 10 million U.S. dollars, with a total investment amounting to 6.902 billion U.S. dollars. Of this, 14 each had an investment of 100 million U.S. dollars. The newly attracted included 3 world top 500, bringing the total world top 500 to the province up to 65.
2.    Regional use of overseas capital speeded up. Nanchang, Jiujiang, Ganzhou and Ji’an approved 378 overseas investment projects, accounting for 59.06 percent of the whole province. The added contract investment was 4.648 billion U.S. dollars, accounting for 63.09 percent of the province. The amount of overseas capital used was 6.5 billion U.S. dollars, accounting for 68.62 percent of the provincial total.
3.    Overseas investment structure optimized. The manufacturing used 6.559 billion U.S. dollars of overseas capital, accounting for 69.24 percent of the provincial total. The service trade used 2.348 billion U.S. dollars, accounting for 24.79 percent of the provincial total. The province approved two foreign capital financing leasing projects.
4.    Overseas investment diversified in ways and channels. 18 enterprises were acquired by overseas capital, with a total investment of 536 million U.S. dollars. One domestic enterprise was listed abroad for financing. 51 enterprises attracted investment from overseas in the Chinese currency, amounting to 2.936 billion yuan. The province also tried to increase investment by borrowing 910 million U.S. dollars abroad.
5.    More overseas investment enterprises added capital. 175 overseas capital enterprises increased investment and expanded the number of stocks, with a contracted capital of 1.856 billion U.S. dollars, accounting for 25.2 percent of the provincial total. The number of projects each adding 10 million U.S. dollars reached 54, with an added contract investment reaching 1.2 billion U.S. dollars.
6.    Strategic emerging industries advanced steadily in using foreign capital. The province approved 212 foreign capital projects in ten major emerging industries, with the additional contract investment and the amount used reaching 2.674 billion U.S. dollars and 3 billion U.S. dollars, accounting for 36.3 percent and 31.67 percent, respectively.
7.    Industrial parks and zones went fast in using overseas capital. The province’s industrial parks and zones used 6.786 billion U.S. dollars of overseas capital, accounting for 71.63 percent of the provincial total. The 17 state class development zones used 2.811 billion U.S. dollars of overseas capital, accounting for 41.42 percent of all industrial parks and zones or 29.67 percent of the provincial total.

Investment environment optimized

The province has in recent years made great efforts to create a good environment in market, law and transparency and open administration, highly efficient and fast work, and honesty and integrity and comfortable and beautiful living.

1. Optimizing soft environment. Starting from 2,000, the provincial government has for years launched consecutive campaigns to improve the investment environment. It has come down sharply on such law violating acts as infringing upon the rights and interests of overseas investors, harming their interests and ditching overseas investors. The whole province is brimming with the atmosphere of “everyone means an investment environment and everything concerns attracting overseas investors”.

Besides, the province has made administrative affairs open, introducing the responsibility system of the person first asked and service commitment system, one-time notification system and time-limit finishing system, creating a responsible government and a service government. All the cities and counties of the province have set up unified service centers to unify the case acceptance, associate operations and time-limit finishing and streamlined service.

The province has made great efforts to create an “integrity Jiangxi”, optimizing work procedures to raise work efficiency, honoring the government commitments according to law, intensifying follow-up services and resolving complaints from overseas investors, maintaining policy continuity and stability. All the provincial, city and country level governments have set up complaint centers to offer round-the-clock service of receiving and handling complaints from overseas investors.

2. Intensify infrastructure construction. One is to build a road network. In 2015, the length of express highways in the province reached 5,000 kilometers, ranking 10th in the country. All the provincial outlets and cities with district setups have expressed highways. In May 2004, the Nanchang Changbei airport was approved by the state as an international airport and the province went on to apply for international air routes to Hong Kong, Southeast Asian countries, the United States, South Korea and Western Europe. In 2009, the airport was designated by the State Council as an airport with direct air route to Taiwan. On January 29, 2016, Jiangxi Airline began official operation.

Another is to make through ports. The province has set up 12 customs and 9 inspection and quarantine offices in Nanchang, Jiujiang, Jingdezhen, Xinyu, Ganzhou, Shangrao, Ji’an, Yingtan and Longnan and liaison offices in cities that do not have customs and in counties where there are more import and export enterprises.

The third is to build specialty industrial parks and zones. The province boasts 17 state class development zones, 73 provincial level development zones and 4 zones with special customs management and supervision. Since the beginning of 2006, the province has set up 4 state class export processing areas in Jiujiang, Nanchang, Ganzhou and Jinggangshan. In 2014, the Ganzhou integrated bonded zone was set up and in 2016, the Nanchang integrated bonded zone opened.

Recommendations for overseas investors

Jiangxi is a province neighboring on Zhejiang and Fujian in the east and Guangdong in the south. It is the only province in the middle region of the country adjacent to the Yangtze River Delta, the Zhujiang (Pearl) River Delta and Southeast Fujian Delta. Since reform and opening up, especially since the turn of the century, Jiangxi has made leaps and bounds progress in social and economic development and its industry has achieved sustained and healthy development.

By the end of 2015, the primary industry had 6.84 percent of the total FDI in the province; the secondary industry had 71.81 percent, and the tertiary industry had 21.35 percent. This shows that FDI were concentrated in the secondary and tertiary industries, playing a big role in scale expansion and structural upgrading of these industries. The rankings of the three industries has changed from “primary, secondary and tertiary” at the beginning of reform and opening up into “secondary, tertiary and primary”. A number of emerging industries has taken shape.

In January 2016, the province re-classified the industries into advantageous industry, growth industry and cultivation industry according to the different stages of development and their characteristics. The advantageous industry covers electronics and information, biomedicine, non-ferrous metals and aviation manufacturing. The growth industry covers photovoltaic, auto and parts, energy conservation and environment protection and special types of shipbuilding. The cultivation industry covers new energy automobiles, smart equipment and integrated circuits.

 Now taking shape are the auto, aviation and precision manufacturing represented by Jiangling and Canghe auto works, the specialty metallurgy and medal products represented by Jiangtong, Toshiba electronics, Shitai Science and Jingci, the patented Chinese medicine and biomedicine represented by Meiliya, shuangfeiren pharmaceuticals, Jimin Kexin, Xinglin Baima, the electronics information and modern home appliances represented by Bosuo Science and Technology, Hong ban Science and Technology, Foxconn, Suizhi Precision and Ruizhan Dynamics, the food processing represented by Coca Cola, President, Huiyuan, Chinagrain Rice and Wangwang, and the precision chemical engineering and new types of building materials represented by Xinghuo Organic silicon, Purecircle Biomedicine, Yadong and Hongtai.

Industries that are developing with great momentum thanks to the access of overseas capital include photovoltaic represented by Jingke Energy and Saiwei, the LED industry represented by Jingneng Photoelectric, the high precision copper materials represented by Jiangxi Copper-Yates Foil Inco., Jiangxi Copper –Copper Belt, the shipbuilding represented by Jiangzhou Union, the machine-building industry represented by ABB and Dongyuan Motor, the home appliances industry represented by Haili, Aux and Chigo, the footwear and headgear industry represented by Ganzhou Huajian, Shanghao Yusheng, Guangyou Shoes and Peak Industries, the logistics represented by Walmart, Metro and Darunfa, the financial industry represented by HSBC Bank(China), Chartered Bank, Dah Sing Bank and the East Asia Bank.

By re-classifying the industries, Jiangxi has clarified the major areas, major enterprises and major technologies so as to quicken the transformation of innovative results. The province has set the goal of bringing the manufacturing industry up to the upper middle level in the country and a number of major industries and areas to the advanced domestic level and even advanced world level. The Jiangxi provincial department of commerce recommended that overseas investors may consult the industry classification to make investment options among these advantageous industries.

Besides, enterprises all wish to lower logistics cost and the enterprises share of old-aged insurance, medical insurance, unemployment insurance, work injury insurance and birth insurance and housing fund and expect policies on improving the local matching abilities so as to lower burdens on enterprises.   (Contributed by reporters Chen Yushan and Chengdi)