(Photo 3: The construction site of the grain and oil processing project in China-Malaysia Qinzhou Industrial Park)
BEIJING -- With its special geographical position both on the land and sea border and facing the Association of Southeast Asia Nations (ASEAN), China's southwest Guangxi Zhuang Autonomous Region has benefited from a well-opened economy and it is willing to further cooperate with investor from all over the world.
-- General situation of foreign investment in Guangxi
In the recent years, Guangxi has been implementing the strategy of boosting growth by opening up the economy.
In 2015, Guangxi approved 142 projects with foreign investment from 26 countries and regions, growing 2.9 percent from a year ago, while 86 of the projects were wholly funded by foreign investment. Foreign investment actually utilized by the region rose 72 percent to a historical high of 1.722 billion U.S. dollars.
In terms of industries, the industrial sector and the real estate market are still the main fields that attract foreign investment. Foreign investment used by transportation, telecommunications and other basic industries, wholesale and retailing, accommodation and catering have been increasing since 2010.
-- Favorable investment environment and policies
Guangxi is located in south China and is the only region connected with the ASEAN both on the land and on the sea. It is also closely linked to Guangdong Province, Hong Kong and Macao. Guangxi's GDP stands around the middle among China's provinces. Its favorable investment environment makes it a hotspot for foreign investment.
First, Guangxi enjoys multiple favorable policies. It is entitled to policies for opening up coastal areas and land border areas, developing China's west regions as well as preferential policies related to the regional autonomy system. Moreover, China's central government has also launched plans to build Guangxi Beibu Gulf Economic Zone, Pearl River-Xijiang River Economic Belt and Guangxi Border Financial Comprehensive Reform Pilot Area.
Second, Guangxi is the window for China-ASEAN cooperation. With the China-AESAN Expo and the Pan-Beibu Gulf Economic Cooperation Forum, the "Nanning channel" has become a major passageway for cooperation between China and the AESEAN in politics, economy and culture, and investors are able to reach both markets of China and the ASEAN.
Third, Guangxi boasts rich marine, mineral and other natural resources. Guangxi's climate is warm and humid all year around, which gives it rich forestry resources and its output of 13 agricultural products rank at the first in China. The landscape in Guilin and the silver beach in Beihai are well-known tourist resorts in the world.
Fourth, Guangxi is a very important industrial base in southeast coastal area of China. It has completed construction of an oil refining project with 18 million ton annul capacity. As one of the biggest four automobile car production bases in China, Guangxi's annual car building capacity reaches 2.1 million. Currently, it is accelerating development of food, metallurgic industry, petrochemical industry, mechanic building, electronic information, new material and new energy.
Fifth, Guangxi is the most convenient channel to China's neighboring countries in the southwest. Guangxi's coastline and borderline extends for 1,595 kilometers and 1,020 kilometers. Its comprehensive capacity of coastal and inland ports has exceeded 230 million metric tons (tonnes) and 100 million tonnes respectively. It has 25 land border ports and 26 exchange markets at the frontier.
Sixth, Guangxi has a range of platforms for opening up and international cooperation. There are four special Customs controlling zone including Qinzhou Free Trade Port Area. In addition, there are China-Malaysia Qinzhou Industrial Park and China-Vietnam cross-border economic cooperation area for companies to place investment. Guangxi's Beibu Gulf is also applying to be a pilot free trade zone.
-- Key areas to deepen cooperation
Guangxi's open economy has entered the fast track, and it is determined to welcome in more foreign investors. There are four areas where Guangxi is expected to strengthen cooperation with investors:
The first is to enhance cooperation in advanced manufacturing. With good industrial foundation, Guangxi's investment cost is about 40 percent lower than eastern China. At present, Guangxi is carrying out a plan to undertake industrial transfer of electronic information, modern equipment manufacturing, new materials, biological medicine, energy conservation, food processing, petrochemicals etc.
Multinational companies will be able to share the benefits of Guangxi's rapid development of industrialization with their advantages in capital, technology and human resources.
The second is to push forward cooperation in finance and logistics. Guangxi is now building the Border Financial Comprehensive Reform Pilot Area and constructing large ports with capacity of 10 million standard containers and regional international shipping center in a bid to deepen international cooperation in finance and logistics.
The third is to continuously construct industrial parks. At present, Guangxi has developed national economic and technological development zones as well as high-tech industrial development zones, and it is actively building up cross-border economic cooperation zones and border development and open-up pilot areas to create a favorable development environment for investors.
The fourth is to further explore international markets. Guangxi will further upgrade and expand "Nanning Channel" and develop the ASEAN market. It will also actively encourage local companies to increase overseas investment and expand global business.
(For more information about foreign investment of Guangxi, please go to Xinhua Silk Road Database, http://db.silkroad.news.cn/en/)
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