Henan Reaps Rich Fruits in Implementing Unique Strategy in implementing the strategy of introducing things from the east and advancing toward the west. The report as follows:

The joint venture between Henan's Xinxiang TCL Meile Electronic Co. Ltd and the Guangdong TCL Group has taken three giant steps forward in its production of TCL color TV sets in three years, with its annual output increasing from 270,000 sets to 500,000 sets and further to an excess of 1 million sets, it has thus placed itself in the ranks of China's top three TV sets producers. This represents one of the fruits achieved by Henan through implementation of the strategy of introducing things from the east and advancing toward the west.

This strategy refers to introducing funds, projects, technologies, name brands, mechanism and management from eastern coastal developed provinces (including overseas) and advancing to western regions to explore markets. To further this strategy, the Henan provincial Party committee and the provincial government have created good environment and conditions through various methods. At the Henan-Guangdong Economic and Technological Business Talks held in Zhengzhou in May this year, Henan signed contracts for 76 projects valued at 1.854 billion yuan. These projects, large in scale and of a high level, are in line with the orientation for the province's industrial structural readjustment, initially achieving the objective wherein Guangdong's advantages in technological brands, funds and modernized management and Henan's advantages in markets, resources and labor force complement each other. This was followed by the Symposium on Explanations of the Situation in Henan and Investment Projects, a meeting jointly sponsored in Beijing by the Henan provincial people's government and the Chinese Ministry of Foreign Trade and Economic Cooperation (MOFTEC). At the symposium, Henan signed 24 contracts and agreements on the introduction of foreign capital valued at US$0.12 billion, this includes six projects valued at US$0.1 billion each. .At the Third Chinese Investment and Trade Symposium held in Xiamen, Henan Delegation signed contracts for a total of 204 foreign-funded projects, involving a total investment of US$1.9 billion, the foreign capital used approached US$1.2 billion. At the same time, Henan signed 70 contracts with eastern coastal provinces and cities, with the total contracted investment standing at US$0.2 billion and capital imported at US$0.17 billion.

At the same time, the province has quickened its pace of advancing toward the western regions, seeking and exploring markets for the province's products in western regions. In July, the Henan provincial government held a meeting in Urumqi for the exhibition and sales of Henan products and for the placement of orders. The business volume of the sales exhibition reached 10.6 billion yuan. A large batch of the province's enterprises have set up sales outlets in western regions, some of them have built production bases there, thereby extending the sales of its products to the western region. While going out of the province, they also invite clients from the central and western regions to come for business talks. The business volume at the Zhengzhou Trade Fair held this year hit 16.1 billion, of which Henan's products account for 97 percent. Apart from Henan, the volume of orders for goods by central and western regions made up over 40 percent.

To facilitate the smooth implementation of this strategy, the provincial government has formulated a series of preferential policies. In an effort to explore markets in central and western regions, the province, cities and prefectures have all arranged a fixed amount of special funds which will be used in investigation and exploration of market and various sales promotion activities. At the same time, enterprises are required to intensify their efforts in readjustment of product mix and to produce products geared to the needs in these regions. Enterprises which sell over 50 percent of their products to other provinces will be given priority support by the governments at provincial, municipal and prefectural levels in terms of arrangement of technological renovation projects and funds; enterprises which have orders placed by other provinces for goods and have benefits but lack circulating fund loans will be granted more loans and placed under special household management and operated in a closed manner.